MORNINGSTAR INC (MORN) Stock Fundamental Analysis
NASDAQ:MORN - Nasdaq - US6177001095 - Common Stock - Currency: USD
MORN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 222 industry peers in the Capital Markets industry. MORN has only an average score on both its financial health and profitability. MORN is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, MORN could be worth investigating further for growth 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.
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
MORN's Return On Assets of 9.16% is amongst the best of the industry. MORN outperforms 85.71% of its industry peers.
The Return On Equity of MORN (20.85%) is better than 89.40% of its industry peers.
MORN has a better Return On Invested Capital (10.66%) than 84.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MORN is in line with the industry average of 6.67%.
The 3 year average ROIC (6.46%) for MORN is below the current ROIC(10.66%), indicating increased profibility in the last year.
| 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
MORN has a Profit Margin (14.69%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of MORN has declined.
Looking at the Operating Margin, with a value of 18.49%, MORN is doing worse than 60.37% of the companies in the same industry.
MORN's Operating Margin has declined in the last couple of years.
MORN has a better Gross Margin (60.91%) than 61.75% of its industry peers.
MORN's Gross Margin has been stable in the last couple of years.
| 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.
MORN has more shares outstanding than it did 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 5.96. This indicates that MORN is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.96, MORN belongs to the best of the industry, outperforming 90.32% of the companies in the same industry.
The Debt to FCF ratio of MORN is 1.95, which is an excellent value as it means it would take MORN, only 1.95 years of fcf income to pay off all of its debts.
MORN has a better Debt to FCF ratio (1.95) than 83.87% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that MORN is somewhat dependend on debt financing.
MORN's Debt to Equity ratio of 0.55 is fine compared to the rest of the industry. MORN outperforms 67.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 1.95 | ||
| Altman-Z | 5.96 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MORN has a Current 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.
The Current ratio of MORN (1.14) is comparable to the rest of the industry.
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 of 1.14. This is comparable to the rest of the industry: MORN outperforms 51.15% of 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.
The Earnings Per Share has been decreasing by -5.00% on average over the past years.
The Revenue has grown by 12.55% in the past year. This is quite good.
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)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
The Earnings Per Share is expected to grow by 26.43% on average over the next years. This is a very strong growth
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 Y47.48%
EPS Next 2Y30.85%
EPS Next 3Y25.93%
EPS Next 5Y26.43%
Revenue Next Year12.12%
Revenue Next 2Y10.13%
Revenue Next 3Y9.56%
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.
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
Based on the Price/Earnings ratio of 42.87, the valuation of MORN can be described as expensive.
Based on the Price/Earnings ratio, MORN is valued a bit more expensive than 77.42% of the companies in the same industry.
MORN is valuated expensively when we compare the Price/Earnings ratio to 28.51, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 35.68, MORN can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, MORN is valued a bit more expensive than 75.58% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 93.88, MORN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.87 | ||
| Fwd PE | 35.68 |
4.2 Price Multiples
MORN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MORN is cheaper than 66.36% of the companies in the same industry.
MORN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.93 | ||
| EV/EBITDA | 23.71 |
4.3 Compensation for Growth
MORN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 25.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.9
PEG (5Y)N/A
EPS Next 2Y30.85%
EPS Next 3Y25.93%
5. Dividend
5.1 Amount
MORN has a yearly dividend return of 0.56%, which is pretty low.
Compared to an average industry Dividend Yield of 9.42, MORN is paying slightly less dividend.
With a Dividend Yield of 0.56, MORN pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
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.
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
20.83% 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.
DP20.83%
EPS Next 2Y30.85%
EPS Next 3Y25.93%
MORNINGSTAR INC
NASDAQ:MORN (1/30/2025, 4:30:01 PM)
After market: 330.56 0 (0%)330.56
+4.08 (+1.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners61.21%
Inst Owner Change0.03%
Ins Owners0.33%
Ins Owner Change-3.38%
Market Cap14.17B
Analysts80
Price Target382.5 (15.71%)
Short Float %2.22%
Short Ratio3.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
Yearly Dividend1.5
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)0%
PT rev (3m)3.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)8.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)1.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.87 | ||
| Fwd PE | 35.68 | ||
| P/S | 6.38 | ||
| P/FCF | 31.93 | ||
| P/OCF | 24.61 | ||
| P/B | 9.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.71 |
EPS(TTM)7.71
EY2.33%
EPS(NY)9.26
Fwd EY2.8%
FCF(TTM)10.35
FCFY3.13%
OCF(TTM)13.43
OCFY4.06%
SpS51.84
BVpS36.51
TBVpS-10.41
PEG (NY)0.9
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 | 5.96 |
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 Y47.48%
EPS Next 2Y30.85%
EPS Next 3Y25.93%
EPS Next 5Y26.43%
Revenue 1Y (TTM)12.55%
Revenue growth 3Y13.63%
Revenue growth 5Y14.86%
Sales Q2Q%10.46%
Revenue Next Year12.12%
Revenue Next 2Y10.13%
Revenue Next 3Y9.56%
Revenue Next 5Y10.32%
EBIT growth 1Y139.37%
EBIT growth 3Y-3.08%
EBIT growth 5Y1.34%
EBIT Next Year170.77%
EBIT Next 3Y50.76%
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%