MCO Stock Analysis: Moodys | NYSE
Financial Data & Stock Exchanges | NYSE, USA | Market Cap: 82.489m USD | 12M Return: -3.4% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 442M
EPS Trend: 99.4%
Qual. Beats: 6
Rev. Trend: 98.3%
Qual. Beats: 1
Warnings
No concerns identified
Tailwinds
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Moodys Corporation (MCO) is a global integrated risk assessment firm headquartered in New York, operating across the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company runs two main segments: Moodys Analytics (MA), which provides risk management products and data solutions for financial market participants, and Moodys Investors Services (MIS), which publishes credit ratings on corporate, financial institution, governmental, and structured finance obligations. The firm was founded in 1900 and previously operated as Dun and Bradstreet Company before adopting its current name in September 2000.
Within GICS classification, Moodys falls under the Financials sector within the Financial Exchanges & Data sub-industry, reflecting its position alongside other major credit ratings and financial data providers. Its business model is heavily diversified across both subscription-based SaaS offerings and transaction-driven ratings fees, serving clients in banking, insurance, corporations, public sector entities, and asset management. As a large-cap NYSE-listed company, Moodys generates revenue tied to debt issuance activity, ongoing risk management subscriptions, and regulatory compliance demand from financial institutions worldwide.
- Corporate bond issuance rebounds as Fed rate cuts boost rating fees
- Moodys Analytics SaaS subscription revenue compounds at double-digit pace
- Aggressive buybacks and tuck-in acquisitions drive EPS growth
| Net Income: 2.79b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.23 > 0.02 and ΔFCF/TA 7.85 > 1.0 |
| NWC/Revenue: 7.81% < 20% (prev 25.37%; Δ -17.57% < -1%) |
| CFO/TA 0.23 > 3% & CFO 3.32b > Net Income 2.79b |
| Net Debt (6.38b) to EBITDA (4.00b): 1.59 < 3 |
| Current Ratio: 1.19 > 1.5 & < 3 |
| Outstanding Shares: last quarter (175.9m) vs 12m ago -2.55% < -2% |
| Gross Margin: 71.94% > 18% (prev 66.51%; Δ 5.42% > 0.5%) |
| Asset Turnover: 54.11% > 50% (prev 47.18%; Δ 6.93% > 0%) |
| Interest Coverage Ratio: 15.86 > 6 (EBIT TTM 3.50b / Interest Expense TTM 221.0m) |
| A: 0.04 (Total Current Assets 3.98b - Total Current Liabilities 3.35b) / Total Assets 14.7b |
| B: 1.22 (Retained Earnings 17.9b / Total Assets 14.7b) |
| C: 0.23 (EBIT TTM 3.50b / Avg Total Assets 15.1b) |
| D: 0.26 (Book Value of Equity 3.02b / Total Liabilities 11.5b) |
| Altman-Z'' = 6.09 = AAA |
| DSRI: 0.93 (Receivables 1.92b/1.85b, Revenue 8.16b/7.31b) |
| GMI: 0.92 (GM 66.51% / 71.94%) |
| AQI: 0.99 (AQ_t 0.64 / AQ_t-1 0.65) |
| SGI: 1.12 (Revenue 8.16b / 7.31b) |
| TATA: -0.04 (NI 2.79b - CFO 3.32b) / TA 14.7b) |
| Beneish M = -3.08 (Cap -4..+1) = AA |
As of July 28, 2026, the stock is trading at USD 485.96 with a total of 586,722 shares traded. Over the past week, the price has changed by -3.84%, over one month by +7.34%, over three months by +5.73% and over the past year by -3.44%.
Current recommended Stop Loss: 462.90 (which is 4.7% or 1.7 ATR below the current price).
Moodys has received a consensus analysts rating of 4.22. Therefore, it is recommended to buy MCO.
