MORNINGSTAR INC (MORN)

US6177001095 - Common Stock

271.88  -2.03 (-0.74%)

Fundamental Rating

3

Taking everything into account, MORN scores 3 out of 10 in our fundamental rating. MORN was compared to 208 industry peers in the Capital Markets industry. MORN scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. MORN is valied quite expensively at the moment, while it does show a decent growth rate.



3

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.
In the past 5 years MORN has always been profitable.
Each year in the past 5 years MORN had a positive operating cash flow.

1.2 Ratios

The Return On Assets of MORN (2.12%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 5.70%, MORN is doing worse than 66.01% of the companies in the same industry.
MORN has a Return On Invested Capital of 4.46%. This is comparable to the rest of the industry: MORN outperforms 54.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MORN is below the industry average of 9.80%.
Industry RankSector Rank
ROA 2.12%
ROE 5.7%
ROIC 4.46%
ROA(3y)5.69%
ROA(5y)7.21%
ROE(3y)12.36%
ROE(5y)14.14%
ROIC(3y)6.82%
ROIC(5y)8.03%

1.3 Margins

With a Profit Margin value of 3.59%, MORN is not doing good in the industry: 73.89% of the companies in the same industry are doing better.
MORN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 8.69%, MORN is doing worse than 80.30% of the companies in the same industry.
In the last couple of years the Operating Margin of MORN has declined.
Looking at the Gross Margin, with a value of 57.82%, MORN is in line with its industry, outperforming 59.61% of the companies in the same industry.
In the last couple of years the Gross Margin of MORN has remained more or less at the same level.
Industry RankSector Rank
OM 8.69%
PM (TTM) 3.59%
GM 57.82%
OM growth 3Y-17.68%
OM growth 5Y-13.59%
PM growth 3Y-33.63%
PM growth 5Y-24.15%
GM growth 3Y-0.39%
GM growth 5Y0.26%

4

2. Health

2.1 Basic Checks

MORN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MORN has about the same amount of shares outstanding.
MORN has a worse debt/assets ratio than last year.

2.2 Solvency

MORN has an Altman-Z score of 4.73. This indicates that MORN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MORN (4.73) is better than 87.19% of its industry peers.
MORN has a debt to FCF ratio of 6.73. This is a slightly negative value and a sign of low solvency as MORN would need 6.73 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.73, MORN is in the better half of the industry, outperforming 63.05% of the companies in the same industry.
A Debt/Equity ratio of 0.82 indicates that MORN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.82, MORN is in line with its industry, outperforming 57.64% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 6.73
Altman-Z 4.73
ROIC/WACCN/A
WACCN/A

2.3 Liquidity

A Current Ratio of 0.94 indicates that MORN may have some problems paying its short term obligations.
The Current ratio of MORN (0.94) is worse than 61.08% of its industry peers.
A Quick Ratio of 0.94 indicates that MORN may have some problems paying its short term obligations.
The Quick ratio of MORN (0.94) is worse than 60.59% of its industry peers.
Industry RankSector Rank
Current Ratio 0.94
Quick Ratio 0.94

5

3. Growth

3.1 Past

The earnings per share for MORN have decreased strongly by -17.11% in the last year.
The earnings per share for MORN have been decreasing by -12.40% on average. This is quite bad
MORN shows a small growth in Revenue. In the last year, the Revenue has grown by 6.30%.
The Revenue has been growing by 15.46% on average over the past years. This is quite good.
EPS 1Y (TTM)-17.11%
EPS 3Y-22.48%
EPS 5Y-12.4%
EPS growth Q2Q66.23%
Revenue 1Y (TTM)6.3%
Revenue growth 3Y16.63%
Revenue growth 5Y15.46%
Revenue growth Q2Q10.1%

3.2 Future

MORN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.16% yearly.
Based on estimates for the next years, MORN will show a quite strong growth in Revenue. The Revenue will grow by 9.51% on average per year.
EPS Next Y-0.45%
EPS Next 2Y13.09%
EPS Next 3Y18.44%
EPS Next 5Y21.16%
Revenue Next Year6.89%
Revenue Next 2Y8.6%
Revenue Next 3Y9.42%
Revenue Next 5Y9.51%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.

1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 67.63, which means the current valuation is very expensive for MORN.
Based on the Price/Earnings ratio, MORN is valued expensively inside the industry as 87.19% of the companies are valued cheaper.
The average S&P500 Price/Earnings ratio is at 26.18. MORN is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 44.90, which means the current valuation is very expensive for MORN.
MORN's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. MORN is more expensive than 78.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MORN to the average of the S&P500 Index (21.51), we can say MORN is valued expensively.
Industry RankSector Rank
PE 67.63
Fwd PE 44.9

4.2 Price Multiples

MORN's Enterprise Value to EBITDA is on the same level as the industry average.
MORN's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 73.99
EV/EBITDA 34.8

4.3 Compensation for Growth

MORN's earnings are expected to grow with 18.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y13.09%
EPS Next 3Y18.44%

3

5. Dividend

5.1 Amount

With a yearly dividend of 0.58%, MORN is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.98, MORN is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.48, MORN's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.58%

5.2 History

On average, the dividend of MORN grows each year by 9.32%, 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 in the last 3 years.
Dividend Growth(5Y)9.32%
Div Incr Years2
Div Non Decr Years2

5.3 Sustainability

89.14% of the earnings are spent on dividend by MORN. This is not a sustainable payout ratio.
MORN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP89.14%
EPS Next 2Y13.09%
EPS Next 3Y18.44%

MORNINGSTAR INC

NASDAQ:MORN (2/20/2024, 10:10:09 AM)

271.88

-2.03 (-0.74%)

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 Cap11.61B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.58%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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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 RankSector Rank
PE 67.63
Fwd PE 44.9
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)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.12%
ROE 5.7%
ROCE
ROIC
ROICexc
ROICexgc
OM 8.69%
PM (TTM) 3.59%
GM 57.82%
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 Turnover0.59
Health
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.94
Quick Ratio 0.94
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)
Growth
EPS 1Y (TTM)-17.11%
EPS 3Y-22.48%
EPS 5Y
EPS growth Q2Q
EPS Next Y-0.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.3%
Revenue growth 3Y16.63%
Revenue growth 5Y
Revenue growth 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