Morningstar, Inc. (MORN) 10-Year Financial Performance & Capital Metrics

MORN • • Banking & Credit

Financial ServicesFinancial Data & ExchangesFinancial Data & AnalyticsInvestment Research & Advisory Services

AboutMorningstar, 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.Show more

Net Interest Income -$38M +27.1%
Total Revenue $2.28B +11.6%
Net Income $370M +162.2%
Return on Equity 25.11% +125.5%
Net Interest Margin -1.06% +30.1%
Efficiency Ratio 39.32% -16.9%
ROA 10.64% +159.4%
Equity / Assets 45.61% +16.9%
Book Value per Share 37.55 +21.3%
Tangible BV/Share -8.17 +52.3%
Debt/Equity 0.56 -36.1%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Strong 5Y profit CAGR of 19.5%
✓Strong Piotroski F-Score: 8/9
✓Efficient operations: 39.3% efficiency ratio
✓11 consecutive years of dividend growth
✓Well capitalized: 45.6% equity/assets
✓Diversified revenue: 99.5% from non-interest income

✗Weaknesses

✗Weak NIM of -1.1%
✗Trading more than 30% below 52-week high

Price & Volume

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Growth Metrics

Revenue CAGR

10Y11.59%

5Y14.05%

3Y10.22%

TTM-

Profit (Net Income) CAGR

10Y16.8%

5Y19.47%

3Y24.15%

TTM15.16%

EPS CAGR

10Y17.3%

5Y19.51%

3Y24.46%

TTM16.12%

ROCE

10Y Avg15.36%

5Y Avg11.7%

3Y Avg11.73%

Latest19%

Peer Comparison

Investment Research & Advisory Services

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
MORNMorningstar, Inc.	8.87B	215.64	25.13	11.6%	16.26%	24.83%	5.06%	0.56
VALUValue Line, Inc.	349.58M	37.23	16.92	-6.42%	58.97%	20.15%	5.72%	0.04

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Net Interest Income+	1.3M	300K	-3.6M	500K	-6.3M	-9.5M	-7M	-26.7M	-51.7M	-37.7M
NII Growth %	-0.38%	-0.77%	-13%	1.14%	-13.6%	-0.51%	0.26%	-2.81%	-0.94%	0.27%
Net Interest Margin %	-	-	-	-	-	-	-	-	-	-
Interest Income	1.8M	1.8M	1.9M	2.3M	2.4M	1.6M	1.7M	1.7M	9M	12.2M
Interest Expense	500K	1.5M	5.5M	1.8M	8.7M	11.1M	8.7M	28.4M	60.7M	49.9M
Loan Loss Provision	329.6M	342.8M	381.1M	409.3M	474.4M	545.3M	689.7M	750.9M	782.8M	845.8M
Non-Interest Income+	787M	796.8M	909.8M	1.02B	1.18B	1.39B	1.7B	1.87B	2.03B	2.26B
Non-Interest Income %	-	-	-	-	-	-	-	-	-	-
Total Revenue+	788.8M	798.6M	911.7M	1.02B	1.18B	1.39B	1.7B	1.87B	2.04B	2.28B
Revenue Growth %	0.04%	0.01%	0.14%	0.12%	0.16%	0.18%	0.22%	0.1%	0.09%	0.12%
Non-Interest Expense	268.1M	273.5M	355.3M	393M	506.3M	617.9M	743.9M	923.5M	964.5M	894.6M
Efficiency Ratio	-	-	-	-	-	-	-	-	-	-
Operating Income+	190.6M	180.8M	169.8M	215.8M	189.6M	215.2M	257M	167.8M	230.6M	484.8M
Operating Margin %	-	-	-	-	-	-	-	-	-	-
Operating Income Growth %	0.8%	-0.05%	-0.06%	0.27%	-0.12%	0.14%	0.19%	-0.35%	0.37%	1.1%
Pretax Income+	195.5M	224.7M	179.8M	230.8M	197.6M	283.3M	255.9M	127M	174.1M	473.9M
Pretax Margin %	-	-	-	-	-	-	-	-	-	-
Income Tax+	62.7M	63.7M	42.9M	47.8M	45.6M	59.7M	62.6M	56.5M	33M	104M
Effective Tax Rate %	-	-	-	-	-	-	-	-	-	-
Net Income+	132.6M	161M	136.9M	183M	152M	223.6M	193.3M	70.5M	141.1M	369.9M
Net Margin %	-	-	-	-	-	-	-	-	-	-
Net Income Growth %	0.69%	0.21%	-0.15%	0.34%	-0.17%	0.47%	-0.14%	-0.64%	1%	1.62%
Net Income (Continuing)	132.8M	161M	136.9M	183M	152M	223.6M	193.3M	70.5M	141.1M	369.9M
EPS (Diluted)+	3.00	3.72	3.18	4.26	3.52	5.18	4.45	1.64	3.29	8.58
EPS Growth %	0.72%	0.24%	-0.15%	0.34%	-0.17%	0.47%	-0.14%	-0.63%	1.01%	1.61%
EPS (Basic)	3.00	3.74	3.21	4.30	3.56	5.22	4.50	1.65	3.31	8.64
Diluted Shares Outstanding	44.3M	43.3M	43M	43M	43.2M	43.2M	43.4M	42.9M	42.9M	43.1M

