Over the past week, Morningstar Inc (MORN, Financial) has seen a significant gain of 7.97% in its stock price, bringing it to a current price of $250.42. This gain is part of a larger trend, with the stock experiencing a 13.85% increase over the past three months. The company's market cap now stands at $10.68 billion. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. Currently, the GF Value of Morningstar Inc is $306.47, up from $297.78 three months ago. This indicates that the stock is modestly undervalued, an improvement from being significantly undervalued three months ago.
Company Introduction
Morningstar Inc is a leading player in the Capital Markets industry. The company provides independent investment research to financial advisers, asset managers, and investors. Morningstar Inc focuses its operations on two core sectors: data and research. It offers data on investments such as mutual funds, stocks, exchange-traded funds, closed-end funds, separate accounts, and variable annuities. Additionally, the company tracks real-time market data of equity, derivative, and currency exchanges and other investments. In its research operation, Morningstar offers analyst research on passive and active mutual funds, alternative funds, and college saving plans. The majority of Morningstar's revenue is generated in the United States of America. 
Profitability Analysis
Morningstar Inc boasts a high Profitability Rank of 9/10, indicating a high level of profitability. The company's Operating Margin is 6.42%, which is better than 47.38% of companies in the same industry. Furthermore, the company's ROE, ROA, and ROIC are better than 39.71%, 43.9%, and 50.97% of companies in the same industry, respectively. These ratios indicate that Morningstar Inc has been consistently profitable over the past 10 years, outperforming 99.87% of companies in the industry. 
Growth Prospects
Morningstar Inc has a Growth Rank of 10/10, indicating a high level of growth. The company's 3-year and 5-year revenue growth rates per share are better than 68.53% and 76.23% of companies in the same industry, respectively. However, the company's 3-year and 5-year EPS without NRI growth rates are better than only 17.59% and 12.57% of companies in the same industry, respectively. This suggests that while the company has seen significant revenue growth, its earnings growth has been somewhat lagging. 
Top Holders
The top three holders of Morningstar Inc's stock are Ron Baron (Trades, Portfolio), Jim Simons (Trades, Portfolio), and Chuck Royce (Trades, Portfolio). Ron Baron (Trades, Portfolio) holds the largest number of shares, with 1,228,417 shares, representing 2.88% of the company's stock. Jim Simons (Trades, Portfolio) holds 292,800 shares, representing 0.69% of the company's stock. Chuck Royce (Trades, Portfolio) holds 196,277 shares, representing 0.46% of the company's stock.
Competitors
Morningstar Inc faces competition from several companies in the Capital Markets industry. These include Dun & Bradstreet Holdings Inc (DNB, Financial) with a market cap of $4.08 billion, Cboe Global Markets Inc (CBOE, Financial) with a market cap of $17.35 billion, and FactSet Research Systems Inc (FDS, Financial) with a market cap of $16.48 billion.
Conclusion
In conclusion, Morningstar Inc's stock has seen a significant increase over the past three months, with the company's GF Value indicating that the stock is currently modestly undervalued. The company has a high level of profitability and growth, and it holds a strong position in the Capital Markets industry. However, it faces competition from several other companies in the industry. Despite this, the company's consistent profitability and strong growth prospects make it a compelling option for investors.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
