Moody's Corporation

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MCO : NYSE : Services
$99.15 up 2.19 | 2.26%
Today's Range: 96.98 - 100.7499
Avg. Daily Volume: 1068800.0
01/17/17 - 4:02 PM ET

Financial Analysis

MOODY'S CORP's gross profit margin for the third quarter of its fiscal year 2016 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 is extremely liquid. Currently, the Quick Ratio is 2.06 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 20.13% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)917.1834.9
EBITDA ($mil)438.6378.0
EBIT ($mil)405.9349.7
Net Income ($mil)255.3231.6

Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)2057.91941.3
Total Assets ($mil)5019.34772.9
Total Debt ($mil)3418.13124.5
Equity ($mil)-564.5-469.9

Profitability Q3 FY16 Q3 FY15
Gross Profit Margin72.3971.72
EBITDA Margin47.8245.27
Operating Margin44.2641.89
Sales Turnover0.70.73
Return on Assets18.1920.1
Return on Equity0.00.0
Debt Q3 FY16 Q3 FY15
Current Ratio2.152.73
Interest Expense35.629.8
Interest Coverage11.411.73

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)191.17197.74
Div / share0.370.34
Book value / share-2.95-2.38
Institutional Own % n/a n/a
Avg Daily Volume1065558.0805313.0


BUY. This stock's P/E ratio indicates a discount compared to an average of 24.09 for the Capital Markets industry and a discount compared to the S&P 500 average of 25.49. 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 the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, MOODY'S CORP proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MCO 20.84 Peers 24.09   MCO 16.51 Peers 16.15

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

MCO is trading at a discount to its peers.


Average. 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 valuation on par to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
MCO 18.85 Peers 32.14   MCO 13.80 Peers 2.02

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

MCO is trading at a significant discount to its peers.


Premium. 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 significant premium to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MCO NM Peers 4.13   MCO -0.44 Peers 45.36

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.


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

However, MCO is expected to significantly trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MCO 5.23 Peers 7.52   MCO 0.91 Peers 2.02

Discount. 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 discount to its industry on this measurement.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

MCO significantly trails its peers on the basis of sales growth



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