Moody's Corporation
- Open
- 515.50
- Day high
- 523.31
- Day low
- 507.32
- Prev close
- 519.02
- Volume
- 709K
- Mkt cap
- $89.2B
- P/E (TTM)
- 36.5
- EPS (TTM)
- $14.00
- P/B
- 29.8
- P/S
- 11.3
- Yield
- 0.77%
- Per share
- $3.94
- ▼Insiders net selling -$1.8M over the last 3 months (0 open-market buys, 6 sales)
- 🏛Institutions mixed (13F)
Moody's Corporation (MCO) is a Financial Services company listed on NYSE. The stock is up 2% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 6 sales (SEC Form 4).
Moody's Corporation (MCO) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 6 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
MCO earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 22, 2026 | $4.22 | $4.33 | +2.6% | $2.1B | +0.5% |
| Feb 18, 2026 | $3.43 | $3.64 | +6.1% | $1.9B | +1.5% |
| Oct 22, 2025 | $3.70 | $3.92 | +5.9% | $2.0B | +2.6% |
| Jul 23, 2025 | $3.39 | $3.56 | +5.0% | $1.9B | +2.6% |
| Apr 22, 2025 | $3.54 | $3.83 | +8.2% | $1.9B | +2.6% |
| Feb 13, 2025 | $2.27 | $2.62 | +15.4% | $1.7B | -1.8% |
| Oct 22, 2024 | $2.86 | $3.21 | +12.2% | $1.8B | +6.2% |
| Jul 23, 2024 | $3.02 | $3.28 | +8.6% | $1.8B | +5.3% |
| May 2, 2024 | $3.04 | $3.37 | +10.9% | $1.8B | +5.2% |
| Feb 13, 2024 | $2.32 | $2.19 | -5.6% | $1.5B | -0.3% |
| Oct 25, 2023 | $2.30 | $2.43 | +5.7% | $1.5B | +0.5% |
| Jul 25, 2023 | $2.24 | $2.30 | +2.7% | $1.5B | +2.9% |
MCO insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 2, 2026 | Minaya Josedirector | Grant | 88 | — |
| Jul 2, 2026 | Fauber Robertdirector, officer: President and CEO | Option | 592 | $113.34 |
| Jul 2, 2026 | Fauber Robertdirector, officer: President and CEO | Option | 575 | $167.50 |
| Jul 2, 2026 | Steele Richard Gofficer: SVP - General Counsel | Sell | 157 | $455.49 |
| Jul 2, 2026 | Fauber Robertdirector, officer: President and CEO | Sell | 1,167 | $455.49 |
| Jun 8, 2026 | VAN SAUN BRUCEdirector | Grant | 15 | — |
| Jun 8, 2026 | Bermudez Jorge A.director | Grant | 19 | — |
| Jun 8, 2026 | FORLENZA VINCENT Adirector | Grant | 17 | — |
| Jun 8, 2026 | Seidman Lesliedirector | Grant | 16 | — |
| Jun 8, 2026 | Esperdy Theresedirector | Grant | 12 | — |
| Jun 8, 2026 | Sawicki Lisa Pdirector | Grant | 1 | — |
| Jun 8, 2026 | VAN SAUN BRUCEdirector | Grant | 7 | — |
| Jun 8, 2026 | Minaya Josedirector | Grant | 7 | — |
| Jun 8, 2026 | Seidman Lesliedirector | Grant | 2 | — |
| Jun 8, 2026 | Bermudez Jorge A.director | Grant | 1 | — |
Source: MCO SEC Form 4 filings, latest Jul 2, 2026. For informational purposes only — not investment advice.
See the full MCO insider & 13F page →Moody's Corporation company profile
Overview
Moody's Corporation (NYSE:MCO) is a leading integrated risk assessment firm founded in 1900 and headquartered in New York. Originally established as part of John Moody's manual of industrial and miscellaneous securities, the company has evolved into one of the world's most recognized names in credit ratings and financial analytics. Moody's was spun off from Dun & Bradstreet in 2000 and has since grown into a global financial services powerhouse operating in approximately 140 countries. The company serves as a critical infrastructure provider in global capital markets, helping investors, issuers, and other market participants assess and manage credit risk through its comprehensive suite of ratings, research, and analytical tools.
Business
Moody's operates through two primary business segments that together provide comprehensive risk assessment services to global financial markets. Moody's Investors Service (MIS) represents the company's traditional credit rating business, generating approximately 55-60% of total revenues. This segment publishes credit ratings and assessment services for various debt obligations including corporate bonds, government securities, structured finance products, and municipal bonds. Credit ratings are standardized opinions about the creditworthiness of borrowers, ranging from Aaa (highest quality) to C (lowest quality). These ratings help investors understand the likelihood that a borrower will default on their debt obligations. MIS has rated approximately 5,000 non-financial corporations, 3,600 financial institutions, 16,000 public finance issuers, 145 sovereign nations, and over 9,100 structured finance deals. The ratings are distributed through press releases and electronic media systems used by securities traders globally. Moody's Analytics (MA) comprises the company's data, software, and advisory services business, accounting for approximately 40-45% of total revenues. This segment develops products that support institutional risk management activities including credit research, quantitative credit scores, economic forecasting, business intelligence, commercial real estate analytics, and regulatory compliance solutions. Key product areas include Know Your Customer (KYC) compliance tools, banking risk management software, insurance analytics, and environmental risk assessment capabilities. MA operates on a predominantly subscription-based model with 95-96% of segment revenue being recurring, providing stable cash flows and high customer retention rates.
