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Also traded in: Germany

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 : 8/10

vs
industry
vs
history
Cash to Debt 0.66
MCO's Cash to Debt is ranked lower than
60% of the 738 Companies
in the Global Business Services industry.

( Industry Median: 1.28 vs. MCO: 0.66 )
Ranked among companies with meaningful Cash to Debt only.
MCO' s Cash to Debt Range Over the Past 10 Years
Min: 0.09  Med: 0.66 Max: No Debt
Current: 0.66
Equity to Asset -0.07
MCO's Equity to Asset is ranked lower than
97% of the 717 Companies
in the Global Business Services industry.

( Industry Median: 0.50 vs. MCO: -0.07 )
Ranked among companies with meaningful Equity to Asset only.
MCO' s Equity to Asset Range Over the Past 10 Years
Min: -0.88  Med: -0.13 Max: 0.37
Current: -0.07
-0.88
0.37
Interest Coverage 16.46
MCO's Interest Coverage is ranked lower than
58% of the 525 Companies
in the Global Business Services industry.

( Industry Median: 35.02 vs. MCO: 16.46 )
Ranked among companies with meaningful Interest Coverage only.
MCO' s Interest Coverage Range Over the Past 10 Years
Min: 10.64  Med: 14.07 Max: 25.94
Current: 16.46
10.64
25.94
F-Score: 4
Z-Score: 5.98
M-Score: -2.81
WACC vs ROIC
10.24%
137.65%
WACC
ROIC
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 : 8/10

vs
industry
vs
history
Operating margin (%) 42.28
MCO's Operating margin (%) is ranked higher than
97% of the 726 Companies
in the Global Business Services industry.

( Industry Median: 5.58 vs. MCO: 42.28 )
Ranked among companies with meaningful Operating margin (%) only.
MCO' s Operating margin (%) Range Over the Past 10 Years
Min: 38.03  Med: 42.08 Max: 61.83
Current: 42.28
38.03
61.83
Net-margin (%) 27.01
MCO's Net-margin (%) is ranked higher than
94% of the 727 Companies
in the Global Business Services industry.

( Industry Median: 3.87 vs. MCO: 27.01 )
Ranked among companies with meaningful Net-margin (%) only.
MCO' s Net-margin (%) Range Over the Past 10 Years
Min: 22.37  Med: 26.57 Max: 37.01
Current: 27.01
22.37
37.01
ROA (%) 19.18
MCO's ROA (%) is ranked higher than
95% of the 742 Companies
in the Global Business Services industry.

( Industry Median: 3.74 vs. MCO: 19.18 )
Ranked among companies with meaningful ROA (%) only.
MCO' s ROA (%) Range Over the Past 10 Years
Min: 19.26  Med: 22.09 Max: 51.03
Current: 19.18
19.26
51.03
ROC (Joel Greenblatt) (%) 597.39
MCO's ROC (Joel Greenblatt) (%) is ranked higher than
94% of the 726 Companies
in the Global Business Services industry.

( Industry Median: 24.08 vs. MCO: 597.39 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
MCO' s ROC (Joel Greenblatt) (%) Range Over the Past 10 Years
Min: 251.51  Med: 390.01 Max: 2145.66
Current: 597.39
251.51
2145.66
Revenue Growth (3Y)(%) 16.00
MCO's Revenue Growth (3Y)(%) is ranked higher than
85% of the 571 Companies
in the Global Business Services industry.

( Industry Median: 4.00 vs. MCO: 16.00 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
MCO' s Revenue Growth (3Y)(%) Range Over the Past 10 Years
Min: 1.2  Med: 17.60 Max: 30.3
Current: 16
1.2
30.3
EBITDA Growth (3Y)(%) 22.90
MCO's EBITDA Growth (3Y)(%) is ranked higher than
81% of the 476 Companies
in the Global Business Services industry.

( Industry Median: 5.50 vs. MCO: 22.90 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
MCO' s EBITDA Growth (3Y)(%) Range Over the Past 10 Years
Min: -11  Med: 20.60 Max: 35.8
Current: 22.9
-11
35.8
EPS Growth (3Y)(%) 22.70
MCO's EPS Growth (3Y)(%) is ranked higher than
77% of the 438 Companies
in the Global Business Services industry.

