S&P GLOBAL INC (SPGI) Stock Fundamental Analysis
NYSE:SPGI - New York Stock Exchange, Inc. - US78409V1044 - Common Stock - Currency: USD
Taking everything into account, SPGI scores 5 out of 10 in our fundamental rating. SPGI was compared to 225 industry peers in the Capital Markets industry. While SPGI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SPGI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
SPGI had positive earnings in the past year.
SPGI had a positive operating cash flow in the past year.
Each year in the past 5 years SPGI has been profitable.
Each year in the past 5 years SPGI had a positive operating cash flow.
1.2 Ratios
SPGI has a Return On Assets of 6.40%. This is in the better half of the industry: SPGI outperforms 76.71% of its industry peers.
SPGI has a better Return On Equity (11.62%) than 63.93% of its industry peers.
With an excellent Return On Invested Capital value of 8.45%, SPGI belongs to the best of the industry, outperforming 81.28% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SPGI is in line with the industry average of 6.84%.
The 3 year average ROIC (7.04%) for SPGI is below the current ROIC(8.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.4% | ||
| ROE | 11.62% | ||
| ROIC | 8.45% |
ROA(3y)5.33%
ROA(5y)10.95%
ROE(3y)9.41%
ROE(5y)127.31%
ROIC(3y)7.04%
ROIC(5y)17.3%
1.3 Margins
SPGI's Profit Margin of 27.12% is fine compared to the rest of the industry. SPGI outperforms 66.21% of its industry peers.
SPGI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 40.68%, SPGI is in the better half of the industry, outperforming 69.41% of the companies in the same industry.
In the last couple of years the Operating Margin of SPGI has declined.
SPGI's Gross Margin of 69.09% is fine compared to the rest of the industry. SPGI outperforms 73.06% of its industry peers.
In the last couple of years the Gross Margin of SPGI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.68% | ||
| PM (TTM) | 27.12% | ||
| GM | 69.09% |
OM growth 3Y-9.24%
OM growth 5Y-3.73%
PM growth 3Y-9.39%
PM growth 5Y-3.07%
GM growth 3Y-2.06%
GM growth 5Y-1.12%
2. Health
2.1 Basic Checks
The number of shares outstanding for SPGI has been reduced compared to 1 year ago.
Compared to 5 years ago, SPGI has more shares outstanding
The debt/assets ratio for SPGI has remained at the same level compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.66 indicates that SPGI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.66, SPGI belongs to the top of the industry, outperforming 85.39% of the companies in the same industry.
SPGI has a debt to FCF ratio of 2.05. This is a good value and a sign of high solvency as SPGI would need 2.05 years to pay back of all of its debts.
SPGI has a better Debt to FCF ratio (2.05) than 83.11% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that SPGI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.34, SPGI is in the better half of the industry, outperforming 74.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.05 | ||
| Altman-Z | 4.66 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
SPGI has a Current Ratio of 0.85. This is a bad value and indicates that SPGI is not financially healthy enough and could expect problems in meeting its short term obligations.
SPGI has a Current ratio (0.85) which is in line with its industry peers.
A Quick Ratio of 0.85 indicates that SPGI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.85, SPGI is in line with its industry, outperforming 40.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.58% over the past year.
SPGI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.51% yearly.
The Revenue has grown by 13.68% in the past year. This is quite good.
The Revenue has been growing by 16.23% on average over the past years. This is quite good.
EPS 1Y (TTM)24.58%
EPS 3Y4.67%
EPS 5Y10.51%
EPS Q2Q%20.45%
Revenue 1Y (TTM)13.68%
Revenue growth 3Y19.64%
Revenue growth 5Y16.23%
Sales Q2Q%13.96%
3.2 Future
SPGI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.24% yearly.
Based on estimates for the next years, SPGI will show a small growth in Revenue. The Revenue will grow by 5.89% on average per year.
EPS Next Y11.67%
EPS Next 2Y11.87%
EPS Next 3Y11.93%
EPS Next 5Y9.24%
Revenue Next Year6.91%
Revenue Next 2Y7.13%
Revenue Next 3Y7.27%
Revenue Next 5Y5.89%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
SPGI is valuated quite expensively with a Price/Earnings ratio of 33.69.
74.89% of the companies in the same industry are cheaper than SPGI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SPGI to the average of the S&P500 Index (29.75), we can say SPGI is valued inline with the index average.
A Price/Forward Earnings ratio of 30.17 indicates a quite expensive valuation of SPGI.
72.60% of the companies in the same industry are cheaper than SPGI, based on the Price/Forward Earnings ratio.
SPGI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.69 | ||
| Fwd PE | 30.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SPGI is valued a bit cheaper than the industry average as 67.12% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SPGI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.28 | ||
| EV/EBITDA | 25.02 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SPGI does not grow enough to justify the current Price/Earnings ratio.
SPGI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.89
PEG (5Y)3.2
EPS Next 2Y11.87%
EPS Next 3Y11.93%
5. Dividend
5.1 Amount
With a yearly dividend of 0.73%, SPGI is not a good candidate for dividend investing.
SPGI's Dividend Yield is slightly below the industry average, which is at 8.69.
