Morningstar (MORN) AI Stock Analysis

• Market Cap: $8.71B
• Dividend Yield: 0.86%
• Average Volume (3M): 416.32K
• Price to Earnings (P/E): 24.1
• Beta (1Y): 0.82
• 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: 399,601
• 30 Day Avg. Volume: 416,317
• 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: 1.19
• Enterprise Value/Revenue: 4.32
• Enterprise Value/Gross Profit: 7.09
• Enterprise Value/Ebitda: 15.22
• 1Y Price Target: $285.00
• Price Target Upside: 34.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 9.28
• Revenue Forecast (FY): $2.42B

• Rating: 64 Neutral
• Price Target: $223.00 ▲(5.35% Upside)

Morningstar's strong financial performance is the most significant factor, reflecting robust revenue growth and profitability. However, the technical analysis indicates bearish momentum, which negatively impacts the overall score. The valuation is moderate, suggesting the stock is fairly priced, but the low dividend yield may deter some investors.

Positive Factors

Revenue Growth

Exceeding revenue estimates indicates strong market demand and effective business strategies, supporting long-term growth potential.

Strategic Acquisitions

The acquisition will enhance Morningstar's position as a leading index provider, expanding its product offerings and competitive advantage.

Product Innovation

New product launches demonstrate Morningstar's commitment to innovation, potentially attracting new clients and increasing market share.

Negative Factors

Debt Levels

Increasing debt levels, although manageable, could limit financial flexibility and increase risk if not carefully monitored.

Low Dividend Yield

A low dividend yield may deter income-focused investors, potentially limiting the attractiveness of the stock for certain investor segments.

Bearish Momentum

Persistent bearish momentum could impact investor sentiment and stock performance, potentially affecting capital raising and valuation.

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 several key streams. The primary source of revenue comes from its Research and Data segment, which includes subscriptions to its investment research platforms and analytics tools used by individual investors, financial advisors, and institutional clients. Additionally, the company earns fees from its Investment Management segment, where it manages assets on behalf of clients, including mutual funds and separate accounts. Another significant revenue stream arises from Morningstar Direct, a software platform that provides investment management and research data to institutional investors. Furthermore, Morningstar benefits from partnerships with various financial institutions, enhancing its distribution channels and client base. The combination of subscription fees, asset management fees, and data licensing contributes to its overall revenue model.

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	679.70M	714.20M	419.70M	323.70M	417.00M	433.90M
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: 211.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 211.67 is below the 20-day moving average (MA) of 218.54, below the 50-day MA of 233.94, and below the 200-day MA of 280.23, indicating a bearish trend. The MACD of -5.95 indicates Negative momentum. The RSI at 36.07 is Neutral, neither overbought nor oversold. The STOCH value of 48.47 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
SPGI	73 Outperform	$151.16B	36.29	12.57%	0.76%	9.04%	21.35%
MCO	72 Outperform	$86.96B	39.19	57.08%	0.78%	8.77%	13.62%
FDS	71 Outperform	$9.91B	17.01	29.13%	1.62%	5.39%	11.56%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MSCI	66 Neutral	$43.20B	36.44	―	1.18%	9.02%	3.45%
MORN	64 Neutral	$8.71B	24.07	24.42%	0.86%	7.76%	15.92%
VALU	61 Neutral	$345.74M	16.28	21.59%	3.48%	-4.99%	6.15%

Morningstar Corporate Events

Morningstar, Inc. Reports Strong Q3 2025 Results

Morningstar, Inc. is a prominent provider of independent investment insights, offering a range of products and services for investors and financial professionals across the globe. The company operates in the financial services sector, with a focus on investment research and management.

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.

Morningstar Announces Leadership Change in Direct Platform

Morningstar, Inc. announced the departure of James Rhodes, President of Direct Platform, effective September 12, 2025, with Frannie Besztery stepping in as interim head. The company is actively searching for a permanent successor. Morningstar is prioritizing profitability and has been focusing on cost management to drive long-term growth. The company is investing in various areas, including Morningstar Credit’s ratings, PitchBook enhancements, and AI-powered tools, while also expanding its Morningstar Indexes business. Despite a decline in cash flow due to increased tax and bonus payments, Morningstar Direct reported a 6.0% revenue increase in Q2 2025, driven by renewal timing and catch-up revenue.

