The morningstar analysis you see on CMC are fully automated and...

The morningstar analysis you see on CMC are fully automated and quantitative, based on an algorithm. While this might work well for larger companies that are quite similar to each other, it will be less reliable for companies on the fringes (resource explorer, early stage tech companies, etc) where "normal" fundamentals can't be applied in the valuation. These edge cases often have very different dynamics on valuation.


Here is what they say about it themselves:
https://www.morningstar.com/articles/846168/introducing-morningstars-quantitative-equity-ratin.html