MORNINGSTAR INC (MORN)
US6177001095 - Common Stock
Overall MORN gets a fundamental rating of 6 out of 10. We evaluated MORN against 220 industry peers in the Capital Markets industry. MORN has only an average score on both its financial health and profitability. MORN is valued quite expensive, but it does show an excellent growth. This makes MORN very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year MORN was profitable.
In the past year MORN had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 9.16%, MORN belongs to the top of the industry, outperforming 84.79% of the companies in the same industry.
The Return On Equity of MORN (20.85%) is better than 89.86% of its industry peers.
With an excellent Return On Invested Capital value of 10.66%, MORN belongs to the best of the industry, outperforming 83.41% 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 7.00%.
The last Return On Invested Capital (10.66%) for MORN is above the 3 year average (6.46%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.16% | ||
| ROE | 20.85% | ||
| ROIC | 10.66% |
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
The Profit Margin of MORN (14.69%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of MORN has declined.
MORN's Operating Margin of 18.49% is on the low side compared to the rest of the industry. MORN is outperformed by 60.83% of its industry peers.
MORN's Operating Margin has declined in the last couple of years.
MORN has a Gross Margin of 60.91%. This is in the better half of the industry: MORN outperforms 61.75% 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 | 18.49% | ||
| PM (TTM) | 14.69% | ||
| GM | 60.91% |
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
MORN has more shares outstanding than it did 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 6.10. This indicates that MORN is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.10, MORN belongs to the best of the industry, outperforming 91.24% of the companies in the same industry.
MORN has a debt to FCF ratio of 1.95. This is a very positive value and a sign of high solvency as it would only need 1.95 years to pay back of all of its debts.
MORN has a better Debt to FCF ratio (1.95) than 84.33% of its industry peers.
MORN has a Debt/Equity ratio of 0.55. This is a neutral value indicating MORN is somewhat dependend on debt financing.
The Debt to Equity ratio of MORN (0.55) is better than 68.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 1.95 | ||
| Altman-Z | 6.1 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.14 indicates that MORN should not have too much problems paying its short term obligations.
MORN's Current ratio of 1.14 is in line compared to the rest of the industry. MORN outperforms 51.61% of its industry peers.
MORN has a Quick Ratio of 1.14. This is a normal value and indicates that MORN is financially healthy and should not expect problems in meeting its short term obligations.
MORN has a Quick ratio (1.14) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
MORN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 91.79%, which is quite impressive.
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.
The Revenue has grown by 12.55% in the past year. This is quite good.
The Revenue has been growing by 14.86% on average over the past years. This is quite good.
EPS 1Y (TTM)91.79%
EPS 3Y-14.05%
EPS 5Y-5%
EPS Q2Q%56.25%
Revenue 1Y (TTM)12.55%
Revenue growth 3Y13.63%
Revenue growth 5Y14.86%
Sales Q2Q%10.46%
3.2 Future
MORN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.43% yearly.
MORN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.32% yearly.
EPS Next Y47.42%
EPS Next 2Y30.78%
EPS Next 3Y25.89%
EPS Next 5Y26.43%
Revenue Next Year11.98%
Revenue Next 2Y10.07%
Revenue Next 3Y9.51%
Revenue Next 5Y10.32%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 44.14, MORN can be considered very expensive at the moment.
Based on the Price/Earnings ratio, MORN is valued expensively inside the industry as 80.18% of the companies are valued cheaper.
Compared to an average S&P500 Price/Earnings ratio of 27.73, MORN is valued quite expensively.
The Price/Forward Earnings ratio is 36.78, 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 76.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, MORN is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.14 | ||
| Fwd PE | 36.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MORN is valued a bit cheaper than the industry average as 62.21% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as MORN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.87 | ||
| EV/EBITDA | 24.53 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of MORN may justify a higher PE ratio.
A more expensive valuation may be justified as MORN's earnings are expected to grow with 25.89% in the coming years.
PEG (NY)0.93
PEG (5Y)N/A
EPS Next 2Y30.78%
EPS Next 3Y25.89%
5. Dividend
5.1 Amount
With a yearly dividend of 0.51%, MORN is not a good candidate for dividend investing.
