Morningstar, Inc. (MORN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ares Management Corp.

Apollo Global Management, Inc.

Raymond James Financial, Inc.

T. Rowe Price Group, Inc.

Ares Capital Corp.

Corebridge Financial, Inc.

Franklin Resources, Inc.

Principal Financial Group, Inc.

Morningstar, Inc.

Northern Trust Corp.

The Carlyle Group Inc.

Why is Morningstar, Inc. ?

High Management Efficiency with a high ROCE of 17.44%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.74 times

Healthy long term growth as Net Sales has grown by an annual rate of 12.58%

The company has declared Positive results for the last 6 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 535.3 MM
ROCE(HY) Highest at 26.51%
DIVIDEND PER SHARE(HY) Highest at USD 6.36

With ROE of 24.58%, it has a very expensive valuation with a 10.36 Price to Book Value

Over the past year, while the stock has generated a return of -39.46%, its profits have risen by 76% ; the PEG ratio of the company is 0.6

High Institutional Holdings at 60.76%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -39.46% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Morningstar, Inc. should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Morningstar, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Morningstar, Inc.

-38.22%

-1.01

25.87%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.58%

EBIT Growth (5y)

21.92%

EBIT to Interest (avg)

13.79

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

22.27%

Dividend Payout Ratio

19.46%

Pledged Shares

Institutional Holding

60.76%

ROCE (avg)

17.44%

ROE (avg)

15.37%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

10.36

EV to EBIT

37.08

EV to EBITDA

26.18

EV to Capital Employed

8.96

EV to Sales

7.33

PEG Ratio

0.56

Dividend Yield

ROCE (Latest)

24.17%

ROE (Latest)

24.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 535.3 MM

ROCE(HY)

Highest at 26.51%

DIVIDEND PER SHARE(HY)

Highest at USD 6.36

RAW MATERIAL COST(Y)

Fallen by -2.74% (YoY

CASH AND EQV(HY)

Highest at USD 1,100.8 MM

NET SALES(Q)

Highest at USD 605.1 MM

OPERATING PROFIT(Q)

Highest at USD 177.4 MM

OPERATING PROFIT MARGIN(Q)

Highest at 29.32 %

-3What is not working for the Company

INTEREST(Q)

At USD 10.3 MM has Grown at 15.73%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 21.73%

Here's what is working for Morningstar, Inc.

Operating Cash Flow

Highest at USD 535.3 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend per share

Highest at USD 6.36 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 605.1 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 177.4 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 29.32 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at USD 1,100.8 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -2.74% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Morningstar, Inc.

Interest

At USD 10.3 MM has Grown at 15.73%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Dividend Payout Ratio

Lowest at 21.73%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)