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68.07 (1y: +87%)
Market Cap 14.93 B P/E(ttm) 21.90
Enterprise Value 14.76 B P/B 39.50
MCO- NYSE (USA)
Moody's Corporation
  • Currently 2.5/5
Business Predictability Rank: 2.5-Star
Back Testing Results:
Average gain of all 2.5-Star stocks: 7.3% per year.
% of Stocks that are in still loss if held for 10yrs: 18%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$68.07
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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry		 vs
history
Cash to Debt 1.061
MCO's Cash to Debt is ranked lower than
66% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 2100.97 vs. MCO: 1.061 )
MCO' s 10-Year Cash to Debt Range
Min: 0.09   Max: 2.02
Current: 1.06
0.09
2.02
Equity to Asset -0.121
MCO's Equity to Asset is ranked lower than
94% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 0.24 vs. MCO: -0.121 )
MCO' s 10-Year Equity to Asset Range
Min: -0.85   Max: 0.08
Current: -0.12
-0.85
0.08
Interest Coverage 15.7
MCO's Interest Coverage is ranked lower than
78% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 10000.00 vs. MCO: 15.7 )
MCO' s 10-Year Interest Coverage Range
Min: 14   Max: No Debt
Current: 15.7
F-Score: 7
Z-Score: 6.33
M-Score: -3.06
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 9/10

vs
industry		 vs
history
Operating margin (%) 39.50
MCO's Operating margin (%) is ranked higher than
83% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 16.70 vs. MCO: 39.50 )
MCO' s 10-Year Operating margin (%) Range
Min: 24.3   Max: 61.8
Current: 39.5
24.3
61.8
Net-margin (%) 25.3
MCO's Net-margin (%) is ranked higher than
81% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 9.55 vs. MCO: 25.3 )
MCO' s 10-Year Net-margin (%) Range
Min: 13   Max: 37
Current: 25.3
13
37
ROE (%) 179.1
MCO's ROE (%) is ranked higher than
99% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 4.60 vs. MCO: 179.1 )
MCO' s 10-Year ROE (%) Range
Min: 133.9   Max: 450.4
Current: 179.1
133.9
450.4
ROA (%) 17.4
MCO's ROA (%) is ranked higher than
97% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 1.20 vs. MCO: 17.4 )
MCO' s 10-Year ROA (%) Range
Min: 14.3   Max: 50.3
Current: 17.4
14.3
50.3
Revenue Growth (%) 12.4
MCO's Revenue Growth (%) is ranked higher than
88% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 0.90 vs. MCO: 12.4 )
MCO' s 10-Year Revenue Growth (%) Range
Min: -14.2   Max: 21.9
Current: 12.4
-14.2
21.9
EBITDA Growth (%) 13.1
MCO's EBITDA Growth (%) is ranked higher than
89% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: -1.85 vs. MCO: 13.1 )
MCO' s 10-Year EBITDA Growth (%) Range
Min: -8.2   Max: 24.8
Current: 13.1
-8.2
24.8
EPS Growth (%) 15.9
MCO's EPS Growth (%) is ranked higher than
87% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: -2.95 vs. MCO: 15.9 )
MCO' s 10-Year EPS Growth (%) Range
Min: -10   Max: 25.3
Current: 15.9
-10
25.3
» MCO's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades
Q2 2012

MCO Guru Trades in Q2 2012

Paul Tudor Jones 6,000 sh (New)
Jeremy Grantham 49,700 sh (New)
Steven Cohen 23,198 sh (New)
Chuck Royce 31,590 sh (+131.26%)
Chuck Akre 1,800,400 sh (+80.04%)
Joel Greenblatt 15,173 sh (+28.44%)
Manning & Napier Advisors, Inc 8,781,868 sh (+15.5%)
MS Global Franchise Fund 113,673 sh (+0.96%)
Warren Buffett 28,415,250 sh (unchged)
Dodge & Cox Sold Out
Jim Simons 1,481,300 sh (-5.03%)
Ray Dalio 63,046 sh (-5.4%)
Pioneer Investments 811,474 sh (-18.78%)
» More
Q3 2012

