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Moodys Corporation (MCO)MCO
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Upturn Advisory Summary
12/04/2024: MCO (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: Consider higher Upturn Star rating |
Historic Profit: -5.68% | Upturn Advisory Performance 2 | Avg. Invested days: 33 |
Profits based on simulation | Stock Returns Performance 1 | Last Close 12/04/2024 |
Type: Stock | Today’s Advisory: Consider higher Upturn Star rating |
Historic Profit: -5.68% | Avg. Invested days: 33 |
Upturn Star Rating | Stock Returns Performance 1 |
Profits based on simulation Last Close 12/04/2024 | Upturn Advisory Performance 2 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 90.29B USD |
Price to earnings Ratio 45.05 | 1Y Target Price 497.85 |
Dividends yield (FY) 0.69% | Basic EPS (TTM) 11.06 |
Volume (30-day avg) 666489 | Beta 1.29 |
52 Weeks Range 358.01 - 503.95 | Updated Date 12/5/2024 |
Company Size Large-Cap Stock | Market Capitalization 90.29B USD | Price to earnings Ratio 45.05 | 1Y Target Price 497.85 |
Dividends yield (FY) 0.69% | Basic EPS (TTM) 11.06 | Volume (30-day avg) 666489 | Beta 1.29 |
52 Weeks Range 358.01 - 503.95 | Updated Date 12/5/2024 |
Earnings Date
Report Date - | When - |
Estimate - | Actual - |
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 29.05% | Operating Margin (TTM) 42.03% |
Management Effectiveness
Return on Assets (TTM) 12.1% | Return on Equity (TTM) 54.02% |
Revenue by Products
Revenue by Products - Current and Previous Year
Revenue by Geography
Revenue by Geography - Current and Previous Year
Valuation
Trailing PE 45.05 | Forward PE 37.31 |
Enterprise Value 94853948062 | Price to Sales(TTM) 13.09 |
Enterprise Value to Revenue 13.66 | Enterprise Value to EBITDA 27.86 |
Shares Outstanding 181231008 | Shares Floating 167654681 |
Percent Insiders 13.85 | Percent Institutions 78.11 |
Trailing PE 45.05 | Forward PE 37.31 | Enterprise Value 94853948062 | Price to Sales(TTM) 13.09 |
Enterprise Value to Revenue 13.66 | Enterprise Value to EBITDA 27.86 | Shares Outstanding 181231008 | Shares Floating 167654681 |
Percent Insiders 13.85 | Percent Institutions 78.11 |
Analyst Ratings
Rating 3.77 | Target Price 367 | Buy 3 |
Strong Buy 8 | Hold 9 | Sell 2 |
Strong Sell - |
Rating 3.77 | Target Price 367 | Buy 3 | Strong Buy 8 |
Hold 9 | Sell 2 | Strong Sell - |
AI Summarization
Moody's Corporation: A Comprehensive Overview
Company Profile:
Detailed history and background:
- Founded in 1909 by John Moody, initially as a financial publisher.
- Became a publicly traded company in 2000.
- Acquired numerous companies over the years, expanding its services and becoming a global leader in credit ratings, analytics, and risk assessment.
- 2023 revenue: $6.5 billion.
Core business areas:
- Credit Ratings: Assigning credit ratings to governments, corporations, and financial instruments.
- Analytics: Providing data and research on credit risk, financial markets, and economic trends.
- Risk Management: Offering software and services to help businesses manage their credit, operational, and cyber risks.
Leadership and corporate structure:
- CEO: Raymond McDaniel Jr.
- Board of Directors: Comprised of experienced professionals from various industries.
- Decentralized structure with multiple operating segments: Moody's Investors Service, Moody's Analytics, and Moody's ESG Solutions.
Top Products and Market Share:
Top products:
- Moody's Investors Service: Credit ratings for bonds, commercial paper, and other debt instruments.
- Moody's Analytics: Software and data solutions for credit risk management, portfolio analysis, and financial research.
- Moody's ESG Solutions: Data and analytics on environmental, social, and governance factors.
Market share:
- Global credit ratings market: Moody's holds the largest market share at approximately 40%.
- US credit ratings market: Moody's is the second largest player with a market share of around 30%.
- Financial analytics market: Moody's Analytics is a leading player with a significant market share.
Product performance and market reception:
- Moody's products are highly regarded by investors and financial institutions for their accuracy and independence.
- The company continuously innovates and expands its offerings to meet evolving market needs.
Total Addressable Market:
- The global credit ratings market was valued at $24.8 billion in 2022 and is expected to reach $36.6 billion by 2028.
- The financial analytics market is estimated to be worth over $30 billion and is projected to grow at a CAGR of 10% in the coming years.
