MORNINGSTAR INC (MORN) Stock Fundamental Analysis
NASDAQ:MORN - Nasdaq - US6177001095 - Common Stock - Currency: USD
Taking everything into account, MORN scores 6 out of 10 in our fundamental rating. MORN was compared to 227 industry peers in the Capital Markets industry. Both the health and profitability get an excellent rating, making MORN a very profitable company, without any liquidiy or solvency issues. MORN is quite expensive at the moment. It does show a decent growth rate. With these ratings, MORN could be worth investigating further 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.
Each year in the past 5 years MORN has been profitable.
In the past 5 years MORN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MORN (10.42%) is better than 88.99% of its industry peers.
MORN has a better Return On Equity (22.85%) than 91.19% of its industry peers.
With an excellent Return On Invested Capital value of 13.09%, MORN belongs to the best of the industry, outperforming 87.67% of the companies in the same industry.
MORN had an Average Return On Invested Capital over the past 3 years of 8.55%. This is in line with the industry average of 7.09%.
The 3 year average ROIC (8.55%) for MORN is below the current ROIC(13.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.42% | ||
| ROE | 22.85% | ||
| ROIC | 13.09% |
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
Looking at the Profit Margin, with a value of 16.26%, MORN is in line with its industry, outperforming 53.30% of the companies in the same industry.
MORN's Profit Margin has improved in the last couple of years.
MORN has a Operating Margin of 18.50%. This is in the lower half of the industry: MORN underperforms 61.67% of its industry peers.
MORN's Operating Margin has improved in the last couple of years.
MORN has a Gross Margin of 60.63%. This is in the better half of the industry: MORN outperforms 69.16% of its industry peers.
MORN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.5% | ||
| PM (TTM) | 16.26% | ||
| GM | 60.63% |
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
The number of shares outstanding for MORN has been increased compared to 1 year ago.
Compared to 5 years ago, MORN has about the same amount of shares outstanding.
MORN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.52 indicates that MORN is not in any danger for bankruptcy at the moment.
MORN's Altman-Z score of 5.52 is amongst the best of the industry. MORN outperforms 88.55% of its industry peers.
MORN has a debt to FCF ratio of 1.56. This is a very positive value and a sign of high solvency as it would only need 1.56 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.56, MORN belongs to the top of the industry, outperforming 85.02% of the companies in the same industry.
A Debt/Equity ratio of 0.43 indicates that MORN is not too dependend on debt financing.
The Debt to Equity ratio of MORN (0.43) is better than 71.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 1.56 | ||
| Altman-Z | 5.52 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MORN has a Current Ratio of 1.05. This is a normal value and indicates that MORN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of MORN (1.05) is comparable to the rest of the industry.
MORN has a Quick Ratio of 1.05. This is a normal value and indicates that MORN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.05, MORN is in line with its industry, outperforming 50.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 45.66% 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.
MORN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.60%.
The Revenue has been growing by 14.05% on average over the past years. This is quite good.
EPS 1Y (TTM)45.66%
EPS 3Y24.48%
EPS 5Y19.51%
EPS Q2Q%8.63%
Revenue 1Y (TTM)11.6%
Revenue growth 3Y10.22%
Revenue growth 5Y14.05%
Sales Q2Q%9.71%
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 16.19% yearly.
MORN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.93% yearly.
EPS Next Y10.69%
EPS Next 2Y15.15%
EPS Next 3Y17.83%
EPS Next 5Y16.19%
Revenue Next Year7.09%
Revenue Next 2Y7.52%
Revenue Next 3Y8.33%
Revenue Next 5Y8.93%
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 stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MORN is valuated quite expensively with a Price/Earnings ratio of 35.50.
MORN's Price/Earnings ratio is a bit more expensive when compared to the industry. MORN is more expensive than 74.01% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.92, MORN is valued a bit more expensive.
A Price/Forward Earnings ratio of 32.07 indicates a quite expensive valuation of MORN.
