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Morningstar, Inc. (MORN) stock analysis

MORNNasdaqInvestment AdviceFiscal year ends December 31
Financials through Q3 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Oct 28, 2026Score 12/3021% below fair value
$246.08−2.57 (-1.03%)

Close on Nov 12, 2026Market cap $9.13BP/E –Yield 0.74%

StockData Score

Prices as of Nov 12, 2026How the score works

Value3Growth3Performance0Health3Dividend3

Mixed12 of 30 checks passed

Morningstar passes 12 of the 30 checks behind our score; 14 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
3/6
Growth
3/6
Past performance
0/6
Financial health
3/6
Dividend
3/6

What stands out

  • Margin of safety over 20%

    The price is 20.9% below fair value, more than the 20% cushion we look for.

  • Trading below fair value

    The share price of $246.08 is below our fair value estimate of $311.12.

  • EPS growing 10%+ a year

    Diluted EPS grew 75.5% a year over the last three fiscal years.

  • Debt covered by cash flow

    Operating cash flow over the last twelve months equals 37.8% of total debt.

What to watch

  • Revenue growing under 10% a year

    Revenue grew 9.3% a year over the last three fiscal years, short of the 10% we look for.

  • P/S above the industry

    Morningstar's price-to-sales of 3.48 is above the Services Allied with the Exchange of Securities median of 3.00 (book value is negative, so we use sales).

  • Yield below Treasuries

    The 0.8% yield is below the 4.6% on a 1-year Treasury.

  • Yield below the top quarter

    The top quarter of US dividend payers yield 3.9% or more; Morningstar yields 0.8%.

Valuation3/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E against the industry

    Needs positive earnings and enough profitable companies in the industry.

  • EV/EBITDA below its 5-year median

    Morningstar's EV/EBITDA of 12.1 is below its 5-year median of 26.0.

  • P/S above the industry

    Morningstar's price-to-sales of 3.48 is above the Services Allied with the Exchange of Securities median of 3.00 (book value is negative, so we use sales).

  • Trading below fair value

    The share price of $246.08 is below our fair value estimate of $311.12.

  • Margin of safety over 20%

    The price is 20.9% below fair value, more than the 20% cushion we look for.

Growth3/6

  • Revenue growing under 10% a year

    Revenue grew 9.3% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growing 10%+ a year

    Diluted EPS grew 75.5% a year over the last three fiscal years.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing faster than the industry

    Revenue grew 9.4% over the last twelve months; the Services Allied with the Exchange of Securities median is 8.7%.

  • Company guidance

    No outlook found in earnings releases from the last twelve months.

  • Gross margin improving

    Gross margin was 63.1% over the last twelve months, against 60.9% a year earlier.

Past performance0/6

  • Return on equity

    Needs positive equity and five years of results.

  • Return on invested capital

    Needs operating income and invested capital.

  • Return on equity against the industry

    Needs positive equity.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin against its history

    Needs five years of revenue and net income.

  • Net margin against the industry

    Needs revenue and net income.

Financial health3/6

  • Debt level

    Needs debt and equity figures.

  • Debt trend

    Needs a balance sheet from five years ago with positive equity.

  • Debt covered by cash flow

    Operating cash flow over the last twelve months equals 37.8% of total debt.

  • Interest coverage

    Interest expense is not reported separately.

  • Short-term assets cover short-term debts

    Current assets are 1.05 times current liabilities.

  • Low bankruptcy risk

    The Altman Z-score is 3.97; above 3 is the safe zone and below 1.8 the distress zone.

Dividend3/6

  • Pays a dividend

    Morningstar paid dividends worth 0.8% of the share price over the last twelve months.

  • Yield below Treasuries

    The 0.8% yield is below the 4.6% on a 1-year Treasury.

  • Yield below the top quarter

    The top quarter of US dividend payers yield 3.9% or more; Morningstar yields 0.8%.

  • Dividend not cut

    The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

  • Earnings cover

    Needs dividends paid and net income.

  • Covered by free cash flow

    Dividends take 15.5% of free cash flow.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$311.12

The share price is 21% below this estimate.

20%+ below
Near fair value
20%+ above
$246.08Price$311.12Fair value
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
EV/EBITDA19.0×26.0×11.8×$402.1570%
Earnings power9.9% cost of equity––$98.7130%
Fair value$311.12100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Own 5-year median 58.7
  • Services Allied with the Exchange of Securities median 20.6

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$59.40M
Value traded per 1% price move
$32.42M

Downside

High risk

Typical loss in a bad month
25.4%
Volatility (annualized)
42%
Sharpe ratio, 1 year
0.24
Beta to the S&P 500 (5Y)
0.99

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2011 to 2025

Gross margin

61.0%+1.1 pts over 5 years

Operating margin

21.5%+6.0 pts over 5 years

Net margin

–

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