NasdaqGS:MORN

Stock Analysis Report

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Executive Summary

Morningstar, Inc. provides independent investment research services in North America, Europe, Australia, Canada, Asia, the United Kingdom, and internationally. More Details


Snowflake Analysis

Mediocre balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Morningstar's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MORN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

MORN

-3.3%

US Capital Markets

-1.1%

US Market


1 Year Return

16.0%

MORN

3.7%

US Capital Markets

15.0%

US Market

Return vs Industry: MORN exceeded the US Capital Markets industry which returned 5.7% over the past year.

Return vs Market: MORN matched the US Market which returned 15.6% over the past year.


Shareholder returns

MORNIndustryMarket
7 Day-0.6%-3.3%-1.1%
30 Day15.5%2.0%2.9%
90 Day8.0%-0.1%5.7%
1 Year16.9%16.0%6.3%3.7%17.6%15.0%
3 Year119.8%114.1%18.9%9.8%38.9%29.7%
5 Year137.0%125.7%61.6%41.4%78.4%58.4%

Price Volatility Vs. Market

How volatile is Morningstar's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Morningstar undervalued compared to its fair value and its price relative to the market?

52.69x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MORN ($183.19) is trading above our estimate of fair value ($62.98)

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


Price To Earnings Ratio

PE vs Industry: MORN is poor value based on its PE Ratio (52.7x) compared to the US Capital Markets industry average (22.2x).

PE vs Market: MORN is poor value based on its PE Ratio (52.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MORN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MORN is overvalued based on its PB Ratio (7.2x) compared to the US Capital Markets industry average (4.7x).


Next Steps

Future Growth

How is Morningstar forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.6%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Morningstar has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Morningstar performed over the past 5 years?

4.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MORN has high quality earnings.

Growing Profit Margin: MORN's current net profit margins (11.5%) are lower than last year (16.5%).


Past Earnings Growth Analysis

Earnings Trend: MORN's earnings have grown by 4.9% 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 (-14.7%) over the past year, making it difficult to compare to the Capital Markets industry average (14.1%).


Return on Equity

High ROE: MORN's Return on Equity (13.7%) is considered low.


Next Steps

Financial Health

How is Morningstar's financial position?


Financial Position Analysis

Short Term Liabilities: MORN's short term assets ($613.5M) exceed its short term liabilities ($490.2M).

Long Term Liabilities: MORN's short term assets ($613.5M) do not cover its long term liabilities ($773.8M).


Debt to Equity History and Analysis

Debt Level: MORN's debt to equity ratio (44.9%) is considered high.

Reducing Debt: MORN's debt to equity ratio has increased from 5.1% to 44.9% over the past 5 years.

Debt Coverage: MORN's debt is well covered by operating cash flow (74.7%).

Interest Coverage: MORN's interest payments on its debt are well covered by EBIT (14.1x coverage).


Balance Sheet


Next Steps

Dividend

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

0.66%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MORN's dividend (0.66%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: MORN's dividend (0.66%) is low compared to the top 25% of dividend payers in the US market (4.63%).


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MORN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Kunal Kapoor (45 yo)

3.75yrs

Tenure

US$3,960,682

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 ($USD3.96M) is below average for companies of similar size in the US market ($USD7.37M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kunal Kapoor
CEO & Director3.75yrsUS$3.96m0.11%
$ 8.2m
Jason Dubinsky
Chief Financial Officer3.25yrsUS$2.04m0.030%
$ 2.3m
Bevin Desmond
Head of Talent & Cultureno dataUS$1.15m0.13%
$ 10.1m
Daniel Dunn
Chief Revenue Officer3.75yrsUS$1.01m0.0093%
$ 727.7k
Joseph Mansueto
Executive Chairman of the Board36.75yrsUS$105.29k46.25%
$ 3.6b
Kimberly McGarry
Global Controller & Chief Accounting Officer2.42yrsno data0.00032%
$ 25.1k
James Rhodes
Chief Technology Officer2.25yrsno datano data
Barbara Noverini
no datano datano data
Patrick Maloney
General Counsel & Corporate Secretary4.25yrsno data0.0023%
$ 178.8k
Stephanie Lerdall
Senior Manager of Media Relationsno datano datano data
Robert Pinkerton
Chief Marketing Officer5.75yrsno datano data
Chris Boruff
Managing Director of Business Operations6.75yrsUS$992.34kno data

3.8yrs

Average Tenure

54yo

Average Age

Experienced Management: MORN's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kunal Kapoor
CEO & Director3.75yrsUS$3.96m0.11%
$ 8.2m
Joseph Mansueto
Executive Chairman of the Board36.75yrsUS$105.29k46.25%
$ 3.6b
Jack Noonan
Independent Director21.17yrsUS$199.93k0.076%
$ 5.9m
Stephen Joynt
Director0.83yrno datano data
William Lyons
Independent Director13.08yrsUS$214.93k0.040%
$ 3.1m
Cheryl Francis
Independent Director18.25yrsUS$224.93k0.073%
$ 5.7m
Steven Kaplan
Independent Director21.17yrsUS$214.93k0.095%
$ 7.5m
Gail Landis
Independent Director7.42yrsUS$204.93k0.0073%
$ 569.3k
Robin Diamonte
Independent Director4.83yrsUS$199.93k0.014%
$ 1.1m
Caroline Tsay
Independent Director3.42yrsUS$199.93k0.0084%
$ 662.6k

10.3yrs

Average Tenure

64yo

Average Age

Experienced Board: MORN's board of directors are seasoned and experienced ( 10.3 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 company bio, 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
  • Market Cap: US$7.841b
  • Shares outstanding: 42.92m
  • Website: https://www.morningstar.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRSDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2005
MORNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 2005

Biography

Morningstar, Inc. provides independent investment research services in North America, Europe, Australia, Canada, Asia, the United Kingdom, and internationally. It offers web-based tools; investment data, f ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 00:11
End of Day Share Price2020/10/27 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.