MCO Guru Trades in Q3 2012

Tom Gayner 30,000 sh (New)
Chase Coleman 2,250,000 sh (New)
Chuck Royce 50,340 sh (+59.35%)
MS Global Franchise Fund 139,859 sh (+23.04%)
Chuck Akre 1,807,735 sh (+0.41%)
Warren Buffett 28,415,250 sh (unchged)
Jeremy Grantham 49,700 sh (unchged)
Joel Greenblatt Sold Out
Ray Dalio Sold Out
Steven Cohen 21,371 sh (-7.88%)
Paul Tudor Jones 5,200 sh (-13.33%)
Jim Simons 1,244,700 sh (-15.97%)
Manning & Napier Advisors, Inc 6,748,475 sh (-23.15%)
Pioneer Investments 266,024 sh (-67.22%)
» More
Q4 2012

MCO Guru Trades in Q4 2012

Eric Mindich 1,000,000 sh (New)
Dodge & Cox 4,300 sh (New)
Lou Simpson 1,162,592 sh (New)
Tom Gayner 95,400 sh (+218%)
Chuck Royce 129,670 sh (+157.59%)
Chuck Akre 2,217,054 sh (+22.64%)
MS Global Franchise Fund 155,976 sh (+11.52%)
Warren Buffett 28,415,250 sh (unchged)
Jeremy Grantham 102,500 sh (unchged)
Pioneer Investments Sold Out
Steven Cohen Sold Out
Paul Tudor Jones Sold Out
Jim Simons 940,100 sh (-24.47%)
Manning & Napier Advisors, Inc 4,946,365 sh (-26.7%)
Chase Coleman 1,640,000 sh (-27.11%)
» More
Q1 2013

MCO Guru Trades in Q1 2013

Andreas Halvorsen 1,717,114 sh (New)
Paul Tudor Jones 8,900 sh (New)
Steven Cohen 4,655 sh (New)
Joel Greenblatt 32,204 sh (New)
John Hussman 250,000 sh (New)
Julian Robertson 393,800 sh (New)
Lou Simpson 2,022,576 sh (+73.97%)
Tom Gayner 155,400 sh (+62.89%)
Jeremy Grantham 152,952 sh (+49.22%)
Chuck Akre 2,538,375 sh (+14.49%)
Chuck Royce 143,600 sh (+10.74%)
Eric Mindich 1,000,000 sh (unchged)
Warren Buffett 28,415,250 sh (unchged)
Dodge & Cox 4,300 sh (unchged)
Chase Coleman Sold Out
Manning & Napier Advisors, Inc Sold Out
Jim Simons 803,300 sh (-14.55%)
» More
» Details

Insider Trades

Latest Guru Trades with MCO

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Lou Simpson 2013-03-31 Add 73.97%2.89%$43.37 - $55.35 $ 67.9134%2022576
Julian Robertson 2013-03-31 New Buy2.8%$43.37 - $55.35 $ 67.9134%393800
Chuck Akre 2013-03-31 Add 14.49%0.97%$43.37 - $55.35 $ 67.9134%2538375
Andreas Halvorsen 2013-03-31 New Buy0.55%$43.37 - $55.35 $ 67.9134%1717114
John Hussman 2013-03-31 New Buy0.49%$43.37 - $55.35 $ 67.9134%250000
Tom Gayner 2013-03-31 Add 62.89%0.12%$43.37 - $55.35 $ 67.9134%155400
Joel Greenblatt 2013-03-31 New Buy0.09%$43.37 - $55.35 $ 67.9134%32204
Lou Simpson 2012-12-31 New Buy4.9%$43.98 - $51.54 $ 67.9144%1162592
Chuck Akre 2012-12-31 Add 22.64%1.46%$43.98 - $51.54 $ 67.9144%2217054
Tom Gayner 2012-12-31 Add 218%0.14%$43.98 - $51.54 $ 67.9144%95400
Dodge & Cox 2012-12-31 New Buy$43.98 - $51.54 $ 67.9144%4300
Tom Gayner 2012-09-30 New Buy0.06%$35.74 - $45.8 $ 67.9171%30000
Joel Greenblatt 2012-09-30 Sold Out 0.04%$35.74 - $45.8 $ 67.9171%0
Ray Dalio 2012-09-30 Sold Out 0.03%$35.74 - $45.8 $ 67.9171%0
Chuck Akre 2012-06-30 Add 80.04%2.4%$34.18 - $42.73 $ 67.9176%1800400
Joel Greenblatt 2012-06-30 Add 28.44%0.01%$34.18 - $42.73 $ 67.9176%15173
Dodge & Cox 2012-06-30 Sold Out $34.18 - $42.73 $ 67.9176%0
Premium More recent guru trades are included for Premium Members only!!

