A Business at a Glance
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MOODYS CORP /DE/
MCO
$84.8B
Mkt Cap
$471.50
-0.16%
MOODYS CORP /DE/ (MCO) has a current P/E ratio of 34.5, compared to its historical median P/E of 34.3. The stock is currently considered Fair based on its historical valuation range.
MOODYS CORP /DE/ (MCO) has a 5-year average return on invested capital (ROIC) of 25.5%. This indicates strong capital allocation and a potential competitive advantage.
MOODYS CORP /DE/ (MCO) has a market capitalization of $82.4B. It is classified as a large-cap stock.
Yes, MOODYS CORP /DE/ (MCO) pays a dividend with a trailing twelve-month yield of 0.84%. The company also returns capital through share buybacks, with a buyback yield of 3.28%.
Based on historical P/E analysis, MOODYS CORP /DE/ (MCO) appears fair. The current P/E of 34.5 is 1% above its historical median of 34.3. The estimated fair value CAGR (P/E method) is 5.5%.
MOODYS CORP /DE/ (MCO) operates in the Services-Consumer Credit Reporting, Collection Agencies industry, within the Industrials sector.
MOODYS CORP /DE/ (MCO) reported annual revenue of $7.7 billion in its most recent fiscal year, based on SEC EDGAR filings.
Moody's Corporation is a global integrated risk assessment firm operating through two reportable segments: Moody's Analytics (MA) and Moody's Investors Service (MIS). MA provides curated data, intelligence, and analytical tools to financial services, corporate, and public sector customers through three primary components: a premier fixed income and economic research business; a data business powered by the world's largest database on companies and credit; and three cloud-based subscription businesses serving banking, insurance, and know-your-customer (KYC) workflows that enable customers to integrate proprietary data and analytics into their decision-making processes. MIS is a leading global provider of credit ratings, research, and risk analysis, publishing credit ratings and assessment services on debt obligations and entities across corporate, financial institution, governmental, and structured finance markets worldwide, while also generating revenue from non-ratings operations including financial instruments pricing services and Net Zero Assessments. Moody's business model is characterized by high recurring revenue concentration (MA at 93% recurring revenue with 93% retention), subscription-based and transactional revenue streams, and a global distribution model serving mission-critical workflows across lending, underwriting, compliance, and risk management for banks, insurers, investors, corporations, and governments across more than 40 countries. The company's competitive moat derives from its vast proprietary and curated data, validated analytical models, decades of financial and risk expertise, and integrated decision-grade intelligence embedded into customer workflows, with particular strength in the ratings business driven by regulatory requirements and market transparency needs in global debt markets.
【Structural margin expansion underway】 Management expects continued margin improvement across both segments through 2026 and beyond, driven by prior restructuring actions, disciplined cost management, and structural changes including GenAI-enabled product development processes and optimized sales capacity allocation. MIS is expected to benefit from strong operating leverage supported by ongoing technology investments and disciplined capital allocation, with full-year 2026 operating margin projected at approximately 65%, up 150 basis points versus 2025. MA is anticipated to sustain margin expansion towards mid-to-high 30s targets by end of 2027, with efficiency initiatives including AI-enabled tools expected to lower unit costs in product development and scale impact without proportional headcount increases. Demand remains healthy across both businesses, with KYC and compliance growth driven by scale, complexity, and regulatory expectations, while banking ARR growth is supported by strong adoption of lending solutions and cross-selling to existing customers, with ARR expected to grow in the high single-digit percent range for 2026.
No forward guidance provided.