( Industry Median: 4.80 vs. MCO: 22.70 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
MCO' s EPS Growth (3Y)(%) Range Over the Past 10 Years
Min: -13.2  Med: 22.20 Max: 35
Current: 22.7
-13.2
35
» MCO's 10-Y Financials

Financials


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

» Details

Guru Trades

Q1 2015

MCO Guru Trades in Q1 2015

Steven Cohen 39,400 sh (New)
Lee Ainslie 2,610 sh (New)
John Burbank 571,957 sh (+49.03%)
Paul Tudor Jones 12,849 sh (+41.68%)
Jeremy Grantham 50,400 sh (+5.88%)
Tom Gayner 267,000 sh (+5.12%)
Chuck Akre 3,554,485 sh (+1.00%)
Warren Buffett 24,669,778 sh (unchged)
Chuck Royce Sold Out
Joel Greenblatt 4,194 sh (-0.97%)
Chris Davis 2,332,432 sh (-2.05%)
MS Global Franchise Fund 58,591 sh (-3.59%)
Jim Simons 454,700 sh (-4.97%)
Dodge & Cox 3,300 sh (-23.26%)
» More
Q2 2015

MCO Guru Trades in Q2 2015

Tom Gayner 278,000 sh (+4.12%)
Chuck Akre 3,563,131 sh (+0.24%)
Warren Buffett 24,669,778 sh (unchged)
Dodge & Cox 3,300 sh (unchged)
Joel Greenblatt Sold Out
Paul Tudor Jones Sold Out
Chris Davis 2,296,187 sh (-1.55%)
MS Global Franchise Fund 55,019 sh (-6.10%)
Lee Ainslie 2,430 sh (-6.90%)
Jeremy Grantham 40,300 sh (-20.04%)
Jim Simons 154,100 sh (-66.11%)
John Burbank 22,851 sh (-96.00%)
Steven Cohen 700 sh (-98.22%)
» More
Q3 2015

MCO Guru Trades in Q3 2015

Joel Greenblatt 24,082 sh (New)
Paul Tudor Jones 7,934 sh (New)
Jim Simons 470,800 sh (+205.52%)
John Burbank 29,190 sh (+27.74%)
Tom Gayner 290,000 sh (+4.32%)
Chuck Akre 3,605,620 sh (+1.19%)
Lee Ainslie 2,430 sh (unchged)
Dodge & Cox 3,300 sh (unchged)
Warren Buffett 24,669,778 sh (unchged)
Steven Cohen Sold Out
MS Global Franchise Fund 53,081 sh (-3.52%)
Chris Davis 1,974,918 sh (-13.99%)
Jeremy Grantham 12,700 sh (-68.49%)
» More
Q4 2015

MCO Guru Trades in Q4 2015

Chuck Akre 3,659,439 sh (+1.49%)
Dodge & Cox 3,300 sh (unchged)
Jeremy Grantham Sold Out
Chris Davis 1,725,172 sh (-12.65%)
Jim Simons 33,500 sh (-92.88%)
» More
» Details

Insider Trades

Latest Guru Trades with MCO

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Guru Investment Theses on Moody's Corporation

Chuck Akre Comments on Moody’s Corporation - Jul 23, 2014

Moody’s Corporation (“Moody’s”) (NYSE: MCO)

Market Cap: $18.7 billion (as of 6/30/14)

Company overview:

Founded in 1900, Moody’s (MCO) is a global provider of credit rating opinions, insight, and tools for financial risk measurement and management. The company has two reporting segments: Moody’s Investor Services (the ratings business, 70% of revenue) and Moody’s Analytics (30% of revenue, includes credit and economic analysis subscriptions, risk analytics, financial and regulatory compliance tools, and certification services). We consider Moody’s ratings business a quintessential “toll-bridge,” earning fees from debt issuers of all kinds to provide efficient access to the debt capital markets.

Akre Focus Fund Investment:

Our initial investment in Moody’s was made in January of 2012 and we have added as periodic headline events - litigation, regulation (often overblown or misunderstood) - have presented opportunities to add to our investment at attractive valuations. As of June 2014 Moody’s represented 8.3 % of the portfolio.

Investment thesis:

Moody’s ratings business is exceptional, with proven pricing power, tremendous barriers to entry, high margins (operating margin averaged 46% from 2008 to 2012), and requires little investment capital to grow. Following the 2008 financial crisis, Moody’s was widely criticized for its role, for reasons both real and perceived. Investigations, litigation, and regulatory reviews ensued and Moody’s stock price plummeted. Our thesis deviates from popular perception in that we consider Moody’s global dominance and the oligopolic structure of the ratings industry to be the result of market forces, not regulation. We believe that those same market forces will see Moody’s through the post-crisis period with its “toll-bridge” status intact along with the potential for continued upward revaluation of the stock.

