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MORN

Morningstar NasdaqGS:MORN Stock Report

Last Price

US$239.58

Market Cap

US$10.2b

7D

-2.4%

1Y

-7.0%

Updated

04 Jul, 2022

Data

Company Financials +
MORN fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance2/6
Financial Health5/6
Dividends0/6

MORN Stock Overview

Morningstar, Inc. provides independent investment research services in North America, Europe, Australia, and Asia.

Morningstar Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Morningstar
Historical stock prices
Current Share PriceUS$239.58
52 Week HighUS$350.21
52 Week LowUS$218.25
Beta1.16
1 Month Change-2.45%
3 Month Change-14.84%
1 Year Change-7.03%
3 Year Change64.55%
5 Year Change206.84%
Change since IPO1,094.91%

Recent News & Updates

Shareholder Returns

MORNUS Capital MarketsUS Market
7D-2.4%-2.2%-2.2%
1Y-7.0%-20.6%-19.1%

Return vs Industry: MORN exceeded the US Capital Markets industry which returned -20.6% over the past year.

Return vs Market: MORN exceeded the US Market which returned -21.2% over the past year.

Price Volatility

Is MORN's price volatile compared to industry and market?
MORN volatility
MORN Average Weekly Movement6.2%
Capital Markets Industry Average Movement0.5%
Market Average Movement8.1%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.3%

Stable Share Price: MORN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: MORN's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198410,038Kunal Kapoorhttps://www.morningstar.com

Morningstar, Inc. provides independent investment research services in North America, Europe, Australia, and Asia. The company offers web-based tools; investment data, fundamental equity and manager research, private capital markets research, credit and fund rating, and index, as well as environmental, social, and governance (ESG) rating services; and investment offerings, including managed investment products, publicly listed and private companies, fixed income securities, and real-time global market data for financial advisors, asset managers, retirement plan providers and sponsors, and individual and institutional investors. It also provides Morningstar Data, an investment data spanning various databases, including equity fundamentals, managed investments, ESG factors, and market data; Morningstar Direct, an investment-analysis platform; Morningstar Managed Portfolios, an advisor service consisting of model portfolio that offers services for independent financial advisors, as well as offers asset allocation services for asset managers, broker/dealers, and insurance providers; Morningstar Advisor Workstation, a web-based research, financial planning, and proposal generation platform; and Morningstar.com, a website for individual investors.

Morningstar Fundamentals Summary

How do Morningstar's earnings and revenue compare to its market cap?
MORN fundamental statistics
Market CapUS$10.24b
Earnings (TTM)US$184.50m
Revenue (TTM)US$1.76b

55.5x

P/E Ratio

5.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MORN income statement (TTM)
RevenueUS$1.76b
Cost of RevenueUS$732.40m
Gross ProfitUS$1.03b
Other ExpensesUS$846.60m
EarningsUS$184.50m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 27, 2022

Earnings per share (EPS)4.32
Gross Margin58.47%
Net Profit Margin10.46%
Debt/Equity Ratio37.3%

How did MORN perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

31%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is MORN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MORN?

Other financial metrics that can be useful for relative valuation.

MORN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.9x
Enterprise Value/EBITDA28.2x
PEG Ratio2.3x

Price to Earnings Ratio vs Peers

How does MORN's PE Ratio compare to its peers?

MORN PE Ratio vs Peers
The above table shows the PE ratio for MORN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average31.8x
MKTX MarketAxess Holdings
40.2x14.1%US$9.7b
CBOE Cboe Global Markets
24.4x12.7%US$12.2b
COIN Coinbase Global
4.6x49.8%US$10.9b
TW Tradeweb Markets
58x12.8%US$16.1b
MORN Morningstar
55.5x24.2%US$10.2b

Price-To-Earnings vs Peers: MORN is expensive based on its Price-To-Earnings Ratio (55.5x) compared to the peer average (31.8x).


Price to Earnings Ratio vs Industry

How does MORN's PE Ratio compare vs other companies in the US Capital Markets Industry?

