Moody's Corporation (MCO)
Financials · $82.0B market cap · SEC CIK 0001059556
fundamentals score out of 100
Next reports on Oct 20, 2026, before the open, with analysts expecting $4.29 in earnings per share.
The case for MCO
- Earns 80% on shareholder equity.
- 34% of revenue drops through to net profit.
- Revenue growing 11.7% year over year.
- Earnings per share up 34.0%.
- A PEG of 0.86: a P/E of 29.3× is low for EPS growing 34%.
- Gross margin of 75% absorbs cost shocks.
The case against
- Priced at 26× book value. Very little hard asset backing here.
- Stability is weak (38/100): beta 1.32, a 26% swing over the year.
- P/E of 29.3× is higher than 85% of Financials companies.
- Price/sales of 10.0× is higher than 93% of Financials companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Financials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 22 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 59 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 92 |
| Momentumhow the price has behaved lately | 49 |
| Stabilityhow violently it moves, what it owes and what it pays you | 38 |
- Its debt and cash flow are not scored, as for every company in the Financials sector: for banks, insurers and brokers, borrowing is the business.
- Each factor except momentum is half fixed thresholds, half rank among the 74 Financials companies.
Key numbers
| Price / earnings | 29.3× |
|---|---|
| Price / book | 26.16× |
| Price / sales | 10.0× |
| Revenue growth (YoY) | +11.7% |
| EPS growth (YoY) | +34.0% |
| Gross margin | 75% |
| Operating margin | 46% |
| Net margin | 34% |
| Return on equity | 80% |
| Debt / equity | 2.30× |
| Current ratio | 1.19 |
| Dividend yield | 0.85% |
| Beta | 1.32 |
| 52-week range | $402.28 – $546.88 |
| Position in that range | 46% of the way up |
| 3-month return | +3.7% |
| 1-year return | -2.8% |
Five years of financials, as filed
Pulled from Moody's Corporation's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $7.7B | $7.1B | $5.9B | $5.5B | $6.2B |
| Operating income | $3.4B | $2.9B | $2.1B | $1.9B | $2.8B |
| Net income | $2.5B | $2.1B | $1.6B | $1.4B | $2.2B |
| Operating cash flow | $2.9B | $2.8B | $2.2B | $1.5B | $2.0B |
| Capital expenditure | $326M | $317M | $271M | $283M | $139M |
| Total assets | $15.8B | $15.5B | $14.6B | $14.3B | $14.7B |
| Total liabilities | $11.6B | $11.8B | $11.1B | $11.7B | $11.8B |
| Shareholder equity | $4.1B | $3.6B | $3.3B | $2.5B | $2.7B |
| Cash | $2.4B | $2.4B | $2.1B | $1.8B | $1.8B |
| Long-term debt | $7.0B | $6.7B | $7.0B | $7.4B | $7.4B |
| Free cash flow | $2.6B | $2.5B | $1.9B | $1.2B | $1.9B |
| Operating margin | 43.4% | 40.6% | 36.1% | 34.4% | 45.7% |
| Net margin | 31.9% | 29.0% | 27.2% | 25.1% | 35.6% |
| Diluted shares | 180M | 183M | 184M | 185M | 188M |
Share count is down 4.3% over 4 years. Buybacks have been shrinking the pie.
What Moody's Corporation says it does
Background As used in this report, except where the context indicates otherwise, the terms "Moody’s" or the "Company" refer to Moody’s Corporation, a Delaware corporation, and its subsidiaries. The Company’s executive offices are located at 7 World Trade Center at 250 Greenwich Street, New York, NY 10007 and its telephone number is (212) 553-0300. THE COMPANY Company Overview In a world shaped by increasingly interconnected risks, Moody's data, insights, and innovative technologies help customers develop a holistic view of their world and unlock opportunities. Moody’s offerings are distinguished by our vast proprietary and curated data and validated analytical models, which provide the trusted foundation that enable our customers to navigate an increasingly complex risk landscape. Moody’s solutions enable the transformation of information into decision-grade intelligence, which is deeply interconnected across risk domains. Moody's also…
Risk factors MCO lists in its 10-K
- Moody’s Faces Risks Related to Laws and Regulations that Affect the Financial Industry, Including the Credit Rating Industry, Moody's Businesses and Moody’s Customers
- The Company Is Exposed to Risks Related to Protection of Confidential and Personal Information
- The Company Faces Exposure to Litigation and Government Regulatory Proceedings, Investigations and Inquiries (Including Competition Market Studies) Related to Rating Opinions, Analytics Services and Other Business Practices
- The Company Is Exposed to Risks Related to Its Compliance and Risk Management Programs
- Moody’s Faces Risks Related to Intellectual Property Rights
- Moody’s Faces Risks Related to Tax Matters, Including Changes in Tax Rates or Tax Rules
- The Company is Exposed to Legal, Economic, Operational and Regulatory Risks of Operating in Multiple Jurisdictions
- Moody’s Operations are Exposed to Risks from Infrastructure Malfunctions or Failures
- The Company Is Exposed to Risks Related to Cybersecurity and Protection of Confidential Information
- The Introduction of Competing Products, Technologies or Services by Other Companies Can Negatively Impact the Nature and Economics of the Company’s Business
- The Company Faces Increased Pricing Pressure from Competitors and/or Customers
- The Company Is Exposed to Reputation and Credibility Concerns
- Our Reputation or Business Could Be Negatively Impacted by Sustainability Matters and Our Reporting of Such Matters
- Moody’s Is Exposed to Risks Related to Loss of Skilled Employees and Related Compensation Cost Pressures