Morningstar (MORN)
NASDAQ:MORN
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Morningstar
(NASDAQ:MORN)
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Rating:68Neutral
Price Target:
$167.00
â–¼(-9.38% Downside)
Action:Reiterated
Date:06/26/26
The score is anchored by solid fundamentals (strong margins, earnings recovery, and consistent cash generation) but is held back by meaningfully higher balance-sheet leverage and a clearly weak technical setup (below major moving averages with negative MACD). Valuation is supportive (P/E ~15.5 with a modest dividend), and corporate updates are generally positive (Q1 strength, dividend maintenance, AI/data distribution progress) but do not fully offset leverage and momentum risks.
Positive Factors
Recurring, diversified revenue streams
Morningstar’s business mixes licensed data, software subscriptions, indexing fees, asset-management fees and DTC subscriptions, delivering high recurring revenue. That model supports predictable cash flows, lowers churn sensitivity, and sustains revenue visibility over multiple quarters.
Negative Factors
Rising leverage and weaker equity base
Materially higher leverage reduces financial flexibility and increases interest and refinancing risk if growth stalls. A smaller equity base amplifies volatility in returns and may constrain strategic moves or require cash conservation over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring, diversified revenue streams
Morningstar’s business mixes licensed data, software subscriptions, indexing fees, asset-management fees and DTC subscriptions, delivering high recurring revenue. That model supports predictable cash flows, lowers churn sensitivity, and sustains revenue visibility over multiple quarters.
Read all positive factors
Morningstar (MORN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.94B
Dividend Yield0.84%
Average Volume (3M)486.65K
Price to Earnings (P/E)15.5
Beta (1Y)0.82
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. Volume440,971
30 Day Avg. Volume486,649
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 Cap1.29
Enterprise Value/Revenue3.05
Enterprise Value/Gross Profit4.95
Enterprise Value/Ebitda9.91
Forecast
1Y Price Target
$234.00Price Target Upside26.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)11.92
Revenue Forecast (FY)$2.62B
Morningstar Business Overview & Revenue Model
Company Description
Morningstar, Inc. operates as a leading global provider of independent investment research and insights, catering to clients across North America, Europe, Australia, and Asia. The firm delivers a comprehensive range of services, including sophisti...
How the Company Makes Money
Morningstar primarily makes money by selling subscription-based access to its investment data, research, and software platforms to financial institutions and professionals. Key revenue streams include: (1) Licensed data and research subscriptions:...
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
Negative
184.28
Price Trends
175.04
Negative
173.88
Negative
196.21
Negative
Market Momentum
-7.20
Positive
26.94
Positive
8.38
Positive
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 184.28 is above the 20-day moving average (MA) of 173.34, above the 50-day MA of 175.04, and below the 200-day MA of 196.21, indicating a bearish trend. The MACD of -7.20 indicates Positive momentum. The RSI at 26.94 is Positive, neither overbought nor oversold. The STOCH value of 8.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $7.95B | 13.81 | 27.22% | 1.49% | 6.51% | 9.85% | |
77 Outperform | $42.33B | 33.18 | -64.13% | 1.24% | 10.86% | 20.25% | |
76 Outperform | $77.56B | 32.13 | 66.74% | 0.73% | 8.95% | 20.40% | |
73 Outperform | $118.45B | 25.45 | 14.80% | 0.73% | 8.54% | 24.07% | |
73 Outperform | $329.92M | 14.89 | 21.16% | 3.31% | -5.24% | 2.40% | |
68 Neutral | $5.94B | 15.52 | 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
141.84
-165.98
-53.92%
FDS
Factset Research
208.84
-220.86
-51.40%
SPGI
S&P Global
395.14
-115.60
-22.63%
MCO
Moody's
438.85
-38.69
-8.10%
MSCI
MSCI
544.56
-13.34
-2.39%
VALU
Value Line
36.39
-1.03
-2.76%
Morningstar Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Morningstar Highlights AI Data Strategy and Investor Q&A
Positive
Jun 25, 2026
On June 25, 2026, Morningstar published an investor QA addressing questions received through June 5, 2026, detailing how its data, research, and intellectual property underpin due diligence and decision-making at major U.S. wealth managers and ass...
Business Operations and StrategyDividends
Morningstar Declares Quarterly Dividend, Signals Financial Stability
Positive
Jun 18, 2026
On June 18, 2026, Morningstar announced that its board of directors declared a quarterly cash dividend of 50 cents per share, matching the payout made in April. The dividend will be paid on July 31, 2026, to shareholders of record as of July 10, 2...
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...
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.