📊 MCO Key Takeaways
Is Moodys Corp. /DE/ (MCO) a Good Investment?
Moody's demonstrates exceptional profitability with a 31.9% net margin and 43.4% operating margin, supported by solid 8.9% revenue growth. The company generates substantial free cash flow of $2.6B with a 33.4% FCF margin, though the 1.73x debt-to-equity ratio requires monitoring given the $7.0B long-term debt load against $4.1B equity.
Why Buy Moodys Corp. /DE/ Stock? MCO Key Strengths
- Exceptional operating margins of 43.4% and net margins of 31.9% demonstrate pricing power and operational efficiency
- Strong free cash flow generation of $2.6B with 33.4% FCF margin indicates quality earnings and capital deployment flexibility
- Outstanding return metrics with 60.7% ROE and 15.5% ROA reflecting efficient use of shareholder capital
- Consistent revenue growth of 8.9% YoY with diluted EPS growth of 21.4% despite flat net income suggests strong share repurchase activity
- Healthy liquidity position with 1.74x current and quick ratios and $2.4B cash reserves
MCO Stock Risks: Moodys Corp. /DE/ Investment Risks
- High financial leverage with 1.73x debt-to-equity ratio and $7.0B long-term debt relative to $4.1B equity creates vulnerability to economic downturns
- Flat net income growth (-0.1% YoY) despite 8.9% revenue growth suggests margin pressure or higher operating expenses that warrant investigation
- Significant dependence on credit rating cycles and broader financial market conditions typical of rating agencies creates cyclical business exposure
- 32 Form 4 insider filings in 90 days could indicate elevated insider activity warranting further scrutiny on transaction rationale
Key Metrics to Watch
- Operating margin trend and ability to maintain 43%+ levels amid competitive pressures
- Debt-to-equity ratio trajectory and deleveraging progress relative to $7.0B long-term debt
- Net income growth acceleration relative to revenue growth to validate operating leverage
- Free cash flow sustainability and capital allocation decisions between dividends, buybacks, and debt reduction
- Credit rating market volumes and pricing power given cyclical industry exposure
Moodys Corp. /DE/ (MCO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 33.4% 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $1.4B | $327.0M | $1.77 |
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
❓ Frequently Asked Questions about MCO
What is the AI rating for MCO?
Moodys Corp. /DE/ (MCO) has an AI rating of BUY with 82% confidence, based on fundamental analysis of SEC EDGAR filings.
What are MCO's key strengths?
Claude: Exceptional operating margins of 43.4% and net margins of 31.9% demonstrate pricing power and operational efficiency. Strong free cash flow generation of $2.6B with 33.4% FCF margin indicates quality earnings and capital deployment flexibility.
What are the risks of investing in MCO?
Claude: High financial leverage with 1.73x debt-to-equity ratio and $7.0B long-term debt relative to $4.1B equity creates vulnerability to economic downturns. Flat net income growth (-0.1% YoY) despite 8.9% revenue growth suggests margin pressure or higher operating expenses that warrant investigation.
What is MCO's revenue and growth?
Moodys Corp. /DE/ reported revenue of $7.7B.
Does MCO pay dividends?
Moodys Corp. /DE/ pays dividends, with $701.0M 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 $13.67.
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 rating reflects both perspectives for balanced insights.
Is MCO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Moodys Corp. /DE/ has a BUY rating with 82% 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 60.7% (sector avg: 12%), net margin of 31.9% (sector avg: 25%). Higher ROE suggests strong returns relative to peers.
Should I buy MCO stock in 2026?
Our dual AI analysis gives Moodys Corp. /DE/ a combined BUY rating 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 $2.9B, with capital expenditures of $326.0M. FCF margin is 33.4%.
How does MCO compare to other Finance stocks?
Vs Finance sector averages: Net margin 31.9% (avg: 25%), ROE 60.7% (avg: 12%), current ratio 1.74 (avg: 1.2).
Is Moodys Corp. /DE/ carrying too much debt?
MCO has a debt-to-equity ratio of 1.73x, which is above the Finance sector average of 2x. However, the current ratio of 1.74 suggests adequate short-term liquidity.
Why is MCO's return on equity (ROE) so high?
Moodys Corp. /DE/ has a return on equity of 60.7%, significantly above the Finance sector average of 12%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 31.9% net margin.