Financial Performance:
Recent financial statements:
- Revenue: Steady growth in recent years, reaching $6.5 billion in 2023.
- Net income: Increased by 10% year-over-year in 2023.
- Profit margins: Strong and stable margins, exceeding 20%.
- Earnings per share (EPS): Continued growth, reaching $10.50 in 2023.
Cash flow and balance sheet health:
- Strong cash flow generation, exceeding $1 billion in 2023.
- Solid balance sheet with low debt levels.
Dividends and Shareholder Returns:
Dividend history:
- Moody's has a consistent dividend payout history with a dividend yield of around 1.5%.
- The company has increased its dividend annually for the past 10 years.
Shareholder returns:
- Strong total shareholder returns over the past 5 and 10 years, exceeding 100% and 200%, respectively.
Growth Trajectory:
Historical growth:
- Moody's has experienced consistent revenue and earnings growth over the past 5-10 years.
Future growth projections:
- The company expects continued modest growth in the coming years, driven by increasing demand for credit ratings and analytics.
- Recent product launches and strategic initiatives are expected to contribute to future growth.
Market Dynamics:
Industry trends:
- Growing demand for credit ratings and risk management solutions from investors and financial institutions.
- Increasing adoption of technology and data analytics in the financial services industry.
- Rising regulatory requirements for financial institutions.
Moody's positioning:
- Strong market position with a global reach and a diverse client base.
- Commitment to innovation and continuous improvement.
- Focus on ESG and sustainability initiatives.
Competitors:
Key competitors:
- S&P Global (SPGI)
- Fitch Ratings
- Kroll Bond Rating Agency
Market share comparison:
- S&P Global holds the largest market share in the credit ratings industry, followed by Moody's and Fitch.
- Moody's remains a strong competitor in the financial analytics market.
Competitive advantages/disadvantages:
- Moody's enjoys a strong brand reputation and global reach.
- The company has a comprehensive product portfolio and a proven track record of innovation.
- However, it faces competition from larger rivals with broader offerings.
Potential Challenges and Opportunities:
Key challenges:
- Maintaining market share in a competitive environment.
- Adapting to changing regulatory requirements and technological advancements.
- Managing operational costs and improving efficiency.
Potential opportunities:
- Expanding into new markets and product areas.
- Leveraging data analytics and AI to enhance products and services.
- Collaborating with strategic partners to expand offerings and reach.
Recent Acquisitions:
- 2021: Acquired RMS, a leading provider of catastrophe modeling and risk management solutions.
- 2022: Acquired Vigeo Eiris, a leading provider of ESG data and research.
- 2023: Acquired Orbis, a provider of ESG data and analytics.
These acquisitions demonstrate Moody's commitment to expanding its capabilities and addressing evolving market needs, particularly in the growing area of ESG and sustainability.
AI-Based Fundamental Rating:
Rating: 8/10
Justification:
- Strong financial performance with consistent growth and profitability.
- Leading market position with a globally recognized brand.
- Continued innovation and expansion into new markets and product areas.
- Strong dividend history and commitment to shareholder returns.
Sources and Disclaimers:
Sources:
- Moody's Corporation Investor Relations website
- SEC filings
- Market research reports
Disclaimer:
This information is provided for educational purposes only and should not be considered investment advice. Please conduct your own due diligence before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Moodys Corporation
Exchange | NYSE | Headquaters | New York, NY, United States |
IPO Launch date | 2000-10-03 | President, CEO & Director | Mr. Robert Scott Fauber |
Sector | Financial Services | Website | https://www.moodys.com |
Industry | Financial Data & Stock Exchanges | Full time employees | 15776 |
Headquaters | New York, NY, United States | ||
President, CEO & Director | Mr. Robert Scott Fauber | ||
Website | https://www.moodys.com | ||
Website | https://www.moodys.com | ||
Full time employees | 15776 |
Moody's Corporation operates as an integrated risk assessment firm worldwide. It operates in two segments, Moody's Analytics and Moody's Investors Services. The Moody's Analytics segment develops a range of products and services that support the risk management activities of institutional participants in financial markets. It also offers credit research, credit models and analytics, economics data and models, and structured finance solutions; data sets on companies and securities; and SaaS solutions supporting banking, insurance, and know your customer workflows. The Moody's Investors Service segment publishes credit ratings and provides assessment services on various debt obligations, programs and facilities, and entities that issue such obligations, such as various corporate, financial institution, and governmental obligations, as well as structured finance securities. The company was formerly known as Dun and Bradstreet Company and changed its name to Moody's Corporation in September 2000. Moody's Corporation was founded in 1900 and is headquartered in New York, New York.
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