Moody’s grew third-quarter revenue by 3% organically. Ratings revenue dipped 1% as high-yield bond and leveraged loan volumes saw some air pockets and had tough comparisons. Management reaffirmed its full-year outlook. Shares traded sideways as results came in modestly below the FactSet consensus.
Even if issuance volume turns south, strong pricing power and GDP growth should cause a rebound in ratings revenue over time. In addition, maturing debt should support issuance levels.
Higher interest rates, corporate deleveraging, and higher spreads could cause a decline in bond issuance that will weigh on ratings revenue. Notably, spreads in 2024 and 2025 for high-yield were lower than normal, indicating relatively loose credit conditions.
|
Metric
|
MCO
|
FDS
|
SPGI
|
|---|---|---|---|
Price/Earnings (Normalized) | 29.03 | 19.02 | 23.48 |
Price/Book Value | 25.49 | 5.68 | 4.15 |
Price/Sales | 10.36 | 4.73 | 8.24 |
Price/Cash Flow | 25.64 | 14.05 | 21.14 |
|
Metric
|
MCO
|
FDS
|
SPGI
|
|---|---|---|---|
Quick Ratio | 1.12 | 0.52 | 0.83 |
Current Ratio | 1.29 | 0.60 | 0.95 |
Interest Coverage | 15.14 | 12.81 | 22.80 |
|
Metric
|
MCO
|
FDS
|
SPGI
|
|---|---|---|---|
Return on Assets (Normalized) | 19.62% | 15.65% | 8.44% |
Return on Equity (Normalized) | 85.59% | 31.35% | 16.06% |
Return on Invested Capital (Normalized) | 28.38% | 19.15% | 10.72% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
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SPGI
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CME
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ICE
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NDAQ
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COIN
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MSCI
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CBOE
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| TransUnion
TRU
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| FactSet Research Systems Inc
FDS
| LOCK|lVT>hp? | LOCK|Sz& | $11B |
United States