# Morningstar Inc. (MORN) fundamentals

Data as of 2026-11-04. NASDAQ, United States. Sector: Financial Services / Capital Markets. Price $236.71, market value $8.8 billion.

## Valuation
- **P/E (trailing): 20.8×** (5-yr avg 70.2×, 3-yr avg 49.4×). Morningstar Inc. trades at 20.8× 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 16.2×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 4.80**. A PEG of 4.80 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 3.4×**. Each dollar of revenue is priced at 3.4×.
- **Price / book: 8.6×**. The shares trade at 8.6× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 11.1×**. Enterprise value is 11.1× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 5.6%** (5-yr avg 2.8%). Free cash flow equals 5.6% 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: 4.8%**. The inverse of the P/E: 4.8% of the price is earned each year.

## Profitability
- **Operating margin: 24.5%**. 24.5% 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: 27.9%**. Return on all capital, debt included, is 27.9%: comfortably above what that capital costs.
- **Return on assets: 12.4%**. Each dollar of assets produces 12.4% 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: 0.85%** ($2.00 per share, trailing). Morningstar Inc. yields 0.85%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 21%** (16% 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 $246.00 (+4% 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): 13.4%** (YTD 10.8%, 3-mo 20.0%). The shares are up 13.4% over twelve months including dividends.
- **From 52-week high: -2.4%** (67.3% above the low). Trading within 5% of 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): 73**. An RSI of 73 is in overbought territory; short-term pullbacks are common from here.
- **Beta (1 yr): 0.06** (volatility 41%). Beta of 0.06 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.