Moody's Corp.

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MCO : NYSE : Commercial Services
$158.42 -2.49 | -1.55%
Today's Range: 158.39 - 162.63
Avg. Daily Volume: 768700.0
03/23/18 - 4:03 PM ET

Financial Analysis

MOODY'S CORP's gross profit margin for the fourth quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. MOODY'S CORP has average liquidity. Currently, the Quick Ratio is 1.13 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 73.24% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q4 FY17 Q4 FY16
Net Sales ($mil)1165.5942.1
EBITDA ($mil)518.5423.6
EBIT ($mil)468.6390.7
Net Income ($mil)25.5-428.6

Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)1183.32224.9
Total Assets ($mil)8594.25327.3
Total Debt ($mil)5540.53363.0
Equity ($mil)-327.7-1225.0

Profitability Q4 FY17 Q4 FY16
Gross Profit Margin70.6271.84
EBITDA Margin44.4844.96
Operating Margin40.2141.47
Sales Turnover0.490.68
Return on Assets11.645.0
Return on Equity0.00.0
Debt Q4 FY17 Q4 FY16
Current Ratio1.251.34
Interest Expense50.236.3
Interest Coverage9.3310.76

Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)190.97190.69
Div / share0.380.37
Book value / share-1.72-6.42
Institutional Own % n/a n/a
Avg Daily Volume815540.0707459.0


HOLD. MOODY'S CORP's P/E ratio indicates a premium compared to an average of 27.95 for the Capital Markets industry and a premium compared to the S&P 500 average of 25.66. Normally, for additional comaprison, we would look at the price-to-book ratio; however, this company's price-to-book ratio is negative making the value useless for comparisons. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, MOODY'S CORP seems to be trading at a premium to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MCO 32.33 Peers 27.95   MCO 42.53 Peers 31.78

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

MCO is trading at a premium to its peers.


Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

MCO is trading at a significant premium to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
MCO 19.43 Peers 17.17   MCO 0.64 Peers 0.82

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

MCO is trading at a significant premium to its peers.


Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

MCO trades at a discount to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MCO NM Peers 5.63   MCO 299.22 Peers 39.39

Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

MCO's P/B is negative making this valuation measure meaningless.


Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

MCO is expected to have an earnings growth rate that significantly exceeds its peers.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MCO 7.56 Peers 5.43   MCO 16.64 Peers 15.19

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

MCO is trading at a significant premium to its industry.


Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

MCO is keeping pace with its peers on the basis of sales growth.



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