MORNINGSTAR INC (MORN) Stock Fundamental Analysis
USA - NASDAQ:MORN - US6177001095 - Common Stock
214.51 USD
+3.8 (+1.8%)
214.51 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to MORN. MORN was compared to 239 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 has a correct valuation and a medium 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.
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
MORN has a Return On Assets of 11.13%. This is amongst the best in the industry. MORN outperforms 90.38% of its industry peers.
Looking at the Return On Equity, with a value of 25.03%, MORN belongs to the top of the industry, outperforming 91.63% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.60%, MORN belongs to the best of the industry, outperforming 88.70% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MORN is in line with the industry average of 7.55%.
The 3 year average ROIC (8.55%) for MORN is below the current ROIC(13.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.13% | ||
| ROE | 25.03% | ||
| ROIC | 13.6% |
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
The Profit Margin of MORN (17.21%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of MORN has grown nicely.
With a Operating Margin value of 19.55%, MORN perfoms like the industry average, outperforming 42.68% of the companies in the same industry.
In the last couple of years the Operating Margin of MORN has grown nicely.
The Gross Margin of MORN (60.94%) is better than 71.97% 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 | 19.55% | ||
| PM (TTM) | 17.21% | ||
| GM | 60.94% |
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.
Compared to 1 year ago, MORN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.58 indicates that MORN is not in any danger for bankruptcy at the moment.
The Altman-Z score of MORN (4.58) is better than 83.26% of its industry peers.
The Debt to FCF ratio of MORN is 2.15, which is a good value as it means it would take MORN, 2.15 years of fcf income to pay off all of its debts.
MORN's Debt to FCF ratio of 2.15 is amongst the best of the industry. MORN outperforms 87.03% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that MORN is somewhat dependend on debt financing.
The Debt to Equity ratio of MORN (0.52) is better than 64.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 2.15 | ||
| Altman-Z | 4.58 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.13 indicates that MORN should not have too much problems paying its short term obligations.
The Current ratio of MORN (1.13) is comparable to the rest of the industry.
MORN has a Quick Ratio of 1.13. This is a normal value and indicates that MORN is financially healthy and should not expect problems in meeting its short term obligations.
MORN's Quick ratio of 1.13 is in line compared to the rest of the industry. MORN outperforms 52.72% of its industry peers.
MORN does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.46% over the past year.
Measured over the past years, MORN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.51% on average per year.
MORN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.23%.
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)25.46%
EPS 3Y24.48%
EPS 5Y19.51%
EPS Q2Q%19.4%
Revenue 1Y (TTM)8.23%
Revenue growth 3Y10.22%
Revenue growth 5Y14.05%
Sales Q2Q%5.81%
3.2 Future
Based on estimates for the next years, MORN will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.79% on average per year.
Based on estimates for the next years, MORN will show a small growth in Revenue. The Revenue will grow by 7.63% on average per year.
EPS Next Y20.43%
EPS Next 2Y17.87%
EPS Next 3Y18.43%
EPS Next 5Y17.79%
Revenue Next Year6.31%
Revenue Next 2Y6.98%
Revenue Next 3Y7.65%
Revenue Next 5Y7.63%
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.
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
MORN is valuated rather expensively with a Price/Earnings ratio of 24.46.
Based on the Price/Earnings ratio, MORN is valued a bit more expensive than the industry average as 65.27% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 27.40, MORN is valued at the same level.
MORN is valuated rather expensively with a Price/Forward Earnings ratio of 19.59.
The rest of the industry has a similar Price/Forward Earnings ratio as MORN.
MORN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.46 | ||
| Fwd PE | 19.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MORN indicates a rather cheap valuation: MORN is cheaper than 80.75% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as MORN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.21 | ||
| EV/EBITDA | 14.35 |
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 18.43% in the coming years.
PEG (NY)1.2
PEG (5Y)1.25
EPS Next 2Y17.87%
EPS Next 3Y18.43%
5. Dividend
5.1 Amount
With a yearly dividend of 0.86%, MORN is not a good candidate for dividend investing.
The stock price of MORN dropped by -25.65% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
MORN's Dividend Yield is slightly below the industry average, which is at 8.49.
With a Dividend Yield of 0.86, MORN pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
5.2 History
On average, the dividend of MORN grows each year by 7.66%, which is quite nice.
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 18.19% 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.
DP18.19%
EPS Next 2Y17.87%
EPS Next 3Y18.43%
214.51
+3.8 (+1.8%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners61.94%
Inst Owner Change-0.52%
Ins Owners5.97%
Ins Owner Change-1.86%
Market Cap9.05B
Analysts80
Price Target340 (58.5%)
Short Float %4.58%
Short Ratio2.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
Yearly Dividend1.62
Dividend Growth(5Y)7.66%
DP18.19%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.66%
Min EPS beat(2)6.13%
Max EPS beat(2)7.2%
EPS beat(4)3
Avg EPS beat(4)3.24%
Min EPS beat(4)-2.21%
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)0
Avg Revenue beat(2)-2.25%
Min Revenue beat(2)-2.62%
Max Revenue beat(2)-1.87%
Revenue beat(4)0
Avg Revenue beat(4)-1.52%
Min Revenue beat(4)-2.62%
Max Revenue beat(4)-0.24%
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)0%
PT rev (3m)-1.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.42%
EPS NY rev (1m)0%
EPS NY rev (3m)3.81%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)-0.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.46 | ||
| Fwd PE | 19.59 | ||
| P/S | 3.85 | ||
| P/FCF | 23.21 | ||
| P/OCF | 16.9 | ||
| P/B | 5.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.35 |
EPS(TTM)8.77
EY4.09%
EPS(NY)10.95
Fwd EY5.1%
FCF(TTM)9.24
FCFY4.31%
OCF(TTM)12.69
OCFY5.92%
SpS55.65
BVpS38.28
TBVpS-9.89
PEG (NY)1.2
PEG (5Y)1.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.13% | ||
| ROE | 25.03% | ||
| ROCE | 16.94% | ||
| ROIC | 13.6% | ||
| ROICexc | 17% | ||
| ROICexgc | 270.24% | ||
| OM | 19.55% | ||
| PM (TTM) | 17.21% | ||
| GM | 60.94% | ||
| FCFM | 16.61% |
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 Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 2.15 | ||
| Debt/EBITDA | 1.29 | ||
| Cap/Depr | 76.62% | ||
| Cap/Sales | 6.2% | ||
| Interest Coverage | 11.68 | ||
| Cash Conversion | 82.51% | ||
| Profit Quality | 96.46% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 4.58 |
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)25.46%
EPS 3Y24.48%
EPS 5Y19.51%
EPS Q2Q%19.4%
EPS Next Y20.43%
EPS Next 2Y17.87%
EPS Next 3Y18.43%
EPS Next 5Y17.79%
Revenue 1Y (TTM)8.23%
Revenue growth 3Y10.22%
Revenue growth 5Y14.05%
Sales Q2Q%5.81%
Revenue Next Year6.31%
Revenue Next 2Y6.98%
Revenue Next 3Y7.65%
Revenue Next 5Y7.63%
EBIT growth 1Y25.55%
EBIT growth 3Y17.86%
EBIT growth 5Y17.29%
EBIT Next Year42%
EBIT Next 3Y22.49%
EBIT Next 5Y18.29%
FCF growth 1Y214.61%
FCF growth 3Y8.85%
FCF growth 5Y12.03%
OCF growth 1Y111.16%
OCF growth 3Y9.56%
OCF growth 5Y12.09%