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 232 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 valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make MORN suitable 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.
MORN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MORN has a better Return On Assets (10.71%) than 89.22% of its industry peers.
The Return On Equity of MORN (23.88%) is better than 91.38% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.29%, MORN belongs to the top of the industry, outperforming 85.78% 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 7.87%.
The last Return On Invested Capital (13.29%) for MORN is above the 3 year average (8.55%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.71% | ||
| ROE | 23.88% | ||
| ROIC | 13.29% |
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
With a Profit Margin value of 16.60%, MORN perfoms like the industry average, outperforming 53.02% of the companies in the same industry.
In the last couple of years the Profit Margin of MORN has grown nicely.
The Operating Margin of MORN (19.11%) is worse than 62.07% of its industry peers.
MORN's Operating Margin has improved in the last couple of years.
MORN's Gross Margin of 60.72% is fine compared to the rest of the industry. MORN outperforms 68.10% 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 | 19.11% | ||
| PM (TTM) | 16.6% | ||
| GM | 60.72% |
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.
The number of shares outstanding for MORN remains at a similar level compared to 5 years ago.
The debt/assets ratio for MORN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.69 indicates that MORN is not in any danger for bankruptcy at the moment.
MORN has a Altman-Z score of 5.69. This is amongst the best in the industry. MORN outperforms 87.07% of its industry peers.
MORN has a debt to FCF ratio of 1.79. This is a very positive value and a sign of high solvency as it would only need 1.79 years to pay back of all of its debts.
MORN has a Debt to FCF ratio of 1.79. This is amongst the best in the industry. MORN outperforms 85.34% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that MORN is not too dependend on debt financing.
The Debt to Equity ratio of MORN (0.50) is better than 66.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.79 | ||
| Altman-Z | 5.69 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.11 indicates that MORN should not have too much problems paying its short term obligations.
MORN has a Current ratio (1.11) which is comparable to the rest of the industry.
A Quick Ratio of 1.11 indicates that MORN should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.11, MORN perfoms like the industry average, outperforming 49.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
MORN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.36%, which is quite impressive.
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.
Looking at the last year, MORN shows a quite strong growth in Revenue. The Revenue has grown by 10.11% in the last year.
Measured over the past years, MORN shows a quite strong growth in Revenue. The Revenue has been growing by 14.05% on average per year.
EPS 1Y (TTM)27.36%
EPS 3Y24.48%
EPS 5Y19.51%
EPS Q2Q%28.9%
Revenue 1Y (TTM)10.11%
Revenue growth 3Y10.22%
Revenue growth 5Y14.05%
Sales Q2Q%7.2%
3.2 Future
The Earnings Per Share is expected to grow by 15.40% on average over the next years. This is quite good.
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 Y17.22%
EPS Next 2Y16.48%
EPS Next 3Y18.12%
EPS Next 5Y15.4%
Revenue Next Year6.19%
Revenue Next 2Y7.22%
Revenue Next 3Y7.66%
Revenue Next 5Y7.63%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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 36.01.
MORN's Price/Earnings ratio is a bit more expensive when compared to the industry. MORN is more expensive than 75.43% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.57, MORN is valued a bit more expensive.
A Price/Forward Earnings ratio of 28.23 indicates a quite expensive valuation of MORN.
Based on the Price/Forward Earnings ratio, MORN is valued a bit more expensive than 67.24% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MORN to the average of the S&P500 Index (22.41), we can say MORN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.01 | ||
| Fwd PE | 28.23 |
4.2 Price Multiples
70.26% of the companies in the same industry are more expensive than MORN, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MORN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.45 | ||
| EV/EBITDA | 20.28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 18.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.09
PEG (5Y)1.85
EPS Next 2Y16.48%
EPS Next 3Y18.12%
5. Dividend
5.1 Amount
MORN has a yearly dividend return of 0.60%, which is pretty low.
Compared to an average industry Dividend Yield of 7.91, MORN is paying slightly less dividend.
With a Dividend Yield of 0.60, MORN pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
5.2 History
The dividend of MORN is nicely growing with an annual growth rate of 7.66%!
MORN has paid a dividend for at least 10 years, which is 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
18.61% of the earnings are spent on dividend by MORN. This is a low number and sustainable payout ratio.
The dividend of MORN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP18.61%
EPS Next 2Y16.48%
EPS Next 3Y18.12%
301.79
+2.67 (+0.89%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners60.68%
Inst Owner Change-1.27%
Ins Owners5.97%
Ins Owner Change-1.93%
Market Cap12.75B
Analysts80
Price Target345.1 (14.35%)
Short Float %2.37%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
Yearly Dividend1.62
Dividend Growth(5Y)7.66%
DP18.61%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.99%
Min EPS beat(2)1.85%
Max EPS beat(2)6.13%
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)-1.43%
Min Revenue beat(2)-2.62%
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)1.6%
PT rev (3m)-10.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)14.77%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.01 | ||
| Fwd PE | 28.23 | ||
| P/S | 5.51 | ||
| P/FCF | 28.45 | ||
| P/OCF | 21.65 | ||
| P/B | 7.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.28 |
EPS(TTM)8.38
EY2.78%
EPS(NY)10.69
Fwd EY3.54%
FCF(TTM)10.61
FCFY3.52%
OCF(TTM)13.94
OCFY4.62%
SpS54.77
BVpS38.09
TBVpS-9.76
PEG (NY)2.09
PEG (5Y)1.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.71% | ||
| ROE | 23.88% | ||
| ROCE | 16.54% | ||
| ROIC | 13.29% | ||
| ROICexc | 16.8% | ||
| ROICexgc | 380.79% | ||
| OM | 19.11% | ||
| PM (TTM) | 16.6% | ||
| GM | 60.72% | ||
| FCFM | 19.37% |
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-Score8
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.79 | ||
| Debt/EBITDA | 1.27 | ||
| Cap/Depr | 73.91% | ||
| Cap/Sales | 6.08% | ||
| Interest Coverage | 10.46 | ||
| Cash Conversion | 93.08% | ||
| Profit Quality | 116.66% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 5.69 |
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)27.36%
EPS 3Y24.48%
EPS 5Y19.51%
EPS Q2Q%28.9%
EPS Next Y17.22%
EPS Next 2Y16.48%
EPS Next 3Y18.12%
EPS Next 5Y15.4%
Revenue 1Y (TTM)10.11%
Revenue growth 3Y10.22%
Revenue growth 5Y14.05%
Sales Q2Q%7.2%
Revenue Next Year6.19%
Revenue Next 2Y7.22%
Revenue Next 3Y7.66%
Revenue Next 5Y7.63%
EBIT growth 1Y48.08%
EBIT growth 3Y17.86%
EBIT growth 5Y17.29%
EBIT Next Year41.26%
EBIT Next 3Y22.43%
EBIT Next 5Y18.29%
FCF growth 1Y168.87%
FCF growth 3Y8.85%
FCF growth 5Y12.03%
OCF growth 1Y97.85%
OCF growth 3Y9.56%
OCF growth 5Y12.09%