Morningstar (MORN)
NASDAQ:MORN
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Morningstar
(NASDAQ:MORN)
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Rating:71Outperform
Price Target:
$192.00
â–²(4.19% Upside)
Action:Upgraded
Date:05/23/26
The score is driven primarily by strong fundamentals (profitability and steady free cash flow), supported by reasonable valuation and positive recent corporate updates (Q1 strength and AI/PitchBook strategy). These are offset by rising leverage and a neutral-to-weak technical picture (below longer-term moving averages with negative MACD).
Positive Factors
Strong profitability and cash generation
Morningstar generates durable, high-margin earnings and consistent cash flow. Robust gross margins (~62%) and sizeable operating and free cash flow provide internal funding for product investment, acquisitions, dividends and buybacks, supporting long-term strategic flexibility and capital returns.
Negative Factors
Rising leverage and weakened equity base
Debt growth meaningfully increases financial risk and reduces balance-sheet flexibility. With equity down versus 2024 and leverage near 1.9x, Morningstar has less cushion for cyclical revenue shocks or heavy investment spend, raising refinancing and covenant sensitivity over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and cash generation
Morningstar generates durable, high-margin earnings and consistent cash flow. Robust gross margins (~62%) and sizeable operating and free cash flow provide internal funding for product investment, acquisitions, dividends and buybacks, supporting long-term strategic flexibility and capital returns.
Read all positive factors
Morningstar (MORN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.87B
Dividend Yield0.84%
Average Volume (3M)547.35K
Price to Earnings (P/E)17.9
Beta (1Y)0.86
Revenue Growth8.39%
EPS Growth10.06%
CountryUS
Employees11,115
SectorFinancial
Sector Strength70
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)9.87
Shares Outstanding38,028,020
10 Day Avg. Volume494,117
30 Day Avg. Volume547,349
Financial Highlights & Ratios
PEG Ratio7.25
Price to Book (P/B)7.45
Price to Sales (P/S)3.72
P/FCF Ratio20.57
Enterprise Value/Market Cap1.21
Enterprise Value/Revenue3.32
Enterprise Value/Gross Profit5.38
Enterprise Value/Ebitda10.78
Forecast
1Y Price Target
$246.00Price Target Upside33.49% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)11.9
Revenue Forecast (FY)$2.62B
Morningstar Business Overview & Revenue Model
Company Description
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, cred...
How the Company Makes Money
Morningstar primarily makes money by selling and licensing investment information, research, and technology to financial professionals and institutions, and by earning fees tied to managed investment products and services. Key revenue streams incl...
Morningstar Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
61
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.51B | 2.45B | 2.28B | 2.04B | 1.87B | 1.70B |
| Gross Profit | 1.55B | 1.49B | 1.38B | 1.20B | 1.09B | 1.00B |
| EBITDA | 773.30M | 728.90M | 731.60M | 418.10M | 325.60M | 409.90M |
| Net Income | 402.80M | 374.20M | 369.90M | 141.10M | 70.50M | 193.30M |
Balance Sheet | ||||||
| Total Assets | 3.99B | 3.59B | 3.55B | 3.40B | 3.47B | 2.86B |
| Cash, Cash Equivalents and Short-Term Investments | 532.20M | 528.70M | 551.00M | 389.00M | 414.60M | 546.10M |
| Total Debt | 1.91B | 1.41B | 904.00M | 1.16B | 1.32B | 531.50M |
| Total Liabilities | 2.97B | 2.37B | 1.93B | 2.08B | 2.27B | 1.45B |
| Stockholders Equity | 1.02B | 1.22B | 1.62B | 1.33B | 1.21B | 1.42B |
Cash Flow | ||||||
| Free Cash Flow | 437.40M | 442.60M | 448.90M | 197.30M | 168.30M | 348.10M |
| Operating Cash Flow | 590.20M | 589.70M | 591.60M | 316.40M | 297.80M | 449.90M |
| Investing Cash Flow | -453.00M | -139.30M | -21.30M | -81.90M | -799.30M | -167.70M |
| Financing Cash Flow | -173.70M | -514.70M | -384.40M | -278.40M | 415.10M | -211.80M |
Morningstar Technical Analysis
Positive
184.28
Price Trends
175.13
Positive
179.69
Positive
202.49
Negative
Market Momentum
2.65
Negative
54.86
Neutral
49.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MORN, the sentiment is Positive. The current price of 184.28 is above the 20-day moving average (MA) of 177.29, above the 50-day MA of 175.13, and below the 200-day MA of 202.49, indicating a neutral trend. The MACD of 2.65 indicates Negative momentum. The RSI at 54.86 is Neutral, neither overbought nor oversold. The STOCH value of 49.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MORN.
Morningstar Risk Analysis
Morningstar disclosed 22 risk factors in its most recent earnings report. Morningstar reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Morningstar Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $9.23B | 16.02 | 27.22% | 1.49% | 6.51% | 9.85% | |
77 Outperform | $44.67B | 34.37 | -64.13% | 1.24% | 10.86% | 20.25% | |
76 Outperform | $78.33B | 31.83 | 66.74% | 0.73% | 8.95% | 20.40% | |
73 Outperform | $122.04B | 26.15 | 14.80% | 0.73% | 8.54% | 24.07% | |
73 Outperform | $300.39M | 13.87 | 21.16% | 3.31% | -5.24% | 2.40% | |
71 Outperform | $6.87B | 17.85 | 30.01% | 0.84% | 8.39% | 10.06% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
MORN
Morningstar
183.91
-120.07
-39.50%
FDS
Factset Research
255.02
-169.22
-39.89%
SPGI
S&P Global
420.12
-91.35
-17.86%
MCO
Moody's
449.15
-34.35
-7.10%
MSCI
MSCI
618.87
62.57
11.25%
VALU
Value Line
32.50
-3.80
-10.47%
Morningstar Corporate Events
Business Operations and StrategyProduct-Related Announcements
Morningstar Highlights PitchBook AI Integration and Data Moat
Positive
May 22, 2026
Morningstar on May 22, 2026 published a written Investor QA addressing shareholder questions received through May 5, 2026, outlining how it is integrating PitchBook data into AI research tools, expanding large-account penetration, sharpening its i...
Executive/Board ChangesShareholder Meetings
Morningstar Shareholders Back Board as Director Retires
Positive
May 8, 2026
At Morningstar’s Annual Shareholders’ Meeting held on May 7, 2026, director Gail Landis stepped down from the board after reaching the company’s mandatory retirement age, and the board size was set at 10 members. Shareholders ele...
Business Operations and StrategyStock BuybackFinancial Disclosures
Morningstar Posts Strong Q1 2026 Earnings and Growth
Positive
Apr 29, 2026
Morningstar, Inc., a leading provider of independent investment research, data platforms and credit ratings, reported strong first-quarter 2026 results, underscoring the breadth of its franchise across Direct, PitchBook, credit, wealth, retirement...
Business Operations and StrategyFinancial Disclosures
Morningstar Highlights AI Moat in Latest Investor Q&A
Positive
Mar 25, 2026
Morningstar has furnished an investor QA addressing questions received through March 5, 2026, emphasizing that its competitive moat in an AI-driven market rests on differentiated, human-curated data, proprietary research frameworks, and software t...
Dividends
Morningstar Maintains Quarterly Dividend, Signals Ongoing Stability
Positive
Mar 13, 2026
On March 13, 2026, Morningstar, Inc.’s board of directors declared a quarterly cash dividend of 50 cents per share, matching the payout made in January. The dividend will be paid on April 30, 2026 to shareholders of record as of April 3, 202...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.