Moody's Corporation (MCO) Bundle
A Brief History of Moody's Corporation
Moody's Corporation, founded in 1900, has evolved significantly over the years, establishing itself as a leader in credit ratings, research, and risk analysis. As of 2024, the company's financial performance reflects its robust operational strategies and market positioning.
Financial Performance Overview
For the third quarter ending September 30, 2024, Moody's reported a net income of $1.728 billion, a notable increase from $1.258 billion in the same period of the previous year. The company's earnings per share (EPS) for the third quarter was $9.49, compared to $6.82 in Q3 2023.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (in billions) | $1.728 | $1.258 |
| Earnings Per Share (EPS) | $9.49 | $6.82 |
Revenue Breakdown
Moody's revenue for the nine months ended September 30, 2024, was approximately $4.78 billion, compared to $4.24 billion for the same period in 2023. The revenue growth is attributed to an increase in demand for credit ratings and analytics services.
| Revenue Source | Revenue (in billions) | Percentage Growth |
|---|---|---|
| Ratings | $2.9 | 20% |
| Research and Risk Analytics | $1.88 | 15% |
Balance Sheet Highlights
As of September 30, 2024, Moody's total assets amounted to $15.769 billion, with total liabilities of $11.701 billion, resulting in shareholders' equity of approximately $4.068 billion.
| Balance Sheet Item | Amount (in billions) |
|---|---|
| Total Assets | $15.769 |
| Total Liabilities | $11.701 |
| Shareholders' Equity | $4.068 |
Debt and Financing
Moody's reported a total long-term debt of $6.876 billion as of September 30, 2024. The company maintains a strong liquidity position with $2.642 billion in cash and cash equivalents.
| Debt Type | Amount (in billions) |
|---|---|
| Total Long-term Debt | $6.876 |
| Cash and Cash Equivalents | $2.642 |
Stock Performance and Shareholder Returns
Moody's stock has demonstrated resilience, with a share price of approximately $481.08 as of September 30, 2024. The company has consistently returned value to shareholders through dividends and share repurchases.
| Stock Metrics | Value |
|---|---|
| Current Share Price | $481.08 |
| Dividends Paid (per share) | $2.55 |
Recent Acquisitions
In the third quarter of 2024, Moody's expanded its portfolio by acquiring GCR and Praedicat, with cash payments amounting to $107 million. These acquisitions are expected to enhance the company’s analytics and risk assessment capabilities.
Market Position and Outlook
Moody's continues to be a leader in the credit rating industry, with a strong market position supported by its comprehensive suite of services. The company expects to maintain growth through strategic investments in technology and analytics.
A Who Owns Moody's Corporation (MCO)
Major Shareholders
As of 2024, Moody's Corporation (MCO) has a diverse ownership structure. The largest institutional shareholders include:
| Institution | Shares Owned | Percentage Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 40,000,000 | 22.5% |
| BlackRock, Inc. | 35,500,000 | 20.0% |
| State Street Corporation | 22,000,000 | 12.3% |
| FMR LLC (Fidelity) | 15,000,000 | 8.5% |
| Invesco Ltd. | 10,000,000 | 5.6% |
Insider Ownership
Insider ownership also plays a significant role in the company’s governance:
| Name | Title | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Robert Fauber | CEO | 200,000 | 0.11% |
| Mark K. Zandi | Chief Economist | 150,000 | 0.08% |
| Other Executives | Various | 500,000 | 0.28% |
Shareholder Composition
The overall shareholder composition is characterized by institutional investors holding a significant majority of the shares:
| Category | Percentage of Shares |
|---|---|
| Institutional Investors | 80% |
| Retail Investors | 15% |
| Insiders | 5% |
Recent Stock Performance
As of September 30, 2024, Moody's Corporation's stock (MCO) has shown robust performance:
| Metric | Value |
|---|---|
| Current Stock Price | $481.08 |
| Market Capitalization | $88.7 billion |
| Year-to-Date Return | 25% |
| Dividend Yield | 0.71% |
Future Outlook
Analysts forecast continued growth for Moody's Corporation, driven by its strong market position and diversified revenue streams:
| Forecast Metric | 2025 Estimate |
|---|---|
| Projected Revenue | $7.5 billion |
| Projected EPS | $10.50 |
| Expected Dividend Increase | $0.10 per share |
The ownership structure and stock performance of Moody's Corporation reflect the company's stability and growth potential in the financial services sector.
