MORNINGSTAR INC (MORN)
US6177001095 - Common Stock
Taking everything into account, MORN scores 4 out of 10 in our fundamental rating. MORN was compared to 210 industry peers in the Capital Markets industry. MORN has an average financial health and profitability rating. MORN is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year MORN was profitable.
MORN had a positive operating cash flow in the past year.
Each year in the past 5 years MORN has been profitable.
Each year in the past 5 years MORN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MORN (4.15%) is comparable to the rest of the industry.
The Return On Equity of MORN (10.63%) is comparable to the rest of the industry.
The Return On Invested Capital of MORN (6.33%) is better than 68.27% of its industry peers.
MORN had an Average Return On Invested Capital over the past 3 years of 6.46%. This is below the industry average of 10.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 10.63% | ||
| ROIC | 6.33% |
ROA(3y)4.31%
ROA(5y)5.53%
ROE(3y)10.04%
ROE(5y)12.35%
ROIC(3y)6.46%
ROIC(5y)6.97%
1.3 Margins
MORN's Profit Margin of 6.92% is on the low side compared to the rest of the industry. MORN is outperformed by 69.23% of its industry peers.
In the last couple of years the Profit Margin of MORN has declined.
MORN's Operating Margin of 11.31% is on the low side compared to the rest of the industry. MORN is outperformed by 75.00% of its industry peers.
MORN's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 58.62%, MORN is doing good in the industry, outperforming 60.58% of the companies in the same industry.
MORN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.31% | ||
| PM (TTM) | 6.92% | ||
| GM | 58.62% |
OM growth 3Y-14.71%
OM growth 5Y-11.77%
PM growth 3Y-24.51%
PM growth 5Y-17.35%
GM growth 3Y-2.22%
GM growth 5Y-0.36%
2. Health
2.1 Basic Checks
The number of shares outstanding for MORN has been increased compared to 1 year ago.
The number of shares outstanding for MORN has been increased compared to 5 years ago.
MORN has a better debt/assets ratio than last year.
2.2 Solvency
MORN has an Altman-Z score of 4.96. This indicates that MORN is financially healthy and has little risk of bankruptcy at the moment.
MORN has a Altman-Z score of 4.96. This is amongst the best in the industry. MORN outperforms 85.58% of its industry peers.
MORN has a debt to FCF ratio of 4.93. This is a neutral value as MORN would need 4.93 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.93, MORN is doing good in the industry, outperforming 64.42% of the companies in the same industry.
MORN has a Debt/Equity ratio of 0.71. This is a neutral value indicating MORN is somewhat dependend on debt financing.
MORN has a better Debt to Equity ratio (0.71) than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 4.93 | ||
| Altman-Z | 4.96 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.93 indicates that MORN may have some problems paying its short term obligations.
MORN has a worse Current ratio (0.93) than 61.54% of its industry peers.
A Quick Ratio of 0.93 indicates that MORN may have some problems paying its short term obligations.
MORN has a worse Quick ratio (0.93) than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
MORN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.66%, which is quite impressive.
MORN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.00% yearly.
Looking at the last year, MORN shows a quite strong growth in Revenue. The Revenue has grown by 8.98% in the last year.
MORN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.86% yearly.
EPS 1Y (TTM)37.66%
EPS 3Y-14.05%
EPS 5Y-5%
EPS growth Q2Q239.66%
Revenue 1Y (TTM)8.98%
Revenue growth 3Y13.63%
Revenue growth 5Y14.86%
Revenue growth Q2Q13.41%
3.2 Future
MORN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.26% yearly.
Based on estimates for the next years, MORN will show a quite strong growth in Revenue. The Revenue will grow by 12.35% on average per year.
EPS Next Y25.57%
EPS Next 2Y24.7%
EPS Next 3Y24.26%
EPS Next 5YN/A
Revenue Next Year13.92%
Revenue Next 2Y13.02%
Revenue Next 3Y12.35%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 53.11, the valuation of MORN can be described as expensive.
MORN's Price/Earnings ratio is rather expensive when compared to the industry. MORN is more expensive than 83.17% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.55. MORN is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 42.30, which means the current valuation is very expensive for MORN.
Based on the Price/Forward Earnings ratio, MORN is valued a bit more expensive than the industry average as 75.96% of the companies are valued more cheaply.
MORN is valuated expensively when we compare the Price/Forward Earnings ratio to 20.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.11 | ||
| Fwd PE | 42.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MORN is on the same level as its industry peers.
MORN's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. MORN is more expensive than 62.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.26 | ||
| EV/EBITDA | 30.36 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MORN does not grow enough to justify the current Price/Earnings ratio.
MORN's earnings are expected to grow with 24.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.08
PEG (5Y)N/A
EPS Next 2Y24.7%
EPS Next 3Y24.26%
5. Dividend
5.1 Amount
With a yearly dividend of 0.57%, MORN is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.21, MORN is paying slightly less dividend.
With a Dividend Yield of 0.57, MORN pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
5.2 History
The dividend of MORN is nicely growing with an annual growth rate of 8.41%!
MORN has been paying a dividend for at least 10 years, so it has a reliable track record.
MORN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)8.41%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
45.29% of the earnings are spent on dividend by MORN. This is a bit on the high side, but may be sustainable.
MORN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP45.29%
EPS Next 2Y24.7%
EPS Next 3Y24.26%
MORNINGSTAR INC
NASDAQ:MORN (5/1/2024, 7:10:52 PM)
After market: 287.34 0 (0%)287.34
+4.69 (+1.66%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.28B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.11 | ||
| Fwd PE | 42.3 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.08
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 10.63% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.31% | ||
| PM (TTM) | 6.92% | ||
| GM | 58.62% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)37.66%
EPS 3Y-14.05%
EPS 5Y
EPS growth Q2Q
EPS Next Y25.57%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.98%
Revenue growth 3Y13.63%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y