MORN
Morningstar Corporation (NASDAQ: MORN) trades at roughly 17 times forward earnings, less than the S&P 500...
Article Summary
HOLD- Morningstar Corporation (NASDAQ: MORN) trades at roughly 17 times forward earnings, less than the S&P 500 and less than half the price it traded at eighteen months ago.
- Morningstar has never posted a year of revenue decline in four decades and grew operating income by more than 36% in its most recent quarter, with the Morningstar Direct Platform contributing $215.2 million in revenue in Q1 2026, up 8.0% year over year on organic basis, with adjusted operating margins above 42%, making it the highest-margin operation in the company.
- The stock closed 2024 above $310 but fell below $170 by early 2026 amid broader concerns about AI disruption, venture capital slowdown, and PitchBook pressure, with operating results delivered during the sell-off suggesting the market has overcorrected.
- The question is whether the current multiple reflects permanent impairment in the business's earning power or temporary compression that creates a window in which patient owners can earn a return the business has historically been too expensive to deliver.
Free users see 3 BUY signals per day. Premium unlocks all of them, plus instant email alerts.
See Plans
Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 8.4% | 25% | 35.0 ptsBelow Screener (8.4%) - Weak growth |
| EPS Growth Next 5Y ? | 20.6% | 25% | 70.0 ptsGood (20.6%) - Solid outlook |
| Target Price Upside ? | 35.1% | 20% | 85.0 ptsLarge Upside (35.1%) - Target: $246.00 vs Current: $182.02 |
| Gross Margin % ? | 54.0% | 15% | 80.0 ptsVery Healthy (54.0%) - High-quality margins |
| Drawdown from 52-Wk High ? | -42.5% | 15% | 80.0 ptsSolid Dip (-42.5%) - Good entry zone |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About MORN
- 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.