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1. Company Snapshot

1.a. Company Description

Morningstar, Inc.provides independent investment research services in North America, Europe, Australia, and Asia.The company offers web-based tools; investment data, fundamental equity and manager research, private capital markets research, credit and fund rating, and index, as well as environmental, social, and governance (ESG) rating services; and investment offerings, including managed investment products, publicly listed and private companies, fixed income securities, and real-time global market data for financial advisors, asset managers, retirement plan providers and sponsors, and individual and institutional investors.


It also provides Morningstar Data, an investment data spanning various databases, including equity fundamentals, managed investments, ESG factors, and market data; Morningstar Direct, an investment-analysis platform; Morningstar Managed Portfolios, an advisor service consisting of model portfolio that offers services for independent financial advisors, as well as offers asset allocation services for asset managers, broker/dealers, and insurance providers; Morningstar Advisor Workstation, a web-based research, financial planning, and proposal generation platform; and Morningstar.com, a website for individual investors.In addition, the company offers Morningstar Enterprise Components; Morningstar Credit Ratings that provides issuance and surveillance services for structured finance products and instruments; corporate credit estimates and operational risk assessment rankings; Morningstar Indexes for creating investment products; Morningstar workplace solutions, such as retirement accounts, fiduciary services, allocation funds, and custom models; and PitchBook Platform, research and analysis workstation for investment and research professionals.Further, its PitchBook provides a mobile application, excel plug-in, data feeds, and data solutions.


The company was incorporated in 1984 and is headquartered in Chicago, Illinois.

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1.b. Last Insights on MORN

Morningstar, Inc.'s recent performance has been impacted by a significant increase in short interest, rising 89.5% in February to 1,401,034 shares. Despite this, institutional investors such as Principal Financial Group Inc. and CenterBook Partners LP have increased their stakes in the company. The company's fourth-quarter 2025 earnings report showed revenue growth of 8.5% and non-GAAP EPS up 26.6%. Morningstar's expansion of investment data on Snowflake Marketplace and the sale of ByAllAccounts to Pello Companies may drive future growth. Chairman Joseph Mansueto's sale of $1,290,500 in stock may have raised concerns.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Morningstar, Inc. Reports First-Quarter 2026 Financial Results

Apr -29

Source: businesswire.com

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Morningstar Reaches New Milestone in the CRSP Acquisition, Rebranding CRSP Market Indexes to Morningstar Indexes

Apr -29

Source: businesswire.com

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PitchBook LCD Introduces Default Predictor, a Forward-Looking Leveraged Loan Default Rate Indicator

Apr -23

Source: businesswire.com

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Morningstar Introduces Europe Modern Market 50 Index

Apr -23

Source: businesswire.com

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Morningstar considers revamping index construction ahead of SpaceX IPO

Apr -20

Source: reuters.com

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Harbor Active Small Cap ETF Q1 2026 Portfolio Review

Apr -20

Source: seekingalpha.com

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T. Rowe Price Value ETF Earns Morningstar Recognition

Apr -20

Source: etftrends.com

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17,382 Shares in Morningstar, Inc. $MORN Acquired by Berkeley Inc

Apr -17

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.61%)

6. Segments

License-based

Expected Growth: 8%

Morningstar's license-based segment growth is driven by increasing adoption of its investment research and data analytics tools, expansion into new markets, and rising demand for ESG and sustainable investing solutions. Additionally, the company's strong brand reputation, high customer retention rates, and strategic partnerships contribute to its 8% growth rate.

Asset-based

Expected Growth: 9%

Asset-based from Morningstar, Inc. with 9% growth driven by increasing adoption of sustainable investing, rising demand for ESG products, and growing assets under management. Additionally, expansion into new markets, strategic partnerships, and innovative product offerings contribute to the growth.

Transaction-based

Expected Growth: 12%

Morningstar's 12% growth in transaction-based revenue is driven by increasing adoption of its investment research and data analytics tools, expansion into new markets, and rising demand for digital solutions from institutional investors and financial advisors.

7. Detailed Products

Morningstar Data

Comprehensive financial data and analytics on stocks, bonds, and other securities

Morningstar Direct

Cloud-based investment analysis and portfolio management platform

Morningstar Advisor Workstation

Comprehensive investment planning and portfolio management software

Morningstar ByAllAccounts

Data aggregation and account linking platform

Morningstar PitchBook

Private equity and venture capital data and research platform

Morningstar Credit Ratings

Independent credit ratings and research for structured finance and corporate debt

Morningstar Indexes

Index calculation and maintenance services for custom and branded indexes

Morningstar Managed Portfolios

Model portfolios and investment management services for financial advisors and institutions

8. Morningstar, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Morningstar's financial data and analytics are highly specialized, making it difficult for substitutes to emerge. However, the rise of fintech and digital platforms may pose a threat in the future.

Bargaining Power Of Customers

Morningstar's customers are largely institutional investors and financial advisors, who have limited bargaining power due to the company's strong brand reputation and specialized products.

Bargaining Power Of Suppliers

Morningstar's suppliers are primarily data providers and technology vendors, who have limited bargaining power due to the company's scale and negotiating power.

Threat Of New Entrants

The financial data and analytics industry has high barriers to entry, including significant capital requirements and regulatory hurdles, making it difficult for new entrants to compete with Morningstar.

Intensity Of Rivalry

The financial data and analytics industry is highly competitive, with established players like Bloomberg and Thomson Reuters. However, Morningstar's strong brand reputation and specialized products help to mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 43.17%
Debt Cost 6.46%
Equity Weight 56.83%
Equity Cost 9.66%
WACC 8.28%
Leverage 75.98%

11. Quality Control: Morningstar, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Hanover Insurance

A-Score: 6.8/10

Value: 7.2

Growth: 4.8

Quality: 6.7

Yield: 4.0

Momentum: 8.5

Volatility: 9.7

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Radian Group

A-Score: 6.3/10

Value: 6.0

Growth: 2.9

Quality: 8.1

Yield: 6.0

Momentum: 5.5

Volatility: 9.0

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Jefferies

A-Score: 5.2/10

Value: 6.0

Growth: 5.1

Quality: 6.3

Yield: 6.0

Momentum: 2.5

Volatility: 5.0

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Dun & Bradstreet Holdings

A-Score: 4.8/10

Value: 6.9

Growth: 4.6

Quality: 3.8

Yield: 2.0

Momentum: 2.5

Volatility: 9.3

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Morningstar

A-Score: 4.8/10

Value: 2.7

Growth: 7.6

Quality: 7.2

Yield: 1.0

Momentum: 1.5

Volatility: 9.0

1-Year Total Return ->

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FactSet Research Systems

A-Score: 4.7/10

Value: 3.6

Growth: 6.3

Quality: 7.3

Yield: 3.0

Momentum: 0.5

Volatility: 7.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

173.06$

Current Price

173.06$

Potential

-0.00%

Expected Cash-Flows