Morningstar: Have We Reached Fair Value Yet?

Sep. 26, 2022 7:44 PM ETMorningstar, Inc. (MORN)SPGI
Daniel Schönberger profile picture
Daniel Schönberger


  • Morningstar is still reporting solid growth rates for revenue as well as earnings per share.
  • The acquisition of the LCD business from S&P Global had a negative effect on the balance sheet, but is no reason to worry.
  • While Morningstar might be almost fairly valued, I still see a huge downside risk for the stock in the coming quarters.
  • Potential entry points might be around $150 to $165 or between $85 and $100 - despite these prices seeming unrealistic right now.

Ratings on bonds


In March 2022, I published my last article about Morningstar, Inc. (NASDAQ:MORN) and stated that Morningstar was still too expensive. Back then, the stock was trading for $283, and now at the time of writing Morningstar is trading for $215 – a decline

Morningstar could report solid second-quarter results

Morningstar Q2/22 Presentation

Quarterly revenue growth trends for the last 10 quarters

Morningstar Q2/22 Presentation

Especially PitchBook could report high growth rates und double revenue in the last two years

Morningstar Q2/22 Presentation

Morningstar acquired LCD from S&P Global

Morningstar LCD Acquisition Presentation

Morningstar: Gross margin as well as operating margin are declining in the last few quarters

Morningstar Q2/22 Presentation

Data by YCharts

Data by YCharts

Analysts are expecting high growth rates for the next few years for EPS

Seeking Alpha Earnings Estimates

Morningstar: Strong support levels for Morningstar at $85 to $100


This article was written by

Daniel Schönberger profile picture
Part-time investor and contributor for Seeking Alpha since 2016. My analysis is focused on high-quality companies, that can outperform the market over the long-run due to a competitive advantage (economic moat) and high levels of defensibility. Focused on European and North American companies, but without constraints regarding market capitalization (from large cap to small cap companies). My academic background is in sociology and I hold a Master’s Degree in Sociology (with main emphasis on organizational and economic sociology) and a Bachelor’s Degree in Sociology and History.I also write about investing, economy and similar topics on Medium:

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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