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash & Short Term Investments+	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Cash & Due from Banks	207.1M	259.1M	308.2M	369.3M	334.1M	422.5M	483.8M	376.6M	337.9M	502.7M
Short Term Investments	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Total Investments+	77.1M	85.2M	107.1M	89.7M	93M	74.3M	125.6M	134M	151.3M	133.6M
Investments Growth %	0.13%	0.11%	0.26%	-0.16%	0.04%	-0.2%	0.69%	0.07%	0.13%	-0.12%
Long-Term Investments	35.6M	40.3M	62M	63.1M	59.6M	32.6M	63.3M	96M	100.2M	85.3M
Accounts Receivables	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Goodwill & Intangibles+	-	-	-	-	-	-	-	-	-	-
Goodwill	364.2M	556.8M	564.9M	556.7M	1.04B	1.21B	1.21B	1.57B	1.58B	1.56B
Intangible Assets	74.2M	120.9M	95.4M	73.9M	333.4M	380.1M	328.2M	548.6M	484.4M	408.8M
PP&E (Net)	134.5M	152.1M	147.4M	143.5M	299.5M	302.8M	321M	391M	371.6M	400.1M
Other Assets	10.6M	8.8M	6.2M	15M	25.4M	32.9M	42.8M	45.9M	38.1M	35.4M
Total Current Assets	409.9M	472M	529.8M	601.6M	603.2M	730M	887.6M	810.8M	815.7M	1.01B
Total Non-Current Assets	619.1M	878.9M	875.9M	852.2M	1.77B	1.97B	1.98B	2.66B	2.59B	2.53B
Total Assets+	1.03B	1.35B	1.41B	1.45B	2.37B	2.7B	2.86B	3.47B	3.4B	3.55B
Asset Growth %	0.01%	0.31%	0.04%	0.03%	0.63%	0.14%	0.06%	0.21%	-0.02%	0.04%
Return on Assets (ROA)	0.13%	0.14%	0.1%	0.13%	0.08%	0.09%	0.07%	0.02%	0.04%	0.11%
Accounts Payable	39.2M	44.6M	49.2M	54.4M	0	0	0	0	78.4M	87.3M
Total Debt+	35M	250M	180M	70M	687.6M	626.7M	531.5M	1.32B	1.16B	904M
Net Debt	-172.1M	-9.1M	-128.2M	-299.3M	353.5M	204.2M	47.7M	947M	822.3M	401.3M
Long-Term Debt	0	250M	180M	70M	502.1M	449.1M	359.4M	1.08B	940.3M	698.6M
Short-Term Debt	35M	0	0	0	11M	0	0	32.1M	32.1M	0
Other Liabilities	64.2M	71M	59.8M	49.9M	23.5M	68.9M	30.1M	34.6M	41.2M	44.1M
Total Current Liabilities	304.4M	294.9M	323.2M	362.8M	495.8M	626.5M	783.5M	882.5M	880.8M	967.3M
Total Non-Current Liabilities	84M	359.2M	277.6M	156.3M	791.5M	798.1M	663.3M	1.39B	1.19B	963M
Total Liabilities	388.4M	654.1M	600.8M	519.1M	1.29B	1.42B	1.45B	2.27B	2.08B	1.93B
Total Equity+	640.6M	696.8M	804.9M	934.7M	1.08B	1.27B	1.42B	1.21B	1.33B	1.62B
Equity Growth %	-0.02%	0.09%	0.16%	0.16%	0.16%	0.17%	0.11%	-0.15%	0.1%	0.22%
Equity / Assets (Capital Ratio)	-	-	-	-	-	-	-	-	-	-
Return on Equity (ROE)	0.2%	0.24%	0.18%	0.21%	0.15%	0.19%	0.14%	0.05%	0.11%	0.25%
Book Value per Share	14.46	16.09	18.72	21.74	25.08	29.43	32.62	28.14	30.95	37.55
Tangible BV per Share	-	-	-	-	-	-	-	-	-	-
Common Stock	0	0	0	0	0	0	0	0	0	0
Additional Paid-in Capital	575.5M	584M	601M	621.7M	655M	671.3M	689M	757.8M	789M	822.7M
Retained Earnings	739.2M	861.9M	958.7M	1.11B	1.22B	1.39B	1.53B	1.53B	1.61B	1.91B
Accumulated OCI	-54.6M	-81.5M	-46.6M	-75M	-60.6M	-22M	-35.3M	-99M	-86.5M	-119.4M
Treasury Stock	-619.8M	-667.9M	-708.2M	-726.8M	-728.7M	-767.3M	-764.3M	-986.7M	-985.5M	-993.9M
Preferred Stock	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	241.5M	213.7M	250.1M	314.8M	334.4M	384.3M	449.9M	297.8M	316.4M	591.6M
Operating CF Growth %	0.83%	-0.12%	0.17%	0.26%	0.06%	0.15%	0.17%	-0.34%	0.06%	0.87%
Net Income	132.8M	161M	136.9M	183M	152M	223.6M	193.3M	70.5M	141.1M	369.9M
Depreciation & Amortization	64.4M	70.7M	91.2M	96.7M	117.7M	139.5M	150.7M	166.6M	184.9M	190.4M
Deferred Taxes	2.9M	4.7M	-14.1M	-1.1M	-6M	-6.7M	-12.1M	-37.3M	-32.4M	-34.8M
Other Non-Cash Items	-2.4M	-42.4M	-11.3M	-14M	-15.2M	-47.6M	12.5M	26.8M	-58.1M	-81.4M
Working Capital Changes	26.4M	5.2M	23.3M	18.5M	41.5M	38.9M	63.6M	-12M	28.1M	92.8M
Cash from Investing+	-79.5M	-274.2M	-60.8M	-49.9M	-746.3M	-123.8M	-167.7M	-799.3M	-81.9M	-21.3M
Purchase of Investments	-40.9M	-48.5M	-59.7M	-43.1M	-37.7M	-56.4M	-100.9M	-36.5M	-3.7M	-16M
Sale/Maturity of Investments	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Net Investment Activity	-	-	-	-	-	-	-	-	-	-
Acquisitions	-11.1M	-191.6M	22.7M	18M	-664.3M	-39.3M	-54.6M	-676.1M	-800K	52.4M
Other Investing	-200K	100K	600K	100K	-100K	1.7M	30.8M	-200K	10.6M	57.9M
Cash from Financing+	-127.5M	123.7M	-157.5M	-188.8M	373.7M	-182.2M	-211.8M	415.1M	-278.4M	-384.4M
Dividends Paid	-33.7M	-37.9M	-39.3M	-42.6M	-47.8M	-51.4M	-54.2M	-61.5M	-63.9M	-69.3M
Share Repurchases	-97M	-48.8M	-42.3M	-20.9M	-4.9M	-41.9M	-1.3M	-226M	-1.4M	-11.6M
Stock Issued	0	0	0	0	0	0	0	0	0	0
Net Stock Activity	-	-	-	-	-	-	-	-	-	-
Debt Issuance (Net)	1000K	1000K	-1000K	-1000K	1000K	-1000K	-1000K	1000K	-1000K	-1000K
Other Financing	-1.8M	-4.6M	-5.9M	-15.3M	-18M	-25.5M	-66.5M	-48.3M	-75.6M	-29.1M
Net Change in Cash+	21.9M	52M	49.1M	61.1M	-35.2M	88.4M	61.3M	-107.2M	-38.7M	164.8M
Exchange Rate Effect	-1000K	-1000K	1000K	-1000K	1000K	1000K	-1000K	-1000K	1000K	-1000K
Cash at Beginning	185.2M	207.1M	259.1M	308.2M	369.3M	334.1M	422.5M	483.8M	376.6M	337.9M
Cash at End	207.1M	259.1M	308.2M	369.3M	334.1M	422.5M	483.8M	376.6M	337.9M	502.7M
Interest Paid	400K	1.2M	5.4M	3.7M	11M	11.1M	10.4M	28.4M	58.4M	47.4M
Income Taxes Paid	50.1M	58M	47.1M	67M	63.3M	58.2M	80.9M	75.3M	73.2M	115.6M
Free Cash Flow+	184.2M	150.9M	183.5M	238.7M	254.4M	307.6M	348.1M	168.3M	197.3M	448.9M
FCF Growth %	1.49%	-0.18%	0.22%	0.3%	0.07%	0.21%	0.13%	-0.52%	0.17%	1.28%

