(MCO) Moodys - Overview
Sector: Financial Services | Industry: Financial Data & Stock Exchanges | Exchange: NYSE (USA) | Market Cap: 78.451m USD | Total Return: -5.9% in 12m
Avg Turnover: 485M
EPS Trend: 99.3%
Qual. Beats: 5
Rev. Trend: 98.4%
Qual. Beats: 0
Warnings
Choppy Below Avwap Earnings
Tailwinds
No distinct edge detected
Moody’s Corporation (MCO) is a global risk assessment firm operating through two primary segments: Moodys Investors Service (MIS) and Moodys Analytics (MA). MIS functions as a credit rating agency, providing credit ratings and assessment services for debt obligations issued by corporate, financial, and governmental entities. MA focuses on non-rating activities, offering data, software, and advisory services to support risk management, regulatory compliance, and financial modeling for institutional clients.
The company operates within a highly concentrated credit rating industry, where a small number of firms control the majority of the market share, creating significant barriers to entry. This business model benefits from high operating margins due to the essential nature of credit ratings for debt issuance and the recurring revenue generated by subscription-based data services. For a deeper dive into these competitive advantages, you may find it useful to explore the valuation metrics on ValueRay.
Founded in 1900 and headquartered in New York, Moody’s serves a broad client base including banks, insurance companies, and asset managers across the Americas, EMEA, and Asia Pacific. The firm’s evolution from the former Dun and Bradstreet Company into a specialized provider of SaaS solutions and business intelligence reflects a strategic shift toward digitizing financial risk workflows.
- Global debt issuance volume fluctuations directly impact credit rating revenue growth
- Interest rate volatility shifts corporate refinancing demand and bond market activity
- Moody’s Analytics subscription growth provides recurring revenue and reduces cyclicality
- Stringent financial regulations increase compliance costs and potential legal liability risks
- Strategic acquisitions in data and risk management expand software segment margins
| Net Income: 2.50b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.20 > 0.02 and ΔFCF/TA 3.78 > 1.0 |
| NWC/Revenue: 7.25% < 20% (prev 20.88%; Δ -13.63% < -1%) |
| CFO/TA 0.21 > 3% & CFO 3.08b > Net Income 2.50b |
| Net Debt (6.15b) to EBITDA (3.95b): 1.56 < 3 |
| Current Ratio: 1.16 > 1.5 & < 3 |
| Outstanding Shares: last quarter (177.3m) vs 12m ago -1.88% < -2% |
| Gross Margin: 69.69% > 18% (prev 0.67%; Δ 6.90k% > 0.5%) |
| Asset Turnover: 52.79% > 50% (prev 47.87%; Δ 4.92% > 0%) |
| Interest Coverage Ratio: 17.22 > 6 (EBITDA TTM 3.95b / Interest Expense TTM 201.0m) |
| A: 0.04 (Total Current Assets 4.21b - Total Current Liabilities 3.64b) / Total Assets 14.7b |
| B: 1.24 (Retained Earnings 18.3b / Total Assets 14.7b) |
| C: 0.23 (EBIT TTM 3.46b / Avg Total Assets 14.9b) |
| D: 1.54 (Book Value of Equity 17.8b / Total Liabilities 11.6b) |
| Altman-Z'' = 7.48 = AAA |
| DSRI: 0.99 (Receivables 2.04b/1.89b, Revenue 7.87b/7.23b) |
| GMI: 0.96 (GM 69.69% / 66.61%) |
| AQI: 1.00 (AQ_t 0.65 / AQ_t-1 0.65) |
| SGI: 1.09 (Revenue 7.87b / 7.23b) |
| TATA: -0.04 (NI 2.50b - CFO 3.08b) / TA 14.7b) |
| Beneish M = -3.05 (Cap -4..+1) = AA |
As of May 26, 2026, the stock is trading at USD 449.12 with a total of 502,900 shares traded.
Over the past week, the price has changed by +4.71%,
over one month by -2.29%,
over three months by -2.63% and
over the past year by -5.89%.
Moodys has received a consensus analysts rating of 3.88. Therefore, it is recommended to buy MCO.
