# Morningstar Inc. (MORN) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Financial Services / Capital Markets. Price $209.40, market value $7.9 billion.

## Valuation
- **P/E (trailing): 19.9×** (5-yr avg 70.2×, 3-yr avg 49.4×). Morningstar Inc. trades at 19.9× trailing earnings, well below its own five-year average of 70.2×: cheap by its own standards. The Financial Services median in the September 2026 study was 13.1×. Forward P/E is 15.0×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 4.44**. A PEG of 4.44 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 3.1×**. Each dollar of revenue is priced at 3.1×.
- **Price / book: 7.7×**. The shares trade at 7.7× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 10.5×**. Enterprise value is 10.5× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 6.3%** (5-yr avg 2.8%). Free cash flow equals 6.3% of the market value, above its five-year average of 2.8%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 5.0%**. The inverse of the P/E: 5.0% of the price is earned each year.

## Profitability
- **Operating margin: 23.5%**. 23.5% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 15.3%**. 15.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 30.6%**. 30.6% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 26.2%**. Return on all capital, debt included, is 26.2%: comfortably above what that capital costs.
- **Return on assets: 11.7%**. Each dollar of assets produces 11.7% of profit; low single digits are normal for banks and insurers.

## Growth
- **Revenue growth (1 yr): 7.5%** (3-yr 9.3%/yr, 5-yr 12.0%/yr). Revenue grew 7.5% over the last year, against 12.0% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 3.4%** (3-yr 75.5%/yr, 5-yr 11.4%/yr). Earnings per share rose 3.4%, roughly in step with revenue.
- **Free-cash-flow growth (3 yr): 38.0%/yr**. Free cash flow has compounded at 38.0% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.
- **Cash and short-term investments: $475 million**. Leverage ratios are shown differently for banks and insurers, whose balance sheets are built on deposits and reserves; use return on equity and the regulatory capital in the filings instead.

## Dividends
- **Dividend yield: 0.95%** ($1.96 per share, trailing). Morningstar Inc. yields 0.95%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 21%** (15% of free cash flow). 21% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 4**. 4 straight years of increases.
- **Dividend growth (5 yr): 3.7%/yr** (1-yr 12.3%). The dividend has grown 3.7% a year over five years.

## Analyst view
- **Analyst consensus: buy** (3 analysts). 3 analysts cover Morningstar Inc.; the consensus is buy, with an average price target of $236.67 (+13% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -18.0%** (YTD -2.8%, 3-mo 13.1%). The shares are down 18.0% over twelve months including dividends.
- **From 52-week high: -19.9%** (48.0% above the low). Trading 20% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 54**. An RSI of 54 is neutral.
- **Beta (1 yr): 0.16** (volatility 40%). Beta of 0.16 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=MORN · Page: https://foliofundamentals.com/stocks/morn

Not investment advice.