Morningstar (MORN) AI Stock Analysis

• Market Cap: $8.79B
• Dividend Yield: 0.84%
• Average Volume (3M): 347.07K
• Price to Earnings (P/E): 24.1
• Beta (1Y): 0.71
• Revenue Growth: 7.76%
• EPS Growth: 15.92%
• Country: US
• Employees: 11,115
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 2.55
• Shares Outstanding: 41,129,196
• 10 Day Avg. Volume: 246,246
• 30 Day Avg. Volume: 347,072
• PEG Ratio: 0.24
• Price to Book (P/B): 8.90
• Price to Sales (P/S): 6.34
• P/FCF Ratio: 32.11
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 4.32
• Enterprise Value/Gross Profit: 7.09
• Enterprise Value/Ebitda: 14.18
• 1Y Price Target: $285.00
• Price Target Upside: 34.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 10.79
• Revenue Forecast (FY): $2.61B

• Rating: 71 Outperform
• Price Target: $233.00 ▲(9.72% Upside)

The score is driven primarily by strong financial performance (high margins and improving free cash flow) and supported by positive corporate actions (buybacks, dividend increase, and strategic initiatives). These strengths are tempered by weaker technical positioning, with the stock trading below multiple moving averages and a sub-50 RSI.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a stable demand for Morningstar's services, supporting long-term business sustainability and expansion.

Strategic Acquisitions

The acquisition of CRSP enhances Morningstar's data capabilities, reinforcing its competitive edge and expanding its market offerings.

Cash Flow Management

Strong cash flow growth ensures Morningstar can fund operations, invest in growth opportunities, and maintain financial health.

Negative Factors

Leadership Changes

Leadership changes in sales may disrupt client relations and sales strategy, potentially affecting revenue growth and market positioning.

Debt Levels

Increased borrowing capacity may lead to higher debt levels, impacting financial flexibility and increasing interest obligations.

Profitability Concerns

Declining net income per share suggests potential profitability issues, which could affect investor confidence and financial stability.

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, credit and fund rating, and index, as well as environmental, social, and governance (ESG) rating services; and investment offerings, including managed investment products, publicly listed and private companies, fixed income securities, and real-time global market data for financial advisors, asset managers, retirement plan providers and sponsors, and individual and institutional investors. It also provides Morningstar Data, an investment data spanning various databases, including equity fundamentals, managed investments, ESG factors, and market data; Morningstar Direct, an investment-analysis platform; Morningstar Managed Portfolios, an advisor service consisting of model portfolio that offers services for independent financial advisors, as well as offers asset allocation services for asset managers, broker/dealers, and insurance providers; Morningstar Advisor Workstation, a web-based research, financial planning, and proposal generation platform; and Morningstar.com, a website for individual investors. In addition, the company offers Morningstar Enterprise Components; Morningstar Credit Ratings that provides issuance and surveillance services for structured finance products and instruments; corporate credit estimates and operational risk assessment rankings; Morningstar Indexes for creating investment products; 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, its PitchBook provides a mobile application, excel plug-in, data feeds, and data solutions. The company was incorporated in 1984 and is headquartered in Chicago, Illinois.

How the Company Makes Money

Morningstar generates revenue through multiple streams. The primary source of income comes from its subscription-based services, where clients pay for access to its extensive research reports, data, and analytical tools. This includes subscriptions for institutional clients, financial advisors, and retail investors. Additionally, Morningstar earns revenue from its investment management services, where it charges fees for managing investment portfolios. The company also benefits from licensing its data and analytics to third parties, which provides another significant revenue stream. Strategic partnerships with financial institutions and asset managers further enhance its earnings, as these collaborations often lead to joint product offerings and expanded market reach.

Morningstar Financial Statement Overview

Summary

Morningstar exhibits strong financial health with consistent revenue growth, solid profitability, and effective cash flow management. The company maintains a balanced leverage position, enhancing its financial stability. While the debt-to-equity ratio has increased slightly over the years, it remains at a manageable level.

Income Statement

Morningstar has demonstrated consistent revenue growth, with a TTM revenue growth rate of 2.05% and a strong historical trend. The company maintains healthy profitability metrics, with a TTM gross profit margin of 60.94% and a net profit margin of 17.21%. EBIT and EBITDA margins are also robust at 24.22% and 32.20% respectively, indicating efficient operations and cost management.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.64 in the TTM, reflecting a balanced approach to leverage. Return on equity is strong at 25.22%, showcasing effective use of shareholder funds. The equity ratio stands at 42.56%, indicating a solid equity base relative to total assets.

