MORNINGSTAR INC (MORN) Stock Fundamental Analysis
USA - NASDAQ:MORN - US6177001095 - Common Stock
211.95 USD
-2.03 (-0.95%)
211.95 USD
0 (0%)
Overall MORN gets a fundamental rating of 6 out of 10. We evaluated MORN against 237 industry peers in the Capital Markets industry. MORN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MORN is not valued too expensively and it also shows a decent growth rate. This makes MORN very considerable for quality investing!
1. Profitability
1.1 Basic Checks
MORN had positive earnings in the past year.
MORN had a positive operating cash flow in the past year.
MORN had positive earnings in each of the past 5 years.
MORN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MORN has a better Return On Assets (10.57%) than 89.45% of its industry peers.
The Return On Equity of MORN (24.83%) is better than 91.14% of its industry peers.
The Return On Invested Capital of MORN (14.49%) is better than 90.72% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MORN is in line with the industry average of 7.11%.
The last Return On Invested Capital (14.49%) for MORN is above the 3 year average (8.55%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.57% | ||
| ROE | 24.83% | ||
| ROIC | 14.49% |
ROA(3y)5.53%
ROA(5y)6.33%
ROE(3y)13.11%
ROE(5y)14.11%
ROIC(3y)8.55%
ROIC(5y)9.08%
1.3 Margins
MORN's Profit Margin of 15.70% is in line compared to the rest of the industry. MORN outperforms 50.21% of its industry peers.
In the last couple of years the Profit Margin of MORN has grown nicely.
MORN has a Operating Margin (19.67%) which is comparable to the rest of the industry.
MORN's Operating Margin has improved in the last couple of years.
The Gross Margin of MORN (60.93%) is better than 71.31% of its industry peers.
In the last couple of years the Gross Margin of MORN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.67% | ||
| PM (TTM) | 15.7% | ||
| GM | 60.93% |
OM growth 3Y6.94%
OM growth 5Y2.84%
PM growth 3Y12.64%
PM growth 5Y4.75%
GM growth 3Y0.97%
GM growth 5Y0.54%
2. Health
2.1 Basic Checks
MORN has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, MORN has about the same amount of shares outstanding.
The debt/assets ratio for MORN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.58 indicates that MORN is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.58, MORN belongs to the best of the industry, outperforming 82.70% of the companies in the same industry.
MORN has a debt to FCF ratio of 2.15. This is a good value and a sign of high solvency as MORN would need 2.15 years to pay back of all of its debts.
MORN has a better Debt to FCF ratio (2.15) than 86.50% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that MORN is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.56, MORN is doing good in the industry, outperforming 62.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.15 | ||
| Altman-Z | 4.58 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MORN has a Current Ratio of 1.04. This is a normal value and indicates that MORN is financially healthy and should not expect problems in meeting its short term obligations.
MORN has a Current ratio (1.04) which is comparable to the rest of the industry.
A Quick Ratio of 1.04 indicates that MORN should not have too much problems paying its short term obligations.
MORN's Quick ratio of 1.04 is in line compared to the rest of the industry. MORN outperforms 47.26% of its industry peers.
The current and quick ratio evaluation for MORN is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.88% over the past year.
MORN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.51% yearly.
The Revenue has been growing slightly by 7.76% in the past year.
MORN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.05% yearly.
EPS 1Y (TTM)20.88%
EPS 3Y24.48%
EPS 5Y19.51%
EPS Q2Q%27.5%
Revenue 1Y (TTM)7.76%
Revenue growth 3Y10.22%
Revenue growth 5Y14.05%
Sales Q2Q%8.43%
3.2 Future
MORN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.30% yearly.
Based on estimates for the next years, MORN will show a quite strong growth in Revenue. The Revenue will grow by 8.31% on average per year.
EPS Next Y18.69%
EPS Next 2Y16.05%
EPS Next 3Y16.39%
EPS Next 5Y18.3%
Revenue Next Year6.79%
Revenue Next 2Y7.12%
Revenue Next 3Y7.3%
Revenue Next 5Y8.31%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.74, MORN is valued on the expensive side.
62.03% of the companies in the same industry are cheaper than MORN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.89, MORN is valued at the same level.
The Price/Forward Earnings ratio is 19.97, which indicates a rather expensive current valuation of MORN.
MORN's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.59. MORN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.74 | ||
| Fwd PE | 19.97 |
4.2 Price Multiples
81.43% of the companies in the same industry are more expensive than MORN, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as MORN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.68 | ||
| EV/EBITDA | 13.94 |
4.3 Compensation for Growth
MORN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MORN has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as MORN's earnings are expected to grow with 16.39% in the coming years.
PEG (NY)1.22
PEG (5Y)1.17
EPS Next 2Y16.05%
EPS Next 3Y16.39%
5. Dividend
5.1 Amount
With a yearly dividend of 0.85%, MORN is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.53, MORN is paying slightly less dividend.
With a Dividend Yield of 0.85, MORN pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
5.2 History
The dividend of MORN is nicely growing with an annual growth rate of 7.66%!
MORN has been paying a dividend for at least 10 years, so it has a reliable track record.
MORN has decreased its dividend recently.
Dividend Growth(5Y)7.66%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
MORN pays out 20.03% of its income as dividend. This is a sustainable payout ratio.