From Chuck Akre (Trades, Portfolio)’s 2014 Q2 Fund Pitchbook .

Check out Chuck Akre latest stock trades

Ratios

vs
industry
vs
history
P/E(ttm) 17.69
MCO's P/E(ttm) is ranked higher than
83% of the 772 Companies
in the Global Business Services industry.

( Industry Median: 19.42 vs. MCO: 17.69 )
Ranked among companies with meaningful P/E(ttm) only.
MCO' s P/E(ttm) Range Over the Past 10 Years
Min: 8.97  Med: 17.68 Max: 36.93
Current: 17.69
8.97
36.93
Forward P/E 14.77
MCO's Forward P/E is ranked higher than
51% of the 470 Companies
in the Global Business Services industry.

( Industry Median: 14.12 vs. MCO: 14.77 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 17.69
MCO's PE(NRI) is ranked higher than
58% of the 610 Companies
in the Global Business Services industry.

( Industry Median: 20.40 vs. MCO: 17.69 )
Ranked among companies with meaningful PE(NRI) only.
MCO' s PE(NRI) Range Over the Past 10 Years
Min: 8.97  Med: 17.68 Max: 36.93
Current: 17.69
8.97
36.93
P/S 4.85
MCO's P/S is ranked lower than
91% of the 989 Companies
in the Global Business Services industry.

( Industry Median: 1.08 vs. MCO: 4.85 )
Ranked among companies with meaningful P/S only.
MCO' s P/S Range Over the Past 10 Years
Min: 2.25  Med: 4.99 Max: 12.24
Current: 4.85
2.25
12.24
PFCF 15.22
MCO's PFCF is ranked higher than
80% of the 605 Companies
in the Global Business Services industry.

( Industry Median: 17.00 vs. MCO: 15.22 )
Ranked among companies with meaningful PFCF only.
MCO' s PFCF Range Over the Past 10 Years
Min: 8.23  Med: 16.44 Max: 32.93
Current: 15.22
8.23
32.93
POCF 14.17
MCO's POCF is ranked higher than
69% of the 737 Companies
in the Global Business Services industry.

( Industry Median: 11.56 vs. MCO: 14.17 )
Ranked among companies with meaningful POCF only.
MCO' s POCF Range Over the Past 10 Years
Min: 7.07  Med: 15.04 Max: 31.48
Current: 14.17
7.07
31.48
EV-to-EBIT 12.19
MCO's EV-to-EBIT is ranked higher than
63% of the 828 Companies
in the Global Business Services industry.

( Industry Median: 14.45 vs. MCO: 12.19 )
Ranked among companies with meaningful EV-to-EBIT only.
MCO' s EV-to-EBIT Range Over the Past 10 Years
Min: 6.1  Med: 11.35 Max: 21.9
Current: 12.19
6.1
21.9
EV-to-EBITDA 11.39
MCO's EV-to-EBITDA is ranked lower than
51% of the 876 Companies
in the Global Business Services industry.

( Industry Median: 10.57 vs. MCO: 11.39 )
Ranked among companies with meaningful EV-to-EBITDA only.
MCO' s EV-to-EBITDA Range Over the Past 10 Years
Min: 5.7  Med: 10.50 Max: 21.1
Current: 11.39
5.7
21.1
PEG 0.85
MCO's PEG is ranked higher than
76% of the 237 Companies
in the Global Business Services industry.

( Industry Median: 1.88 vs. MCO: 0.85 )
Ranked among companies with meaningful PEG only.
MCO' s PEG Range Over the Past 10 Years
Min: 0.51  Med: 1.19 Max: 19.1
Current: 0.85
0.51
19.1
Shiller P/E 26.92
MCO's Shiller P/E is ranked higher than
50% of the 233 Companies
in the Global Business Services industry.

( Industry Median: 26.92 vs. MCO: 26.92 )
Ranked among companies with meaningful Shiller P/E only.
MCO' s Shiller P/E Range Over the Past 10 Years
Min: 10.28  Med: 20.02 Max: 38.1
Current: 26.92
10.28
38.1
Current Ratio 2.73
MCO's Current Ratio is ranked higher than
77% of the 722 Companies
in the Global Business Services industry.