Cash Flow

Cash flow analysis reveals a positive trajectory with a TTM free cash flow growth rate of 10.3%. The operating cash flow to net income ratio is 0.58, and the free cash flow to net income ratio is 0.73, both indicating good cash generation relative to earnings. These metrics suggest strong cash flow management and the ability to fund operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.40B	2.28B	2.04B	1.87B	1.70B	1.39B
Gross Profit	1.46B	1.38B	1.20B	1.09B	1.00B	833.10M
EBITDA	729.40M	731.60M	427.10M	325.60M	409.90M	433.60M
Net Income	376.00M	369.90M	141.10M	70.50M	193.30M	223.60M
Balance Sheet
Total Assets	3.56B	3.55B	3.40B	3.47B	2.86B	2.70B
Cash, Cash Equivalents and Short-Term Investments	514.50M	551.00M	389.00M	414.60M	546.10M	464.20M
Total Debt	1.04B	904.00M	1.16B	1.32B	531.50M	626.70M
Total Liabilities	2.04B	1.93B	2.08B	2.27B	1.45B	1.42B
Stockholders Equity	1.51B	1.62B	1.33B	1.21B	1.42B	1.27B
Cash Flow
Free Cash Flow	394.10M	448.90M	197.30M	168.30M	348.10M	307.60M
Operating Cash Flow	539.10M	591.60M	316.40M	297.80M	449.90M	384.30M
Investing Cash Flow	-103.50M	-21.30M	-81.90M	-799.30M	-167.70M	-123.80M
Financing Cash Flow	-519.80M	-384.40M	-278.40M	415.10M	-211.80M	-182.20M

Morningstar Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 212.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MORN, the sentiment is Negative. The current price of 212.36 is below the 20-day moving average (MA) of 214.37, below the 50-day MA of 213.67, and below the 200-day MA of 258.08, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 45.62 is Neutral, neither overbought nor oversold. The STOCH value of 41.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MORN.

Morningstar Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FDS	78 Outperform	$10.87B	18.72	28.83%	1.49%	5.88%	12.18%
MCO	77 Outperform	$94.81B	42.71	57.08%	0.73%	8.77%	13.62%
SPGI	73 Outperform	$162.75B	39.37	12.57%	0.73%	9.04%	21.35%
VALU	73 Outperform	$344.23M	16.27	21.02%	3.31%	-3.75%	-4.34%
MORN	71 Outperform	$8.79B	24.15	24.42%	0.84%	7.76%	15.92%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MSCI	62 Neutral	$43.48B	36.85	―	1.24%	9.02%	3.45%

Morningstar Corporate Events

Morningstar Appoints Anne Bramman to Board of Directors

On January 5, 2026, Morningstar, Inc. announced that seasoned finance executive Anne Bramman has been elected to its board of directors, adding significant financial and strategic expertise to the company’s leadership. Bramman, currently a board director and audit committee chair at McCormick & Company and a senior advisor at Boston Consulting Group, brings more than three decades of experience, including prior roles as CFO at Nordstrom, Avery Dennison, Carnival Cruise Line, L Brands, and most recently as CFO and chief growth officer at consumer analytics platform Circana from 2023 to 2024. Morningstar’s executive chairman Joe Mansueto highlighted her track record in driving financial excellence, business transformation, and strategic M&A, suggesting her appointment is poised to strengthen Morningstar’s governance and support its long-term growth ambitions, with potential benefits for shareholders and other stakeholders as the firm continues scaling its global investment insights and asset management operations.

The most recent analyst rating on (MORN) stock is a Buy with a $241.00 price target. To see the full list of analyst forecasts on Morningstar stock, see the MORN Stock Forecast page.

Morningstar issues investor Q&A highlighting PitchBook growth

Morningstar has published an investor Q&A dated December 23, 2025, compiling written responses to shareholder and prospective investor questions received through December 5, 2025, as part of its policy on transparent public disclosure and investor communications. In the release, the company details that PitchBook’s strong growth over the past five years has been driven by a mix of new customer acquisition, robust net renewal rates, price increases, and especially expansion within large asset‑under‑management accounts, with an increasing emphasis on deepening relationships with existing large clients and targeting remaining large AUM firms as well as small- and mid-sized, corporate, and service-provider segments to sustain growth as markets normalize.

