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Morningstar

DB:MRS
Snowflake Description

Mediocre balance sheet with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MRS
DB
$5B
Market Cap
  1. Home
  2. DE
  3. Diversified Financials
Company description

Morningstar, Inc. provides independent investment research services in North America, Europe, Australia, Canada, Asia, and internationally. The last earnings update was 31 days ago. More info.


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  • Morningstar has significant price volatility in the past 3 months.
MRS Share Price and Events
7 Day Returns
-0.9%
DB:MRS
-6.8%
DE Capital Markets
-2.7%
DE Market
1 Year Returns
-
DB:MRS
-11.8%
DE Capital Markets
-20.4%
DE Market
MRS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Morningstar (MRS) -0.9% -25.9% - - 44.6% 61.2%
DE Capital Markets -6.8% -21.9% -18% -11.8% -29% -57.8%
DE Market -2.7% -18.4% -26.7% -20.4% -25.9% -30.4%
1 Year Return vs Industry and Market
  • No trading data on MRS.
  • No trading data on MRS.
Price Volatility
MRS
Industry
5yr Volatility vs Market

MRS Value

 Is Morningstar undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Morningstar to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Morningstar.

DB:MRS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $20.44 * 18.9%
$3.86
Book Value of Equity per Share Median Book Value from the past 5 years. $20.44
Discount Rate (Cost of Equity) See below 4.4%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:MRS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.75
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.747 (1 + (1- 21%) (13.86%))
0.885
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.89
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (0.885 * 5.44%)
4.43%

Discounted Cash Flow Calculation for DB:MRS using Excess Returns Model Model

The calculations below outline how an intrinsic value for Morningstar is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

DB:MRS Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (18.9% – 4.43%) * $20.44)
$2.96
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $2.96 / (4.43% - -0.39%)
$61.39
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $20.44 + $61.39
$81.83
DB:MRS Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:MRS represents 0.96889x of NasdaqGS:MORN
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.96889x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 81.83 x 0.96889
€79.29
Value per share (EUR) From above. €79.29
Current discount Discount to share price of €109.00
= -1 x (€109.00 - €79.29) / €79.29
-37.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Morningstar is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Morningstar's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Morningstar's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:MRS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $3.56
NasdaqGS:MORN Share Price ** NasdaqGS (2020-03-31) in USD $112.5
Germany Capital Markets Industry PE Ratio Median Figure of 17 Publicly-Listed Capital Markets Companies 22.18x
Germany Market PE Ratio Median Figure of 401 Publicly-Listed Companies 16.15x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Morningstar.

DB:MRS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:MORN Share Price ÷ EPS (both in USD)

= 112.5 ÷ 3.56

31.6x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Morningstar is overvalued based on earnings compared to the DE Capital Markets industry average.
  • Morningstar is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Morningstar's expected growth come at a high price?
Raw Data
DB:MRS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 31.6x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Germany Capital Markets Industry PEG Ratio Median Figure of 7 Publicly-Listed Capital Markets Companies 1.55x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.17x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Morningstar, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Morningstar's assets?
Raw Data
DB:MRS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $25.29
NasdaqGS:MORN Share Price * NasdaqGS (2020-03-31) in USD $112.5
Germany Capital Markets Industry PB Ratio Median Figure of 32 Publicly-Listed Capital Markets Companies 1.55x
Germany Market PB Ratio Median Figure of 572 Publicly-Listed Companies 1.44x
DB:MRS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:MORN Share Price ÷ Book Value per Share (both in USD)

= 112.5 ÷ 25.29

4.45x

* Primary Listing of Morningstar.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Morningstar is overvalued based on assets compared to the DE Capital Markets industry average.
X
Value checks
We assess Morningstar's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. Morningstar has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MRS Future Performance

 How is Morningstar expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Morningstar has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
40%
Expected Capital Markets industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Morningstar expected to grow at an attractive rate?
  • Unable to compare Morningstar's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Morningstar's earnings growth to the Germany market average as no estimate data is available.
  • Unable to compare Morningstar's revenue growth to the Germany market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
DB:MRS Future Growth Rates Data Sources
Data Point Source Value (per year)
Germany Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 40%
Germany Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 0.9%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.3%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:MRS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:MRS Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 1,179 334 152
2019-09-30 1,109 357 167
2019-06-30 1,057 331 175
2019-03-31 1,035 314 174
2018-12-31 1,020 315 183
2018-09-30 1,000 295 180
2018-06-30 969 278 157
2018-03-31 946 264 161
2017-12-31 912 250 137
2017-09-30 881 235 168
2017-06-30 847 233 165
2017-03-31 816 249 150

