Moodys Corp

Finance
Finance: Consumer Services
www.moodys.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $83.47B
PE 40
Debt $6.82B
Cash $2.14B
EV $88.16B
FCF $2.50B

Earnings

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Sales & Net Margins

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Earnings	$2.11B
EBIT	$2.92B
ROE	55%
ROA	19%
FCF	$2.50B
Equity	$3.86B
Growth Stability	76%
PE	39.64
PEG	-37.98
PB	21.64
P/FCF	33.44
P/S	11.55
Price/Cash	0.03
Debt/Equity	1.77
Debt/FCF	2.73
Net Margins	32%
Gross Margins	73%
Op. Margins	40%
Earnings CAGR	15%
Sales Growth YoY	8%
Sales Growth QoQ	15%
Sales CAGR	8%
FCF CAGR	12%
Equity CAGR	36%
Earnings Stability	0.55
Earnings Growth YoY	8%
Earnings Growth QoQ	58%
Earnings CAGR 5Y	-1%

Sales CAGR 5Y	5%
FCF CAGR 5Y	2%
Equity CAGR 5Y	22%
Earnings CAGR 3Y	10%
Sales CAGR 3Y	10%
FCF CAGR 3Y	37%
Equity CAGR 3Y	20%
Market Cap	$83.47B
Revenue	$7.23B
Dividend Yield	1%
Payout Ratio	31%
Assets	$15.10B
Total Debt	$6.82B
Cash	$2.14B
Shares Outstanding	179.9M
EV	88.16B
Earnings Score	80%
Moat Score	97%
Safety Score	85%
Final Score	87%
Working Capital	1.65B
Current Ratio	1.56
Gross Profit	$5.26B
Shares Growth 3y	-1%
Equity Growth QoQ	4%
Equity Growth YoY	3%

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.

2025
- 10-Q Mar 31
2024
- 10-K Dec 31
- 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

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 15%

Stability 55%

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Moodys Corp Discounted Cash Flow

Fully customizable DCF calculator online for Moodys Corp .

Years

Calculation mode

= $58B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$2.5B	$2.8B	$3.1B	$3.5B	$4B	$4.4B	$5B	$5.6B	$6.3B	$7B	$7.9B	$79B
DCF		$2.5B	$2.6B	$2.6B	$2.7B	$2.8B	$2.8B	$2.9B	$2.9B	$3B	$3B	$30B
Value	$58B

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	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	27%	7%	24%	29%	29%	33%	36%	25%	27%	29%	32%
ROA	-	12%	21%	20%	19%	19%	19%	13%	15%	19%	19%
ROE	-	-26%	-871%	199%	171%	101%	76%	51%	46%	55%	55%

Good Net Margins (32.48%)

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	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	3.3	8.89	4.47	3.48	3.14	3.97	6.2	3.72	3.22	2.73
Debt over Equity	-10.21	-3.57	-50.83	9.33	6.72	3.64	2.54	2.75	2.01	2.18	1.77
Growth Stability	-	-	-	100%	100%	100%	100%	76%	90%	100%	76%

Neutral Debt/FCF ratio (2.73)

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 (1.77)

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	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	3%	17%	6%	9%	11%	16%	-12%	8%	20%	5%
Earnings YoY growth	-	-72%	275%	31%	9%	25%	25%	-38%	17%	28%	-1%
Equity YoY growth	-	208%	-89%	-671%	27%	112%	65%	-8%	29%	7%	22%
FCF YoY growth	-	4%	-41%	109%	17%	27%	-9%	-36%	58%	34%	2%