Banking Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	20.48%	24.08%	18.23%	21.04%	15.06%	18.99%	14.39%	5.38%	11.13%	25.11%
Return on Assets (ROA)	12.95%	13.53%	9.93%	12.8%	7.95%	8.83%	6.95%	2.22%	4.1%	10.64%
Net Interest Margin	0.13%	0.02%	-0.26%	0.03%	-0.27%	-0.35%	-0.24%	-0.77%	-1.52%	-1.06%
Efficiency Ratio	33.99%	34.25%	38.97%	38.53%	42.94%	44.47%	43.78%	49.37%	47.31%	39.32%
Equity / Assets	62.25%	51.58%	57.26%	64.29%	45.7%	47.16%	49.46%	34.74%	39.01%	45.61%
Book Value / Share	14.46	16.09	18.72	21.74	25.08	29.43	32.62	28.14	30.95	37.55
NII Growth	-38.1%	-76.92%	-1300%	113.89%	-1360%	-50.79%	26.32%	-281.43%	-93.63%	27.08%
Dividend Payout	25.41%	23.54%	28.71%	23.28%	31.45%	22.99%	28.04%	87.23%	45.29%	18.73%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Licensed-Based	-	-	-	751.6M	812.7M	934.9M	1.13B	1.33B	1.52B	1.63B
Licensed-Based Growth	-	-	-	-	8.13%	15.04%	21.05%	17.67%	13.95%	7.09%
Asset-Based	-	-	-	200.4M	211.6M	223.8M	264.9M	269.4M	279.6M	333.2M
Asset-Based Growth	-	-	-	-	5.59%	5.77%	18.36%	1.70%	3.79%	19.17%
Transaction-Based	-	-	-	67.9M	154.7M	230.8M	302.7M	269.5M	241.5M	316.8M
Transaction-Based Growth	-	-	-	-	127.84%	49.19%	31.15%	-10.97%	-10.39%	31.18%