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Morningstar is high growth as no earnings estimate data is available.
  • Unable to determine if Morningstar is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:MRS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Morningstar Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:MRS Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 3.56
2019-09-30 3.91
2019-06-30 4.09
2019-03-31 4.09
2018-12-31 4.30
2018-09-30 4.22
2018-06-30 3.68
2018-03-31 3.77
2017-12-31 3.21
2017-09-30 3.93
2017-06-30 3.83
2017-03-31 3.50

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Morningstar will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Take a look at our analysis of MRS’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  2. Morningstar's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Diversified Financials companies here
  3. Morningstar's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Morningstar's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Morningstar has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MRS Past Performance

  How has Morningstar performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Morningstar's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Morningstar's year on year earnings growth rate has been positive over the past 5 years.
  • Morningstar's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Morningstar's 1-year earnings growth is negative, it can't be compared to the DE Capital Markets industry average.
Earnings and Revenue History
Morningstar's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Morningstar Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:MRS Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 1,179.00 152.00 388.60
2019-09-30 1,109.30 166.80 350.70
2019-06-30 1,056.80 174.60 320.70
2019-03-31 1,035.30 174.30 306.40
2018-12-31 1,019.90 183.00 296.30
2018-09-30 1,000.30 179.50 288.00
2018-06-30 968.90 156.50 281.20
2018-03-31 945.70 160.80 272.20
2017-12-31 911.70 136.90 264.10
2017-09-30 880.80 168.30 249.00
2017-06-30 847.00 164.60 233.50
2017-03-31 816.00 150.30 217.50
2016-12-31 798.60 161.00 202.80
2016-09-30 788.00 128.00 197.20
2016-06-30 787.20 131.30 197.60
2016-03-31 791.10 131.60 200.10
2015-12-31 788.80 132.60 203.70
2015-09-30 783.60 126.80 207.70
2015-06-30 781.40 123.50 211.50
2015-03-31 768.70 81.60 217.00
2014-12-31 760.10 78.30 220.00
2014-09-30 744.20 78.12 219.83
2014-06-30 724.58 79.37 211.92
2014-03-31 710.61 120.29 209.68
2013-12-31 698.30 123.50 210.50
2013-09-30 688.38 120.06 215.87
2013-06-30 675.85 115.61 220.38 -25.81

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Morningstar has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Morningstar used its assets more efficiently than the DE Capital Markets industry average last year based on Return on Assets.
  • Morningstar's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Morningstar's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Morningstar has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MRS Health

 How is Morningstar's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Morningstar's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Morningstar is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Morningstar's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Morningstar's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Morningstar Company Filings, last reported 3 months ago.

DB:MRS Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 1,083.60 513.10 367.50
2019-09-30 1,041.90 545.80 352.80
2019-06-30 1,003.40 15.00 413.90
2019-03-31 968.20 30.00 378.60
2018-12-31 934.70 70.00 395.90
2018-09-30 927.60 90.00 366.70
2018-06-30 871.40 125.00 351.90
2018-03-31 858.30 150.00 355.40
2017-12-31 804.90 180.00 353.30
2017-09-30 779.20 205.00 324.00
2017-06-30 739.10 230.00 339.60
2017-03-31 718.70 235.00 317.50
2016-12-31 696.80 250.00 304.00
2016-09-30 662.00 60.00 265.10
2016-06-30 639.40 75.00 246.20
2016-03-31 630.50 75.00 226.70
2015-12-31 640.60 35.00 248.60
2015-09-30 680.10 0.00 263.00
2015-06-30 669.90 35.00 258.60
2015-03-31 661.00 45.00 241.70
2014-12-31 654.40 30.00 224.60
2014-09-30 670.52 30.02 227.81
2014-06-30 668.66 0.00 219.45
2014-03-31 696.72 0.00 262.47
2013-12-31 691.29 0.00 298.57
2013-09-30 758.48 0.00 341.38
2013-06-30 717.28 0.00 313.28
  • Morningstar's level of debt (47.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (4.6% vs 47.4% today).
  • Debt is well covered by operating cash flow (65.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 21.8x coverage).
X
Financial health checks
We assess Morningstar's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Morningstar has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MRS Dividends