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 7.9B | 7.7B | 7.1B | 5.9B | 5.5B | 6.2B |
| Net Income | 2.5B | 2.5B | 2.1B | 1.6B | 1.4B | 2.2B |
| EPS | $14.02 | $13.67 | $11.26 | $8.73 | $7.44 | $11.78 |
| Free Cash Flow | 2.7B | 2.6B | 2.5B | 1.9B | 1.2B | 1.9B |
| ROIC | 31.7% | 31.1% | 26.6% | 21.4% | 17.5% | 30.7% |
| Gross Margin | - | 74.4% | 72.6% | 71.5% | 70.5% | 73.7% |
| Debt/Equity | 2.33 | 1.81 | 2.17 | 2.23 | 3.12 | 2.92 |
| Dividends/Share | $3.96 | $3.76 | $3.40 | $3.08 | $2.80 | $2.48 |
| Operating Income | 3.4B | 3.4B | 2.9B | 2.1B | 1.9B | 2.8B |
| Operating Margin | 43.5% | 43.4% | 40.6% | 36.1% | 34.4% | 45.7% |
| ROE | 83.3% | 64.5% | 59.8% | 55.1% | 52.4% | 103.1% |
| Shares Outstanding | 175M | 180M | 183M | 184M | 185M | 188M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 3.3B | 3.5B | 3.6B | 4.2B | 4.4B | 4.8B | 5.4B | 6.2B | 5.5B | 5.9B | 7.1B | 7.7B | 7.9B |
| Gross Margin | 72.1% | 72.0% | 71.7% | 71.1% | 72.0% | 71.3% | 72.5% | 73.7% | 70.5% | 71.5% | 72.6% | 74.4% | N/A |
| R&D | 38M | 29M | 40M | 42M | 51M | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 869M | 921M | 931M | 986M | 1.1B | 1.2B | 1.2B | 1.5B | 1.5B | 1.6B | 1.7B | 1.8B | 1.8B |
| EBIT | 1.4B | 1.5B | 651M | 1.8B | 1.9B | 2.0B | 2.4B | 2.8B | 1.9B | 2.1B | 2.9B | 3.4B | 3.4B |
| Op. Margin | 43.2% | 42.3% | 18.1% | 43.3% | 42.0% | 41.4% | 44.5% | 45.7% | 34.4% | 36.1% | 40.6% | 43.4% | 43.5% |
| Net Income | 989M | 941M | 267M | 1.0B | 1.3B | 1.4B | 1.8B | 2.2B | 1.4B | 1.6B | 2.1B | 2.5B | 2.5B |
| Net Margin | 29.7% | 27.0% | 7.4% | 23.8% | 29.5% | 29.4% | 33.1% | 35.6% | 25.1% | 27.2% | 29.0% | 31.9% | 31.7% |
| Non-Recurring | 2.3M | 1.2M | 12M | 0 | 49M | 46M | 77M | 0 | 143M | 122M | 91M | 140M | 102M |
| Returns on Capital | |||||||||||||
| ROIC | 170.2% | 139.7% | 157.3% | 55.4% | 25.0% | 27.5% | 31.2% | 30.7% | 17.5% | 21.4% | 26.6% | 31.1% | 31.7% |
| ROE | N/A | -250.1% | -29.8% | -128.9% | 285.4% | 265.5% | 163.0% | 103.1% | 52.4% | 55.1% | 59.8% | 64.5% | 83.3% |
| ROA | 21.8% | 19.3% | 5.1% | 14.4% | 14.5% | 14.4% | 15.7% | 16.3% | 9.5% | 11.1% | 13.7% | 15.7% | 16.9% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 1.0B | 1.2B | 1.3B | 755M | 1.5B | 1.7B | 2.1B | 2.0B | 1.5B | 2.2B | 2.8B | 2.9B | 3.1B |
| Free Cash Flow | 944M | 1.1B | 1.1B | 664M | 1.4B | 1.6B | 2.0B | 1.9B | 1.2B | 1.9B | 2.5B | 2.6B | 2.7B |
| Owner Earnings | 871M | 997M | 1.0B | 474M | 1.1B | 1.3B | 1.8B | 1.6B | 974M | 1.6B | 2.2B | 2.2B | 1.2B |
| CapEx | 75M | 89M | 115M | 91M | 91M | 69M | 103M | 139M | 283M | 271M | 317M | 326M | 336M |
| Maint. CapEx | 67M | 114M | 127M | 158M | 192M | 200M | 220M | 257M | 331M | 373M | 431M | 480M | 1.7B |
| Growth CapEx | 7.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 67M | 114M | 127M | 158M | 192M | 200M | 220M | 257M | 331M | 373M | 431M | 480M | 1.7B |
| CapEx/OCF | 7.3% | 7.7% | 9.1% | 12.0% | 6.2% | 4.1% | 4.8% | 6.9% | 19.2% | 12.6% | 11.2% | 11.2% | 10.9% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 236M | 272M | 285M | 290M | 337M | 378M | 420M | 463M | 515M | 564M | 620M | 701M | 691M |