- StrongBuy: 12
- Buy: 4
- Hold: 7
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 549.7 | 13.1% |
P/E Trailing = 31.048
P/E Forward = 29.4118
P/S = 10.109
P/B = 28.2774
P/EG = 2.2101
Revenue TTM = 8.16b USD
EBIT TTM = 3.50b USD
EBITDA TTM = 4.00b USD
Long Term Debt = 6.99b USD (from longTermDebt, last fiscal year)
Short Term Debt = 664.0m USD (from shortTermDebt, last quarter)
Debt = 7.87b USD (from shortLongTermDebtTotal, last quarter) + Leases 350.0m
Net Debt = 6.38b USD (calculated: Debt 7.87b - CCE 1.50b)
Enterprise Value = 88.9b USD (82.5b + Debt 7.87b - CCE 1.50b)
Interest Coverage Ratio = 15.86 (Ebit TTM 3.50b / Interest Expense TTM 221.0m)
EV/FCF = 26.15x (Enterprise Value 88.9b / FCF TTM 3.40b)
FCF Yield = 3.82% (FCF TTM 3.40b / Enterprise Value 88.9b)
FCF Margin = 41.64% (FCF TTM 3.40b / Revenue TTM 8.16b)
Net Margin = 34.25% (Net Income TTM 2.79b / Revenue TTM 8.16b)
Gross Margin = 71.94% ((Revenue TTM 8.16b - Cost of Revenue TTM 2.29b) / Revenue TTM)
Gross Margin QoQ = 76.29% (prev 74.46%)
Tobins Q-Ratio = 6.06 (Enterprise Value 88.9b / Total Assets 14.7b)
Interest Expense / Debt = 2.81% (Interest Expense 221.0m / Debt 7.87b)
Taxrate = 22.17% (797.0m / 3.60b)
NOPAT = 2.73b (EBIT 3.50b * (1 - 22.17%))
Current Ratio = 1.19 (Total Current Assets 3.98b / Total Current Liabilities 3.35b)
Debt / Equity = 2.60 (Debt 7.87b / totalStockholderEquity, last quarter 3.02b)
Debt / EBITDA = 1.59 (Net Debt 6.38b / EBITDA 4.00b)
Debt / FCF = 1.88 (Net Debt 6.38b / FCF TTM 3.40b)
Total Stockholder Equity = 3.51b (last 4 quarters mean from totalStockholderEquity)
RoA = 18.53% (Net Income 2.79b / Total Assets 14.7b)
RoE = 79.69% (Net Income TTM 2.79b / Total Stockholder Equity 3.51b)
RoCE = 33.38% (EBIT 3.50b / Capital Employed (Equity 3.51b + L.T.Debt 6.99b))
RoIC = 23.55% (NOPAT 2.73b / Invested Capital 11.6b)
WACC = 8.17% (E(82.5b)/V(90.4b) * Re(8.74%) + D(7.87b)/V(90.4b) * Rd(2.81%) * (1-Tc(0.22)))
Discount Rate = 8.74% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -96.71 | Cagr: -1.84%
[DCF] Terminal Value 77.97% ; FCFF base≈2.99b ; Y1≈3.42b ; Y5≈5.04b
[DCF] Fair Price = 397.7 (EV 75.8b - Net Debt 6.38b = Equity 69.5b / Shares 174.7m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 99.42 | EPS CAGR: 22.17% | SUE: 4.0 | # QB: 6
Revenue Correlation: 98.28 | Revenue CAGR: 13.15% | SUE: 2.22 | # QB: 1
EPS current Quarter (2026-09-30): EPS=4.37 | Chg30d=+0.06% | Revisions=+25% | Analysts=20
EPS current Year (2026-12-31): EPS=16.80 | Chg30d=+0.59% | Revisions=+50% | GrowthEPS=+12.4% | GrowthRev=+6.9%
EPS next Year (2027-12-31): EPS=18.66 | Chg30d=+0.32% | Revisions=+50% | GrowthEPS=+11.1% | GrowthRev=+7.2%
[Analyst] Revisions Ratio: +70% (up=7, down=0)