Morningstar, Inc. (MORN) AI Stock Analysis

Morningstar, Inc. provides independent investment research services across North America, Europe, Australia, and Asia. It offers a comprehensive suite of financial data and analytical tools tailored for financial advisors, asset managers, retirement plan providers, and individual and institutional investors. Its portfolio includes Morningstar Data, covering equity fundamentals, managed investments, ESG factors, and global market data. Platforms such as Morningstar Direct and Morningstar Advisor Workstation deliver investment analysis, financial planning tools, and proposal generation capabilities. The company also operates Morningstar.com, providing individual investors with market research, educational content, and investment insights, alongside credit and fund ratings and ESG rating services.

Morningstar grew annual revenue from $1.70B in FY2021 to $2.45B in FY2025, reflecting a 5-year revenue CAGR of 12.0%. Growth remained positive each year, rising 22.3% in FY2021, 10.1% in FY2022, 9.0% in FY2023, 11.6% in FY2024, and 7.5% in FY2025. Gross margin expanded from 58.9% in FY2021 to 61.0% in FY2025, while operating margin rose from 15.1% to 21.5% over the same period. Net income increased from $193.3M in FY2021 to $374.2M in FY2025, with EPS climbing from $6.16 to $9.89. In the latest quarter ended June 30, 2026, revenue increased 9.6% year-over-year, and quarterly earnings grew 35.4%.

As of June 30, 2026, Morningstar held $523.8M in cash and short-term investments alongside total debt of $1.90B, resulting in net debt of $1.38B. Shareholders' equity was $1.02B, with a debt-to-equity ratio of 1.86 and a current ratio of 1.06. In FY2025, operating cash flow reached $589.7M. Capital expenditures totaled $147.1M, yielding free cash flow of $442.6M. The company directed substantial capital to shareholders, funding $787.0M in share buybacks and $76.9M in dividends.

Morningstar trades at a trailing P/E of 19.7x and a forward P/E of 19.8x, both above the median of its US-listed Financial Services peers at 12.1x and 10.8x, respectively. Its price-to-sales multiple is 3.0x compared to the peer median of 3.2x, while its EV-to-EBITDA stands at 10.9x versus the peer median of 11.7x. The company holds an enterprise value of $8.70B and a market cap of $7.78B. Over the past year, MORN shares returned -0.5% compared to a 16.8% return for the S&P 500, and over five years shares fell 21.6% while the S&P 500 gained 83.0%.

Morningstar pays a quarterly dividend with an annualized forward rate of $2.00 per share, delivering a dividend yield of 0.96%. The payout ratio is 17.3%, supported by 17 consecutive years of dividend payments. Over the past five years, the company has grown its dividend at an annualized rate of 3.7%, with the most recent ex-dividend date on October 2, 2026.

Wall Street coverage includes 3 analysts, with 2 Strong Buy ratings, 1 Hold rating, and zero Sell or Strong Sell ratings. The mean price target is $239.00, representing 15.3% upside compared to the last close of $207.37. For the current fiscal year ending December 31, 2026, consensus estimates project EPS of $12.37 on revenue of $2.65B. Morningstar has beaten EPS estimates in each of the last 4 quarters, and its next earnings report is scheduled for October 28, 2026.

This page is an AI-written research summary of Morningstar, Inc. (MORN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: MORN income statement, MORN balance sheet, MORN key metrics, MORN analyst forecast, MORN chart. See the MORN stock overview for the latest quote and news.