 What is Morningstar's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.07%
Current annual income from Morningstar dividends.
If you bought €2,000 of Morningstar shares you are expected to receive €21 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Morningstar's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.65%).
  • Morningstar's dividend is below the markets top 25% of dividend payers in Germany (4.86%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:MRS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Germany Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 3.3%
Germany Market Average Dividend Yield Market Cap Weighted Average of 320 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:MRS Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-12-06 1.200 0.838
2019-10-04 1.120 0.723
2019-05-17 1.120 0.749
2019-02-26 1.120 0.867
2018-12-14 1.120 0.962
2018-10-05 1.000 0.846
2018-05-18 1.000 0.764
2018-02-27 1.000 0.992
2017-12-08 1.000 1.039
2017-10-06 0.920 1.042
2017-05-12 0.920 1.158
2017-02-24 0.920 1.188
2016-12-09 0.920 1.211
2016-09-30 0.880 1.202
2016-05-13 0.880 1.072
2016-02-26 0.880 1.046
2015-12-04 0.880 1.117
2015-09-25 0.760 0.939
2015-05-12 0.760 0.946
2015-02-13 0.760 1.014
2014-12-05 0.760 1.153
2014-09-26 0.680 1.020
2014-05-13 0.680 0.978
2014-02-14 0.680 0.872
2013-12-06 0.680 0.868
2013-11-06 0.500 0.604
2013-10-23 0.500 0.628
2012-12-07 0.500 0.705
2011-12-09 0.400 0.667
2010-10-27 0.200 0.353

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Morningstar has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Morningstar only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Morningstar's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.1x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Morningstar's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Morningstar afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Morningstar has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MRS Management

 What is the CEO of Morningstar's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Kunal Kapoor
COMPENSATION $3,468,355
AGE 44
TENURE AS CEO 3.3 years
CEO Bio

Mr. Kunal Kapoor, CFA, has been the President of Morningstar, Inc. since October 2015 and has been its Chief Executive Officer since January 1, 2017. Mr. Kapoor is responsible for product development and innovation, sales and marketing and driving strategic prioritization and accountability across the Morningstar Inc. He serves as the President of Morningstar Investment Services Inc. He serves as the Head of Information Products and Client Solutions at Morningstar Inc. from January 23, 2014 to October 2015. He served as the President of Data Division at Morningstar Inc. since June 4, 2012. He served as Interim Chief Financial Officer of Morningstar, Inc. from March 10, 2017 to July 24, 2017. He served as the President of Individual Investor Software of Morningstar Inc. He served as the Head of Client Solutions of Morningstar Inc. from 2013 to January 23, 2014. He served as the Head of International Business Unit of Morningstar Inc. from February 2006 to February 2009. He served as a Director of Mutual Fund Analysis of Morningstar Inc. since 2004 and was responsible for generating and expanding new business outside the U.S. He joined Morningstar Inc. in 1997 as a Data Analyst and became a Fund Analyst in 1998. In 2001, he joined Morningstar Investment Services as a Senior Research Analyst. He served as the Chief Investment Officer of Morningstar Investment Services since 2007. He was named Editor of Morningstar Mutual Funds in 2003. In 2006, he served as Director of Business Strategy for Morningstar's International Operations. He serves as a Director of Morningstar, Inc. since January 1, 2017. He serves as a Director of PitchBook Data, Inc. He also holds the Chartered Financial Analyst designation. Mr. Kapoor holds Bachelor's degree in Economics and Environmental Policy from Monmouth College and Master's degree in Business Administration from The University of Chicago Graduate School of Business.

CEO Compensation
  • Kunal's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Kunal's remuneration is about average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Morningstar management team in years:

