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MORN

9/9 Score

Morningstar, Inc.

Analysis Date: February 20, 2026

Morningstar, Inc. provides independent investment research services in North America, Europe, Australia, and Asia. The company offers web-based tools; investment data, fundamental equity and manager research, private capital markets research, credit and fund rating, and index, as well as environmental, social, and governance (ESG) rating services; and investment offerings, including managed investment products, publicly listed and private companies, fixed income securities, and real-time global market data for financial advisors, asset managers, retirement plan providers and sponsors, and individual and institutional investors. It also provides Morningstar Data, an investment data spanning various databases, including equity fundamentals, managed investments, ESG factors, and market data; Morningstar Direct, an investment-analysis platform; Morningstar Managed Portfolios, an advisor service consisting of model portfolio that offers services for independent financial advisors, as well as offers asset allocation services for asset managers, broker/dealers, and insurance providers; Morningstar Advisor Workstation, a web-based research, financial planning, and proposal generation platform; and Morningstar.com, a website for individual investors. In addition, the company offers Morningstar Enterprise Components; Morningstar Credit Ratings that provides issuance and surveillance services for structured finance products and instruments; corporate credit estimates and operational risk assessment rankings; Morningstar Indexes for creating investment products; Morningstar workplace solutions, such as retirement accounts, fiduciary services, allocation funds, and custom models; and PitchBook Platform, research and analysis workstation for investment and research professionals. Further, its PitchBook provides a mobile application, excel plug-in, data feeds, and data solutions. The company was incorporated in 1984 and is headquartered in Chicago, Illinois.

Buffettology Criteria

All 9 of 9 criteria passed

  • High ROE

    Return on Equity > 12%

    Value: 25.1%

  • High ROIC

    Return on Invested Capital > 9%

    Value: 15.4%

  • Cash Machine

    FCF / Assets > 5%

    Value: 12.3%

  • Fair Valuation

    Earnings Yield > 3.5%

    Value: 5.8%

  • Share Buybacks

    Share Count is Dropping

    Value: -2.1%

  • Defensible Moat

    Gross Profit Margin > 40%

    Value: 59.1%

  • Simple Business

    Not in a speculative sector (e.g., Biotech)

    Value: Financial Services

  • Conservative Debt

    Debt to Equity < 1.5

    Value: 1.15x

  • Consistent Growth

    5-Year Growth is Positive

    Value: 71.3%

Analysis Summary

This business, Morningstar, appears to be a well-oiled machine. The strong ROE and ROIC, coupled with a tight grip on debt and a wide moat, suggest a company built to last. While the growth rate is impressive, I'll keep a close eye on how they continue to deploy their cash and whether this consistency can endure through economic cycles.

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