# Morningstar (MORN.US)

Canonical: https://gigainvestors.com/s/MORN

Analysis as of: 2026-10-16T07:30:20.594Z. Financial observations: FY2000–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at a fair price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: yes.

Share price: $209.24 per share; close as of 2026-10-15.

Estimated value: low $154.19 per share, central $219.15 per share, high $255.38 per share. Buy at or below the central value $219.15 per share. Valuation as of 2026-10-16T07:30:20.594Z; scenarios are not confidence intervals.

Expected annual return: 10.3% at the stated quote. About 10.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.26×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.19×

- FY2018: 0.21×

- FY2019: 0.16×

- FY2020: 0.15×

- FY2021: 0.15×

- FY2022: 0.09×

- FY2023: 0.11×

- FY2024: 0.21×

- FY2025: 0.22×

- LTM to Jun 2026: 0.24×

### moat: pass

- ROIC, median of available years: 77.6%

- ROIC, second-lowest year: 35.9%

- Typical minus recent gross margin: -1.7 pp

- Typical gross margin (annual median): 59.4%

- Recent gross margin (lower of latest and 3-year median): 61.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 6.1%

- ROIC including acquisitions, ten-year median: 19.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 81.5%

- FY2018: >100%

- FY2019: 40.0%

- FY2020: 74.2%

- FY2021: 99.9%

- FY2022: 20.0%

- FY2023: 35.9%

- FY2024: 92.4%

- FY2025: 81.1%

- LTM to Jun 2026: 68.7%

### economics: pass

- Owner earnings / net income, 5-yr: 1.21×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.4B

- Net income, five-year total: $1.1B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.1 pp

- Working capital / revenue, change between three-year averages: 0.4 pp

- Working capital / revenue, final three-year average: 12.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.25×

- FY2022: 1.53×

- FY2023: 1.47×

- FY2024: 1.13×

- FY2025: 1.11×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 82.3% vs 81.1%

- Per-share earnings: 3.18 to 8.58 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.5%

- Ordinary dilution, 5-year annual growth: -0.5%

- Market cap gain: $5.5B

- Cumulative retained earnings: $1.3B

- Diluted shares, 10-year annual growth: -0.5%

- Diluted shares, 5-year annual growth: -0.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 13.2%

- Per-share value change: $5.40

- Per-share value, starting three-year median: $3.18

- Per-share value, ending three-year median: $8.58

- Buybacks concentrated in cheaper years (correlation): 0.43

- Average buyback yield: 1.5%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $1.7B

- Cumulative net income, 10 years: $2.0B

- ROIC, first three-year median: 82.3%

- ROIC, last three-year median: 81.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: $3.72

- FY2017: $3.18

- FY2018: $4.26

- FY2019: $3.52

- FY2020: $5.18

- FY2021: $4.45

- FY2022: $1.64

- FY2023: $3.29

- FY2024: $8.58

- FY2025: $8.87

### accounting: pass

- Sloan accruals: -6.0%

- Receivables to sales index (DSRI): 1.02×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 9.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.58×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.63×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.9%

- FY2017: -8.1%

- FY2018: -9.1%

- FY2019: -7.7%

- FY2020: -6.0%

- FY2021: -9.0%

- FY2022: -6.5%

- FY2023: -5.2%

- FY2024: -6.2%

- FY2025: -6.0%

## Holders

- [Robert Vinall](https://gigainvestors.com/RVC): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 41% since Nov 2024 · sales +4.9%

Story as of 2026-10-16T09:59:11.537Z; price observation 2026-10-15.

Price needs cash profits to grow 6.9% a year for ten years

### Sales · FY2025–2026

sales +4.9%; source https://www.sec.gov/Archives/edgar/data/1289419/000128941926000013/morn-20251231.htm; observed 2026-02-13.

- FY2017: $912M 

- FY2018: $1.0B 

- FY2019: $1.2B 

- FY2020: $1.4B 

- FY2021: $1.7B 

- FY2022: $1.9B 

- FY2023: $2.0B 

- FY2024: $2.3B 

- FY2025: $2.4B 

- FY2026: $2.6B 

### Gross margin · FY2026

gross margin 62.2%; source https://www.sec.gov/Archives/edgar/data/1289419/000128941926000013/morn-20251231.htm; observed 2026-02-13.

- FY2017: 57.6% 

- FY2018: 59.7% 

- FY2019: 59.0% 

- FY2020: 60.0% 

- FY2021: 58.9% 

- FY2022: 58.3% 

- FY2023: 58.6% 

- FY2024: 60.6% 

- FY2025: 61.0% 

- FY2026: 62.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in financial data & stock exchanges; annual sales are USD 2.4 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1289419/000128941926000013/morn-20251231.htm#000128941926000013 (filed 2026-02-13); FY2025: revenue 2445500000; grossProfit 1492600000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MORN.US: Morningstar, Inc. provides independent investment insights for investors in the United States, Asia, Australia, Canada, Continental Europe, the United Kingdom, and internationally. It operates through five segments: Morningstar Direct Platform, PitchBook, Morningstar Credit, Morningstar Wealth, and Morningstar Retirement. The company offers managed investments, including mutual funds, exchanged traded funds, separate accounts, collective investment trusts, model portfolios, equities, and fixed-income securities; Morningstar Direct, an investment analysis and reporting application; and Morningstar Advisor Workstation, a suite of tools to provide advice to clients. It also provides PitchBook that offers data and research covering the private capital markets comprising venture capital, private equity and credit, bank loans, and merger and acquisition activities through the PitchBook platform; Morningstar Model Portfolios, an advisor service with model portfolios for fee-based financial advisors; Morningstar International Wealth Platform, which offers discretionary asset management services; and Morningstar Investor/Morningstar.com, an individual investor platform and media site. In addition, the company offers credit ratings, research, data, and credit analytics solutions through Morningstar DBRS and Morningstar Credit Analytics agencies. Further, it provides managed retirement accounts, fiduciary services, and custom models; Morningstar Sustainalytics that provides environmental, social and governance data, research, and ratings; and Morningstar Indexes that offers market indexes used for performance benchmarks and as the basis for investment products and other portfolio strategies. The company was incorporated in 1984 and is headquartered in Chicago, Illinois.

### Why customers stay

Margins ranged from 58.6% to 61% during 2023–25; it earns 77.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2023: grossProfit / revenue = 58.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2024: grossProfit / revenue = 60.6%.

- Source: https://www.sec.gov/Archives/edgar/data/1289419/000128941926000013/morn-20251231.htm (filed 2026-02-13); FY2025: grossProfit / revenue = 61%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); 10-year return on capital observations [[2017,0.8146564866234485],[2018,1.05882788235496],[2019,0.4000168783492974],[2020,0.7420304015413424],[2021,0.9991297504473429],[2022,0.20034900808229245],[2023,0.3592668926655479],[2024,0.9238474955159317],[2025,0.8109468890639837],[2026,0.687245489324181]]; median 0.776488645302663. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 58% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1289419/000128941926000013/morn-20251231.htm (filed 2026-02-13); Gross margin observations: [[2021,0.5890072382745837],[2022,0.5833957019138244],[2023,0.5862356519179829]]; range within 2 percentage points.

### Where the cash goes

Reinvests 9.4% of cash earnings; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2016: growth capex 0; upkeep 62800000; cash acquisitions 191600000; owner earnings 168900000. Growth capex plus acquisitions / owner earnings = 1.1343990526939016.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2017: growth capex 0; upkeep 66600000; cash acquisitions 1000000; owner earnings 161500000. Growth capex plus acquisitions / owner earnings = 0.006191950464396285.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2018: growth capex 0; upkeep 76100000; cash acquisitions 400000; owner earnings 203600000. Growth capex plus acquisitions / owner earnings = 0.0019646365422396855.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2019: growth capex 0; upkeep 80000000; cash acquisitions 681900000; owner earnings 189700000. Growth capex plus acquisitions / owner earnings = 3.5946230890880337.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2020: growth capex 0; upkeep 76700000; cash acquisitions 67800000; owner earnings 286400000. Growth capex plus acquisitions / owner earnings = 0.236731843575419.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2021: growth capex 0; upkeep 101800000; cash acquisitions 24800000; owner earnings 242200000. Growth capex plus acquisitions / owner earnings = 0.10239471511147812.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2022: growth capex 0; upkeep 129500000; cash acquisitions 646700000; owner earnings 107600000. Growth capex plus acquisitions / owner earnings = 6.010223048327138.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2023: growth capex 0; upkeep 119100000; cash acquisitions 800000; owner earnings 206900000. Growth capex plus acquisitions / owner earnings = 0.0038666022232962784.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2024: growth capex 0; upkeep 142700000; cash acquisitions 0; owner earnings 417600000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1289419/000128941926000013/morn-20251231.htm (filed 2026-02-13); FY2025: growth capex 0; upkeep 147100000; cash acquisitions 39000000; owner earnings 417000000. Growth capex plus acquisitions / owner earnings = 0.09352517985611511.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); Dividend observations: [[2016,37900000],[2017,39300000],[2018,42600000],[2019,47800000],[2020,51400000],[2021,54200000],[2022,61500000],[2023,63900000],[2024,69300000],[2025,76900000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1289419/000128941926000013/morn-20251231.htm (filed 2026-02-13); FY2025: cash repurchases 787000000 USD.