The most recent analyst rating on (MORN) stock is a Buy with a $325.00 price target. To see the full list of analyst forecasts on Morningstar stock, see the MORN Stock Forecast page.

Morningstar to Acquire CRSP for $375 Million

On September 23, 2025, Morningstar, Inc. announced its agreement to acquire the Center for Research in Security Prices (CRSP) from the University of Chicago for $375 million. This acquisition, expected to close in the fourth quarter of 2025, will significantly enhance Morningstar’s position as a top-tier global index provider by integrating CRSP’s market indexes, which are benchmarks for over $3 trillion in US equities. The move is set to expand Morningstar’s index capabilities and provide greater opportunities for investors by leveraging CRSP’s expertise in historical stock market data and indexes.

The most recent analyst rating on (MORN) stock is a Buy with a $325.00 price target. To see the full list of analyst forecasts on Morningstar stock, see the MORN Stock Forecast page.

Morningstar Declares Quarterly Dividend for Shareholders

On September 19, 2025, Morningstar, Inc. announced that its Board of Directors approved a quarterly cash dividend of 45.5 cents per share, payable on October 31, 2025, to shareholders of record as of October 3, 2025. This announcement reflects Morningstar’s ongoing commitment to returning value to its shareholders and maintaining its financial stability, which is crucial for its positioning in the competitive investment insights industry.

The most recent analyst rating on (MORN) stock is a Buy with a $325.00 price target. To see the full list of analyst forecasts on Morningstar stock, see the MORN Stock Forecast page.

Morningstar Announces Leadership Change in Direct Platform

Morningstar announced that James Rhodes, President of Direct Platform, will be leaving the company on September 12, 2025, with Frannie Besztery stepping in as interim head. The company also reported a significant increase in Morningstar Data revenue in Q2 2025, driven by managed products data and a large data contract, highlighting its growth in the financial data segment.

The most recent analyst rating on (MORN) stock is a Hold with a $283.00 price target. To see the full list of analyst forecasts on Morningstar stock, see the MORN Stock Forecast page.

Morningstar Releases Investor Q&A Report on Operations

Morningstar released an Investor Q&A report addressing questions received through July 15, 2025, detailing aspects of their operations and revenue models. The report highlights the company’s integrated approach to client engagement, cross-selling strategies, and revenue composition, emphasizing recurring revenue in structured finance and fundamental ratings. It also discusses the monetization of investment data, retention rates, and plans for Morningstar Medalist ratings for interval funds. The report outlines the proprietary nature of their data collection for fund ratings and notes the mature market status of their Morningstar Direct Platform, while also indicating potential growth through data and analytics enhancements.

The most recent analyst rating on (MORN) stock is a Buy with a $281.00 price target. To see the full list of analyst forecasts on Morningstar stock, see the MORN Stock Forecast page.

Morningstar, Inc. Reports Strong Q2 2025 Earnings Growth

Morningstar, Inc. is a prominent provider of independent investment insights, offering a wide range of products and services for investors, financial advisors, and asset managers across the globe. The company operates in the financial services sector, with a focus on delivering data and research insights on various investment offerings.

Morningstar Reports Q2 2025 Financial Results

On July 30, 2025, Morningstar, Inc. reported its financial results for the second quarter of 2025, highlighting a 5.8% increase in revenue to $605.1 million compared to the previous year. The company saw significant contributions from its PitchBook, Morningstar Direct Platform, and Morningstar Credit segments. Despite a decrease in cash flow, Morningstar achieved a 15.3% rise in operating income and a 30.6% increase in diluted net income per share. The report also noted challenges such as increased compensation costs and marketing expenses, as well as risks related to cybersecurity, economic conditions, and regulatory changes.

The most recent analyst rating on (MORN) stock is a Buy with a $281.00 price target. To see the full list of analyst forecasts on Morningstar stock, see the MORN Stock Forecast page.