Morningstar (MORN)
NASDAQ:MORN
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Morningstar
(NASDAQ:MORN)
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Rating:61Neutral
Price Target:
$173.00
â–²(7.67% Upside)
Action:ReiteratedDate:03/26/26
The score is anchored by solid financial performance (profitability and free cash flow) but is held back by elevated balance-sheet risk from higher leverage and a clearly bearish technical setup (price below key moving averages with weak momentum). Valuation is only moderately supportive, while recent corporate updates are positive but not enough to offset the negative trend signals.
Positive Factors
Recurring, diversified revenue
Morningstar’s business is anchored in recurring subscription and licensing revenue across platforms, data feeds, indexes and asset-related services. That diversified, contract-driven mix supports predictable cash flows, high retention potential, and resilience to single-market shocks over the next several quarters.
Negative Factors
Rising leverage
A sharp increase in leverage materially reduces financial flexibility and raises interest and refinancing risk. With higher debt levels, Morningstar has less cushion to fund investments or weather revenue volatility, constraining strategic optionality and amplifying downside risk if operating performance weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring, diversified revenue
Morningstar’s business is anchored in recurring subscription and licensing revenue across platforms, data feeds, indexes and asset-related services. That diversified, contract-driven mix supports predictable cash flows, high retention potential, and resilience to single-market shocks over the next several quarters.
Read all positive factors
Morningstar (MORN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.36B
Dividend Yield0.84%
Average Volume (3M)610.02K
Price to Earnings (P/E)24.3
Beta (1Y)0.68
Revenue Growth7.76%
EPS Growth15.92%
CountryUS
Employees11,115
SectorFinancial
Sector Strength70
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)2.71
Shares Outstanding39,583,760
10 Day Avg. Volume463,936
30 Day Avg. Volume610,016
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 Cap1.19
Enterprise Value/Revenue3.08
Enterprise Value/Gross Profit5.05
Enterprise Value/Ebitda10.35
Forecast
1Y Price Target
$236.50Price Target Upside47.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)11.13
Revenue Forecast (FY)$2.61B
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
78
Positive
Balance Sheet
60
Neutral
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.45B | 2.28B | 2.04B | 1.87B | 1.70B |
| Gross Profit | 1.49B | 1.38B | 1.20B | 1.09B | 1.00B |
| EBITDA | 728.90M | 731.60M | 418.10M | 325.60M | 409.90M |
| Net Income | 374.20M | 369.90M | 141.10M | 70.50M | 193.30M |
Balance Sheet | |||||
| Total Assets | 3.59B | 3.55B | 3.40B | 3.47B | 2.86B |
| Cash, Cash Equivalents and Short-Term Investments | 528.70M | 551.00M | 389.00M | 414.60M | 546.10M |
| Total Debt | 1.41B | 904.00M | 1.16B | 1.32B | 531.50M |
| Total Liabilities | 2.37B | 1.93B | 2.08B | 2.27B | 1.45B |
| Stockholders Equity | 1.22B | 1.62B | 1.33B | 1.21B | 1.42B |
Cash Flow | |||||
| Free Cash Flow | 442.60M | 448.90M | 197.30M | 168.30M | 348.10M |
| Operating Cash Flow | 589.70M | 591.60M | 316.40M | 297.80M | 449.90M |
| Investing Cash Flow | -139.30M | -21.30M | -81.90M | -799.30M | -167.70M |
| Financing Cash Flow | -514.70M | -384.40M | -278.40M | 415.10M | -211.80M |
Morningstar Technical Analysis
Negative
160.68
Price Trends
182.49
Negative
198.19
Negative
229.53
Negative
Market Momentum
-4.00
Positive
32.14
Neutral
5.12
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 160.68 is below the 20-day moving average (MA) of 180.27, below the 50-day MA of 182.49, and below the 200-day MA of 229.53, indicating a bearish trend. The MACD of -4.00 indicates Positive momentum. The RSI at 32.14 is Neutral, neither overbought nor oversold. The STOCH value of 5.12 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $39.29B | 36.82 | -74.96% | 1.24% | 9.02% | 3.45% | |
75 Outperform | $7.28B | 16.99 | 28.00% | 1.49% | 5.88% | 12.18% | |
73 Outperform | $337.19M | 14.89 | 21.16% | 3.31% | -3.75% | -4.34% | |
71 Outperform | $76.64B | 37.25 | 62.81% | 0.73% | 8.77% | 13.62% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $123.24B | 35.63 | 13.62% | 0.73% | 9.04% | 21.35% | |
61 Neutral | $6.36B | 24.33 | 25.12% | 0.84% | 7.76% | 15.92% |
* Financial Sector Average
MORN
Morningstar
160.68
-139.10
-46.40%
FDS
Factset Research
196.27
-246.53
-55.68%
SPGI
S&P Global
412.45
-92.19
-18.27%
MCO
Moody's
432.28
-33.02
-7.10%
MSCI
MSCI
534.68
-23.56
-4.22%
VALU
Value Line
35.92
-1.22
-3.28%
Morningstar Corporate Events
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...
Business Operations and StrategyStock BuybackFinancial Disclosures
Morningstar Posts Strong Q4 2025 Results and Margins
Positive
Feb 12, 2026
Morningstar, Inc. reported on Feb. 12, 2026 that fourth-quarter 2025 revenue rose 8.5% to $641.1 million and full-year revenue grew 7.5% to $2.4 billion, with organic growth driven mainly by Morningstar Credit, PitchBook and the Morningstar Direct...
Business Operations and StrategyExecutive/Board Changes
Morningstar Appoints Anne Bramman to Board of Directors
Positive
Jan 5, 2026
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 b...
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.