Morningstar, Inc.MORN
NasdaqGS•Financial Services•Financial Data & Stock Exchanges
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.
Morningstar, Inc. (MORN) reported trailing twelve months revenue of $2.51B as of March 2026, a 8.4% increase year-over-year. Quarterly revenue reached $644.80M, reflecting continued top-line momentum.
Morningstar, Inc. generated $402.80M in TTM net income, with quarterly EBITDA of $155.90M. The operating margin expanded from 19.6% to 24.2%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (24.2%) and net margin (16.6%) indicates moderate non-operating costs. Net margin has improved from 13.5% a year ago, signaling stronger bottom-line efficiency.
MORN trades at a P/E of 16.0x (in line with broad market averages) and a P/S of 2.6x. The price-to-book ratio of 6.3x indicates a significant premium over book value.
The company generated $53.60M in free cash flow over the trailing twelve months, a 8.8% decrease year-over-year, indicating cash generation ability. The balance sheet shows $3.99B in total assets with $1.71B in long-term debt against $1.02B in stockholders equity for a debt-to-equity ratio of 1.7. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are expanding at ~22.2%, suggesting durable pricing power and cost discipline.
Consistently high ROE averaging 25.6% suggests a durable competitive advantage and efficient capital allocation.
8 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
TTM revenue has grown consistently (7 of 7 quarters up), with ~15.7% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~22.6% — no sign of cost or pricing stress.
FCF covers net income by 1.1x on average — earnings are well-supported by cash generation.
Debt-to-equity has risen 236.6% recently — increasing financial risk even if the current ratio is manageable.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 8.6% — net buybacks are reducing shares outstanding and boosting per-share value.