Moody's Corporation
Find Ratings ReportsMOODY'S CORP's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the subsector average, its revenue growth has not. MOODY'S CORP has strong liquidity. Currently, the Quick Ratio is 1.57 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 31.71% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 1480.0 | 1290.0 |
EBITDA ($mil) | 631.0 | 477.0 |
EBIT ($mil) | 534.0 | 388.0 |
Net Income ($mil) | 340.0 | 246.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 2193.0 | 1859.0 |
Total Assets ($mil) | 14622.0 | 14349.0 |
Total Debt ($mil) | 7415.0 | 7863.0 |
Equity ($mil) | 3318.0 | 2519.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 71.55 | 68.22 |
EBITDA Margin | 42.63 | 36.97 |
Operating Margin | 36.08 | 30.08 |
Sales Turnover | 0.4 | 0.38 |
Return on Assets | 10.99 | 9.57 |
Return on Equity | 48.43 | 54.55 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.74 | 1.72 |
Debt/Capital | 0.69 | 0.76 |
Interest Expense | 76.0 | 64.0 |
Interest Coverage | 7.03 | 6.06 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 182.47 | 183.2 |
Div / share | 0.77 | 0.7 |
EPS | 1.85 | 1.34 |
Book value / share | 18.18 | 13.75 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 706341.0 | 816365.0 |
BUY. This stock's P/E ratio indicates a premium compared to an average of 43.53 for the Administrative and Support Services subsector and a significant premium compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 21.09 indicates a significant premium versus the S&P 500 average of 4.68 and a significant premium versus the subsector average of 7.95. The price-to-sales ratio is well above both the S&P 500 average and the subsector average, indicating a premium. Upon assessment of these and other key valuation criteria, MOODY'S CORP proves to trade at a premium to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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MCO 43.92 | Peers 43.53 | MCO 32.53 | Peers 25.21 | |||||||||||||||||||||
Average. An average P/E ratio can signify an subsector neutral price for a stock and an average growth expectation. MCO is trading at a valuation on par with 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. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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MCO 30.80 | Peers 24.78 | MCO 2.04 | Peers 0.97 | |||||||||||||||||||||
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. |
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. |
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Price/Book |
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Earnings Growth |
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MCO 21.09 | Peers 7.95 | MCO 17.33 | Peers 38.01 | |||||||||||||||||||||
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. MCO is trading at a significant premium to its peers. |
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. |
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Price/Sales |
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Sales Growth |
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MCO 11.83 | Peers 6.82 | MCO 8.19 | Peers 20.15 | |||||||||||||||||||||
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 subsector. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. MCO significantly trails its peers on the basis of sales growth. |
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