Morningstar, Inc.

Finance
Investment Managers
www.morningstar.com

Earnings Score
Moat Score
Safety Score

Market Cap $15.32B
PE 47
Debt $864.70M
Cash $552.90M
EV $15.64B
FCF $443.90M

Earnings

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Sales & Net Margins

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Earnings	$326.50M
EBIT	$411.00M
ROE	21%
ROA	12%
FCF	$443.90M
Equity	$1.57B
Growth Stability	37%
PE	46.93
PEG	-4.89
PB	9.79
P/FCF	34.52
P/S	6.89
Price/Cash	0.04
Debt/Equity	0.55
Debt/FCF	1.95
Net Margins	15%
Gross Margins	61%
Op. Margins	18%
Earnings CAGR	-3%
Sales Growth YoY	10%
Sales Growth QoQ	-0%
Sales CAGR	14%
FCF CAGR	6%
Equity CAGR	10%
Earnings Stability	0.02
Earnings Growth YoY	206%
Earnings Growth QoQ	73%
Earnings CAGR 5Y	-10%

Sales CAGR 5Y	14%
FCF CAGR 5Y	-4%
Equity CAGR 5Y	5%
Earnings CAGR 3Y	9%
Sales CAGR 3Y	9%
FCF CAGR 3Y	7%
Equity CAGR 3Y	4%
Market Cap	$15.32B
Revenue	$2.22B
Dividend Yield	0%
Payout Ratio	21%
Assets	$3.57B
Total Debt	$864.70M
Cash	$552.90M
Shares Outstanding	42.8M
EV	15.64B
Earnings Score	6%
Moat Score	94%
Safety Score	65%
Final Score	55%
Working Capital	126.9M
Current Ratio	1.14
Gross Profit	$1.35B
Shares Growth 3y	0%
Equity Growth QoQ	9%
Equity Growth YoY	26%

Assets & ROA

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Stockholders Equity & ROE

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Morningstar Inc is a provider of independent investment research to financial advisers, asset managers, and investors. The company focuses its operations on two core sectors: data and research. It offers data on investments such as mutual funds, stocks, exchange-traded funds, closed-end funds, separate accounts, and variable annuities. Further, the company tracks real-time market data of equity, derivative, and currency exchanges and other investments. In its research operation, Morningstar offers analyst research on passive and active mutual funds, alternative funds, and college saving plans. Morningstar's largest share of revenue is generated in the United States of America.

SEC Filings

Direct access to Morningstar, Inc. (MORN) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Morningstar, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Morningstar, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -3%

Stability 2%

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Morningstar, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Morningstar, Inc..

Years

Calculation mode

= $6.5B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$444M	$469M	$495M	$522M	$552M	$582M	$615M	$649M	$686M	$724M	$764M	$7.6B
DCF		$426M	$409M	$393M	$377M	$362M	$347M	$333M	$320M	$307M	$295M	$2.9B
Value	$6.5B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	10%	17%	20%	15%	18%	13%	16%	11%	4%	7%	15%
ROA	-	19%	17%	13%	16%	8%	10%	9%	5%	7%	12%
ROE	-	21%	23%	17%	20%	14%	18%	14%	6%	11%	21%

Good Net Margins (15.02%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	0.19	0	-	0.29	2.06	1.46	1.03	6.78	5.1	1.95
Debt over Equity	0.05	0.05	0	-	0.07	0.48	0.35	0.25	0.95	0.76	0.55
Growth Stability	-	-	-	100%	100%	95%	100%	100%	37%	87%	37%

Good Debt/FCF ratio (1.95)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.55)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (37%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	4%	1%	14%	12%	16%	18%	22%	10%	9%	14%
Earnings YoY growth	-	69%	21%	-15%	34%	-17%	47%	-14%	-64%	100%	-10%
Equity YoY growth	-	-2%	9%	16%	16%	16%	17%	11%	-15%	10%	5%
FCF YoY growth	-	146%	-17%	22%	30%	7%	21%	13%	-52%	17%	-4%