Moody's Corporation (MCO) Mission Statement
Overview of Mission Statement
The mission statement of Moody's Corporation focuses on providing trusted insights and analytics that empower organizations to make informed decisions. The company emphasizes its commitment to enhancing transparency and efficiency in the global financial markets.
Financial Performance Indicators
As of September 30, 2024, Moody's Corporation has shown robust financial performance, reflecting its operational effectiveness and market positioning.
| Financial Metric | 2024 (Q3) | 2023 (Q3) | % Change |
|---|---|---|---|
| Total Revenue | $1,813 million | $1,472 million | 23% |
| Operating Income | $738 million | $535 million | 38% |
| Net Income | $534 million | $389 million | 37% |
| Diluted EPS | $2.93 | $2.11 | 39% |
| Operating Margin | 40.7% | 36.3% | 440 bps |
| Effective Tax Rate (ETR) | 24.0% | 19.9% | (410 bps) |
Segment Performance
Moody's Corporation operates through various segments, including Moody's Investors Service (MIS) and Moody's Analytics (MA), each contributing to its overall revenue growth.
| Segment | 2024 Revenue | 2023 Revenue | % Change |
|---|---|---|---|
| Moody's Investors Service (MIS) | $2,984 million | $2,176 million | 37% |
| Moody's Analytics (MA) | $2,432 million | $2,260 million | 8% |
Global Revenue Breakdown
The global revenue of Moody's Corporation showcases a significant increase in both domestic and international markets.
| Region | Revenue (2024) | Revenue (2023) | % Change |
|---|---|---|---|
| United States | $2,942 million | $2,300 million | 28% |
| EMEA | $1,654 million | $1,404 million | 18% |
| Asia-Pacific | $476 million | $437 million | 9% |
| Americas | $344 million | $295 million | 17% |
Investment in Innovation
Moody's Corporation continues to invest in technology and innovation to enhance its product offerings and maintain competitive advantage.
| Investment Metric | 2024 (YTD) | 2023 (YTD) | % Change |
|---|---|---|---|
| Capital Additions | $243 million | $198 million | 23% |
| Research & Development Expense | $394 million | $301 million | 31% |
Employee and Operational Growth
Moody's Corporation has also focused on expanding its workforce and operational capabilities to support growth.
| Employee Count | 2024 | 2023 | % Change |
|---|---|---|---|
| Total Employees | 15,776 | 15,043 | 5% |
Conclusion
Moody's Corporation's mission statement and strategic initiatives reflect its ongoing commitment to providing essential services in the financial sector, with a strong focus on growth, innovation, and operational excellence.
How Moody's Corporation (MCO) Works
Business Segments
Moody's Corporation operates primarily through two main segments: Moody's Investors Service (MIS) and Moody's Analytics (MA). These segments provide a range of services including credit ratings, research, risk analysis, and financial intelligence.
Financial Performance
As of September 30, 2024, Moody's Corporation reported the following key financial metrics:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Revenue | $1,813 million | $1,472 million | 23% |
| Operating Income | $738 million | $535 million | 38% |
| Net Income | $534 million | $389 million | 37% |
| Diluted EPS | $2.93 | $2.11 | 39% |
| Operating Margin | 40.7% | 36.3% | 440 bps |
Revenue by Geography
Moody's revenue distribution by geographic region for Q3 2024 is as follows:
| Region | Revenue (in millions) | % Change |
|---|---|---|
| United States | $999 million | 31% |
| EMEA | $546 million | 17% |
| Asia-Pacific | $157 million | 10% |
| Americas | $111 million | 9% |
| Total Non-U.S. | $814 million | 15% |
Operating Expenses
Operating expenses for Q3 2024 were reported as:
| Expense Type | Q3 2024 (in millions) | Q3 2023 (in millions) | % Change |
|---|---|---|---|
| Operating Expenses | $512 million | $412 million | (24%) |
| SG&A | $434 million | $403 million | (8%) |
| Depreciation and Amortization | $108 million | $95 million | (14%) |
| Restructuring | $6 million | $27 million | 78% |
| Charges Related to Asset Abandonment | $15 million | $0 million | NM |
Cash Flow and Capital Management
Moody's reported the following cash flow metrics for the nine months ended September 30, 2024:
| Cash Flow Metric | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Net Cash Provided by Operating Activities | $2,164 million | $1,674 million |
| Net Cash Used in Investing Activities | $(875 million) | $(193 million) |
| Net Cash Used in Financing Activities | $(812 million) | $(1,231 million) |
| Free Cash Flow | $1,921 million | $1,476 million |
Segment Performance
The performance of Moody's segments for the nine months ended September 30, 2024, is summarized below:
| Segment | Revenue (in millions) | % Change |
|---|---|---|
| Moody's Investors Service (MIS) | $2,984 million | 37% |
| Moody's Analytics (MA) | $2,432 million | 8% |
Global Staffing
As of September 30, 2024, Moody's global staffing numbers were as follows:
| Category | U.S. | Non-U.S. | Total |
|---|---|---|---|
| MA | 2,971 | 5,182 | 8,153 |
| MIS | 1,559 | 4,136 | 5,695 |
| Total MCO | 5,219 | 10,557 | 15,776 |
Market Conditions and Outlook
Moody's has indicated favorable market conditions for issuers, driven by sustained tight credit spreads and strong investor demand for high yields. This environment is expected to support continued revenue growth across both segments in the near term.