Top Ranked Articles about Moody's Corporation

Berkshire Hathaway - Making Money on Moody’s
May 10, 2013
- Berkshire Hathaway - Making Money On Moody’s
Warren Buffett told CNBC, “We’re selling Moody’s at six times what we paid.” Read more...
Warren Buffett’s First Tweet – “Warren is in the House”
May 8, 2013
Warren Buffett - Warren Buffett’s First Tweet – “Warren Is In The House”
We all remember a first – the first kiss, the first car, the first job. Here's an Information Age first: This week the legendary Guru Warren Buffett, despite an aversion to technology, lost his Twitter-innocence at age 82 and tweeted his first digital proclamation of Being to a welcoming cyber-existence with: “Warren is in the House.” The Wall Street Journal responded with a Twitter welcome that read, “Pigs aren’t flying, lambs aren’t lying down with lions, and hell isn’t getting any cooler. But Warren Buffett is joining Twitter.” Read more...
As Moody’s Stock Price Recovers, Warren Buffett Sells
May 1, 2013
Warren Buffett - As Moody’s Stock Price Recovers, Warren Buffett Sells
Warren Buffett’s Berkshire Hathaway (BRK.A)(BRK.B) sold 1.7 million shares of Moody’s (MCO) over the past two days. After the sale, Berkshire still owns 26.6 million shares of Moody’s, or 11.9% of the company. Berkshire’s average sale price was a little above $60 a share. Read more...
Is Quality as Good as Growth?
March 21, 2013
Warren Buffett - Is Quality As Good As Growth?
Other things being equal, good quality investing will work because the combination of free cash flow and future growth will lead to higher returns than suggested by the P/E you bought the stock at. This is because of the ability of the company to convert high amounts of earnings into free cash flow and still grow. A good current example of this is John Wiley (JW.A). The book business (which is still a substantial part of their business) has poor future prospects. However, I think the Journal Publishing business (which in my view, now makes up the majority of the company's value) can grow by anywhere from 2% to almost 5% a year without much, if any reinvestment in the business. In fact, it didn't really shrink even with tight budgets in the U.S. and especially Europe this year. It seems to have pricing power specifically and bargaining power generally. For this reason, I think that when JW.A trades at about 11 times earnings - which we'll call a 9% earnings yield, it is actually (the journal business at least) priced at a level that may deliver returns that meet my expectations (11% to 14%). Read more...
Markel’s Tom Gayner Buys Alliance Holdings, Moody's, Norfolk Southern, Sells Sysco, Vodafone
February 12, 2013
Tom Gayner - Markel’s Tom Gayner Buys Alliance Holdings, Moody's, Norfolk Southern, Sells Sysco, Vodafone
As the CIO of Markel Corp, Tom Gayner has the luxury that most money managers don’t have: he never has to face redemption pressure. He certainly takes this advantage to almost its extreme, as he rarely sells stocks. With this buy and hold strategy, he has built great track record at Markel. To understand more about Mr. Gayner, read his interview with GuruFocus. Read more...
Mutual Fund Gurus: Who Is Buying? Who Is Selling?
May 23, 2012
Chuck Akre,Donald Yacktman - Mutual Fund Gurus: Who Is Buying? Who Is Selling?
In a previous article, we reported the mood of the hedge fund gurus – who was buying and who was selling. This article summarizes the portfolio trend of the mutual fund gurus. Read more...