MORN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP20.03%
EPS Next 2Y16.05%
EPS Next 3Y16.39%
211.95
-2.03 (-0.95%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners61.94%
Inst Owner Change-2.19%
Ins Owners5.97%
Ins Owner Change-2.22%
Market Cap8.94B
Revenue(TTM)2.40B
Net Income(TTM)376.00M
Analysts80
Price Target316.2 (49.19%)
Short Float %3.14%
Short Ratio1.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
Yearly Dividend1.62
Dividend Growth(5Y)7.66%
DP20.03%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.25%
Min EPS beat(2)3.31%
Max EPS beat(2)7.2%
EPS beat(4)4
Avg EPS beat(4)4.62%
Min EPS beat(4)1.85%
Max EPS beat(4)7.2%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-1.87%
Max Revenue beat(2)0.2%
Revenue beat(4)1
Avg Revenue beat(4)-1.13%
Min Revenue beat(4)-2.62%
Max Revenue beat(4)0.2%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-7%
PT rev (3m)-6.53%
EPS NQ rev (1m)-3.97%
EPS NQ rev (3m)-1.08%
EPS NY rev (1m)-1.45%
EPS NY rev (3m)2.31%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.74 | ||
| Fwd PE | 19.97 | ||
| P/S | 3.73 | ||
| P/FCF | 22.68 | ||
| P/OCF | 16.58 | ||
| P/B | 5.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.94 |
EPS(TTM)9.32
EY4.4%
EPS(NY)10.61
Fwd EY5.01%
FCF(TTM)9.34
FCFY4.41%
OCF(TTM)12.78
OCFY6.03%
SpS56.79
BVpS35.89
TBVpS-11.78
PEG (NY)1.22
PEG (5Y)1.17
Graham Number86.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.57% | ||
| ROE | 24.83% | ||
| ROCE | 18.04% | ||
| ROIC | 14.49% | ||
| ROICexc | 18.04% | ||
| ROICexgc | 435.55% | ||
| OM | 19.67% | ||
| PM (TTM) | 15.7% | ||
| GM | 60.93% | ||
| FCFM | 16.45% |
ROA(3y)5.53%
ROA(5y)6.33%
ROE(3y)13.11%
ROE(5y)14.11%
ROIC(3y)8.55%
ROIC(5y)9.08%
ROICexc(3y)10.51%
ROICexc(5y)11.53%
ROICexgc(3y)354.39%
ROICexgc(5y)N/A
ROCE(3y)10.64%
ROCE(5y)11.3%
ROICexgc growth 3YN/A
ROICexgc growth 5Y38.05%
ROICexc growth 3Y7.32%
ROICexc growth 5Y10.5%
OM growth 3Y6.94%
OM growth 5Y2.84%
PM growth 3Y12.64%
PM growth 5Y4.75%
GM growth 3Y0.97%
GM growth 5Y0.54%
F-Score8
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.15 | ||
| Debt/EBITDA | 1.28 | ||
| Cap/Depr | 75.84% | ||
| Cap/Sales | 6.05% | ||
| Interest Coverage | 13.54 | ||
| Cash Conversion | 81.39% | ||
| Profit Quality | 104.81% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 4.58 |
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)72.36%
Cap/Depr(5y)67.93%
Cap/Sales(3y)6.35%
Cap/Sales(5y)6.11%
Profit Quality(3y)166.64%
Profit Quality(5y)163.51%
High Growth Momentum
Growth
EPS 1Y (TTM)20.88%
EPS 3Y24.48%
EPS 5Y19.51%
EPS Q2Q%27.5%
EPS Next Y18.69%
EPS Next 2Y16.05%
EPS Next 3Y16.39%
EPS Next 5Y18.3%
Revenue 1Y (TTM)7.76%
Revenue growth 3Y10.22%
Revenue growth 5Y14.05%
Sales Q2Q%8.43%
Revenue Next Year6.79%
Revenue Next 2Y7.12%
Revenue Next 3Y7.3%
Revenue Next 5Y8.31%
EBIT growth 1Y14.65%
EBIT growth 3Y17.86%
EBIT growth 5Y17.29%
EBIT Next Year42%
EBIT Next 3Y22.49%
EBIT Next 5Y18.29%
FCF growth 1Y151.18%
FCF growth 3Y8.85%
FCF growth 5Y12.03%
OCF growth 1Y91.1%
OCF growth 3Y9.56%
OCF growth 5Y12.09%
MORNINGSTAR INC / MORN FAQ
What is the ChartMill fundamental rating of MORNINGSTAR INC (MORN) stock?
ChartMill assigns a fundamental rating of 6 / 10 to MORN.
What is the valuation status for MORN stock?
ChartMill assigns a valuation rating of 4 / 10 to MORNINGSTAR INC (MORN). This can be considered as Fairly Valued.
How profitable is MORNINGSTAR INC (MORN) stock?
MORNINGSTAR INC (MORN) has a profitability rating of 8 / 10.
Can you provide the financial health for MORN stock?
The financial health rating of MORNINGSTAR INC (MORN) is 7 / 10.
How sustainable is the dividend of MORNINGSTAR INC (MORN) stock?
The dividend rating of MORNINGSTAR INC (MORN) is 4 / 10 and the dividend payout ratio is 20.03%.