The most recent analyst rating on (MORN) stock is a Buy with a $245.00 price target. To see the full list of analyst forecasts on Morningstar stock, see the MORN Stock Forecast page.

Morningstar Announces 10% Increase in Quarterly Dividend

On December 5, 2025, Morningstar, Inc. announced an increase in its quarterly dividend to 50 cents per share, a 10% rise from the previous rate, payable on January 30, 2026. This decision reflects the company’s ongoing commitment to delivering value to its shareholders and indicates a positive outlook on its financial health and growth prospects.

The most recent analyst rating on (MORN) stock is a Buy with a $250.00 price target. To see the full list of analyst forecasts on Morningstar stock, see the MORN Stock Forecast page.

Morningstar Boosts AI Integration and Share Buybacks

Morningstar, Inc. addressed investor questions in a recent report, highlighting several strategic initiatives and operational updates. The company is focused on integrating artificial intelligence to enhance data delivery and operational efficiency, particularly through its PitchBook platform. Morningstar also reported a net headcount increase in Q3 2025, driven by growth in specific segments like Morningstar Credit and PitchBook, while transitioning assets in its Wealth division. The company is optimistic about revenue growth in its International Wealth Platform and has been actively repurchasing shares, with plans for further buybacks authorized by its board.

The most recent analyst rating on (MORN) stock is a Buy with a $250.00 price target. To see the full list of analyst forecasts on Morningstar stock, see the MORN Stock Forecast page.

Morningstar Acquires CRSP to Boost Data Offerings

Morningstar, Inc. has addressed investor inquiries received up to September 30, 2025, focusing on its strategic initiatives to enhance its competitive position. The company has expanded its data and analytical frameworks, introduced new ratings, and announced the acquisition of the Center for Research in Security Prices (CRSP) to strengthen its data offerings. Morningstar has also upgraded its Direct Advisory Suite to increase switching costs and integrated Lumonic’s tools to enhance its private credit analytics. These efforts aim to fortify Morningstar’s economic moat and maintain its relevance in the face of competition from fintech startups.

The most recent analyst rating on (MORN) stock is a Buy with a $250.00 price target. To see the full list of analyst forecasts on Morningstar stock, see the MORN Stock Forecast page.

Morningstar Enters New $1.5 Billion Credit Agreement

On October 31, 2025, Morningstar, Inc. entered into a new Credit Agreement with Bank of America, N.A., offering a multi-currency credit facility with a borrowing capacity of up to $1.5 billion. This agreement replaces a previous credit agreement from 2022 and includes a revolving credit facility, delayed draw term facility, and a term facility. The new credit arrangement is designed to refinance existing debt and support lawful corporate purposes, with interest rates based on various international benchmarks. Morningstar is subject to financial covenants and restrictions under this agreement, which also includes guarantees from its subsidiaries.

The most recent analyst rating on (MORN) stock is a Buy with a $250.00 price target. To see the full list of analyst forecasts on Morningstar stock, see the MORN Stock Forecast page.

Morningstar Announces New $1 Billion Buyback Program

On October 29, 2025, Morningstar, Inc. announced the completion of its $500 million share repurchase program and the approval of a new $1 billion repurchase program effective October 31. The company reported an 8.4% increase in third-quarter revenue to $617.4 million, driven by strong performances from Morningstar Credit, Morningstar Direct Platform, and PitchBook. Despite a decrease in diluted net income per share, adjusted figures showed significant growth, reflecting the company’s strategic focus on durable growth and expansion in the investment sector.

The most recent analyst rating on (MORN) stock is a Hold with a $236.00 price target. To see the full list of analyst forecasts on Morningstar stock, see the MORN Stock Forecast page.

Morningstar Announces Leadership Change in Global Sales

On October 8, 2025, Morningstar, Inc. announced that Daniel Dunn, the Chief Revenue Officer, will leave the company on November 21, 2025, to pursue another opportunity. Julie Willoughby, with over 25 years of experience at Morningstar, will succeed him as the Head of Global Sales, potentially impacting the company’s sales strategy and client relations.

The most recent analyst rating on (MORN) stock is a Buy with a $350.00 price target. To see the full list of analyst forecasts on Morningstar stock, see the MORN Stock Forecast page.