Morningstar Stock Analysis, Valuation (NASDAQ:MORN)
Morningstar Stock Analysis
View Morningstar stock analysis video. This is our analyst opinion covering the buy and sell arguments for MORN stock.
Morningstar, Inc. Stock Rating 3.5/5
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.
- Net margins came in at average 19.4% for Morningstar over the last twelve months.
- With its debt/equity ratio of 0.31, Morningstar has a lower debt burden when compared to the Business Services average.
- Morningstar's return on invested capital of 20.6% is good.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Morningstar at 23.8%.
- The company has a healthy free cash flow margin of 16%.
Should you sell MORN stock?
- The MORN stock currently trades at a PE of 32.7, which is expensive, compared to the industry average of 23.1.
- The company is trading at a price to sales multiple of 4.2, which is higher in comparison to the Business Information Services industry average of 1.6, making MORN stock expensive.