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Morningstar
(NASDAQ:MORN)
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Rating:76Outperform
Price Target:
$243.00
â–²(13.02% Upside)
Action:Reiterated
Date:10/29/26
The score is driven primarily by strong operating performance and profitability, supported by an overall bullish technical setup (price above key moving averages with positive MACD). Offsetting factors are balance-sheet risk from materially higher leverage and recent free-cash-flow volatility; valuation appears reasonable with only a modest dividend yield.
Positive Factors
Recurring Revenue Model
Subscription and license revenue from long-term professional clients provides a recurring foundation for earnings. This model can support retention, visibility, and reinvestment because customers rely on Morningstar’s data, ratings, analytics, and workflow tools in ongoing investment processes.
Negative Factors
Higher Leverage
The sharp increase in debt relative to equity reduces balance-sheet flexibility and makes a larger portion of future cash generation relevant to financial obligations. Higher leverage can constrain capital allocation and amplify the effect of weaker operating conditions on financial resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Revenue Model
Subscription and license revenue from long-term professional clients provides a recurring foundation for earnings. This model can support retention, visibility, and reinvestment because customers rely on Morningstar’s data, ratings, analytics, and workflow tools in ongoing investment processes.
Read all positive factors
Morningstar (MORN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.26B
Dividend Yield0.9%
Average Volume (3M)275.79K
Price to Earnings (P/E)19.3
Beta (1Y)0.81
Revenue Growth9.43%
EPS Growth30.27%
CountryUS
Employees10,973
SectorFinancial
Sector Strength70
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)11.52
Shares Outstanding37,513,573
10 Day Avg. Volume233,253
30 Day Avg. Volume275,789
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 Cap1.03
Enterprise Value/Revenue3.25
Enterprise Value/Gross Profit5.15
Enterprise Value/Ebitda9.91
Forecast
1Y Price Target
$248.50Price Target Upside15.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)12.37
Revenue Forecast (FY)$2.65B
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, ratings, analytics, and software platforms to professional clients (such as asset managers, wealth managers, financial advisors, and instituti...
Morningstar Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
58
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.62B | 2.45B | 2.28B | 2.04B | 1.87B | 1.70B |
| Gross Profit | 1.65B | 1.49B | 1.38B | 1.20B | 1.09B | 1.00B |
| EBITDA | 859.60M | 728.90M | 731.60M | 418.10M | 325.60M | 409.90M |
| Net Income | 445.50M | 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 | 524.60M | 528.70M | 551.00M | 389.00M | 414.60M | 546.10M |
| Total Debt | 1.86B | 1.41B | 904.00M | 1.16B | 1.32B | 531.50M |
| Total Liabilities | 2.93B | 2.37B | 1.93B | 2.08B | 2.27B | 1.45B |
| Stockholders Equity | 1.03B | 1.22B | 1.62B | 1.33B | 1.21B | 1.42B |
Cash Flow | ||||||
| Free Cash Flow | 492.80M | 442.60M | 448.90M | 197.30M | 168.30M | 348.10M |
| Operating Cash Flow | 641.90M | 589.70M | 591.60M | 316.40M | 297.80M | 449.90M |
| Investing Cash Flow | -442.90M | -139.30M | -21.30M | -81.90M | -799.30M | -167.70M |
| Financing Cash Flow | -170.90M | -514.70M | -384.40M | -278.40M | 415.10M | -211.80M |
Morningstar Technical Analysis
Positive
215.01
Price Trends
205.21
Positive
191.11
Positive
184.74
Positive
Market Momentum
5.57
Negative
57.67
Neutral
65.49
Neutral
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 215.01 is above the 20-day moving average (MA) of 206.58, above the 50-day MA of 205.21, and above the 200-day MA of 184.74, indicating a bullish trend. The MACD of 5.57 indicates Negative momentum. The RSI at 57.67 is Neutral, neither overbought nor oversold. The STOCH value of 65.49 is Neutral, 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 | $133.55B | 27.39 | 17.54% | 0.84% | 5.99% | 22.20% | |
76 Outperform | $8.26B | 19.32 | 41.54% | 0.90% | 9.43% | 30.27% | |
73 Outperform | $11.28B | 21.89 | 25.61% | 1.41% | 6.65% | -7.20% | |
72 Outperform | $84.27B | 29.72 | 86.44% | 0.82% | 9.00% | 31.83% | |
72 Outperform | $44.23B | 32.90 | -49.71% | 1.29% | 12.33% | 19.69% | |
72 Outperform | $389.83M | 19.69 | 18.43% | 3.31% | -5.49% | -6.52% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
MORN
Morningstar
222.54
10.44
4.92%
FDS
Factset Research
320.04
55.73
21.09%
SPGI
S&P Global
460.66
-0.20
-0.04%
MCO
Moody's
488.83
13.98
2.94%
MSCI
MSCI
618.55
43.66
7.60%
VALU
Value Line
41.55
6.20
17.53%
Morningstar Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Morningstar posts robust Q3 2026 earnings growth
Positive
Oct 28, 2026
Morningstar, Inc. reported strong third-quarter 2026 results, with revenue rising 8.9% to $672.1 million and organic revenue up 6.8%, led by Morningstar Credit and the Morningstar Direct Platform. Operating income jumped 31.0% to $167.4 million an...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Morningstar Issues Investor Q&A Addressing Risks and Governance
Neutral
Sep 25, 2026
Morningstar disclosed that it had compiled written responses to investor questions received through September 4, 2026, publishing an Investor QA dated September 25, 2026 in line with its policy on public corporate disclosure. The release reiterate...
Dividends
Morningstar Maintains Quarterly Dividend, Signals Ongoing Confidence
Positive
Sep 18, 2026
On September 18, 2026, Morningstar, Inc.’s board of directors declared a quarterly cash dividend of 50 cents per share, matching the payout made in July. The dividend will be paid on October 30, 2026, to shareholders of record as of October ...
Business Operations and StrategyFinancial Disclosures
Morningstar Outlines AI Strategy and Evolving Pricing Models
Neutral
Aug 25, 2026
Morningstar on August 25, 2026 published written responses to investor questions received through August 5, 2026, detailing how it is adapting its platforms and licensing business to AI-native workflows. The company outlined its strategy to use Mo...
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...
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.