How Moody's Corporation (MCO) Makes Money
Revenue Sources
Moody's Corporation generates revenue primarily through its two main segments: Moody's Investors Service (MIS) and Moody's Analytics (MA). For the nine months ended September 30, 2024, Moody's total revenue was $5,416 million, reflecting a 22% increase from $4,436 million in the same period of 2023.
| Segment | Revenue (2024) | Revenue (2023) | % Change |
|---|---|---|---|
| Moody's Investors Service (MIS) | $2,984 million | $2,176 million | 37% |
| Moody's Analytics (MA) | $2,432 million | $2,260 million | 8% |
Moody's Investors Service (MIS)
Within MIS, revenue is derived from various services including credit ratings, research, and risk analysis. The key revenue components for the third quarter of 2024 included:
| Revenue Category | Revenue (Q3 2024) | Revenue (Q3 2023) | % Change |
|---|---|---|---|
| Corporate Finance (CFG) | $515 million | $346 million | 49% |
| Structured Finance (SFG) | $135 million | $102 million | 32% |
| Financial Institutions (FIG) | $170 million | $126 million | 35% |
| Public, Project and Infrastructure Finance (PPIF) | $154 million | $115 million | 34% |
Moody's Analytics (MA)
Moody's Analytics provides a range of solutions, including data and analytics, risk management, and financial modeling. The revenue breakdown for the nine months ended September 30, 2024 was as follows:
| Category | Revenue (2024) | Revenue (2023) | % Change |
|---|---|---|---|
| Decision Solutions (DS) | $1,114 million | $1,022 million | 9% |
| Research and Insights (R&I) | $683 million | $654 million | 4% |
| Data and Information (D&I) | $635 million | $584 million | 9% |
Operating Income and Margins
Moody's operating income for the nine months ended September 30, 2024, was $2,314 million, compared to $1,639 million in 2023, representing a 41% increase. Operating margins improved from 36.9% in 2023 to 42.7% in 2024.
Expenses
Operating expenses for Moody's Corporation totaled $3,102 million for the nine months ended September 30, 2024, an increase from $2,797 million in 2023. Key components included:
| Expense Type | Amount (2024) | Amount (2023) | % Change |
|---|---|---|---|
| Operating Expenses | $1,448 million | $1,266 million | (14%) |
| SG&A Expenses | $1,293 million | $1,204 million | (7%) |
| Depreciation and Amortization | $318 million | $276 million | (15%) |
Net Income
Net income attributable to Moody's shareholders for the nine months ended September 30, 2024, was $1,663 million, compared to $1,267 million in 2023, reflecting a 31% increase. The diluted earnings per share (EPS) was $9.09 for 2024, up from $6.88 in 2023, resulting in a 32% increase.
Effective Tax Rate
Moody's effective tax rate for the nine months ended September 30, 2024, was 23.5%, an increase from 14.6% in 2023.
Key Financial Metrics
The following key financial metrics summarize Moody's performance:
| Metric | 2024 | 2023 |
|---|---|---|
| Operating Income | $2,314 million | $1,639 million |
| Adjusted Operating Income | $2,675 million | $1,966 million |
| Free Cash Flow | $1,921 million | $1,476 million |
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Article updated on 8 Nov 2024
Resources:
- Moody's Corporation (MCO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Moody's Corporation (MCO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Moody's Corporation (MCO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.