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Morningstar
(NASDAQ:MORN)
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Rating:79Outperform
Price Target:
$227.00
â–²(31.51% Upside)
Action:Reiterated
Date:07/30/26
The score is driven primarily by strong fundamentals (durable margins, improved profitability, and solid/consistent free cash flow) and supported by positive price trend vs. key moving averages. The main risk tempering the score is the sharply higher leverage and reduced balance-sheet flexibility, while valuation is reasonable but the dividend yield is modest.
Positive Factors
Recurring subscription revenue and steady multi-year growth
Morningstar’s core model of licensed data, research and platform subscriptions drives durable, recurring revenue across advisors, asset managers and institutions. This recurring mix supports predictable cash flows, high customer retention, and scalable margin expansion over the medium term.
Negative Factors
Sharply rising leverage and reduced balance-sheet flexibility
Leverage has stepped up materially, shrinking equity and limiting financial flexibility. Higher debt raises interest and refinancing risk and constrains the company’s ability to fund opportunistic investments or absorb shocks; operating cash covers a modest portion of debt (~0.57), increasing vulnerability.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring subscription revenue and steady multi-year growth
Morningstar’s core model of licensed data, research and platform subscriptions drives durable, recurring revenue across advisors, asset managers and institutions. This recurring mix supports predictable cash flows, high customer retention, and scalable margin expansion over the medium term.
Read all positive factors
Morningstar (MORN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.83B
Dividend Yield0.92%
Average Volume (3M)407.17K
Price to Earnings (P/E)20.1
Beta (1Y)0.83
Revenue Growth9.33%
EPS Growth12.16%
CountryUS
Employees10,973
SectorFinancial
Sector Strength70
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)10.61
Shares Outstanding37,513,573
10 Day Avg. Volume336,649
30 Day Avg. Volume407,171
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$233.33Price Target Upside35.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)12.2
Revenue Forecast (FY)$2.64B
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
86
Very Positive
Balance Sheet
60
Neutral
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.57B | 2.45B | 2.28B | 2.04B | 1.87B | 1.70B |
| Gross Profit | 1.60B | 1.49B | 1.38B | 1.20B | 1.09B | 1.00B |
| EBITDA | 812.10M | 728.90M | 731.60M | 418.10M | 325.60M | 409.90M |
| Net Income | 421.60M | 374.20M | 369.90M | 141.10M | 70.50M | 193.30M |
Balance Sheet | ||||||
| Total Assets | 3.95B | 3.59B | 3.55B | 3.40B | 3.47B | 2.86B |
| Cash, Cash Equivalents and Short-Term Investments | 523.80M | 528.70M | 551.00M | 389.00M | 414.60M | 546.10M |
| Total Debt | 1.90B | 1.41B | 904.00M | 1.16B | 1.32B | 531.50M |
| Total Liabilities | 2.92B | 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 | 497.50M | 442.60M | 448.90M | 197.30M | 168.30M | 348.10M |
| Operating Cash Flow | 646.90M | 589.70M | 591.60M | 316.40M | 297.80M | 449.90M |
| Investing Cash Flow | -455.10M | -139.30M | -21.30M | -81.90M | -799.30M | -167.70M |
| Financing Cash Flow | -195.80M | -514.70M | -384.40M | -278.40M | 415.10M | -211.80M |
Morningstar Technical Analysis
Positive
172.61
Price Trends
178.13
Positive
176.85
Positive
186.93
Positive
Market Momentum
9.16
Negative
72.13
Negative
84.23
Negative
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 172.61 is below the 20-day moving average (MA) of 196.71, below the 50-day MA of 178.13, and below the 200-day MA of 186.93, indicating a bullish trend. The MACD of 9.16 indicates Negative momentum. The RSI at 72.13 is Negative, neither overbought nor oversold. The STOCH value of 84.23 is Negative, 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $7.83B | 20.14 | 35.29% | 1.13% | 9.33% | 12.16% | |
79 Outperform | $123.24B | 25.97 | 15.47% | 0.86% | 9.67% | 26.18% | |
77 Outperform | $84.14B | 31.44 | 79.69% | 0.84% | 11.67% | 33.94% | |
75 Outperform | $10.15B | 19.52 | 26.58% | 1.75% | 6.62% | 8.75% | |
70 Outperform | $333.96M | 16.35 | 20.40% | 3.31% | -4.65% | 4.73% | |
69 Neutral | $40.91B | 31.09 | -54.14% | 1.40% | 11.62% | 21.00% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
MORN
Morningstar
217.49
-38.53
-15.05%
FDS
Factset Research
300.06
-70.57
-19.04%
SPGI
S&P Global
432.16
-86.02
-16.60%
MCO
Moody's
498.77
-6.32
-1.25%
MSCI
MSCI
568.75
9.51
1.70%
VALU
Value Line
37.90
1.58
4.34%
Morningstar Corporate Events
Business Operations and StrategyFinancial Disclosures
Morningstar Reports Strong Q2 2026 Financial Performance
Positive
Jul 29, 2026
In its second-quarter 2026 results released on July 29, Morningstar reported broad-based financial strength, with revenue up 9.6% to $663.2 million, operating income rising 28.4% and diluted EPS climbing 35.4% to $2.83, alongside a near doubling o...
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...
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.