📊 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.
Why Buy Moodys Corp. /DE/ Stock? MCO Key Strengths
- 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
❓ Frequently Asked Questions about MCO
What is the AI rating for MCO?
Moodys Corp. /DE/ (MCO) has an AI rating of BUY 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 rating reflects both perspectives for balanced insights.
Is MCO a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Moodys Corp. /DE/ has a BUY rating 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.
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 $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.