Morningstar, Inc.
$246.26
+0.18 (+0.07%) · delayed · Nov 13, 2026
Five-year price
52w $141.49 to $251.04
- Market cap
- $9.1B
- Enterprise value
- $9.7B
- P/E
- 27.8×
- 35.6× on 3y avg EPS
- EV / EBIT
- 18.5×
- FCF yield
- 4.8%
- ROIC
- 21.8%
- Debt / equity
- 0.88
- Piotroski F
- 5/9
Value scorecard · FY2025
Does it pass the value tests?
Quality
83
- ●ROIC > 12% (5y avg)5y avg ROIC 14.5%
- ●ROE > 15% (5y avg)5y avg ROE 16.7%
- ○Stable operating marginsMargin volatility 5.1% (σ, 5y)
- ●Earnings convert to cashFCF / net income 160% (5y avg)
- ●Growing revenueRevenue CAGR 5y 12.0%
- ●Shrinking share countDiluted shares -2.3% over 5y
Value
0
- ○P/E below 15P/E 27.8
- ○EV/EBIT below 12EV/EBIT 18.5
- ○FCF yield above 6%FCF yield 4.8%
- ○Price below Graham NumberGraham Number $81.07
- ○P/B below 3P/B 7.5
Safety
40
- ○Debt / equity below 0.5D/E 0.88
- ●Debt payable in < 4 yrs of earningsNet debt $0.6B
- ●Interest coverage > 8xCoverage 14.1x
- ○Current ratio > 1.5Current ratio 0.99
- ○Piotroski F-score ≥ 6F-score 5/9
Graham Defensive
57
- ●Adequate size (revenue > $2B)Revenue $2.4B
- ○Strong condition (current ratio ≥ 2)Current ratio 0.99
- ●Earnings stability (no loss, 10y)10 years of data
- ●Uninterrupted dividendsDividends paid every year on record
- ●Earnings growth ≥ 33% (10y, 3y avgs)EPS growth 86%
- ○Moderate P/E (≤ 15 on 3y avg EPS)P/E (3y avg) 35.6
- ○P/E × P/B ≤ 22.5Product 266.4
Valuation lab
What do you have to believe?
At $246.26, the market is pricing in about 6.9% annual free-cash-flow growth for the next decade (9% discount rate, 2.5% terminal growth).
Starting cash flow
Net debt $598M · 37M shares · 5y revenue CAGR 12.0%
Intrinsic value
$369.58
Price
$246.26
Margin of safety
33%
What the price implies
The market is paying for 6.9% annual cash-flow growth for 10 years at a 9.0% discount rate.
Terminal value share
64% of the value sits beyond year 10.
Financial statements
A decade of the record.
USD millions · fiscal years · source: SEC 10-K XBRL
| Line item | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 799 | 912 | 1,020 | 1,179 | 1,390 | 1,699 | 1,871 | 2,039 | 2,275 | 2,446 |
| Gross profit | — | — | — | — | — | — | — | — | — | — |
| Operating income | 181 | 170 | 216 | 190 | 215 | 257 | 168 | 231 | 485 | 527 |
| Operating margin | 22.6% | 18.6% | 21.2% | 16.1% | 15.5% | 15.1% | 9.0% | 11.3% | 21.3% | 21.5% |
| Pre-tax income | 225 | 181 | 233 | 199 | 283 | 251 | 131 | 174 | 474 | 496 |
| Income tax | 64 | 43 | 48 | 46 | 60 | 63 | 57 | 33 | 104 | 122 |
| Net income | 161 | 137 | 183 | 152 | 224 | 193 | 71 | 141 | 370 | 374 |
| EPS (diluted) | 3.72 | 3.18 | 4.25 | 3.52 | 5.18 | 4.45 | 1.64 | 3.29 | 8.58 | 8.87 |
| Diluted shares | 43 | 43 | 43 | 43 | 43 | 43 | 43 | 43 | 43 | 42 |
Who owns it