Price-To-Earnings vs Industry: MORN is expensive based on its Price-To-Earnings Ratio (55.5x) compared to the US Capital Markets industry average (29.4x)


Price to Earnings Ratio vs Fair Ratio

What is MORN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MORN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio55.5x
Fair PE Ratio18.3x

Price-To-Earnings vs Fair Ratio: MORN is expensive based on its Price-To-Earnings Ratio (55.5x) compared to the estimated Fair Price-To-Earnings Ratio (18.3x).


Share Price vs Fair Value

What is the Fair Price of MORN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MORN ($239.58) is trading above our estimate of fair value ($92.89)

Significantly Below Fair Value: MORN is trading above our estimate of fair value.


Price to Earnings Growth Ratio

PEG Ratio: MORN is poor value based on its PEG Ratio (2.3x)


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Future Growth

How is Morningstar forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


24.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MORN's forecast earnings growth (24.2% per year) is above the savings rate (1.9%).

Earnings vs Market: MORN's earnings (24.2% per year) are forecast to grow faster than the US market (13.6% per year).

High Growth Earnings: MORN's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MORN's revenue (12.3% per year) is forecast to grow faster than the US market (8.2% per year).

High Growth Revenue: MORN's revenue (12.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MORN's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has Morningstar performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


6.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MORN has high quality earnings.

Growing Profit Margin: MORN's current net profit margins (10.5%) are lower than last year (17.5%).


Past Earnings Growth Analysis

Earnings Trend: MORN's earnings have grown by 6.9% per year over the past 5 years.

Accelerating Growth: MORN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MORN had negative earnings growth (-27.5%) over the past year, making it difficult to compare to the Capital Markets industry average (79.6%).


Return on Equity

High ROE: MORN's Return on Equity (13.6%) is considered low.


Discover strong past performing companies

Financial Health

How is Morningstar's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MORN's short term assets ($902.8M) exceed its short term liabilities ($720.5M).

Long Term Liabilities: MORN's short term assets ($902.8M) exceed its long term liabilities ($797.2M).


Debt to Equity History and Analysis

Debt Level: MORN has more cash than its total debt.

Reducing Debt: MORN's debt to equity ratio has increased from 32.7% to 37.3% over the past 5 years.

Debt Coverage: MORN's debt is well covered by operating cash flow (81.1%).

Interest Coverage: MORN's interest payments on its debt are well covered by EBIT (33.2x coverage).


Balance Sheet


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Dividend

What is Morningstar current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.60%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MORN's dividend (0.6%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: MORN's dividend (0.6%) is low compared to the top 25% of dividend payers in the US market (4.25%).


Stability and Growth of Payments

Stable Dividend: MORN is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: MORN is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

Earnings Coverage: MORN is not paying a notable dividend for the US market.


Cash Payout to Shareholders

Cash Flow Coverage: MORN is not paying a notable dividend for the US market.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.5yrs

Average management tenure


CEO

Kunal Kapoor (47 yo)

5.5yrs

Tenure

US$5,597,592

Compensation

Mr. Kunal Kapoor, CFA has been Chief Executive Officer of Morningstar, Inc. since January 1, 2017 and served as its President since October 2015. Mr. Kapoor is responsible for product development and innov...


CEO Compensation Analysis

Compensation vs Market: Kunal's total compensation ($USD5.60M) is below average for companies of similar size in the US market ($USD13.34M).

Compensation vs Earnings: Kunal's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MORN's management team is seasoned and experienced (5.5 years average tenure).


Board Members

Experienced Board: MORN's board of directors are considered experienced (7.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MORN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Morningstar, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Morningstar, Inc.
  • Ticker: MORN
  • Exchange: NasdaqGS
  • Founded: 1984
  • Industry: Financial Exchanges and Data
  • Sector: Diversified Financials
  • Implied Market Cap: US$10.237b
  • Shares outstanding: 42.73m
  • Website: https://www.morningstar.com

Number of Employees


Location

  • Morningstar, Inc.
  • 22 West Washington Street
  • Chicago
  • Illinois
  • 60602
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/04 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.