Moody's Corporation

Moody's Corporation

MCOยทNYSE

$448.39

-1.1%
Financial ServicesFinancial - Data & Stock Exchanges

Moody's Corporation operates as an integrated risk assessment firm worldwide. It operates in two segments, Moody's Investors Service and Moody's Analytics. The Moody's Investors Service segment publishes credit ratings and provides assessment services on various debt obligations, programs and facilities, and entities that issue such obligations, such as various corporate, financial institution, and governmental obligations, as well as and structured finance securities. This segment provides ratings in approximately 140 countries. Its ratings are disseminated through press releases to the public through electronic media, including the internet and real-time information systems used by securities traders and investors. This segment has rated approximately 5,000 non-financial corporates; 3,600 financial institutions; 16,000 public finance issuers; 145 sovereigns; 47 supranational institutions; 459 sub-sovereigns; and 1,000 infrastructure and project finance issuers, as well as 9,100 structured finance deals. The Moody's Analytics segment develops a range of products and services that support the risk management activities of institutional participants in financial markets; and offers subscription based research, data, and analytical products comprising credit ratings, credit research, quantitative credit scores and other analytical tools, economic research and forecasts, business intelligence and company information products, commercial real estate data and analytical tools, and on-line and classroom-based training services, as well as credentialing and certification services. It also offers offshore analytical and research services with learning solutions and certification programs; and software solutions, as well as related risk management services. The company was formerly known as Dun and Bradstreet Company and changed its name to Moody's Corporation in September 2000. Moody's Corporation was founded in 1900 and is headquartered in New York, New York.

At a Glance

Live Snapshot
Market Cap$78.33B
EPS13.7300
P/E Ratio32.66
Earnings Date07/22/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is elevated (P/E 32.7).

Valuation inputs: P/E 32.7, earnings yield +3.1%, momentum -1.1%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is strong (ROE +60.7%, ROIC +21.0%).

Profitability stack: net margin +31.9%, ROE +60.7%, ROIC +21.0%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +73.4%, momentum -1.1%, net margin +31.9%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

mco

Moody's Corporation Market vs Earnings Trajectory

MCO ยท NYSE

Loading price and EPS data...

Moody's Corporation

Moody's Corporation Fair Value Envelope

MCO ยท NYSE

Our analysis suggests that MCO has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $448.39, this represents a potential HIDDEN relative to our calculated worth for Moody's Corporation.

Intrinsic Value
Current Price: $448.39
3Y+84.0%
5Y+45.0%
10Y+895.0%
3Y+41.0%
5Y+44.0%
10Y+114.0%
3Y+79.0%
5Y+38.0%
10Y+822.0%
3Y+97.0%
5Y+35.0%
10Y+137.0%
3Y+116.0%
5Y+26.0%
10Y+132.0%
3Y+10.0%
5Y+28.0%
10Y+197.0%
Moody's Corporation

Moody's Corporation Profit Bridge

MCO ยท NYSE
Revenue7.72B
Cost of Goods Sold (2.46B)
Gross Profit5.26B
Operating Expenses (1.80B)
Operating Income3.46B
Interest Expense (189.00M)
Other Income/Expense-325.00M
Pretax Income3.13B
Income Tax (668.00M)
Net Income2.46B
Net Income
2.46B

Profitability Analysis

Gross Margin

68.2%

Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.

Operating Margin

44.8%

Outstanding operational efficiency. The company generates substantial profit from core operations.

Net Profit Margin

31.9%

Exceptional profitability. The company converts a significant portion of revenue to bottom-line earnings.

Effective Tax Rate

21.3%

Moderate tax rate typical for most corporations. Represents standard tax burden on profits.

Profitability Insight

Exceptional profitability across all levels: Strong pricing power, efficient operations, and healthy bottom line indicate a high-quality business with sustainable competitive advantages.

