Moody's Corporation

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MCO : NYSE : Financial
$111.45 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 1084300.0
03/29/17 - 4:02 PM ET

Financial Analysis


MOODY'S CORP's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. MOODY'S CORP has average liquidity. Currently, the Quick Ratio is 1.28 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 significantly decreased by 116.81% 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 FY16 Q4 FY15
Net Sales ($mil)942.1865.9
EBITDA ($mil)423.6361.8
EBIT ($mil)390.7333.1
Net Income ($mil)-428.6217.9


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)2224.92232.2
Total Assets ($mil)5327.35123.4
Total Debt ($mil)3363.03401.0
Equity ($mil)-1225.0-565.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin71.8470.91
EBITDA Margin44.9641.78
Operating Margin41.4738.47
Sales Turnover0.680.68
Return on Assets5.018.37
Return on Equity0.00.0
Debt Q4 FY16 Q4 FY15
Current Ratio1.342.66
Debt/Capital1.571.2
Interest Expense36.331.8
Interest Coverage10.7610.47


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)190.69196.08
Div / share0.370.34
EPS-2.251.09
Book value / share-6.42-2.88
Institutional Own % n/a n/a
Avg Daily Volume1051873.01056573.0

Valuation


HOLD. MOODY'S CORP's P/E ratio indicates a significant premium compared to an average of 25.79 for the Capital Markets industry and a significant premium compared to the S&P 500 average of 26.33. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MCO 86.95 Peers 25.79   MCO 17.45 Peers 23.22

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

MCO is trading at a significant premium to its peers.

 

Discount. 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 discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
MCO 19.58 Peers 16.63   MCO 0.31 Peers 1.50

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 significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MCO NM Peers 4.21   MCO -72.08 Peers 12.43

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MCO 5.93 Peers 8.32   MCO 3.43 Peers 5.47

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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