Jason Fieber·2026-06-15·via All Articles on Seeking Alpha
Summary
Moody’s Corporation is a dominant global credit ratings agency benefiting from oligopoly dynamics, high barriers to entry, and recurring revenues.
MCO has delivered 17 consecutive years of dividend growth, a 10-year CAGR of 10.7%, and maintains a low 29.5% payout ratio, supporting future increases.
CFRA forecasts 15% annual EPS growth over the next three years, driven by M&A, AI-driven financing, and robust market conditions, supporting a mid-teens total return outlook.
Despite a P/E of 32.3, MCO trades below its historical averages and is estimated to be ~10% undervalued, with a fair value of $503.35 and a 'Very Safe' dividend.
Moody’s Corporation (MCO) is a US-based financial services company. Founded in 1909, Moody’s is now a $79 billion (by market cap) ratings giant employing 16,000 people. The company reports results across two segments: Moody’s Investors Service, 53% of FY 2025 revenue; and Moody’s Analytics, 47%. Just
