Morningstar is a Chicago-based financial services firm that specializes in investment research, data, and investment management services. The company counts among its clients’ investors, asset managers, financial planners, and financial institutions. Most of Morningstar’s revenue comes from the United States. If you are someone looking for a financial stock to buy now, then Morningstar is a candidate for further analysis. Financial stocks, especially banks, had taken a beating during the initial months of the pandemic outbreak. However, with the situation now stabilizing and interest rates inching up, things are starting to turn around for the sector. This might be a good time to take a long position in the financial services industry.
More Information About Morningstar Inc
Morningstar employs close to 8,000 people. Over the last three years, the company has grown its revenues from around $1 billion to almost $1.4 billion. The healthy growth rate in the top line hasn’t quite filtered down to the bottom line, with earnings per share on a diluted basis coming in at $4.25 per share in 2018, $3.52 per share in 2019, and $5.18 per share in 2020. Morningstar was founded in the year 1984 by Joe Mansueto, an analyst who got the idea while reviewing mutual fund annual reports. In 1991, Morningstar received an investment of $91 million from a major Japanese SoftBank. The company parted with a 20% stake in return for the investment. Morningstar went public in 2005 and has since grown by 400%. More on the stock price in the next section. However, Morningstar continues to be one of the best financial stocks to invest in right now.
Morningstar’s stock has had a decent year. It is up 93% on a 1-year basis. Over a longer 5-year period, the stock is up more than 150%. The stock was trading around $226 on 26th March 2021 with a dividend yield of 0.56%. The market capitalization of Morningstar at the close of day on 26th March 2021 was $9.71 billion. The price of the stock was not far from its 52-week high of $255.