( Industry Median: 1.59 vs. MCO: 2.73 )
Ranked among companies with meaningful Current Ratio only.
MCO' s Current Ratio Range Over the Past 10 Years
Min: 0.46  Med: 1.22 Max: 3.1
Current: 2.73
0.46
3.1
Quick Ratio 2.73
MCO's Quick Ratio is ranked higher than
79% of the 722 Companies
in the Global Business Services industry.

( Industry Median: 1.42 vs. MCO: 2.73 )
Ranked among companies with meaningful Quick Ratio only.
MCO' s Quick Ratio Range Over the Past 10 Years
Min: 0.46  Med: 1.22 Max: 3.1
Current: 2.73
0.46
3.1
Days Sales Outstanding 75.47
MCO's Days Sales Outstanding is ranked lower than
68% of the 553 Companies
in the Global Business Services industry.

( Industry Median: 57.70 vs. MCO: 75.47 )
Ranked among companies with meaningful Days Sales Outstanding only.
MCO' s Days Sales Outstanding Range Over the Past 10 Years
Min: 71.68  Med: 85.99 Max: 90.36
Current: 75.47
71.68
90.36
Days Payable 6.58
MCO's Days Payable is ranked lower than
89% of the 485 Companies
in the Global Business Services industry.

( Industry Median: 36.86 vs. MCO: 6.58 )
Ranked among companies with meaningful Days Payable only.
MCO' s Days Payable Range Over the Past 10 Years
Min: 4.87  Med: 6.93 Max: 225.5
Current: 6.58
4.87
225.5

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.65
MCO's Dividend Yield is ranked lower than
71% of the 728 Companies
in the Global Business Services industry.

( Industry Median: 1.55 vs. MCO: 1.65 )
Ranked among companies with meaningful Dividend Yield only.
MCO' s Dividend Yield Range Over the Past 10 Years
Min: 0.26  Med: 1.19 Max: 2.49
Current: 1.65
0.26
2.49
Dividend Payout 0.28
MCO's Dividend Payout is ranked higher than
75% of the 460 Companies
in the Global Business Services industry.

( Industry Median: 0.43 vs. MCO: 0.28 )
Ranked among companies with meaningful Dividend Payout only.
MCO' s Dividend Payout Range Over the Past 10 Years
Min: 0.06  Med: 0.20 Max: 0.85
Current: 0.28
0.06
0.85
Dividend Growth (3y) 27.90
MCO's Dividend Growth (3y) is ranked higher than
85% of the 253 Companies
in the Global Business Services industry.

( Industry Median: 7.70 vs. MCO: 27.90 )
Ranked among companies with meaningful Dividend Growth (3y) only.
MCO' s Dividend Growth (3y) Range Over the Past 10 Years
Min: -39.4  Med: 17.80 Max: 46
Current: 27.9
-39.4
46
Forward Dividend Yield 1.80
MCO's Forward Dividend Yield is ranked lower than
71% of the 642 Companies
in the Global Business Services industry.

( Industry Median: 2.29 vs. MCO: 1.80 )
Ranked among companies with meaningful Forward Dividend Yield only.
N/A
Yield on cost (5-Year) 4.93
MCO's Yield on cost (5-Year) is ranked higher than
70% of the 740 Companies
in the Global Business Services industry.

( Industry Median: 3.01 vs. MCO: 4.93 )
Ranked among companies with meaningful Yield on cost (5-Year) only.
MCO' s Yield on cost (5-Year) Range Over the Past 10 Years
Min: 0.77  Med: 3.53 Max: 7.39
Current: 4.93
0.77
7.39
3-Year Average Share Buyback Ratio 2.20
MCO's 3-Year Average Share Buyback Ratio is ranked higher than
92% of the 437 Companies
in the Global Business Services industry.

( Industry Median: -1.40 vs. MCO: 2.20 )
Ranked among companies with meaningful 3-Year Average Share Buyback Ratio only.
MCO' s 3-Year Average Share Buyback Ratio Range Over the Past 10 Years
Min: 1  Med: 2.20 Max: 7.1
Current: 2.2
1
7.1

Valuation & Return

vs
industry
vs
history
Price/Projected FCF 1.44
MCO's Price/Projected FCF is ranked lower than
57% of the 557 Companies
in the Global Business Services industry.

( Industry Median: 1.63 vs. MCO: 1.44 )
Ranked among companies with meaningful Price/Projected FCF only.
MCO' s Price/Projected FCF Range Over the Past 10 Years
Min: 0.62  Med: 1.64 Max: 4.22
Current: 1.44
0.62
4.22
Price/DCF (Earnings Based) 1.31
MCO's Price/DCF (Earnings Based) is ranked higher than
60% of the 111 Companies
in the Global Business Services industry.