| Dividend Yield | 1.4% | 1.4% | 1.6% | 1.3% | 1.1% | 1.1% | 0.9% | 0.7% | 1.0% | 1.0% | 0.8% | 0.8% | 0.8% |
| Share Buybacks | 1.2B | 1.1B | 739M | 200M | 203M | 991M | 503M | 750M | 983M | 490M | 1.3B | 1.6B | 2.7B |
| Buyback Yield | 6.5% | 5.9% | 4.3% | 0.7% | 0.8% | 2.3% | 1.0% | 1.0% | 2.0% | 0.7% | 1.5% | 1.7% | 3.3% |
| Stock-Based Comp | 80M | 87M | 98M | 123M | 130M | 136M | 154M | 175M | 169M | 193M | 220M | 232M | 234M |
| Debt Repayment | 11M | 9.5M | 100K | 27M | 11M | 12M | 0 | 13M | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | 870M | 1.1B | 1.1B | 4.4B | 4.8B | 5.5B | 5.0B | 6.1B | 6.0B | 5.2B | 4.8B | 4.9B | 5.5B |
| Cash & Equiv. | 1.2B | 1.8B | 2.1B | 1.1B | 1.7B | 1.8B | 2.6B | 1.8B | 1.8B | 2.1B | 2.4B | 2.4B | 1.5B |
| Long-Term Debt | 2.5B | 3.4B | 3.1B | 5.1B | 5.2B | 5.6B | 6.4B | 7.4B | 7.4B | 7.0B | 6.7B | 7.0B | 6.4B |
| Debt/Equity | -13.56 | -5.98 | -2.75 | -16.91 | 14.52 | 12.21 | 4.93 | 2.92 | 3.12 | 2.23 | 2.17 | 1.81 | 2.33 |
| Interest Coverage | 12.2 | 12.2 | 4.6 | 9.6 | 9.5 | 11.4 | 14.7 | 15.4 | 8.7 | 7.2 | 9.6 | 13.4 | 489.6 |
| Equity | -188M | -565M | -1.2B | -328M | 459M | 612M | 1.6B | 2.7B | 2.5B | 3.3B | 3.6B | 4.1B | 3.0B |
| Total Assets | 4.7B | 5.1B | 5.3B | 8.6B | 9.5B | 10.3B | 12.4B | 14.7B | 14.3B | 14.6B | 15.5B | 15.8B | 14.7B |
| Total Liabilities | 4.6B | 5.4B | 6.4B | 8.7B | 8.9B | 9.4B | 10.6B | 11.8B | 11.7B | 11.1B | 11.8B | 11.6B | 11.6B |
| Intangibles | 346M | 299M | 296M | 1.6B | 1.6B | 1.5B | 1.8B | 2.5B | 2.2B | 2.0B | 1.9B | 1.9B | 1.8B |
| Retained Earnings | 6.0B | 6.7B | 6.7B | 7.5B | 8.6B | 9.7B | 11.0B | 12.8B | 13.6B | 14.7B | 16.1B | 17.9B | 18.3B |
| Working Capital | 1.5B | 2.0B | 825M | 517M | 1.3B | 1.8B | 2.3B | 1.5B | 1.7B | 1.8B | 1.7B | 2.2B | 571M |
| Current Assets | 2.7B | 3.2B | 3.3B | 2.6B | 3.4B | 3.7B | 4.5B | 4.0B | 4.1B | 4.3B | 5.3B | 5.2B | 4.2B |
| Current Liabilities | 1.2B | 1.2B | 2.4B | 2.1B | 2.1B | 1.9B | 2.2B | 2.5B | 2.4B | 2.5B | 3.6B | 3.0B | 3.6B |
| Per Share Data | |||||||||||||
| EPS | 4.61 | 4.63 | 1.36 | 5.15 | 6.74 | 7.42 | 9.39 | 11.78 | 7.44 | 8.73 | 11.26 | 13.67 | 14.02 |
| Owner EPS | 4.06 | 4.91 | 5.28 | 2.44 | 5.86 | 6.99 | 9.36 | 8.37 | 5.27 | 8.61 | 11.97 | 12.17 | 6.65 |
| Book Value | -0.88 | -2.78 | -6.25 | -1.69 | 2.36 | 3.19 | 8.29 | 14.51 | 13.64 | 18.02 | 19.51 | 22.54 | 17.14 |
| Cash Flow/Share | 4.75 | 5.89 | 6.42 | 3.88 | 7.52 | 8.74 | 11.33 | 10.67 | 7.98 | 11.69 | 15.53 | 16.13 | 23.94 |
| Dividends/Share | 1.18 | 1.39 | 1.49 | 1.14 | 1.76 | 2.00 | 2.24 | 2.48 | 2.80 | 3.08 | 3.40 | 3.76 | 3.96 |
| Shares Out. | 214.5M | 203.3M | 196.0M | 194.4M | 194.4M | 191.6M | 189.4M | 187.9M | 184.7M | 184.1M | 182.8M | 179.9M | 174.7M |
| Valuation | |||||||||||||
| P/E Ratio | 19.0 | 19.7 | 64.1 | 26.7 | 19.5 | 30.7 | 28.4 | 32.8 | 35.8 | 44.1 | 42.0 | 38.0 | 33.6 |
| P/FCF | 19.9 | 16.7 | 14.9 | 40.3 | 18.6 | 27.2 | 24.7 | 38.9 | 41.3 | 37.7 | 34.3 | 36.3 | 30.0 |
| EV/EBIT | 13.7 | 13.4 | 29.0 | 17.1 | 16.0 | 23.7 | 22.7 | 27.4 | 29.1 | 35.4 | 31.9 | 29.3 | 25.6 |
