Moody's logged a 1.3% change during today's morning session, and is now trading at a price of $479.92 per share.
Over the last year, Moody's logged a -2.8% change, with its stock price reaching a high of $531.93 and a low of $378.71. Over the same period, the stock underperformed the S&P 500 index by -17.2%. AThe company's 50-day average price was $500.51. Moody's Corporation operates as an integrated risk assessment firm worldwide. Based in New York, NY, the Large-Cap Finance company has 15,913 full time employees. Moody's has offered a 0.8% dividend yield over the last 12 months.
Growing Revenues but an Average Current Ratio:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $4,829 | $5,371 | $6,218 | $5,468 | $5,916 | $7,088 |
| Interest Income (M) | -$208 | -$205 | -$171 | -$231 | -$251 | -$237 |
| Operating Margins | 41% | 44% | 46% | 34% | 36% | 41% |
| Net Margins | 28% | 33% | 36% | 25% | 27% | 28% |
| Net Income (M) | $1,422 | $1,778 | $2,214 | $1,374 | $1,607 | $2,058 |
| Depreciation & Amort. (M) | $200 | $220 | $257 | $331 | $373 | $431 |
| Diluted Shares (M) | 192 | 189 | 188 | 185 | 184 | 183 |
| Earnings Per Share | $7.42 | $9.39 | $11.78 | $7.44 | $8.73 | $11.26 |
| EPS Growth | n/a | 26.55% | 25.45% | -36.84% | 17.34% | 28.98% |
| Avg. Price | $189.71 | $258.32 | $338.13 | $311.64 | $390.56 | $473.72 |
| P/E Ratio | 25.26 | 27.25 | 28.46 | 41.72 | 44.53 | 41.85 |
| Free Cash Flow (M) | $1,606 | $2,043 | $1,866 | $1,191 | $1,880 | $2,521 |
| CAPEX (M) | $69 | $103 | $139 | $283 | $271 | $317 |
| EV / EBITDA | 18.3 | 20.03 | 22.21 | 28.61 | 30.45 | 27.88 |
| Total Debt (M) | $5,711 | $6,422 | $7,413 | $7,389 | $7,001 | $8,125 |
| Net Debt / EBITDA | 1.76 | 1.47 | 1.81 | 2.54 | 1.94 | 1.73 |
| Current Ratio | 1.92 | 2.03 | 1.61 | 1.72 | 1.74 | 1.47 |
Moody's benefits from growing revenues and increasing reinvestment in the business, generally positive cash flows, and low leverage levels. The company's financial statements show strong operating margins with a stable trend and positive EPS growth. Furthermore, Moody's has just enough current assets to cover current liabilities, as shown by its current ratio of 1.47.
The Market May Be Overvaluing Moody's's Earnings and Assets:
Moody's has a trailing twelve month P/E ratio of 42.6, compared to an average of 15.92 for the Finance sector. Based on its EPS guidance of $13.32, the company has a forward P/E ratio of 37.6. The 8.7% compound average growth rate of Moody's's historical and projected earnings per share yields a PEG ratio of 4.89. This suggests that these shares are overvalued. Furthermore, Moody's is likely overvalued compared to the book value of its equity, since its P/B ratio of 21.8 is higher than the sector average of 1.78. The company's shares are currently trading 582.6% below their Graham number. Overall, Moody's's lofty valuation in terms of earnings and assets is to some extent attenuated by its strong cash flow trend and reasonable levels of debt.
There's an Analyst Consensus of Some Upside Potential for Moody's:
The 21 analysts following Moody's have set target prices ranging from $440.0 to $597.0 per share, for an average of $543.95 with a buy rating. The company is trading -11.8% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Moody's has a very low short interest because 1.2% of the company's shares are sold short. Institutions own 79.2% of the company's shares, and the insider ownership rate stands at 13.87%, suggesting a large amount of insider shareholders. The largest shareholder is Berkshire Hathaway, Inc, whose 14% stake in the company is worth $11,839,520,189.
