What changed
$MORN — BUY 📊
Morningstar, Inc.
🎯 Q1 FY26 | Rev $1B | EPS $3.18 vs $2.66 🟢
💡 Consensus expects a gradual margin recovery but remains cautious after the 1.4pp Adj. Operating Margin decline in Direct. The variant view is that these investments are front-loaded and will generate compounding growth, causing forward EPS estimates (current $12.00–$12.50) to be revised significantly higher, with the stock re-rating from a...
📉 Reward/Risk: 2.2:1
🏢 Business Quality: 8/10 - Wide economic moat: dominant provider of investment data and research, high recurring revenue (80%+), strong brand, and switching costs. Diversified across PitchBook, Direct, and DBRS. Temporary margin compression due to growth investment.
📊 Valuation: cheap - Relative to own history (5-year median P/E ~22x) and peers like FactSet (25x) and MSCI (30x).
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/MORN0618