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Is this Large Market Cap Stock target price reasonable for Morningstar Inc. (NASDAQ:MORN)?

The company in question is, Morningstar Inc. (NASDAQ:MORN) currently with a stock price of 75.74 (0.54% today). The market cap for Morningstar Inc. is 3262.54, and is in the sector Technology, and Information & Delivery Services industry. The target price for Morningstar Inc. is 75. Currently Morningstar Inc. is trading with a P/E of 25.08, and a forward P/E of 22.55. Average volume for Morningstar Inc. is 76.31 and so far today it is 23769.

Performance in the last year for Morningstar Inc. has been -5.76%. For EPS growth, Morningstar Inc. has seen a growth of 71.70%, and is looking to grow in the next year to 9.87%. More long term stats show that EPS growth has been 12.00% over the last five years and could be 16.00% for the next five years. Morningstar Inc. has seen sales growth quarter over quarter at -1.90%, with EPS growth quarter over quarter at 1.30%. The 20-day simple moving average is -6.03%, with the 200-day simple moving average coming to -6.72%.

Since the IPO date for Morningstar Inc. on the 05/03/2005, Morningstar Inc. has seen performance year to date to be -5.30%. With Morningstar Inc. trading at 75.74, the dividend yield is 1.17%, and the EPS is 3.

So could Morningstar Inc., be undervalued? Well as said before P/E is 25.08. The PEG is 1.57, P/S is 4.14 and the P/B is at 5.07. The P/cash is 13.25, with P/free cash flow at 68.83.

Morningstar Inc. ability to deal with debt shows that the current ratio is 1.2, and the quick ratio is 1.2. This is with long term debt/equity at 0, and total debt/equity at 0.12.

In terms of margins, Morningstar Inc. has a gross margin of 56.80%, an operating margin of 23.20% and a profit margin of 16.70%.Payout ratio for Morningstar Inc. is 28.20%. Return on assets come to 12.70% with return on investment coming to 18.90%.

Insider ownership for Morningstar Inc., is at 1.80% and institutional ownership comes to 40.90%. Outstanding shares are at 43.31. While shares float is 18.18. The float short is currently 0.45%, and short ratio is 1.06.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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