Ratios

vs
industry		 vs
history
P/E(ttm) 21.90
MCO's P/E(ttm) is ranked higher than
70% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 18.27 vs. MCO: 21.90 )
MCO' s 10-Year P/E(ttm) Range
Min: 8.97   Max: 36.93
Current: 21.9
8.97
36.93
P/B 39.42
MCO's P/B is ranked lower than
88% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 1.30 vs. MCO: 39.42 )
MCO' s 10-Year P/B Range
Min: 20.7   Max: 851.86
Current: 39.42
20.7
851.86
P/S 5.47
MCO's P/S is ranked lower than
66% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 2.10 vs. MCO: 5.47 )
MCO' s 10-Year P/S Range
Min: 1.64   Max: 12.19
Current: 5.47
1.64
12.19
PFCF 16.69
MCO's PFCF is ranked lower than
63% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 8.17 vs. MCO: 16.69 )
MCO' s 10-Year PFCF Range
Min: 8.27   Max: 163.3
Current: 16.69
8.27
163.3
EV-to-EBIT 13.56
MCO's EV-to-EBIT is ranked higher than
89% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 14.81 vs. MCO: 13.56 )
MCO' s 10-Year EV-to-EBIT Range
Min: 6.3   Max: 21.9
Current: 13.56
6.3
21.9
PEG 1.8
MCO's PEG is ranked higher than
94% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 2.80 vs. MCO: 1.8 )
MCO' s 10-Year PEG Range
Min: 0.5   Max: 20.46
Current: 1.8
0.5
20.46
Shiller P/E 27.45
MCO's Shiller P/E is ranked higher than
81% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 9.40 vs. MCO: 27.45 )
MCO' s 10-Year Shiller P/E Range
Min: 7.9   Max: 57.63
Current: 27.45
7.9
57.63

Dividend & Buy Back

vs
industry		 vs
history
Dividend Yield 1.06
MCO's Dividend Yield is ranked higher than
57% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 2.06 vs. MCO: 1.06 )
MCO' s 10-Year Dividend Yield Range
Min: 0.26   Max: 3.76
Current: 1.06
0.26
3.76
Dividend Payout 0.3
MCO's Dividend Payout is ranked higher than
96% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 0.68 vs. MCO: 0.3 )
MCO' s 10-Year Dividend Payout Range
Min: 0.08   Max: 0.62
Current: 0.3
0.08
0.62
Dividend growth (3y) 12.5
MCO's Dividend growth (3y) is ranked higher than
95% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: -5.90 vs. MCO: 12.5 )
MCO' s 10-Year Dividend growth (3y) Range
Min: -29.8   Max: 32.8
Current: 12.5
-29.8
32.8
Yield on cost (5-Year) 2.04
MCO's Yield on cost (5-Year) is ranked higher than
66% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 2.34 vs. MCO: 2.04 )
MCO' s 10-Year Yield on cost (5-Year) Range
Min: 0.48   Max: 6.96
Current: 2.04
0.48
6.96
Share Buyback Rate 1.2
MCO's Share Buyback Rate is ranked higher than
81% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: -0.40 vs. MCO: 1.2 )
MCO' s 10-Year Share Buyback Rate Range
Min: 5.3   Max: 0.8
Current: 1.2