68.15%
Gross Profit Margin
3%
3Y+6.0%
5Y-
10Y-1.0%
44.77%
Operating Profit Margin
7%
3Y+23.0%
5Y-2.0%
10Y+7.0%
31.86%
Net Profit Margin
10%
3Y+27.0%
5Y-4.0%
10Y+331.0%
60.66%
Return on Equity
5%
3Y+11.0%
5Y-46.0%
10Y-379.0%
15.53%
Return on Assets
17%
3Y+62.0%
5Y+8.0%
10Y+210.0%
21.00%
Return on Invested Capital
18%
3Y+63.0%
5Y+11.0%
10Y-10.0%
MCO

Moody's Corporation Cash Conversion Engine

MCO ยท NYSE
Net Income2.46B
Depreciation & Amortization480.00M
Stock-Based Compensation232.00M
Change in Working Capital-254.00M
Others1.00M
Capital Expenditures-326.00M
Free Cash Flow2.58B

Cash Flow Quality Analysis

FCF Conversion Rate

104.7%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

11.2%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

+2.1%

Flat FCF growth. Stable but not expandingโ€”monitor for signs of business maturity or temporary headwinds.

Working Capital Impact

-$254.00M

Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.

Cash Flow Quality Insight

Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.

mco

Moody's Corporation Funding & Solvency Profile

MCO ยท NYSE
Cash & Cash Equivalents1.47B
Net Receivables2.04B
Inventory0.00
Other Current Assets660.00M
Total Current Assets4 B
Property, Plant & Equipment1.01B
Goodwill & Intangible Assets8.14B
Long-Term Investments0.00
Other Non-Current Assets1.12B
Total Non-Current Assets2 B
Total Assets
14.73B

Financial Health Analysis

Current Ratio

1.16x

Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.

Debt-to-Equity Ratio

3.69x

High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.

Working Capital

571 M

Positive working capital, but relatively tight. The company should monitor cash flow carefully.

Asset Composition

29% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

mco

Moody's Corporation Street Expectations Map

MCO ยท NYSE

Wall Street analysts project that MCO stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 544.75, with estimates ranging from a low of 489.00 to a high of 610.00.

Lowest Target
489.00
9.06%
Consensus Target
544.75
21.49%
Highest Target
610.00
36.04%

The consensus 1-year price target stands at 544.75, with estimates ranging from a low of 489.00 to a high of 610.00.

Analyst Consensus Analysis

Upside Potential

+21.5%

Strong upside potential. Consensus indicates attractive return opportunity with favorable risk-reward profile.

Analyst Agreement

22.2% spread

Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.

Analyst Conviction

Very High

Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.

Market Sentiment Insight

Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.

mco

Moody's Corporation Insider Positioning

MCO ยท NYSE

During the last 12 months, insiders have sold $13.26M worth of MCO shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

3.3K

1.49M

Net Activity

-1.5M

-$1.49M

3-6 Months

Bought

0

0.00

Sold

14.7K

6.97M

Net Activity

-7.0M

-$6.97M

6-9 Months

Bought

0

0.00

Sold

4.2K

2.02M

Net Activity

-2.0M

-$2.02M

9-12 Months

Bought

0

0.00

Sold

5.5K

2.78M

Net Activity

-2.8M

-$2.78M

Top Buyers

No buying activity

Top Sellers

1
FR

Fauber Robert

Director, Officer: President And Ceo

17.1K sharesโ€ข21 transactions

$8.15M

2
WML

West Michael L

Officer: President, Moody'S Investors

7.6K sharesโ€ข3 transactions

$3.64M

3
SRG

Steele Richard G

Officer: Svp - General Counsel

1.5K sharesโ€ข6 transactions

$716K

4
HNC

Heuland Noemie Clemence

Officer: Svp & Chief Financial Officer

883 sharesโ€ข2 transactions

$444K

5
PJD

Phillips Jason D

Officer: Chief Acctg Off & Controller

333 sharesโ€ข1 transactions

$157K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $13.26M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Recent Trend (3 Months)

$1.49M

Heavy recent selling activity. Recent insider sales notably exceed purchasesโ€”may warrant investigation into company developments.

Insider Participation

High Selling

5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

Insider Activity Insight

Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.

0.24%
Dividend Yield
31%
3Y-5.0%
5Y+16.0%
10Y-39.0%
ย 

mco Dividend History

MCO
10Y CAGR +11%
Latest $1.03
Annual $4.88
5 year growth trend
Last Period: +0%