📊 MCO Key Takeaways
Is Moodys Corp. /DE/ (MCO) a Good Investment?
Moody's demonstrates exceptional profitability with 44.3% operating margins and 31.8% net margins, generating strong free cash flow of $844M (40.6% FCF margin) despite a capital-light business model. However, the disconnect between 8.9% revenue growth and flat net income growth, combined with elevated leverage (2.33x Debt/Equity), warrants a measured stance pending clarification on profitability trends.
Moodys Corp. /DE/ Key Strengths (MCO)
- Exceptional operating margins (44.3%) and net margins (31.8%) indicate strong pricing power and operational efficiency
- Outstanding free cash flow generation ($844M) with minimal capex requirements ($95M) reflects asset-light business model
- EPS growth of 21.4% YoY despite flat net income demonstrates effective capital allocation and share buybacks
- High ROE of 22.1% shows efficient deployment of shareholder capital
MCO Stock Risks: Moodys Corp. /DE/ Investment Risks
- Net income essentially flat YoY (-0.1%) while revenue grew 8.9% suggests margin compression or rising costs
- Elevated leverage with Debt/Equity ratio of 2.33x ($7.0B debt vs $3.0B equity) limits financial flexibility
- Low current/quick ratio of 1.16x provides limited liquidity cushion relative to $7B debt burden
- Significant insider trading activity (33 Form 4 filings in 90 days) may indicate management uncertainty
Key Metrics to Watch
- Net Income margin trend - critical to identify if 8.9% revenue growth can translate to profitability gains
- Operating cash flow sustainability and free cash flow generation relative to debt service
- Debt reduction trajectory and Debt/Equity ratio improvement
Moodys Corp. /DE/ (MCO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 40.6% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
MCO Profit Margin, ROE & Profitability Analysis
MCO vs Finance Sector: How Moodys Corp. /DE/ Compares
How Moodys Corp. /DE/ compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Moodys Corp. /DE/ Stock Overvalued? MCO Valuation Analysis 2026
Based on fundamental analysis, Moodys Corp. /DE/ appears fundamentally strong relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Moodys Corp. /DE/ Balance Sheet: MCO Debt, Cash & Liquidity
MCO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Moodys Corp. /DE/'s revenue has grown significantly by 24% over the 5-year period, indicating strong business expansion. The most recent EPS of $8.73 reflects profitable operations.
MCO Revenue Growth, EPS Growth & YoY Performance
MCO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.9B | $625.0M | $3.46 |
| Q3 2025 | $1.8B | $534.0M | $2.93 |
| Q2 2025 | $1.8B | $552.0M | $3.02 |
| Q1 2025 | $1.8B | $577.0M | $3.15 |
| Q3 2024 | $1.5B | $389.0M | $2.11 |
| Q2 2024 | $1.5B | $377.0M | $2.05 |
| Q1 2024 | $1.5B | $501.0M | $2.72 |
| Q3 2023 | $1.3B | $303.0M | $1.65 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Moodys Corp. /DE/ Dividends, Buybacks & Capital Allocation
MCO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Moodys Corp. /DE/ (CIK: 0001059556)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Jun 8, 2026 | 4 | xslF345X06/wk-form4_1780950325.xml | View → |
| Jun 8, 2026 | 4 | xslF345X06/wk-form4_1780949563.xml | View → |
| Jun 8, 2026 | 4 | xslF345X06/wk-form4_1780949521.xml | View → |
| Jun 8, 2026 | 4 | xslF345X06/wk-form4_1780949434.xml | View → |
| Jun 8, 2026 | 4 | xslF345X06/wk-form4_1780949209.xml | View → |
❓ Frequently Asked Questions about MCO
What is the AI rating for MCO?
Moodys Corp. /DE/ (MCO) has an AI grade of A with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are MCO's key strengths?
Claude: Exceptional operating margins (44.3%) and net margins (31.8%) indicate strong pricing power and operational efficiency. Outstanding free cash flow generation ($844M) with minimal capex requirements ($95M) reflects asset-light business model.
What are the risks of investing in MCO?
Claude: Net income essentially flat YoY (-0.1%) while revenue grew 8.9% suggests margin compression or rising costs. Elevated leverage with Debt/Equity ratio of 2.33x ($7.0B debt vs $3.0B equity) limits financial flexibility.
What is MCO's revenue and growth?
Moodys Corp. /DE/ reported revenue of $2.1B.
Does MCO pay dividends?
Moodys Corp. /DE/ pays dividends, with $185.0M distributed to shareholders in the trailing twelve months.
Where can I find MCO SEC filings?
Official SEC filings for Moodys Corp. /DE/ (CIK: 0001059556) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MCO's EPS?
Moodys Corp. /DE/ has a diluted EPS of $3.73.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is MCO's fundamental grade?
Based on our AI fundamental analysis in June 2026, Moodys Corp. /DE/ has a A grade with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is MCO stock overvalued or undervalued?
Valuation metrics for MCO: ROE of 22.1% (sector avg: 12%), net margin of 31.8% (sector avg: 25%). Higher ROE suggests strong returns relative to peers.
What is MCO's AI grade for 2026?
Our dual AI analysis gives Moodys Corp. /DE/ a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is MCO's free cash flow?
Moodys Corp. /DE/'s operating cash flow is $939.0M, with capital expenditures of $95.0M. FCF margin is 40.6%.
How does MCO compare to other Finance stocks?
Vs Finance sector averages: Net margin 31.8% (avg: 25%), ROE 22.1% (avg: 12%), current ratio 1.16 (avg: 1.2).
Is Moodys Corp. /DE/ carrying too much debt?
MCO has a debt-to-equity ratio of 2.33x, which is above the Finance sector average of 2x. However, the current ratio of 1.16 suggests adequate short-term liquidity.