Compared to an average S&P500 Dividend Yield of 2.30, SPGI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
5.2 History
The dividend of SPGI is nicely growing with an annual growth rate of 9.40%!
SPGI has been paying a dividend for at least 10 years, so it has a reliable track record.
SPGI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.4%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
SPGI pays out 29.43% of its income as dividend. This is a sustainable payout ratio.
The dividend of SPGI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP29.43%
EPS Next 2Y11.87%
EPS Next 3Y11.93%
529.31
-4.43 (-0.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners90.06%
Inst Owner Change-0.49%
Ins Owners0.03%
Ins Owner Change0.76%
Market Cap162.92B
Analysts85.33
Price Target617.91 (16.74%)
Short Float %0.96%
Short Ratio2.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Yearly Dividend3.56
Dividend Growth(5Y)9.4%
DP29.43%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.47%
Min EPS beat(2)4.68%
Max EPS beat(2)6.25%
EPS beat(4)4
Avg EPS beat(4)6.69%
Min EPS beat(4)4.68%
Max EPS beat(4)8.53%
EPS beat(8)6
Avg EPS beat(8)3.88%
EPS beat(12)8
Avg EPS beat(12)1.93%
EPS beat(16)11
Avg EPS beat(16)3.05%
Revenue beat(2)2
Avg Revenue beat(2)1.34%
Min Revenue beat(2)0.53%
Max Revenue beat(2)2.14%
Revenue beat(4)4
Avg Revenue beat(4)1.12%
Min Revenue beat(4)0.09%
Max Revenue beat(4)2.14%
Revenue beat(8)6
Avg Revenue beat(8)0.44%
Revenue beat(12)6
Avg Revenue beat(12)-1.83%
Revenue beat(16)9
Avg Revenue beat(16)-0.88%
PT rev (1m)3.03%
PT rev (3m)3.97%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)0.99%
EPS NY rev (1m)1.67%
EPS NY rev (3m)2.26%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)0.99%
Revenue NY rev (1m)0.8%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.69 | ||
| Fwd PE | 30.17 | ||
| P/S | 11.47 | ||
| P/FCF | 29.28 | ||
| P/OCF | 28.64 | ||
| P/B | 4.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.02 |
EPS(TTM)15.71
EY2.97%
EPS(NY)17.54
Fwd EY3.31%
FCF(TTM)18.08
FCFY3.42%
OCF(TTM)18.48
OCFY3.49%
SpS46.16
BVpS107.73
TBVpS-59.5
PEG (NY)2.89
PEG (5Y)3.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.4% | ||
| ROE | 11.62% | ||
| ROCE | 10.74% | ||
| ROIC | 8.45% | ||
| ROICexc | 8.72% | ||
| ROICexgc | 678.55% | ||
| OM | 40.68% | ||
| PM (TTM) | 27.12% | ||
| GM | 69.09% | ||
| FCFM | 39.17% |
ROA(3y)5.33%
ROA(5y)10.95%
ROE(3y)9.41%
ROE(5y)127.31%
ROIC(3y)7.04%
ROIC(5y)17.3%
ROICexc(3y)7.24%
ROICexc(5y)31.92%
ROICexgc(3y)429.01%
ROICexgc(5y)N/A
ROCE(3y)8.95%
ROCE(5y)21.99%
ROICexcg growth 3YN/A
ROICexcg growth 5Y-1.07%
ROICexc growth 3Y-51.31%
ROICexc growth 5Y-29.01%
OM growth 3Y-9.24%
OM growth 5Y-3.73%
PM growth 3Y-9.39%
PM growth 5Y-3.07%
GM growth 3Y-2.06%
GM growth 5Y-1.12%
F-Score8
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.05 | ||
| Debt/EBITDA | 1.64 | ||
| Cap/Depr | 10.57% | ||
| Cap/Sales | 0.87% | ||
| Interest Coverage | 14.78 | ||
| Cash Conversion | 81.82% | ||
| Profit Quality | 144.43% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 4.66 |
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)10.62%
Cap/Depr(5y)17.68%
Cap/Sales(3y)0.94%
Cap/Sales(5y)0.85%
Profit Quality(3y)119.24%
Profit Quality(5y)124.96%
High Growth Momentum
Growth
EPS 1Y (TTM)24.58%
EPS 3Y4.67%
EPS 5Y10.51%
EPS Q2Q%20.45%
EPS Next Y11.67%
EPS Next 2Y11.87%
EPS Next 3Y11.93%
EPS Next 5Y9.24%
Revenue 1Y (TTM)13.68%
Revenue growth 3Y19.64%
Revenue growth 5Y16.23%
Sales Q2Q%13.96%
Revenue Next Year6.91%
Revenue Next 2Y7.13%
Revenue Next 3Y7.27%
Revenue Next 5Y5.89%
EBIT growth 1Y14.75%
EBIT growth 3Y8.58%
EBIT growth 5Y11.89%
EBIT Next Year11.28%
EBIT Next 3Y6.74%
EBIT Next 5Y6.94%
FCF growth 1Y56.01%
FCF growth 3Y16.02%
FCF growth 5Y15.9%
OCF growth 1Y53.34%
OCF growth 3Y16.5%
OCF growth 5Y15.43%