Morningstar Inc. Common Stock (MORN)

FairStock Score: 52/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham investor, I ask whether Morningstar is a durable business at a sensible price. It sells independent investment insights and data through five segments, including Morningstar Direct Platform, PitchBook, Morningstar Credit, Morningstar Wealth, and Morningstar Retirement. The latest filed quarter, fiscal Q2 2026 ended 2026-06-30, showed revenue of $663.2M and net income of $107.8M, or diluted EPS of $2.83. In the year-earlier fiscal Q2 2025 ended 2025-06-30, revenue was $605.1M, net income $89.0M, and diluted EPS $2.09. That is real operating momentum. For FY2025, filed in the 10-K, revenue was $2.4B, net income $374.2M, and diluted EPS $8.87; FY2024 had net income of $369.9M and EPS of $8.58, so full-year growth was much slower than the latest quarter. At the 2026-10-13 close of $204.37, FairStock calculations show a P/E of 19.43, P/B of 7.49, FCF yield of 6.5%, EV/EBITDA of 11.11, and PEG of 0.92. ROE is excellent at 31.96%, but ROCE is only 9.63% and debt/equity is 1.86. The Graham Number of $80.37 and margin of safety of -154.29% tell me the price is not cheap on conservative terms. Piotroski is 8/9, Altman Z is 2.74, and FairStock Score is 52/100. The Lynch label is Stalwart, based on 10.8% yearly profit growth and 12.0% revenue growth over five years. I see a good, cash-generative business, but the price already reflects much of that quality.

In plain English: Morningstar sells investment research, data, and related services to investors, with segments including Morningstar Direct, PitchBook, Credit, Wealth, and Retirement. The business looks financially strong: in the quarter ended 2026-06-30 it earned $107.8 million on $663.2 million of revenue, up from $89.0 million on $605.1 million a year earlier. At the 2026-10-13 close of $204.37, the price looks fair-to-full against earnings and cash flow, and clearly above a very conservative asset-based value.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer