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Moody's (MCO) Stock Analysis

This is a peer-relative look at Moody's (MCO): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Financial Services peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Moody's (MCO)
Profile ItemMCO
NameMoody's Corporation
Country/RegionUnited States
GICS SectorFinancials
GICS Industry GroupFinancial Services
GICS IndustryCapital Markets
GICS Sub-IndustryFinancial Exchanges & Data
Market Capitalization87.19 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateOctober 31, 1994
Security TypeCommon Stock

Price Performance

Cumulative Growth

MCO
GSPC
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Moody's (MCO) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Moody's (MCO) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Moody's (MCO) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Moody's (MCO) metric values compared with Financial Services industry-group medians
MetricCurrent stock: MCOIndustry group median
Total Return (1Y)5.02%1.90%
Total Return (3Y, Annualized)15.27%12.71%
Total Return (5Y, Annualized)6.21%2.81%

Risk Profile

Drawdown History

MCO
GSPC
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Moody's (MCO) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Moody's (MCO) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Moody's (MCO) metric values compared with Financial Services industry-group medians
MetricCurrent stock: MCOIndustry group median
Volatility (1Y, Annualized)28.61%36.24%
Beta (5Y)1.281.04
Max Drawdown (5Y)-40.93%-48.56%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. MCO is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Moody's (MCO) metric values compared with Financial Services industry-group medians
MetricCurrent stock: MCOIndustry group median
Sharpe Ratio (1Y)0.03-0.09
Sortino Ratio (1Y)0.04-0.13

Profitability

ROE (TTM)

Moody's (MCO) posts ROE of 76.74%, above the industry benchmark range. Equity is being turned into profit at an exceptional rate, but very high ROE should still be checked against leverage, buybacks, and the size of the equity base.

MCO

Financial Services industry group

76.74%

Group distribution
MCO
76.74%
Max
44.78%
Q3
21.85%
Median
12.91%
Q1
4.48%
Min
-18.71%
Largest peers
MA
231.37%
MCO
76.74%
V
63.51%
MS
18.04%
GS
17.71%
BRK.A
12.12%
BRK.B
12.12%
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Where Moody's (MCO) stands on ROE within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Moody's (MCO) keeps 35.26% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

MCO

Financial Services industry group

35.26%

Group distribution
Max
62.84%
MCO
35.26%
Q3
28.05%
Median
15.36%
Q1
4.82%
Min
-28.52%
Largest peers
V
51.20%
MA
46.73%
MCO
35.26%
GS
31.21%
MS
25.63%
BRK.A
22.30%
BRK.B
22.30%
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Where Moody's (MCO) stands on net margin within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Moody's (MCO) turns 46.27% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

MCO

Financial Services industry group

46.27%

Group distribution
Max
107.33%
Q3
55.90%
MCO
46.27%
Median
30.09%
Q1
14.60%
Min
-44.34%
Largest peers
V
63.73%
MA
60.53%
MCO
46.27%
MS
39.00%
GS
38.37%
BRK.A
32.56%
BRK.B
32.56%
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Where Moody's (MCO) stands on operating margin within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Moody's (MCO) metric values compared with Financial Services industry-group medians
MetricCurrent stock: MCOIndustry group median
ROE (TTM)76.74%12.91%
ROA (TTM)15.56%3.60%
Net Margin (TTM)35.26%15.36%
Operating Margin (TTM)46.27%30.09%
Gross Margin (TTM)----

Growth

Revenue Growth

Moody's (MCO) grew revenue 8.89%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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Moody's (MCO): Revenue Growth across different time periods, set against Financial Services industry-group medians.

EPS Growth

Moody's (MCO) grew earnings per share 21.40%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

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Moody's (MCO): EPS Growth across different time periods, set against Financial Services industry-group medians.

Growth Metrics

Moody's (MCO) metric values compared with Financial Services industry-group medians
MetricCurrent stock: MCOIndustry group median
Revenue Growth (YoY)8.89%9.46%
Revenue Growth (3Y CAGR)12.17%10.90%
EPS Growth (YoY)21.40%7.46%
EPS Growth (3Y CAGR)22.48%13.04%

Financial Strength

Current Ratio (MRQ)

current ratio is set aside for Moody's (MCO) in Financial Services: these balance sheets are not best read through a current/non-current split, so regulatory, funding, or liquidity-coverage measures usually matter more.

Debt / Equity (MRQ)

debt-to-equity ratio is set aside for Moody's (MCO) in Financial Services: leverage is part of the business model itself, so capital adequacy, funding mix, and regulatory measures are usually better risk gauges.

Financial Strength Metrics

Moody's (MCO) metric values compared with Financial Services industry-group medians
MetricCurrent stock: MCOIndustry group median
Current Ratio (MRQ)----
Debt / Equity (MRQ)----
Net Debt / EBITDA----

Dividends

Dividend Yield (TTM)

Moody's (MCO) has dividend yield of 0.78%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

MCO

Financial Services industry group

0.78%

Group distribution
Max
9.77%
Q3
3.92%
Median
1.09%
MCO
0.78%
Q1
0.00%
Min
0.00%
Largest peers
MS
2.40%
GS
2.07%
MCO
0.78%
V
0.66%
MA
0.53%
BRK.A
0.00%
BRK.B
0.00%
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Where Moody's (MCO) stands on dividend yield within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Moody's (MCO) has payout ratio of 24.59%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

MCO

Financial Services industry group

24.59%

Group distribution
Max
241.07%
Q3
97.36%
Median
25.77%
MCO
24.59%
Q1
0.00%
Min
0.00%
Largest peers
MS
32.91%
GS
25.88%
MCO
24.59%
V
21.75%
MA
17.63%
BRK.A
0.00%
BRK.B
0.00%
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Where Moody's (MCO) stands on payout ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Moody's (MCO) metric values compared with Financial Services industry-group medians
MetricCurrent stock: MCOIndustry group median
Dividend Yield (TTM)0.78%1.09%
Dividend Payout Ratio (TTM)24.59%25.77%

Valuation

P/E Ratio (TTM)

Moody's (MCO) trades at P/E ratio of 30.85, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.

MCO

Financial Services industry group

30.85

Group distribution
Max
45.85
MCO
30.85
Q3
24.64
Median
15.37
Q1
9.68
Min
0.16
Largest peers
V
34.31
MA
34.15
MCO
30.85
MS
14.39
BRK.A
14.36
BRK.B
14.36
GS
12.45
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Where Moody's (MCO) stands on P/E ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Moody's (MCO) trades at 10.66 on P/S ratio, above the industry benchmark range. The stock is being valued at an unusually rich price per dollar of trailing revenue.

MCO

Financial Services industry group

10.66

Group distribution
MCO
10.66
Max
9.23
Q3
4.57
Median
2.72
Q1
1.28
Min
-0.55
Largest peers
V
17.18
MA
15.67
MCO
10.66
MS
3.55
GS
3.52
BRK.A
3.18
BRK.B
3.18
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Where Moody's (MCO) stands on P/S ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Moody's (MCO) trades at 26.68 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.

MCO

Financial Services industry group

26.68

Group distribution
MCO
26.68
Max
7.79
Q3
3.63
Median
1.57
Q1
0.81
Min
-0.39
Largest peers
MA
84.30
MCO
26.68
V
22.05
MS
2.65
GS
2.36
BRK.A
1.72
BRK.B
0.00
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Where Moody's (MCO) stands on P/B ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Moody's (MCO) metric values compared with Financial Services industry-group medians
MetricCurrent stock: MCOIndustry group median
P/E Ratio (TTM)30.8515.37
P/S Ratio (TTM)10.662.72
P/B Ratio (MRQ)26.681.57
Free Cash Flow Yield (TTM)----