- StrongBuy: 10
- Buy: 3
- Hold: 11
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 536 | 19.3% |
P/E Trailing = 32.2644
P/E Forward = 27.1739
P/S = 9.9645
P/B = 26.2026
P/EG = 2.0453
Revenue TTM = 7.87b USD
EBIT TTM = 3.46b USD
EBITDA TTM = 3.95b USD
Long Term Debt = 6.39b USD (from longTermDebt, last quarter)
Short Term Debt = 670.0m USD (from shortTermDebt, last quarter)
Debt = 7.66b USD (from shortLongTermDebtTotal, last quarter) + Leases 350.0m
Net Debt = 6.15b USD (calculated: Debt 7.66b - CCE 1.51b)
Enterprise Value = 84.6b USD (78.5b + Debt 7.66b - CCE 1.51b)
Interest Coverage Ratio = 17.22 (Ebit TTM 3.46b / Interest Expense TTM 201.0m)
EV/FCF = 28.28x (Enterprise Value 84.6b / FCF TTM 2.99b)
FCF Yield = 3.54% (FCF TTM 2.99b / Enterprise Value 84.6b)
FCF Margin = 38.00% (FCF TTM 2.99b / Revenue TTM 7.87b)
Net Margin = 31.69% (Net Income TTM 2.50b / Revenue TTM 7.87b)
Gross Margin = 69.69% ((Revenue TTM 7.87b - Cost of Revenue TTM 2.39b) / Revenue TTM)
Gross Margin QoQ = 74.46% (prev 66.86%)
Tobins Q-Ratio = 5.74 (Enterprise Value 84.6b / Total Assets 14.7b)
Interest Expense / Debt = 2.62% (Interest Expense 201.0m / Debt 7.66b)
Taxrate = 24.02% (209.0m / 870.0m)
NOPAT = 2.63b (EBIT 3.46b * (1 - 24.02%))
Current Ratio = 1.16 (Total Current Assets 4.21b / Total Current Liabilities 3.64b)
Debt / Equity = 2.56 (Debt 7.66b / totalStockholderEquity, last quarter 2.99b)
Debt / EBITDA = 1.56 (Net Debt 6.15b / EBITDA 3.95b)
Debt / FCF = 2.06 (Net Debt 6.15b / FCF TTM 2.99b)
Total Stockholder Equity = 3.74b (last 4 quarters mean from totalStockholderEquity)
RoA = 16.73% (Net Income 2.50b / Total Assets 14.7b)
RoE = 66.74% (Net Income TTM 2.50b / Total Stockholder Equity 3.74b)
RoCE = 34.18% (EBIT 3.46b / Capital Employed (Equity 3.74b + L.T.Debt 6.39b))
RoIC = 25.66% (NOPAT 2.63b / Invested Capital 10.2b)
WACC = 8.32% (E(78.5b)/V(86.1b) * Re(8.94%) + D(7.66b)/V(86.1b) * Rd(2.62%) * (1-Tc(0.24)))
Discount Rate = 8.94% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.56 | Cagr: -1.54%
[DCF] Terminal Value 77.97% ; FCFF base≈2.79b ; Y1≈3.20b ; Y5≈4.71b
[DCF] Fair Price = 370.8 (EV 70.9b - Net Debt 6.15b = Equity 64.8b / Shares 174.7m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 99.33 | EPS CAGR: 22.66% | SUE: 1.08 | # QB: 5
Revenue Correlation: 98.35 | Revenue CAGR: 13.97% | SUE: 0.33 | # QB: 0
EPS current Quarter (2026-06-30): EPS=4.18 | Chg30d=-2.84% | Revisions=-48% | Analysts=20
EPS next Quarter (2026-09-30): EPS=4.37 | Chg30d=+0.25% | Revisions=+39% | Analysts=20
EPS current Year (2026-12-31): EPS=16.70 | Chg30d=+0.14% | Revisions=-22% | GrowthEPS=+11.8% | GrowthRev=+6.7%
EPS next Year (2027-12-31): EPS=18.60 | Chg30d=-0.34% | Revisions=-17% | GrowthEPS=+11.4% | GrowthRev=+7.5%
[Analyst] Revisions Ratio: -48%