Morningstar Stock Analysis, Valuation (NASDAQ:MORN)

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$81.63 $0.89 (1.08%) MORN stock closing price Aug 18, 2017 (Closing)
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Morningstar
Updated on : Aug 18, 2017
previous close
MORN 81.6 (0%)
S&P 500 2425.6 (0%)
Closing Price On: Aug 18, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Business Information Services
Sector :
Business Services
5 Quarter Revenue
Revenue Growth
2017-Q2
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
19.9%
Sector Average:
8.7%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
230M
Debt/Equity Ratio:
 0.31
Compared to the industry
Cash Flow
Operating cash flow:
$55.7M
Net Income:
$46.1M
Dividend Yield
MORN dividend yield:
1.1%
PROS      CONS
Operating Margins
Net Margins
Low Debt Burden
ROIC
ROE
FCF Margin
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
MORN PS :
4.1
Industry PS :
1.6
Sector:   Business Services.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
20.6%
Return on Equity:
23.8%
Free Cash Flow Margin:
16%
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Morningstar Analysis Video

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View Morningstar stock analysis video. This is our MORN analyst opinion covering the buy and sell arguments for MORN stock.

Morningstar, Inc. Stock Rating (3.4/5)

Our Morningstar stock opinion is based on fundamentals of the company. This Morningstar stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy MORN stock?

  • Morningstar's average operating margin of 19.9% was exceptional.
  • LTM Net margins were good at 19.4% for Morningstar.
  • With its debt/equity ratio of  0.31, Morningstar has a lower debt burden when compared to the Business Services average.
  • Morningstar generates a high return on invested capital of 20.6%.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Morningstar at 23.8%.
  • The company has a good Free Cash Flow (FCF) margin of 16%.

Should you sell MORN stock?

  • Trading at a PE ratio of 32.1, MORN stock is overvalued in comparison to industry average multiple of 21.8.
  • The company is trading at a price to sales multiple of 4.1, which is higher in comparison to the Business Information Services industry average of 1.6, making MORN stock expensive.

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