MORN's Dividend Yield is slightly below the industry average, which is at 9.13.
Compared to an average S&P500 Dividend Yield of 2.24, MORN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
5.2 History
On average, the dividend of MORN grows each year by 8.41%, which is quite nice.
MORN has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of MORN decreased in the last 3 years.
Dividend Growth(5Y)8.41%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
20.83% 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.
DP20.83%
EPS Next 2Y30.78%
EPS Next 3Y25.89%
MORNINGSTAR INC
NASDAQ:MORN (12/20/2024, 8:25:19 PM)
After market: 338.81 -1.51 (-0.44%)340.32
+2.38 (+0.7%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners60.2%
Inst Owner Change-0.29%
Ins Owners26.14%
Ins Owner Change-3.39%
Market Cap14.59B
Analysts80
Price Target382.5 (12.39%)
Short Float %1.85%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
Dividend Growth(5Y)8.41%
DP20.83%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
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)3.97%
PT rev (3m)9.17%
EPS NQ rev (1m)1.75%
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.16%
EPS NY rev (3m)8.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.14 | ||
| Fwd PE | 36.78 | ||
| P/S | 6.57 | ||
| P/FCF | 32.87 | ||
| P/OCF | 25.34 | ||
| P/B | 9.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.53 |
EPS(TTM)7.71
EY2.27%
EPS(NY)9.25
Fwd EY2.72%
FCF(TTM)10.35
FCFY3.04%
OCF(TTM)13.43
OCFY3.95%
SpS51.84
BVpS36.51
TBVpS-10.41
PEG (NY)0.93
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.16% | ||
| ROE | 20.85% | ||
| ROCE | 15.39% | ||
| ROIC | 10.66% | ||
| ROICexc | 13.76% | ||
| ROICexgc | 503.06% | ||
| OM | 18.49% | ||
| PM (TTM) | 14.69% | ||
| GM | 60.91% | ||
| FCFM | 19.97% |
ROA(3y)4.31%
ROA(5y)5.53%
ROE(3y)10.04%
ROE(5y)12.35%
ROIC(3y)6.46%
ROIC(5y)6.97%
ROICexc(3y)8.15%
ROICexc(5y)8.82%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)9.32%
ROCE(5y)10.07%
ROICexcg growth 3Y-36.08%
ROICexcg growth 5Y-0.42%
ROICexc growth 3Y-11.85%
ROICexc growth 5Y-19.03%
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%
F-Score8
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 1.95 | ||
| Debt/EBITDA | 1.44 | ||
| Cap/Depr | 70.08% | ||
| Cap/Sales | 5.94% | ||
| Interest Coverage | 7.7 | ||
| Cash Conversion | 96.08% | ||
| Profit Quality | 135.96% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 6.1 |
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)69.9%
Cap/Depr(5y)66.53%
Cap/Sales(3y)6.25%
Cap/Sales(5y)6.21%
Profit Quality(3y)186.21%
Profit Quality(5y)172.71%
High Growth Momentum
Growth
EPS 1Y (TTM)91.79%
EPS 3Y-14.05%
EPS 5Y-5%
EPS Q2Q%56.25%
EPS Next Y47.42%
EPS Next 2Y30.78%
EPS Next 3Y25.89%
EPS Next 5Y26.43%
Revenue 1Y (TTM)12.55%
Revenue growth 3Y13.63%
Revenue growth 5Y14.86%
Sales Q2Q%10.46%
Revenue Next Year11.98%
Revenue Next 2Y10.07%
Revenue Next 3Y9.51%
Revenue Next 5Y10.32%
EBIT growth 1Y139.37%
EBIT growth 3Y-3.08%
EBIT growth 5Y1.34%
EBIT Next Year170.25%
EBIT Next 3Y50.66%
EBIT Next 5Y36.03%
FCF growth 1Y114.86%
FCF growth 3Y-13.76%
FCF growth 5Y-3.74%
OCF growth 1Y74.44%
OCF growth 3Y-6.28%
OCF growth 5Y0.1%