### Are managers owners

Insiders own 49.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MORN.US SharesStats.PercentInsiders = 49.669999999999995 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 6.9% yearly over ten years; actual growth was 12.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); Ten-year compound average after fade. Initial solved rate 0.10768065620372133. Price 209.24; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 3.1534988713318284 → FY2025 9.881516587677725. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $70.63 per share

- 2016-11: $72.91 per share

- 2016-12: $73.56 per share

- 2017-01: $76.15 per share

- 2017-02: $80.23 per share

- 2017-03: $78.60 per share

- 2017-04: $73.13 per share

- 2017-05: $73.18 per share

- 2017-06: $78.34 per share

- 2017-07: $82.57 per share

- 2017-08: $82.70 per share

- 2017-09: $84.99 per share

- 2017-10: $85.21 per share

- 2017-11: $92.30 per share

- 2017-12: $96.97 per share

- 2018-01: $96.12 per share

- 2018-02: $93.45 per share

- 2018-03: $95.52 per share

- 2018-04: $108.58 per share

- 2018-05: $120.01 per share

- 2018-06: $128.25 per share

- 2018-07: $132.00 per share

- 2018-08: $142.32 per share

- 2018-09: $125.90 per share

- 2018-10: $124.80 per share

- 2018-11: $118.14 per share

- 2018-12: $109.84 per share

- 2019-01: $124.15 per share

- 2019-02: $126.56 per share

- 2019-03: $125.99 per share

- 2019-04: $143.45 per share

- 2019-05: $140.04 per share

- 2019-06: $144.64 per share

- 2019-07: $151.98 per share

- 2019-08: $161.58 per share

- 2019-09: $146.14 per share

- 2019-10: $161.84 per share

- 2019-11: $157.10 per share

- 2019-12: $151.31 per share

- 2020-01: $156.89 per share

- 2020-02: $146.90 per share

- 2020-03: $116.25 per share

- 2020-04: $155.96 per share

- 2020-05: $153.32 per share

- 2020-06: $140.97 per share

- 2020-07: $168.04 per share

- 2020-08: $160.15 per share

- 2020-09: $160.61 per share

- 2020-10: $190.38 per share

- 2020-11: $200.10 per share

- 2020-12: $231.57 per share

- 2021-01: $229.89 per share

- 2021-02: $224.25 per share

- 2021-03: $225.04 per share

- 2021-04: $265.01 per share

- 2021-05: $235.99 per share

- 2021-06: $257.11 per share

- 2021-07: $252.63 per share

- 2021-08: $267.99 per share

- 2021-09: $259.03 per share

- 2021-10: $316.75 per share

- 2021-11: $310.33 per share

- 2021-12: $341.99 per share

- 2022-01: $287.41 per share

- 2022-02: $280.65 per share

- 2022-03: $273.17 per share

- 2022-04: $253.23 per share

- 2022-05: $257.03 per share

- 2022-06: $241.83 per share

- 2022-07: $255.35 per share

- 2022-08: $227.99 per share

- 2022-09: $212.32 per share

- 2022-10: $232.18 per share

- 2022-11: $245.13 per share

- 2022-12: $216.59 per share

- 2023-01: $242.88 per share

- 2023-02: $207.33 per share

- 2023-03: $203.03 per share

- 2023-04: $178.31 per share

- 2023-05: $204.70 per share

- 2023-06: $196.07 per share

- 2023-07: $230.48 per share

- 2023-08: $232.67 per share

- 2023-09: $234.24 per share

- 2023-10: $253.24 per share

- 2023-11: $283.36 per share

- 2023-12: $286.24 per share

- 2024-01: $279.30 per share

- 2024-02: $298.59 per share

- 2024-03: $308.37 per share

- 2024-04: $282.65 per share

- 2024-05: $288.25 per share

- 2024-06: $295.85 per share

- 2024-07: $317.65 per share

- 2024-08: $313.77 per share

- 2024-09: $319.12 per share

- 2024-10: $328.05 per share

- 2024-11: $354.15 per share

- 2024-12: $336.76 per share

- 2025-01: $328.64 per share

- 2025-02: $313.72 per share

- 2025-03: $299.87 per share

- 2025-04: $284.72 per share

- 2025-05: $308.42 per share

- 2025-06: $313.93 per share

- 2025-07: $276.46 per share

- 2025-08: $262.42 per share

- 2025-09: $232.01 per share

- 2025-10: $212.30 per share

- 2025-11: $214.86 per share

- 2025-12: $217.31 per share

- 2026-01: $202.09 per share

- 2026-02: $183.14 per share

- 2026-03: $169.05 per share

- 2026-04: $168.71 per share

- 2026-05: $182.02 per share

- 2026-06: $156.02 per share

- 2026-07: $192.57 per share

- 2026-08: $218.94 per share

- 2026-09: $190.04 per share

- 2026-10: $209.24 per share

## Annual estimated value (USD per share)

- FY2016: low $43.75 per share, central $48.86 per share, high $55.67 per share

- FY2017: low $48.84 per share, central $54.50 per share, high $62.04 per share

- FY2018: low $69.74 per share, central $97.73 per share, high $113.34 per share

- FY2019: low $73.76 per share, central $97.92 per share, high $113.44 per share

- FY2020: low $103.34 per share, central $146.11 per share, high $169.97 per share

- FY2021: low $110.49 per share, central $152.89 per share, high $177.51 per share

- FY2022: low $90.82 per share, central $104.76 per share, high $120.57 per share

- FY2023: low $98.07 per share, central $128.07 per share, high $148.62 per share

- FY2024: low $120.98 per share, central $171.10 per share, high $199.05 per share

- FY2025: low $131.30 per share, central $186.33 per share, high $217.02 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1289419/000128941926000013/morn-20251231.htm); period 2025-12-31, filed 2026-02-13.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.