Start here if you're new
what it is
Morningstar sells investment research, ratings, data, and portfolio software to advisors, asset managers, and individual investors.
how it gets paid
Last year Morningstar made $2.4B in revenue. Morningstar Data and Analytics was the main engine at $0.8B, or 33% of sales.
why it's growing
Revenue grew about 11.6% last year on a full-year reported basis (company filings). Ignore any giant quarter-over-quarter percentages unless you confirm the comparison window in the 10-Q.
what just happened
A recent quarter posted on the order of ~$0.6B revenue and a few dollars of EPS (e.g., Q4 2024 was about $591M revenue and ~$2.71 EPS—verify the exact quarter in the earnings release).
At a glance
A balance sheet — strong enough to weather a downturn
35/100 earnings predictability — expect surprises
32.4x trailing p/e — you're paying up for this one
1.1% dividend yield — cash in your pocket every quarter
17.0% return on capital — nothing to write home about
xvary composite: 57/100 — below average
What they do
Morningstar sells investment research, ratings, data, and portfolio software to advisors, asset managers, and individual investors.
Morningstar sells trust, and trust is sticky. You build your models, reports, and fund screens on its data, then you keep paying to avoid rebuilding them. With 11,085 employees and a 26.9% operating margin, the company looks like a research shop and acts like a toll road.
How they make money
$2.4B
annual revenue · their business grew about +11.6% last year (full-year reported; rounded)
Morningstar Data and Analytics
$0.8B
+8.0%
Morningstar Direct and Advisor Workstation
$0.55B
+9.0%
Ratings and Research
$0.45B
+6.0%
Morningstar.com and Investor Subscriptions
$0.30B
+5.0%
Indexes, ESG, Credit, and Private Markets
$0.30B
+10.0%
The products that matter
institutional research workflow
Morningstar Direct
core platform
this sits inside the ~$0.8B Morningstar Data and Analytics line shown above. When research teams build reports and manager selection around one tool, switching stops being theoretical and starts being annoying.
sticky workflow
market data and feeds
Morningstar Data
61% gross margin
the company-wide 61% gross margin tells you clients still pay for trusted inputs. If that margin holds, the pricing story holds. If it slips, the premium multiple loses cover.
pricing power
advisor workflow with ai layer
Direct Advisory Suite (AI Assistant)
new launch
this is the defensive bet in plain sight. Morningstar is trying to keep advisors inside its product stack while AI changes how research gets produced and consumed.
catalyst watch
Key numbers
$2.4B
ttm revenue
This is the base the whole story rests on. A low-double-digit growth rate on $2.4B is what funds the data-and-workflow roadmap.
26.9%
operating margin
You get $26.90 of operating profit for every $100 of sales. That is why the business can fund growth and still pay a 1.1% dividend.
17.0%
return on capital
The business turns each $100 of capital into $17 of operating profit. That beats a lot of dull software names that talk bigger and earn less.
32.4x
trailing p/e
You are paying 32.4 times earnings for an A-rated balance sheet company. Quality is priced in.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 4 — safer than 20% of stocks
- price stability 65 / 100
- long-term debt $1.0B (12% of capital)
A — among the top-rated companies for balance sheet quality.
Total return vs. market
Return history isn't available for MORN right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Morningstar's recent quarter posted ~$591M in revenue (Q4 2024 example) and ~$2.71 EPS, with strong vs. prior year growth versus the prior-year quarter.
Full-year revenue was about $2.3B with double-digit growth in 2024 filings; gross margin near 61% is the quality signal for the data-and-workflow mix—always match the quarter to the filing table.
~$591M
revenue (q4 24 ex.)
~$2.71
eps (q4 24 ex.)
61.03%
gross margin
the number that mattered
Quarterly revenue is only one slice of a ~$2.3–2.4B annual business—seasonality and deal timing move the mix; read the release tables, not a single headline multiple.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the #1 risk is Morningstar keeping a premium multiple while the earnings setup still looks noisy.
med
estimate whiplash
Consensus EPS estimates dropped 17% on 2026-03-07 and then rose 14% on 2026-03-18. A 31% swing in 11 days is what a 35/100 predictability score looks like in real life.
when the estimate base moves this much, valuation gets slippery fast.
med
ai makes basic research cheaper
Morningstar’s 61% gross margin says clients still pay for trusted data and workflow. If AI starts replacing first-draft research and basic screening inside client teams, that margin becomes the number that matters most.
if margin weakens, the premium multiple is the first thing the market questions.
med
premium multiple, ordinary growth
Revenue grew 11.6% last year. Data & Analytics grew 8%. Those are good numbers. They are not automatic justification for 32.4x earnings when predictability still scores 35/100.
if growth stays decent instead of great, the stock can de-rate without the business breaking.
32.4x earnings plus 35/100 predictability is the whole risk equation. You are paying for consistency before the numbers have fully earned that label.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
gross margin holding at 61%
That is the cleanest proof that Morningstar still has pricing power. If it drops, the moat story gets weaker fast.
calendar
2026-04-28 earnings report
Watch whether the next quarter looks more normal than the last estimate scramble did. Clean execution matters more than a flashy headline beat here.
segment trend
Data & Analytics near $0.8B
This is the core engine in the segment table above. If growth re-accelerates from the high single digits, the premium multiple gets easier to defend.
risk
another estimate shock
A 31% EPS estimate swing in 11 days should not become normal. If it does, the stock is telling you it deserves a lower multiple.
Analyst rankings
earnings predictability
35 / 100
in human-speak, analysts do not see this as a clean, easy-to-model earnings story.
balance sheet
A
balance sheet grade is solid. The debate is about valuation and durability, not solvency.
return on capital
17.0%
return on capital means how efficiently the company turns investment into profit. 17.0% is respectable, but it does not scream bargain at 32.4x earnings.
source: institutional data
Institutional activity
institutional ownership data for MORN is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$214
current price
n/a
target midpoint · n/a from current
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive