Morningstar, Inc.
Morningstar, Inc. Fundamental Analysis
Morningstar, Inc. (MORN) shows strong financial fundamentals with a PE ratio of 16.99, profit margin of 15.30%, and ROE of 25.12%. The company generates $2.5B in annual revenue with strong year-over-year growth of 11.60%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze MORN's fundamental strength across five key dimensions:
Efficiency Score
ExcellentMORN demonstrates superior asset utilization.
Valuation Score
ModerateMORN shows balanced valuation metrics.
Growth Score
ModerateMORN shows steady but slowing expansion.
Financial Health Score
WeakMORN carries high financial risk with limited liquidity.
Profitability Score
ExcellentMORN achieves industry-leading margins.
Key Financial Metrics
Is MORN Expensive or Cheap?
P/E Ratio
MORN trades at 16.99 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MORN's PEG of 12.52 indicates potential overvaluation.
Price to Book
The market values Morningstar, Inc. at 5.20 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.84 times EBITDA. This is generally considered low.
How Well Does MORN Make Money?
Net Profit Margin
For every $100 in sales, Morningstar, Inc. keeps $15.30 as profit after all expenses.
Operating Margin
Core operations generate 21.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $25.12 in profit for every $100 of shareholder equity.
ROA
Morningstar, Inc. generates $10.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Morningstar, Inc. produces operating cash flow of $598.86M, showing steady but balanced cash generation.
Free Cash Flow
Morningstar, Inc. generates strong free cash flow of $449.48M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $10.93 in free cash annually.
FCF Yield
MORN converts 6.86% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.99
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
12.52
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.20
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.64
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.99
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.25
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How MORN Stacks Against Its Sector Peers
| Metric | MORN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.99 | 18.73 | Neutral |
| ROE | 25.12% | 847.00% | Weak |
| Net Margin | 15.30% | 3919.00% | Weak |
| Debt/Equity | 1.15 | 0.93 | Weak (High Leverage) |
| Current Ratio | 0.99 | 674.76 | Weak Liquidity |
| ROA | 10.42% | -21563.00% (disorted) | Strong |
MORN outperforms its industry in 1 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Morningstar, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
92.52%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
142.79%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
76.50%
Industry Style: Value, Dividend, Cyclical
High Growth