MORN's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. MORN is more expensive than 72.69% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.65. MORN is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.5 | ||
| Fwd PE | 32.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MORN is valued a bit cheaper than 73.13% of the companies in the same industry.
MORN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.65 | ||
| EV/EBITDA | 19.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of MORN may justify a higher PE ratio.
MORN's earnings are expected to grow with 17.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.32
PEG (5Y)1.82
EPS Next 2Y15.15%
EPS Next 3Y17.83%
5. Dividend
5.1 Amount
MORN has a yearly dividend return of 0.66%, which is pretty low.
Compared to an average industry Dividend Yield of 8.41, MORN is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.51, MORN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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.
The dividend of MORN decreased in the last 3 years.
Dividend Growth(5Y)7.66%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
MORN pays out 18.73% of its income as dividend. This is a sustainable payout ratio.
The dividend of MORN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP18.73%
EPS Next 2Y15.15%
EPS Next 3Y17.83%
279.71
+5.1 (+1.86%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners60.72%
Inst Owner Change0.68%
Ins Owners5.88%
Ins Owner Change-3.6%
Market Cap11.96B
Analysts80
Price Target379.1 (35.53%)
Short Float %2.37%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend1.62
Dividend Growth(5Y)7.66%
DP18.73%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.18%
Min EPS beat(2)-2.21%
Max EPS beat(2)1.85%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)0
Avg Revenue beat(2)-0.78%
Min Revenue beat(2)-1.33%
Max Revenue beat(2)-0.24%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)-1.5%
PT rev (3m)-0.89%
EPS NQ rev (1m)15.08%
EPS NQ rev (3m)11.96%
EPS NY rev (1m)-5.98%
EPS NY rev (3m)-5.84%
Revenue NQ rev (1m)1.66%
Revenue NQ rev (3m)2.19%
Revenue NY rev (1m)-1.12%
Revenue NY rev (3m)-0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.5 | ||
| Fwd PE | 32.07 | ||
| P/S | 5.26 | ||
| P/FCF | 26.65 | ||
| P/OCF | 20.22 | ||
| P/B | 7.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.74 |
EPS(TTM)7.88
EY2.82%
EPS(NY)8.72
Fwd EY3.12%
FCF(TTM)10.5
FCFY3.75%
OCF(TTM)13.83
OCFY4.95%
SpS53.19
BVpS37.84
TBVpS-8.23
PEG (NY)3.32
PEG (5Y)1.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.42% | ||
| ROE | 22.85% | ||
| ROCE | 16.3% | ||
| ROIC | 13.09% | ||
| ROICexc | 16.65% | ||
| ROICexgc | 565.23% | ||
| OM | 18.5% | ||
| PM (TTM) | 16.26% | ||
| GM | 60.63% | ||
| FCFM | 19.73% |
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%
ROICexcg growth 3YN/A
ROICexcg 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-Score9
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 1.56 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 74.95% | ||
| Cap/Sales | 6.27% | ||
| Interest Coverage | 8.88 | ||
| Cash Conversion | 96.79% | ||
| Profit Quality | 121.36% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 5.52 |
F-Score9
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)45.66%
EPS 3Y24.48%
EPS 5Y19.51%
EPS Q2Q%8.63%
EPS Next Y10.69%
EPS Next 2Y15.15%
EPS Next 3Y17.83%
EPS Next 5Y16.19%
Revenue 1Y (TTM)11.6%
Revenue growth 3Y10.22%
Revenue growth 5Y14.05%
Sales Q2Q%9.71%
Revenue Next Year7.09%
Revenue Next 2Y7.52%
Revenue Next 3Y8.33%
Revenue Next 5Y8.93%
EBIT growth 1Y82.48%
EBIT growth 3Y17.86%
EBIT growth 5Y17.29%
EBIT Next Year45.14%
EBIT Next 3Y24.94%
EBIT Next 5Y18.29%
FCF growth 1Y127.52%
FCF growth 3Y8.85%
FCF growth 5Y12.03%
OCF growth 1Y86.98%
OCF growth 3Y9.56%
OCF growth 5Y12.09%