Morningstar Stock Analysis, Valuation (NASDAQ:MORN)

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$95.44 $1.21 (1.25%) MORN stock closing price Feb 21, 2018 (Closing)
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Morningstar
Updated on : Feb 21, 2018
previous close
MORN 95.4 (0%)
S&P 500 2701.3 (0%)
Closing Price On: Feb 21, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Business Information Services
Sector :
Business Services
5 Quarter Revenue
Revenue Growth
2017-Q3
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
20.1%
Sector Average:
8.4%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
205M
Debt/Equity Ratio:
 0.26
Compared to the industry
Cash Flow
Operating cash flow:
$62.5M
Net Income:
$33.9M
Dividend Yield
MORN dividend yield:
0.95%
PROS      CONS
Operating Margins
Net Margins
Low Debt Burden
Cash Flow
ROIC
ROE
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
MORN PS :
4.6
Industry PS :
1.7
Sector:   Business Services.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
20.4%
Return on Equity:
23.4%
Free Cash Flow Margin:
21.5%
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Morningstar Stock Analysis

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Take a look at Amigobulls Morningstar stock analysis video. This video puts forward our latest analysis highlighting the pros and cons for MORN stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Morningstar, Inc. Stock Rating 3.5/5

Amigobulls MORN stock analysis relies on business fundamentals such as Morningstar revenue growth, profits and return on equity measures from the latest quarter 2017 Q3 earnings. Morningstar valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Morningstar stock rating is our opinion about the business fundamentals of the company.

Should you buy MORN stock?

  • Morningstar's average operating margin of 20.1% was exceptional.
  • Net margins came in at average 19.1% for Morningstar over the last twelve months.
  • Morningstar has a lower debt burden than its peers in the Business Services sector, with a debt/equity ratio of  0.26.
  • The operating cash flow looks good at 1.8 times the net income.
  • Morningstar generates a high return on invested capital of 20.4%.
  • Morningstar has a good Return On Equity (ROE) of 23.4%.
  • Morningstar has a healthy FCF (Free Cash Flow) margin of 21.5%.

Should you sell MORN stock?

  • Trading at a PE ratio of 36.3, MORN stock is overvalued in comparison to industry average multiple of 22.1.
  • The company is trading at a price to sales multiple of 4.6, which is higher in comparison to the Business Information Services industry average of 1.7, making MORN stock expensive.

Comments on this video and Morningstar stock

Investors can make use of the Amigobulls Morningstar stock analysis to ascertain how MORN stock fares in fundamental analysis investment criteria. The fundamentals of a company are vital to identify long-term investment opportunities.

Morningstar revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.