Morningstar, Inc.
MORN
Investment Advice
Mkt Cap
$11.81BPE
166.58Debt
$1.088BCash
$325MEV
$12.57BFCF
$156.9MP/E Ratio
166.58Debt
$1.088BCash
$325MEV
$12.57BFCF
$156.9MMorningstar, Inc. provides independent investment insights in the United States, Canada, Asia, Australia, Europe, the United Kingdom, and internationally. The company provides investment data, fundamental equity and manager research, private capital markets research, credit and fund rating, and index; environmental, social, and governance (ESG) rating, as well as indexes directly on its proprietary desktop or web-based software platforms, or through subscriptions, data feeds, and third-party distributors; and investment offerings, including managed investment products, publicly listed and private companies, fixed income securities, private credit, and bank loans. It also provides Morningstar Data that offers data and research to asset managers, redistributors, and wealth managers; Morningstar Direct, an investment-analysis platform; Morningstar Managed Portfolios, an advisor service to reduce compliance risk, as well as offers asset-allocation services; Morningstar Advisor Workstation, a web-based research, investment planning, and portfolio analysis platform; and Morningstar.com, a data, editorial, and research content product, as well as Morningstar Office. In addition, the company offers Morningstar Enterprise Components; Morningstar Indexes for creating investment products and other portfolios; Morningstar workplace solutions, such as retirement accounts, fiduciary services, allocation funds, and custom models; and PitchBook Platform, research and analysis workstation for investment and research professionals. Further, it provides Morningstar Research; DBRS Morningstar; and Morningstar Sustainalytics, as well as a mobile application, CRM integrations, excel plug-in, data feeds, and data solutions through PitchBook. The company serves financial advisors, asset managers, retirement plan providers and sponsors, and individual and institutional investors, as well as issuers of securities. Morningstar, Inc. was incorporated in 1984 and is based in Chicago, Illinois.
Sector
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DCF
Discounted Cash Flow Valuation of Morningstar, Inc.
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $156.9M | $168.6M | $180.7M | $193.2M | $206.1M | $219.2M | $232.6M | $246.1M | $259.7M | $273.4M | $287.1M | $2.871B |
| DCF | $146.6M | $136.7M | $127.1M | $117.8M | $109M | $100.5M | $92.52M | $84.91M | $77.73M | $70.97M | $709.7M | |
| Value | $1.774B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth -3.9%
Earnings Stability 3.6%
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 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 10% | 17% | 20% | 15% | 18% | 13% | 16% | 11% | 3.8% | 3.6% |
| ROA | 11% | 19% | 17% | 13% | 16% | 8% | 10% | 9% | 4.8% | 5.1% |
| ROE | 12% | 21% | 23% | 17% | 20% | 14% | 18% | 14% | 5.8% | 5.7% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +12.85%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is -2.08%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +10.08%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -1.65%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +14.62%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is -2%.
Safety & Stabiliy
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 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 0.41 | 0.19 | 0.00 | - | 0.29 | 2.06 | 1.46 | 1.03 | 6.78 | 6.93 |
| Debt Equity | 0.05 | 0.05 | 0.00 | - | 0.07 | 0.48 | 0.35 | 0.25 | 0.95 | 0.87 |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 100% | 100% | 95% | 100% | 100% | 37% | 37% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 6.93.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is 1.20.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.37.
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 | 12-2015 | 12-2017 | 12-2019 | 12-2021 | Trend |
|---|---|---|---|---|---|
| Revenue | 13% | 15% | 17% | 10% | 1.6% |
| Net Income | -8.6% | -12% | -23% | -64% | -5.1% |
| Stockholders Equity | 9.5% | 8.4% | 3.7% | -15% | 0.34% |
| FCF | -1.1% | -1.7% | -13% | -52% | -5.6% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +15.46%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +1.59%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is -12.43%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -5.12%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +8.44%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +0.34%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is -1.71%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -5.61%.