3.3
Average Tenure
50
Average Age
  • The tenure for the Morningstar management team is about average.
Management Team

Kunal Kapoor

TITLE
President
COMPENSATION
$3M
AGE
44
TENURE
3.3 yrs

Jason Dubinsky

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
46
TENURE
2.8 yrs

Danny Dunn

TITLE
Chief Revenue Officer
COMPENSATION
$1M
AGE
43
TENURE
3.3 yrs

Haywood Kelly

TITLE
Head of Global Research
COMPENSATION
$1M
AGE
50
TENURE
6.3 yrs

Joe Mansueto

TITLE
Executive Chairman of the Board
COMPENSATION
$105K
AGE
63
TENURE
35.9 yrs

Kimberly McGarry

TITLE
Global Controller & Chief Accounting Officer
AGE
67
TENURE
1.9 yrs

James Rhodes

TITLE
Chief Technology Officer
TENURE
1.8 yrs

Barb Noverini

TITLE

Pat Maloney

TITLE
General Counsel
AGE
61
TENURE
3.8 yrs

Stephanie Lerdall

TITLE
Senior Manager of Media Relations
Board of Directors Tenure

Average tenure and age of the Morningstar board of directors in years:

11.4
Average Tenure
63
Average Age
  • The average tenure for the Morningstar board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Joe Mansueto

TITLE
Executive Chairman of the Board
COMPENSATION
$105K
AGE
63
TENURE
36.3 yrs

Cheryl Francis

TITLE
Independent Director
COMPENSATION
$225K
AGE
65
TENURE
17.8 yrs

Kunal Kapoor

TITLE
President
COMPENSATION
$3M
AGE
44
TENURE
3.3 yrs

Steve Kaplan

TITLE
Independent Director
COMPENSATION
$215K
AGE
58
TENURE
20.7 yrs

Bill Lyons

TITLE
Independent Director
COMPENSATION
$215K
AGE
63
TENURE
12.6 yrs

Jack Noonan

TITLE
Independent Director
COMPENSATION
$200K
AGE
72
TENURE
20.7 yrs

Hugh Zentmyer

TITLE
Independent Director
COMPENSATION
$200K
AGE
73
TENURE
10.3 yrs

Gail Landis

TITLE
Independent Director
COMPENSATION
$205K
AGE
66
TENURE
6.9 yrs

Robin Diamonte

TITLE
Independent Director
COMPENSATION
$200K
AGE
54
TENURE
4.3 yrs

Caroline Tsay

TITLE
Independent Director
COMPENSATION
$200K
AGE
37
TENURE
2.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
21. Nov 19 Sell Jason Dubinsky Individual 20. Nov 19 20. Nov 19 -1,100 €143.02 €-157,321
X
Management checks
We assess Morningstar's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Morningstar has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MRS News

Simply Wall St News

MRS Company Info

Description

Morningstar, Inc. provides independent investment research services in North America, Europe, Australia, Canada, Asia, and internationally. It offers a line of data, research, and software tools on a range of investment offerings, including managed investment products, publicly listed companies, fixed income securities, private capital markets, and real-time global market data for financial advisors, asset managers, retirement plan providers and sponsors, and individual and institutional investors. The company offers Morningstar Data, an investment data spanning various investment databases, including equity fundamentals, managed investments, and real-time pricing and market data; Morningstar Direct, an investment-analysis platform; Morningstar Managed Portfolios, an advisor service consisting of model portfolio that offers services for institutional asset management, as well as offers asset allocation services for asset management firms, broker-dealers, and insurance providers; Morningstar Advisor Workstation, a Web-based investment planning system; and Morningstar.com, a Website for individual investors. It also provides Morningstar Enterprise Components; Morningstar Research, which includes equity research and manager research; Morningstar Credit Ratings that provides new issue and surveillance ratings for structured finance securities, as well as corporate issuers and financial institutions, individual debt issuances, and operational risk assessment services; Morningstar Indexes for creating investment products; and Morningstar workplace solutions, such as retirement accounts, fiduciary services, and custom models. In addition, the company’s PitchBook offers a mobile application, excel plug-in, data feeds, and data solutions. Morningstar, Inc. was founded in 1984 and is headquartered in Chicago, Illinois.

Details
Name: Morningstar, Inc.
MRS
Exchange: DB
Founded: 1984
$4,560,741,386
42,853,091
Website: http://www.morningstar.com
Address: Morningstar, Inc.
22 West Washington Street,
Chicago,
Illinois, 60602,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS MORN Common Stock Nasdaq Global Select US USD 03. May 2005
DB MRS Common Stock Deutsche Boerse AG DE EUR 03. May 2005
Number of employees
Current staff
Staff numbers
6,737
Morningstar employees.
Industry
Financial Exchanges and Data
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/02 22:08
End of day share price update: 2020/03/31 00:00
Last earnings filing: 2020/03/02
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.