MORNINGSTAR INC (MORN) Stock Fundamental Analysis
NASDAQ:MORN - Nasdaq - US6177001095 - Common Stock - Currency: USD
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 on profitability, but there are some minor concerns on its financial health. 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.
In the past 5 years MORN has always been profitable.
MORN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 11.13%, MORN belongs to the best of the industry, outperforming 89.45% of the companies in the same industry.
MORN's Return On Equity of 25.03% is amongst the best of the industry. MORN outperforms 92.83% of its industry peers.
With an excellent Return On Invested Capital value of 13.60%, MORN belongs to the best of the industry, outperforming 86.50% 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 7.89%.
The last Return On Invested Capital (13.60%) for MORN is above the 3 year average (8.55%), which is a sign of increasing profitability.
| 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
MORN has a Profit Margin of 17.21%. This is comparable to the rest of the industry: MORN outperforms 55.70% of its industry peers.
In the last couple of years the Profit Margin of MORN has grown nicely.
With a Operating Margin value of 19.55%, MORN is not doing good in the industry: 60.76% of the companies in the same industry are doing better.
MORN's Operating Margin has improved in the last couple of years.
The Gross Margin of MORN (60.94%) is better than 69.20% 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
MORN has an Altman-Z score of 5.29. This indicates that MORN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MORN (5.29) is better than 85.23% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 2.15, MORN belongs to the best of the industry, outperforming 83.97% of the companies in the same industry.
A Debt/Equity ratio of 0.52 indicates that MORN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.52, MORN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 2.15 | ||
| Altman-Z | 5.29 |
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.
MORN's Current ratio of 1.13 is in line compared to the rest of the industry. MORN outperforms 51.05% of its industry peers.
A Quick Ratio of 1.13 indicates that MORN should not have too much problems paying its short term obligations.
MORN has a Quick ratio (1.13) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
MORN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.46%, 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 8.23% in the last year.
The Revenue has been growing by 14.05% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 15.40% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.63% on average over the next years.
EPS Next Y16.01%
EPS Next 2Y15.76%
EPS Next 3Y17.51%
EPS Next 5Y15.4%
Revenue Next Year6.19%
Revenue Next 2Y7.28%
Revenue Next 3Y7.73%
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
The Price/Earnings ratio is 30.16, which means the current valuation is very expensive for MORN.
Based on the Price/Earnings ratio, MORN is valued a bit more expensive than 70.46% of the companies in the same industry.
MORN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.24.
With a Price/Forward Earnings ratio of 25.05, MORN can be considered very expensive at the moment.
63.71% of the companies in the same industry are cheaper than MORN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.42. MORN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.16 | ||
| Fwd PE | 25.05 |
4.2 Price Multiples
MORN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MORN is cheaper than 77.64% of the companies 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 | 28.66 | ||
| EV/EBITDA | 18.01 |
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 17.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.88
PEG (5Y)1.55
EPS Next 2Y15.76%
EPS Next 3Y17.51%
5. Dividend
5.1 Amount
MORN has a yearly dividend return of 0.67%, which is pretty low.
Compared to an average industry Dividend Yield of 8.25, MORN is paying slightly less dividend.
With a Dividend Yield of 0.67, MORN pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
5.2 History
On average, the dividend of MORN grows each year by 7.66%, which is quite nice.
MORN has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of MORN decreased recently.
Dividend Growth(5Y)7.66%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
18.19% 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.
DP18.19%
EPS Next 2Y15.76%
EPS Next 3Y17.51%
NASDAQ:MORN (8/5/2025, 10:34:54 AM)
264.46
-5.94 (-2.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners60.68%
Inst Owner Change-0.3%
Ins Owners5.97%
Ins Owner Change-2.06%
Market Cap11.17B
Analysts80
Price Target338.3 (27.92%)
Short Float %2.68%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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)0.99%
PT rev (3m)-1.44%
EPS NQ rev (1m)-0.9%
EPS NQ rev (3m)5.02%
EPS NY rev (1m)-1.03%
EPS NY rev (3m)4.81%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.16 | ||
| Fwd PE | 25.05 | ||
| P/S | 4.76 | ||
| P/FCF | 28.66 | ||
| P/OCF | 20.87 | ||
| P/B | 6.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.01 |
EPS(TTM)8.77
EY3.32%
EPS(NY)10.56
Fwd EY3.99%
FCF(TTM)9.23
FCFY3.49%
OCF(TTM)12.67
OCFY4.79%
SpS55.56
BVpS38.21
TBVpS-9.87
PEG (NY)1.88
PEG (5Y)1.55
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 | 5.29 |
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 Y16.01%
EPS Next 2Y15.76%
EPS Next 3Y17.51%
EPS Next 5Y15.4%
Revenue 1Y (TTM)8.23%
Revenue growth 3Y10.22%
Revenue growth 5Y14.05%
Sales Q2Q%5.81%
Revenue Next Year6.19%
Revenue Next 2Y7.28%
Revenue Next 3Y7.73%
Revenue Next 5Y7.63%
EBIT growth 1Y25.55%
EBIT growth 3Y17.86%
EBIT growth 5Y17.29%
EBIT Next Year41.26%
EBIT Next 3Y22.43%
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%