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
UNITED STATES	585.1M	590.5M	687M	764.2M	866.4M	970.8M	1.18B	1.35B	1.47B	1.64B
UNITED STATES Growth	-	0.92%	16.34%	11.24%	13.37%	12.05%	21.99%	14.32%	8.62%	11.44%
Non United States	203.7M	208.1M	224.7M	255.7M	312.6M	418.7M	515M	516.7M	568M	636.3M
Non United States Growth	-	2.16%	7.98%	13.80%	22.25%	33.94%	23.00%	0.33%	9.93%	12.02%

Frequently Asked Questions

Valuation & Price

Morningstar, Inc. (MORN) has a price-to-earnings (P/E) ratio of 25.1x. This suggests investors expect higher future growth.

Growth & Financials

Morningstar, Inc. (MORN) grew revenue by 11.6% over the past year. This is steady growth.

Yes, Morningstar, Inc. (MORN) is profitable, generating $376.0M in net income for fiscal year 2024 (16.3% net margin).

Dividend & Returns

Yes, Morningstar, Inc. (MORN) pays a dividend with a yield of 0.75%. This makes it attractive for income-focused investors.

Morningstar, Inc. (MORN) has a return on equity (ROE) of 25.1%. This is excellent, indicating efficient use of shareholder capital.

Industry Metrics

Morningstar, Inc. (MORN) has a net interest margin (NIM) of -1.1%. NIM has been under pressure due to interest rate environment.

Morningstar, Inc. (MORN) has an efficiency ratio of 39.3%. This is excellent, indicating strong cost control.

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