S&P GLOBAL INC (SPGI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SPGI - US78409V1044 - Common Stock
533.61 USD
-6.19 (-1.15%)
533.61 USD
0 (0%)
SPGI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 237 industry peers in the Capital Markets industry. SPGI has an excellent profitability rating, but 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.
- In the past year SPGI had a positive cash flow from operations.
- In the past 5 years SPGI has always been profitable.
- Each year in the past 5 years SPGI had a positive operating cash flow.
1.2 Ratios
- SPGI has a better Return On Assets (7.06%) than 79.41% of its industry peers.
- SPGI's Return On Equity of 12.69% is fine compared to the rest of the industry. SPGI outperforms 71.01% of its industry peers.
- SPGI has a better Return On Invested Capital (9.20%) than 84.45% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for SPGI is in line with the industry average of 7.27%.
- The 3 year average ROIC (7.04%) for SPGI is below the current ROIC(9.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.06% | ||
| ROE | 12.69% | ||
| ROIC | 9.2% |
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
- With a decent Profit Margin value of 28.10%, SPGI is doing good in the industry, outperforming 71.01% of the companies in the same industry.
- In the last couple of years the Profit Margin of SPGI has declined.
- SPGI has a Operating Margin of 42.03%. This is in the better half of the industry: SPGI outperforms 76.47% of its industry peers.
- In the last couple of years the Operating Margin of SPGI has declined.
- SPGI's Gross Margin of 62.66% is fine compared to the rest of the industry. SPGI outperforms 70.17% of its industry peers.
- SPGI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.03% | ||
| PM (TTM) | 28.1% | ||
| GM | 62.66% |
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
- SPGI has about the same debt/assets ratio as last year.
2.2 Solvency
- SPGI has a debt to FCF ratio of 2.08. This is a good value and a sign of high solvency as SPGI would need 2.08 years to pay back of all of its debts.
- SPGI has a Debt to FCF ratio of 2.08. This is amongst the best in the industry. SPGI outperforms 85.71% of its industry peers.
- A Debt/Equity ratio of 0.34 indicates that SPGI is not too dependend on debt financing.
- SPGI's Debt to Equity ratio of 0.34 is fine compared to the rest of the industry. SPGI outperforms 71.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.08 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- SPGI has a Current Ratio of 0.97. 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 of 0.97. This is comparable to the rest of the industry: SPGI outperforms 42.02% of its industry peers.
- A Quick Ratio of 0.97 indicates that SPGI may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.97, SPGI is in line with its industry, outperforming 42.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
- SPGI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.80%, which is quite good.
- SPGI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.51% yearly.
- SPGI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.04%.
- The Revenue has been growing by 16.23% on average over the past years. This is quite good.
EPS 1Y (TTM)14.8%
EPS 3Y4.67%
EPS 5Y10.51%
EPS Q2Q%21.59%
Revenue 1Y (TTM)9.04%
Revenue growth 3Y19.64%
Revenue growth 5Y16.23%
Sales Q2Q%8.76%
3.2 Future
- Based on estimates for the next years, SPGI will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.15% on average per year.
- The Revenue is expected to grow by 7.21% on average over the next years.
EPS Next Y15.81%
EPS Next 2Y13.65%
EPS Next 3Y13.03%
EPS Next 5Y12.15%
Revenue Next Year8.61%
Revenue Next 2Y8.07%
Revenue Next 3Y7.8%
Revenue Next 5Y7.21%
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
- The Price/Earnings ratio is 30.84, which means the current valuation is very expensive for SPGI.
- Based on the Price/Earnings ratio, SPGI is valued a bit more expensive than the industry average as 74.79% of the companies are valued more cheaply.
- The average S&P500 Price/Earnings ratio is at 27.21. SPGI is around the same levels.
- A Price/Forward Earnings ratio of 26.30 indicates a quite expensive valuation of SPGI.
- 63.45% of the companies in the same industry are cheaper than SPGI, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, SPGI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.84 | ||
| Fwd PE | 26.3 |
4.2 Price Multiples
- SPGI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SPGI is cheaper than 68.91% of the companies in the same industry.
- SPGI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.59 | ||
| EV/EBITDA | 22.86 |
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.
- SPGI's earnings are expected to grow with 13.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.95
PEG (5Y)2.93
EPS Next 2Y13.65%
EPS Next 3Y13.03%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.72%, SPGI is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 5.87, SPGI is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.81, SPGI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
5.2 History
- The dividend of SPGI is nicely growing with an annual growth rate of 9.40%!
- SPGI has paid a dividend for at least 10 years, which is a reliable track record.
- SPGI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.4%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
- 27.50% of the earnings are spent on dividend by SPGI. This is a low number and sustainable payout ratio.
- SPGI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP27.5%
EPS Next 2Y13.65%
EPS Next 3Y13.03%
S&P GLOBAL INC / SPGI FAQ
Can you provide the ChartMill fundamental rating for S&P GLOBAL INC?
ChartMill assigns a fundamental rating of 5 / 10 to SPGI.
What is the valuation status for SPGI stock?
ChartMill assigns a valuation rating of 2 / 10 to S&P GLOBAL INC (SPGI). This can be considered as Overvalued.
What is the profitability of SPGI stock?
S&P GLOBAL INC (SPGI) has a profitability rating of 7 / 10.
What is the expected EPS growth for S&P GLOBAL INC (SPGI) stock?
The Earnings per Share (EPS) of S&P GLOBAL INC (SPGI) is expected to grow by 15.81% in the next year.
Is the dividend of S&P GLOBAL INC sustainable?
The dividend rating of S&P GLOBAL INC (SPGI) is 5 / 10 and the dividend payout ratio is 27.5%.