( Industry Median: 2.71 vs. MCO: 1.31 )
Ranked among companies with meaningful Price/DCF (Earnings Based) only.
N/A
Price/Median PS Value 0.98
MCO's Price/Median PS Value is ranked higher than
58% of the 869 Companies
in the Global Business Services industry.

( Industry Median: 1.03 vs. MCO: 0.98 )
Ranked among companies with meaningful Price/Median PS Value only.
MCO' s Price/Median PS Value Range Over the Past 10 Years
Min: 0.26  Med: 1.26 Max: 8.09
Current: 0.98
0.26
8.09
Price/Peter Lynch Fair Value 0.95
MCO's Price/Peter Lynch Fair Value is ranked higher than
77% of the 264 Companies
in the Global Business Services industry.

( Industry Median: 1.79 vs. MCO: 0.95 )
Ranked among companies with meaningful Price/Peter Lynch Fair Value only.
MCO' s Price/Peter Lynch Fair Value Range Over the Past 10 Years
Min: 0.61  Med: 1.16 Max: 2.99
Current: 0.95
0.61
2.99
Earnings Yield (Greenblatt) (%) 8.20
MCO's Earnings Yield (Greenblatt) (%) is ranked higher than
70% of the 718 Companies
in the Global Business Services industry.

( Industry Median: 5.40 vs. MCO: 8.20 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
MCO' s Earnings Yield (Greenblatt) (%) Range Over the Past 10 Years
Min: 4.6  Med: 8.85 Max: 16.4
Current: 8.2
4.6
16.4
Forward Rate of Return (Yacktman) (%) 23.53
MCO's Forward Rate of Return (Yacktman) (%) is ranked higher than
82% of the 369 Companies
in the Global Business Services industry.

( Industry Median: 11.02 vs. MCO: 23.53 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
MCO' s Forward Rate of Return (Yacktman) (%) Range Over the Past 10 Years
Min: 1.6  Med: 21.40 Max: 32.4
Current: 23.53
1.6
32.4

More Statistics

Revenue(Mil) $3485
EPS $ 4.62
Beta1.26
Short Percentage of Float4.42%
52-Week Range $77.76 - 113.87
Shares Outstanding(Mil)197.70

Analyst Estimate

Dec16 Dec17 Dec18
Revenue(Mil) 3,623 3,937 4,280
EPS($) 4.92 5.57 6.47
EPS without NRI($) 4.92 5.57 6.47

Latest Earnings Webcast

» More Conference Calls

Business Description

Industry: Business Services » Business Services
Compare:PJC, SIEB, GHL, GS, SF » details
Traded in other countries:DUT.Germany,
Moody's Corporation was founded in 1909. The Company is a provider of credit ratings, credit and economic related research, data and analytical tools, software solutions and related risk management services, quantitative credit risk measures, financial services training and certification services and outsourced research and analytical services to institutional customers. The Company operates in two segments; MIS and MA. The MIS segment is comprised of all of the Company's ratings operations. The MIS segment consists of five lines of business, which includes CFG, SFG, FIG, PPIF and MIS Other. MIS publishes credit ratings of debt obligations and the entities that issue such obligations in the markets, including various corporate and governmental obligations, structured finance securities and commercial paper programs. The MA segment develops products and services that support financial analysis and risk management activities of institutional participants in financial markets. The MA segment consists of three lines of business, which includes RD&A, ERS and PS. Within its Research, Data and Analytics business, MA distributes research and data developed by MIS as part of its ratings process, including in-depth research on debt issuers, industry studies, and commentary on topical credit related events, and also provides economic research and credit data and analytical tools including quantitative credit risk scores. Within its Enterprise Risk Solutions business, MA provides software solutions and related risk management services. The Company's geographical footprint includes US and International markets. The MIS segment competes with other CRAs and with investment banks and brokerage firms that offer credit opinions and research. The MA segment competes in the financial information industry against diversified competitors including Thomson Reuters, Bloomberg, S&P Capital IQ, Fitch Solutions, Dun & Bradstreet, IBM, Wolters Kluwer, Sungard, SAS, Fiserv, MSCI and Markit Group among others. MA's main competitors within RD&A includes S&P Capital IQ, CreditSights, Thomson Reuters, Intex, IHS Global Insight, BlackRock Solutions, FactSet and other providers of fixed income analytics, valuations, economic data and research. The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax in various state, local and foreign jurisdictions.

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