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Moody's Corporation (MCO) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Moody's Corporation

MCOMarket cap $78BPrice $449.6

Country🇺🇸United States

SectorFinancials

IndustryCapital Markets

Rates the creditworthiness of governments, corporations, and securities that control trillions in global debt markets. Their credit ratings can make or break entire countries' borrowing costs overnight.

In Bastion Portfolios?

52W Return-4%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+12%7

Revenue Forecast

Rev CAGR (1y)+7%5

Rev CAGR (3y)+7%6

Rev CAGR (5y)+7%6

Earnings Forecast

EPS Growth Y+1+51%9

EPS Growth Y+2+10%6

EPS Growth Y+3+10%7

Quality

Margins

EBIT Margin46%10

Net Income Margin34%9

Free Cash Flow Margin36%10

Debt

Net Debt/EBITDA1.55

Efficiency

ROE80%10

ROA19%10

Earnings Stability55

GEAR+STRONG70

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)263

P/E Ratio (Forward 3y)222

P/BV25.71

EV Multiples

EV/EBITDA Fwd193

EV/EBIT Fwd233

Yield

Free Cash Flow Yield0.0%4

Dividend Yield0.9%3

Momentum

Short term

1 month return-7%4

3 month return-7%4

YTD return-11%3

Mid term

Price vs 52wHigh83%6

1 year return-7%4

Long term

3 year return+45%5

5 year return+30%5

Risk Shield

Price Risk

Beta1.13

Volatility28%7

Free Cash Flow

Free Cash Flow Margin36%10

Free Cash Flow Yield0.0%4

Quality

ROCE31%10

Earnings Stability55

Net Debt/EBITDA1.55

02Growth

Is it actually growing, and how fast?

MCOMoody's

Revenue FY25$7.1B

GROWTH RATING↗

AVERAGE59 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+12%7

Revenue, next 1Y+7%5

Revenue, next 3Y, CAGR+7%6

Revenue, next 5Y, CAGR+7%6

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+51%9

EPS growth, FY27E+10%6

EPS growth, FY28E+10%7

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 12%/yr over the last 3 years, ahead of 60% of companies worldwide.7/10

Earnings are set to grow in step with sales (EPS about 10%/yr vs revenue 7%/yr).

WATCH

A mid-pack grower, ahead of 59% of companies worldwide.

Revenue is set to grow 7%/yr over the next 3 years, a little ahead of the market.6/10

Revenue grew 12%/yr over the last 3 years; forecasts see it cooling to 7%/yr.

Over five years revenue is set to grow 7%/yr, ahead of 50% of companies worldwide.6/10

WEAKNESSES

None flagged.

BOTTOM LINE

Maturing Grower

A middle-of-the-pack grower that is slowing. The one thing to watch: the pace is cooling.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

AVERAGE34 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-7%4

3-month return-7%4

YTD return-11%3

MID & LONG-TERM▾SCORE

% of 52-week high83%6

1-year return-7%4

3-year return+45%5

5-year return+30%5

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Average long-term results. Multi-year returns are middling (+45% over three years and +30% over five), roughly average for the market.

It's down 7% over the past year, now 17% below its 52-week high. That is right in line with the market.

Returns sit at the market level over the past month (-7%) and over three months (-7%).

WEAKNESSES

The stock is underperforming so far this year (-11%).

BOTTOM LINE

Mixed Momentum

Horizons disagree or sit near the middle of the pack. Momentum investors may want a clearer trend before sizing up. The one thing to watch: the stock is underperforming so far this year.

04Value

Are you paying a fair price for it?

Stop guessing on Moody's. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

MCOMoody's

Revenue FY25$7.1B

GROWTH RATING↗

AVERAGE59 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+12%7

Revenue, next 1Y+7%5

Revenue, next 3Y, CAGR+7%6

Revenue, next 5Y, CAGR+7%6

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+51%9

EPS growth, FY27E+10%6

EPS growth, FY28E+10%7

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 12%/yr over the last 3 years, ahead of 60% of companies worldwide.7/10

Earnings are set to grow in step with sales (EPS about 10%/yr vs revenue 7%/yr).

WATCH

A mid-pack grower, ahead of 59% of companies worldwide.

Revenue is set to grow 7%/yr over the next 3 years, a little ahead of the market.6/10

Revenue grew 12%/yr over the last 3 years; forecasts see it cooling to 7%/yr.

Over five years revenue is set to grow 7%/yr, ahead of 50% of companies worldwide.6/10

WEAKNESSES

None flagged.

BOTTOM LINE

Maturing Grower

A middle-of-the-pack grower that is slowing. The one thing to watch: the pace is cooling.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

AVERAGE34 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-7%4

3-month return-7%4

YTD return-11%3

MID & LONG-TERM▾SCORE

% of 52-week high83%6

1-year return-7%4

3-year return+45%5

5-year return+30%5

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Average long-term results. Multi-year returns are middling (+45% over three years and +30% over five), roughly average for the market.

It's down 7% over the past year, now 17% below its 52-week high. That is right in line with the market.

Returns sit at the market level over the past month (-7%) and over three months (-7%).

WEAKNESSES

The stock is underperforming so far this year (-11%).

BOTTOM LINE

Mixed Momentum

Horizons disagree or sit near the middle of the pack. Momentum investors may want a clearer trend before sizing up. The one thing to watch: the stock is underperforming so far this year.

04Value

Are you paying a fair price for it?

Stop guessing on Moody's. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community