S&P GLOBAL INC (SPGI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SPGI - US78409V1044 - Common Stock
528.435 USD
-6.8 (-1.27%)
SPGI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 237 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.
- In the past year SPGI had a positive cash flow from operations.
- In the past 5 years SPGI has always been profitable.
- SPGI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- SPGI's Return On Assets of 7.06% is fine compared to the rest of the industry. SPGI outperforms 79.32% of its industry peers.
- With a decent Return On Equity value of 12.69%, SPGI is doing good in the industry, outperforming 70.89% of the companies in the same industry.
- The Return On Invested Capital of SPGI (9.20%) is better than 84.39% of its industry peers.
- SPGI had an Average Return On Invested Capital over the past 3 years of 7.04%. This 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
- SPGI's Profit Margin of 28.10% is fine compared to the rest of the industry. SPGI outperforms 70.89% of its industry peers.
- In the last couple of years the Profit Margin of SPGI has declined.
- Looking at the Operating Margin, with a value of 42.03%, SPGI is in the better half of the industry, outperforming 76.37% of the companies in the same industry.
- In the last couple of years the Operating Margin of SPGI has declined.
- SPGI has a better Gross Margin (62.66%) than 70.04% 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
- Compared to 1 year ago, SPGI has less shares outstanding
- SPGI has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, SPGI has about the same debt to assets ratio.
2.2 Solvency
- The Debt to FCF ratio of SPGI is 2.08, which is a good value as it means it would take SPGI, 2.08 years of fcf income to pay off all of its debts.
- SPGI has a Debt to FCF ratio of 2.08. This is amongst the best in the industry. SPGI outperforms 85.65% of its industry peers.
- A Debt/Equity ratio of 0.34 indicates that SPGI is not too dependend on debt financing.
- SPGI has a Debt to Equity ratio of 0.34. This is in the better half of the industry: SPGI outperforms 70.89% 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's Current ratio of 0.97 is in line compared to the rest of the industry. SPGI outperforms 42.19% of its industry peers.
- SPGI has a Quick 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.
- The Quick ratio of SPGI (0.97) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 14.80% over the past year.
- Measured over the past years, SPGI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.51% on average per year.
- SPGI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.04%.
- SPGI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.23% yearly.
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
- SPGI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.15% yearly.
- 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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- SPGI is valuated quite expensively with a Price/Earnings ratio of 30.55.
- SPGI's Price/Earnings ratio is a bit more expensive when compared to the industry. SPGI is more expensive than 74.26% of the companies in the same industry.
- SPGI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.25.
- A Price/Forward Earnings ratio of 26.04 indicates a quite expensive valuation of SPGI.
- Based on the Price/Forward Earnings ratio, SPGI is valued a bit more expensive than 63.29% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. SPGI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.55 | ||
| Fwd PE | 26.04 |
4.2 Price Multiples
- 68.78% of the companies in the same industry are more expensive than SPGI, based on the Enterprise Value to EBITDA ratio.
- SPGI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.3 | ||
| EV/EBITDA | 22.93 |
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.
- The decent profitability rating of SPGI may justify a higher PE ratio.
- A more expensive valuation may be justified as SPGI's earnings are expected to grow with 13.03% in the coming years.
PEG (NY)1.93
PEG (5Y)2.91
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 1.82, SPGI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
5.2 History
- On average, the dividend of SPGI grows each year by 9.40%, which is quite nice.
- SPGI has been paying a dividend for at least 10 years, so it has 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
- SPGI pays out 27.50% of its income as dividend. This is a sustainable payout ratio.
- The dividend of SPGI is growing, but earnings are growing more, so the dividend growth is 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%.