Revenue model
Moody's generates revenue through distinct business models across its two segments. The MIS segment operates on a transaction-based "issuer pays" model where companies, governments, and other entities pay fees to obtain credit ratings on their debt securities. Revenue is directly tied to debt issuance volumes in global capital markets, with fees typically ranging from tens of thousands to millions of dollars depending on the size and complexity of the rated instrument. This creates cyclical revenue patterns that correlate with capital market activity, interest rate environments, and overall economic conditions. The MA segment primarily uses subscription-based pricing models, with customers paying annual fees for access to data, software platforms, and analytical tools. This recurring revenue model provides more predictable cash flows, with typical contract lengths ranging from one to three years. Additional revenue comes from professional services, training, and consulting engagements. Several factors significantly impact Moody's profitability margins. Positive margin drivers include: 1. Higher debt issuance volumes driven by economic growth, mergers and acquisitions activity, and refinancing needs when interest rates decline, 2. Favorable rating mix toward higher-fee complex transactions like structured finance and leveraged finance, 3. Pricing power in both segments due to regulatory barriers and switching costs, 4. Operating leverage as incremental ratings require minimal additional costs, and 5. Growing demand for risk management and regulatory compliance solutions. Negative margin pressures include: 1. Declining issuance volumes during economic downturns or rising interest rate environments, 2. Increased competition from alternative rating agencies and data providers, 3. Regulatory scrutiny and potential changes to the "issuer pays" model, 4. Rising technology and talent acquisition costs, particularly for AI and data science capabilities, and 5. Customer consolidation reducing pricing power in the analytics business.
Competitive moat
Moody's possesses a strong economic moat built on multiple defensive characteristics, though it faces some emerging competitive pressures. The company benefits from regulatory moats as one of only three Nationally Recognized Statistical Rating Organizations (NRSROs) in the United States, alongside S&P and Fitch. This oligopolistic structure creates significant barriers to entry, as new rating agencies must navigate complex regulatory approval processes and build credibility over decades. Network effects strengthen Moody's position as its ratings become more valuable when widely accepted by market participants. Institutional investors, regulators, and risk management systems are built around the established rating scales, creating switching costs and reinforcing the incumbent advantage. The company also benefits from intangible assets including its century-plus brand reputation, proprietary methodologies, and extensive historical default databases that would be difficult for competitors to replicate. High switching costs protect both segments, as financial institutions have integrated Moody's ratings and analytics deeply into their risk management systems, regulatory reporting, and investment processes. Changing providers requires significant operational disruption and retraining costs. However, the moat faces some challenges. Regulatory pressure following the 2008 financial crisis has encouraged competition, leading to the emergence of smaller rating agencies and alternative credit assessment tools. Technology disruption through artificial intelligence and machine learning could potentially democratize credit analysis capabilities. Additionally, the "issuer pays" model creates inherent conflicts of interest that regulators continue to scrutinize, potentially threatening the current business model structure. Despite these challenges, Moody's dominant market position, regulatory protection, and deep customer integration provide substantial competitive advantages that should persist over the medium term.
Risks & safety
Moody's demonstrates a solid margin of safety with strong financial fundamentals, though valuation metrics suggest limited upside at current levels. • Liquidity and Solvency: Strong cash position with $2.4 billion in cash and short-term investments as of Q1 2025, current ratio of 1.56x, and robust free cash flow generation of $672 million quarterly. Debt-to-equity ratio of 1.93x is manageable given stable cash flows, though elevated compared to historical levels. • Valuation Metrics: Trading at premium valuations with P/E ratio of 33.5x, EV/EBITDA of 22.2x, and price-to-book ratio of 22.7x, suggesting limited margin of safety for value-oriented investors. Graham number of $40 indicates significant overvaluation relative to conservative metrics. • Profitability and Returns: Strong return on equity of 16.9% and healthy EBITDA margins demonstrate operational efficiency. Free cash flow conversion remains robust, supporting dividend payments and share repurchases. • Other Considerations: Recurring revenue model in MA segment (96% of segment revenue) provides stability, while MIS segment remains cyclical and tied to capital market conditions. Company maintains flexible cost structure and has demonstrated ability to adjust expenses during downturns.
Recent development
Over the past few years, Moody's has pursued several strategic initiatives focused on digital transformation, artificial intelligence integration, and market expansion. The company has made significant investments in generative AI capabilities, launching products like the Research Assistant, Automated Credit Memo, and Early Warning System for commercial real estate. These AI-powered tools aim to enhance productivity and provide new value propositions to customers across both rating and analytics workflows. Strategic acquisitions have expanded capabilities across key growth areas. Notable acquisitions include CAPE Analytics for catastrophe risk modeling, Praedicat for casualty analytics, GCR (an African rating agency), and several fintech companies like Numerated, CreditCat, and Tape Analytics to strengthen banking and insurance offerings. The company has also formed strategic partnerships with MSCI for ESG data and private credit collaboration, Zillow for real estate data, and Google for enterprise AI platform integration. Private credit market expansion represents a major growth initiative, with Moody's securing nearly 400 private credit mandates in 2024 and 30% of first-time mandates in the Financial Institutions Group being private credit-related. The partnership with MSCI aims to provide independent risk assessments for private credit investors, addressing the growing demand for transparency in alternative asset markets. The company has also focused on geographic expansion, particularly through Moody's Local, which expanded into six Central American countries and achieved 22% organic revenue growth in Latin America. Additionally, Moody's has implemented efficiency programs targeting $250-300 million in annual cost savings over two years, primarily focused on the Analytics segment and corporate functions, while continuing strategic investments in high-growth areas like KYC compliance, climate risk assessment, and digital infrastructure financing.
MCO company profile · for informational purposes only — not investment advice.
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