| Price/Book | N/A | N/A | N/A | N/A | 55.6 | 71.3 | 32.2 | 26.6 | 19.5 | 21.3 | 24.3 | 23.1 | 27.5 |
| Price/Sales | 5.0 | 5.4 | 4.9 | 5.4 | 6.7 | 7.4 | 8.9 | 10.0 | 9.9 | 9.9 | 11.0 | 11.2 | 10.5 |
| FCF Yield | 5.0% | 6.0% | 6.7% | 2.5% | 5.4% | 3.7% | 4.0% | 2.6% | 2.4% | 2.7% | 2.9% | 2.8% | 3.3% |
| Market Cap | 18.8B | 18.5B | 17.1B | 26.8B | 25.5B | 43.6B | 50.5B | 72.5B | 49.2B | 70.8B | 86.5B | 93.5B | 82.4B |
| Avg. Price | 77.57 | 92.44 | 89.77 | 115.97 | 153.99 | 185.70 | 253.42 | 330.78 | 292.38 | 319.53 | 426.39 | 482.12 | 471.50 |
| Year-End Price | 87.57 | 91.17 | 87.12 | 137.70 | 131.21 | 227.62 | 266.59 | 385.93 | 266.25 | 384.61 | 473.15 | 520.04 | 471.50 |
MOODYS CORP /DE/ passes 7 of 9 quality checks, indicating strong fundamentals.
MOODYS CORP /DE/ trades at 34.5x trailing earnings, compared to its 15-year median P/E of 34.3x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 32.5x vs a median of 35.3x. The company's 5-year average ROIC is 25.5% with a gross margin of 72.5%. Total shareholder yield (dividends + buybacks) is 4.1%. At current prices, the estimated annualized return to fair value is +6.7%.
MOODYS CORP /DE/ (MCO) has a net profit margin of 31.9%. This is a strong margin indicating high profitability.
MOODYS CORP /DE/ (MCO) generated $2.6 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
MOODYS CORP /DE/ (MCO) has a debt-to-equity ratio of 1.81. This indicates higher leverage, which may increase financial risk.
MOODYS CORP /DE/ (MCO) reported earnings per share (EPS) of $13.67 in its most recent fiscal year.
MOODYS CORP /DE/ (MCO) has a return on equity (ROE) of 64.5%. This indicates the company generates strong returns for shareholders.
MOODYS CORP /DE/ (MCO) has a 5-year average gross margin of 72.5%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 19 years of financial data for MOODYS CORP /DE/ (MCO), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
MOODYS CORP /DE/ (MCO) has a book value per share of $22.54, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued margin improvement across both segments through 2026 and beyond, driven by prior restructuring actions, disciplined cost management, and structural changes including GenAI-enabled product development processes and optimized sales capacity allocation. MIS is expected to benefit from strong operating leverage supported by ongoing technology investments and disciplined capital allocation, with full-year 2026 operating margin projected at approximately 65%, up 150 basis points versus 2025. MA is anticipated to sustain margin expansion towards mid-to-high 30s targets by end of 2027, with efficiency initiatives including AI-enabled tools expected to lower unit costs in product development and scale impact without proportional headcount increases. Demand remains healthy across both businesses, with KYC and compliance growth driven by scale, complexity, and regulatory expectations, while banking ARR growth is supported by strong adoption of lending solutions and cross-selling to existing customers, with ARR expected to grow in the high single-digit percent range for 2026.
No recent press releases.