Moody's Corporation (MCO)
Moody's is a global financial powerhouse that acts as a referee for the debt markets, rating the creditworthiness of companies and governments worldwide.
Is Moody's Corporation a good stock for a UK beginner?
The honest version: Moody's is a global financial powerhouse that acts as a referee for the debt markets, rating the creditworthiness of companies and governments worldwide.
Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
Successful integration of new AI-driven financial research tools.
Regulatory changes that limit the influence of credit rating agencies.
What does Moody's Corporation do?
Moody's makes its money by charging fees to assess how likely a borrower is to pay back their loans, essentially acting as a gatekeeper for the global bond market. They also provide data and analytics to help investors make sense of complex financial information. Watch the volume of new debt being issued, as fewer loans taken out means less business for their core rating division.
On our factor screen it looks strongest on growth and quality, and weakest on value.
- ✓Pays a dividend - about 0.9% a year
- ✓Growing - revenue up about 15% over the year
- ✓Very profitable - turns about 34% of sales into profit
- !High P/E of 31 - big growth is already priced in
- !Carries a lot of debt - roughly 2.4x its equity
- ✓Strong return on shareholder money (ROE 77%)
- Quality screens high (71/100)
- Growth screens high (72/100)
- Dominant position in a niche, essential financial market
- High profit margins reflecting a strong business model
- Significant recurring revenue from data and analytics subscriptions
- Value screens low (23/100)
- Regulatory crackdowns on the credit rating industry
- Economic downturns leading to a freeze in corporate borrowing
- Technological disruption from new financial data competitors
What do Moody's Corporation's numbers mean?
How much money does Moody's Corporation make?
Revenue and profit by quarter, and how much of each sale turns into profit.
Does Moody's Corporation pay a dividend?
Yes - Moody's Corporation currently pays a dividend of about 0.9% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.
When does Moody's Corporation report earnings, and how did recent quarters go?
Moody's Corporation is next scheduled to report on about 2026-10-21 - dates can move, and we don't predict results; this just tells you when to look.
Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.
| Reported | Expected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number. | Actual EPS | vs expected |
|---|---|---|---|
| 2026-07-22 | $4.25 | $4.68 | Beat +10% |
| 2026-04-22 | $4.22 | $4.33 | Beat +3% |
| 2026-02-18 | $3.44 | $3.64 | Beat +6% |
| 2025-10-22 | $3.68 | $3.92 | Beat +6% |
| 2025-07-23 | $3.39 | $3.56 | Beat +5% |
| 2025-04-22 | $3.54 | $3.83 | Beat +8% |
Across the last 6 quarters here, Moody's Corporation came in ahead of what analysts expected 6 times. One quarter is noise, not a trend.
See who else reports over the next two weeks →
Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.
More in Financial Services
What are the scenarios for Moody's Corporation?
An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.
What are the pros and cons of Moody's Corporation?
How many points the write-up makes each way — a balance check, not a score or verdict.
- Dominant position in a niche, essential financial market
- High profit margins reflecting a strong business model
- Significant recurring revenue from data and analytics subscriptions
- High valuation multiples compared to the broader market
- Business is heavily tied to the cyclical nature of debt issuance
- Reputational risk if credit ratings are perceived as inaccurate
- Regulatory crackdowns on the credit rating industry
- Economic downturns leading to a freeze in corporate borrowing
- Technological disruption from new financial data competitors
The write-up's own warning lights — if these start happening, the case above changes.
- A permanent decline in the global corporate bond market
- Major regulatory changes that break up the credit rating duopoly
Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.