Valuation & Return

vs
industry		 vs
history
Price/Net Current Asset Value 31.4
MCO's Price/Net Current Asset Value is ranked higher than
90% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 6.50 vs. MCO: 31.4 )
MCO' s 10-Year Price/Net Current Asset Value Range
Min: 16.1   Max: 59.6
Current: 31.4
16.1
59.6
Price/DCF (Projected) 1.9
MCO's Price/DCF (Projected) is ranked higher than
96% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 0.80 vs. MCO: 1.9 )
MCO' s 10-Year Price/DCF (Projected) Range
Min: 0.6   Max: 4
Current: 1.9
0.6
4
Price/Median PS Value 1.1
MCO's Price/Median PS Value is ranked higher than
62% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 1.00 vs. MCO: 1.1 )
MCO' s 10-Year Price/Median PS Value Range
Min: 0.5   Max: 2.1
Current: 1.1
0.5
2.1
Price/Peter Lynch Fair Value 2.8
MCO's Price/Peter Lynch Fair Value is ranked higher than
98% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 1.40 vs. MCO: 2.8 )
MCO' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.6   Max: 2.1
Current: 2.8
0.6
2.1
Earnings Yield (Greenblatt) 7.40
MCO's Earnings Yield (Greenblatt) is ranked higher than
85% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 9.05 vs. MCO: 7.40 )
MCO' s 10-Year Earnings Yield (Greenblatt) Range
Min: 4.6   Max: 15.8
Current: 7.4
4.6
15.8
Forward Rate of Return (Yacktman) 13.41
MCO's Forward Rate of Return (Yacktman) is ranked higher than
89% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 7.98 vs. MCO: 13.41 )
MCO' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 0.1   Max: 31.7
Current: 13.41
0.1
31.7

Business Description

Moody's Corp was founded in 1990. The Company is a provider of credit ratings, credit and economic related research, data and analytical tools, risk management software and quantitative credit risk measures, credit portfolio management solutions and training services. It reports in two new reportable segments: MIS and Moody's Analytics. As a result of the Reorganization, the rating agency remains in the MIS operating segment and several ratings business lines have been realigned. All of Moody's other non-rating commercial activities are included within the new MA segment. MIS, the credit rating agency, publishes credit ratings on a wide range of debt obligations and the entities that issue such obligations in markets worldwide, including various corporate and governmental obligations, structured finance securities and commercial paper programs. Revenue is derived from the originators and issuers of such transactions who use MIS ratings to support the distribution of their debt issues to investors. The MA segment develops a wide range of products and services that support the risk management activities of institutional participants in global financial markets. Within its Research, Data and Analytics business, MA distributes investor-oriented research and data developed by MIS as part of its ratings process, including in-depth research on major debt issuers, industry studies, commentary on topical credit related events and also provides economic research and credit data and analytical tools such as quantitative credit risk scores. The MIS business competes with other CRAs and with investment banks and brokerage firms that offer credit opinions and research.
Company Website
SEC Reports
Industry: Capital Markets
Compare:PJC, SIEB, GHL, GS, SF
Traded in other countries:DUT.Germany
» More Articles for MCO

Headlines

Articles On GuruFocus.com
Berkshire Hathaway - Making Money on Moody’s May 10 2013 
Markel CIO Tom Gayner Buys Buys UnitedHealth, Liberty Media, Google, Moody's, MasterCard May 10 2013 
Warren Buffett’s First Tweet – “Warren is in the House” May 08 2013 
As Moody’s Stock Price Recovers, Warren Buffett Sells May 01 2013 
Is Quality as Good as Growth? Mar 21 2013 
Buffett’s Most Profitable Deals Good Businesses at Fair Prices or Vice Versa? Mar 13 2013 
Warren Buffett Mentions Top 4 Companies to Shareholders Mar 05 2013 
David Einhorn Gains 3% and Loses on Shorts in January – Greenlight Re Earnings Call Transcript Feb 20 2013 
Lou Simpson Buys Moody's Corporation, Oracle Corporation, Brookfield Asset Management Inc, Sells Fis Feb 18 2013 
Markel’s Tom Gayner Buys Alliance Holdings, Moody's, Norfolk Southern, Sells Sysco, Vodafone Feb 12 2013 

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