MORNINGSTAR INC (MORN)
US6177001095 - Common Stock
We assign a fundamental rating of 5 out of 10 to MORN. MORN was compared to 222 industry peers in the Capital Markets industry. Both the profitability and the financial health of MORN get a neutral evaluation. Nothing too spectacular is happening here. MORN is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MORN was profitable.
MORN had a positive operating cash flow in the past year.
MORN had positive earnings in each of the past 5 years.
In the past 5 years MORN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.28%, MORN is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
MORN has a Return On Equity of 15.39%. This is in the better half of the industry: MORN outperforms 74.07% of its industry peers.
The Return On Invested Capital of MORN (8.14%) is better than 81.02% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MORN is in line with the industry average of 7.96%.
The last Return On Invested Capital (8.14%) for MORN is above the 3 year average (6.46%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.28% | ||
| ROE | 15.39% | ||
| ROIC | 8.14% |
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 has a worse Profit Margin (10.13%) than 63.43% of its industry peers.
In the last couple of years the Profit Margin of MORN has declined.
MORN has a worse Operating Margin (14.21%) than 66.67% of its industry peers.
MORN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 59.90%, MORN is in the better half of the industry, outperforming 62.50% 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 | 14.21% | ||
| PM (TTM) | 10.13% | ||
| GM | 59.9% |
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.
The debt/assets ratio for MORN has been reduced compared to a year ago.
2.2 Solvency
MORN has an Altman-Z score of 5.72. This indicates that MORN is financially healthy and has little risk of bankruptcy at the moment.
MORN has a better Altman-Z score (5.72) than 87.50% of its industry peers.
The Debt to FCF ratio of MORN is 3.61, which is a good value as it means it would take MORN, 3.61 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.61, MORN is doing good in the industry, outperforming 66.20% of the companies in the same industry.
MORN has a Debt/Equity ratio of 0.66. This is a neutral value indicating MORN is somewhat dependend on debt financing.
MORN's Debt to Equity ratio of 0.66 is fine compared to the rest of the industry. MORN outperforms 63.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 3.61 | ||
| Altman-Z | 5.72 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MORN has a Current Ratio of 0.98. This is a bad value and indicates that MORN is not financially healthy enough and could expect problems in meeting its short term obligations.
MORN's Current ratio of 0.98 is in line compared to the rest of the industry. MORN outperforms 41.67% of its industry peers.
A Quick Ratio of 0.98 indicates that MORN may have some problems paying its short term obligations.
MORN has a Quick ratio (0.98) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 99.15% over the past year.
Measured over the past years, MORN shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.00% on average per year.
MORN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.98%.
Measured over the past years, MORN shows a quite strong growth in Revenue. The Revenue has been growing by 14.86% on average per year.
EPS 1Y (TTM)99.15%
EPS 3Y-14.05%
EPS 5Y-5%
EPS Q2Q%25.62%
Revenue 1Y (TTM)8.98%
Revenue growth 3Y13.63%
Revenue growth 5Y14.86%
Sales Q2Q%13.31%
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 19.90% on average per year.
Based on estimates for the next years, MORN will show a quite strong growth in Revenue. The Revenue will grow by 10.03% on average per year.
EPS Next Y32.69%
EPS Next 2Y24.75%
EPS Next 3Y22.79%
EPS Next 5Y19.9%
Revenue Next Year10.28%
Revenue Next 2Y10.37%
Revenue Next 3Y10.34%
Revenue Next 5Y10.03%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 46.68 indicates a quite expensive valuation of MORN.
MORN's Price/Earnings ratio is rather expensive when compared to the industry. MORN is more expensive than 81.48% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.41. MORN is valued rather expensively when compared to this.
MORN is valuated quite expensively with a Price/Forward Earnings ratio of 38.76.
Based on the Price/Forward Earnings ratio, MORN is valued a bit more expensive than the industry average as 75.46% of the companies are valued more cheaply.
MORN's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.68 | ||
| Fwd PE | 38.76 |
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.
Based on the Price/Free Cash Flow ratio, MORN is valued a bit more expensive than 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.06 | ||
| EV/EBITDA | 29.38 |
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 a very decent profitability rating, which may justify a higher PE ratio.
MORN's earnings are expected to grow with 22.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.43
PEG (5Y)N/A
EPS Next 2Y24.75%
EPS Next 3Y22.79%
5. Dividend
5.1 Amount
MORN has a yearly dividend return of 0.53%, which is pretty low.
Compared to an average industry Dividend Yield of 7.46, MORN is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.30, MORN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
5.2 History
The dividend of MORN is nicely growing with an annual growth rate of 8.41%!
MORN has paid a dividend for at least 10 years, which is a reliable track record.
MORN has decreased its dividend in the last 3 years.
Dividend Growth(5Y)8.41%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
30.67% of the earnings are spent on dividend by MORN. This is a low number and sustainable payout ratio.
MORN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP30.67%
EPS Next 2Y24.75%
EPS Next 3Y22.79%
MORNINGSTAR INC
NASDAQ:MORN (7/26/2024, 7:00:01 PM)
After market: 326.31 0 (0%)326.31
+3.64 (+1.13%)
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 Cap13.95B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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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 | 46.68 | ||
| Fwd PE | 38.76 | ||
| 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)1.43
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.28% | ||
| ROE | 15.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.21% | ||
| PM (TTM) | 10.13% | ||
| GM | 59.9% | ||
| 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 Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)99.15%
EPS 3Y-14.05%
EPS 5Y
EPS Q2Q%
EPS Next Y32.69%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.98%
Revenue growth 3Y13.63%
Revenue growth 5Y
Sales 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