Moody's Corp (MCO) Stock Analysis
Verdict: WATCH (do not buy)
Moody's dominates a high-margin duopoly, but at 36x P/E, the valuation prices in perfection, leaving limited room for upside.
Investment score: 58/100
Analysis as of
Is Moody's Corp stock worth reviewing? AI model thesis
Moody's (MCO) is a high-quality compounding machine trading at a significant valuation premium. While its duopoly status and AI-workflow expansion (Intapp partnership) provide long-term tailwinds, the current price offers insufficient margin of safety given massive insider selling and a P/E that dwarfs peers like NDAQ (27x) and SPGI (28x).
7-factor investment score
- Valuation: 35/100 (weight 20%)
- Financial Health: 90/100 (weight 15%)
- Technical Momentum: 75/100 (weight 15%)
- Earnings Quality: 85/100 (weight 15%)
- Insider Sentiment: 20/100 (weight 10%)
- Analyst Consensus: 60/100 (weight 10%)
- Risk-Adjusted Return: 50/100 (weight 15%)
Moody's Corp opportunities and risks
What speaks for MCO
- AI Workflow Integration
What speaks against MCO
- Extreme Multiple Expansion Relative to Peers
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| MCO | 36.3x | 11.3x | 24.0x | 69.7% | 31.7% | 3.4% |
| SPGI | 28.5x | 8.5x | 18.2x | 70.5% | 30.4% | 4.2% |
| CME | 20.7x | 13.1x | 15.0x | 86.3% | 62.8% | 4.9% |
| ICE | 20.2x | 6.0x | 14.8x | 69.0% | 30.0% | 5.8% |
| NDAQ | 27.3x | 6.3x | 19.5x | 54.8% | 23.1% | 3.9% |
| Peer median | 24.0x | 7.4x | 16.6x | 69.7% | 30.2% | 4.5% |
Frequently asked questions about Moody's Corp (MCO)
Is MCO stock a good investment?
The cached TradeMates AI model rates Moody's Corp as WATCH (do not buy) with an investment score of 58/100. Moody's (MCO) is a high-quality compounding machine trading at a significant valuation premium. While its duopoly status and AI-workflow expansion (Intapp partnership) provide long-term tailwinds, the current price offers insufficient margin of safety given massive insider selling and a P/E that dwarfs peers like NDAQ (27x) and SPGI (28x). This is algorithmic model output, not personal investment advice.
Is MCO stock a buy?
The TradeMates model verdict for MCO is WATCH (do not buy) with an investment score of 58/100. Treat this as a model signal to review, not a personal buy recommendation.