Moodys Corp

Finance
Finance: Consumer Services
www.moodys.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $89.65B
PE 45
Debt $8.26B
Cash $2.64B
EV $95.27B
FCF $2.33B

Earnings

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Sales & Net Margins

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Earnings	$2.00B
EBIT	$2.81B
ROE	49%
ROA	18%
FCF	$2.33B
Equity	$4.07B
Growth Stability	76%
PE	44.76
PEG	-42.47
PB	22.04
P/FCF	38.56
P/S	13
Price/Cash	0.03
Debt/Equity	2.03
Debt/FCF	3.55
Net Margins	31%
Gross Margins	73%
Op. Margins	41%
Earnings CAGR	14%
Sales Growth YoY	23%
Sales Growth QoQ	-0%
Sales CAGR	8%
FCF CAGR	11%
Equity CAGR	42%
Earnings Stability	0.52
Earnings Growth YoY	37%
Earnings Growth QoQ	-3%
Earnings CAGR 5Y	-1%

Sales CAGR 5Y	5%
FCF CAGR 5Y	-0%
Equity CAGR 5Y	33%
Earnings CAGR 3Y	3%
Sales CAGR 3Y	3%
FCF CAGR 3Y	18%
Equity CAGR 3Y	20%
Market Cap	$89.65B
Revenue	$6.90B
Dividend Yield	1%
Payout Ratio	30%
Assets	$15.77B
Total Debt	$8.26B
Cash	$2.64B
Shares Outstanding	181.2M
EV	95.27B
Earnings Score	75%
Moat Score	97%
Safety Score	82%
Final Score	85%
Working Capital	2.16B
Current Ratio	1.67
Gross Profit	$5.03B
Shares Growth 3y	-1%
Equity Growth QoQ	3%
Equity Growth YoY	21%

Assets & ROA

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Stockholders Equity & ROE

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Moody's, along with S&P Ratings, is a leading provider of credit ratings on fixed income securities. Moody's ratings segment, known as Moody's Investors Service or MIS, includes corporates, structured finance, financial institutions, and public finance ratings. MIS represents a majority of the firm's revenue and profits. Moody's other segment is Moody's Analytics and consists of Research, Data, and Analytics or RD&A and Enterprise Risk Solutions or ERS. RD&A's products include credit research, quantitative credit scores, economic research, business intelligence, know your customer (KYC) tools, commercial real estate data and analytical tools, and training services. ERS includes risk management software solutions to financial institutions.

SEC Filings

Direct access to Moodys Corp (MCO) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Moodys Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Moodys Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 14%

Stability 52%

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Moodys Corp Discounted Cash Flow

Fully customizable DCF calculator online for Moodys Corp .

Years

Calculation mode

= $50B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$2.3B	$2.6B	$2.9B	$3.2B	$3.5B	$3.9B	$4.4B	$4.8B	$5.4B	$6B	$6.6B	$66B
DCF		$2.3B	$2.4B	$2.4B	$2.4B	$2.4B	$2.5B	$2.5B	$2.5B	$2.5B	$2.6B	$26B
Value	$50B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	30%	27%	7%	24%	29%	29%	33%	36%	25%	27%	31%
ROA	-	29%	12%	21%	20%	19%	19%	19%	13%	15%	18%
ROE	-	-283%	-26%	-871%	199%	171%	101%	76%	51%	46%	49%

Good Net Margins (30.71%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	3.19	3.3	8.89	4.47	3.48	3.14	3.97	6.2	3.72	3.55
Debt over Equity	59.38	-10.21	-3.57	-50.83	9.33	6.72	3.64	2.54	2.75	2.01	2.03
Growth Stability	-	-	-	100%	100%	100%	100%	100%	76%	90%	76%

Neutral Debt/FCF ratio (3.55)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Bad Debt/Equity ratio (2.03)

The company is overleveraged and has a bad balance between equity and debt.

Bad Graham’s Stability (76%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	5%	3%	17%	6%	9%	11%	16%	-12%	8%	5%
Earnings YoY growth	-	-5%	-72%	275%	31%	9%	25%	25%	-38%	17%	-1%
Equity YoY growth	-	-876%	208%	-89%	-671%	27%	112%	65%	-8%	29%	33%
FCF YoY growth	-	13%	4%	-41%	109%	17%	27%	-9%	-36%	58%	-0%