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 233 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 quite expensive at the moment. 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.
Each year in the past 5 years SPGI has been profitable.
In the past 5 years SPGI always reported a positive cash flow from operatings.
1.2 Ratios
SPGI has a better Return On Assets (6.60%) than 81.12% of its industry peers.
Looking at the Return On Equity, with a value of 11.84%, SPGI is in the better half of the industry, outperforming 67.38% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.67%, SPGI belongs to the top of the industry, outperforming 82.83% 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 7.84%.
The 3 year average ROIC (7.04%) for SPGI is below the current ROIC(8.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.6% | ||
| ROE | 11.84% | ||
| ROIC | 8.67% |
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 has a Profit Margin of 27.27%. This is in the better half of the industry: SPGI outperforms 69.96% 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 41.07%, SPGI is in the better half of the industry, outperforming 71.67% 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 (69.47%) than 74.25% 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 | 41.07% | ||
| PM (TTM) | 27.27% | ||
| GM | 69.47% |
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.
SPGI has more shares outstanding than it did 5 years ago.
SPGI has about the same debt/assets ratio as last year.
2.2 Solvency
An Altman-Z score of 4.74 indicates that SPGI is not in any danger for bankruptcy at the moment.
SPGI has a better Altman-Z score (4.74) than 83.26% of its industry peers.
The Debt to FCF ratio of SPGI is 2.05, which is a good value as it means it would take SPGI, 2.05 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 2.05, SPGI belongs to the best of the industry, outperforming 84.12% of the companies in the same industry.
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 72.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.05 | ||
| Altman-Z | 4.74 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.90 indicates that SPGI may have some problems paying its short term obligations.
The Current ratio of SPGI (0.90) is worse than 62.23% of its industry peers.
SPGI has a Quick Ratio of 0.90. This is a bad value and indicates that SPGI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.90, SPGI perfoms like the industry average, outperforming 41.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
SPGI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.30%, 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.
The Revenue has grown by 12.98% in the past year. This is quite good.
Measured over the past years, SPGI shows a quite strong growth in Revenue. The Revenue has been growing by 16.23% on average per year.
EPS 1Y (TTM)19.3%
EPS 3Y4.67%
EPS 5Y10.51%
EPS Q2Q%8.98%
Revenue 1Y (TTM)12.98%
Revenue growth 3Y19.64%
Revenue growth 5Y16.23%
Sales Q2Q%8.19%
3.2 Future
The Earnings Per Share is expected to grow by 10.20% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.93% on average over the next years.
EPS Next Y10.01%
EPS Next 2Y10.91%
EPS Next 3Y11.17%
EPS Next 5Y10.2%
Revenue Next Year5.82%
Revenue Next 2Y6.48%
Revenue Next 3Y6.7%
Revenue Next 5Y5.93%
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.
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 32.96.
Based on the Price/Earnings ratio, SPGI is valued a bit more expensive than the industry average as 72.10% of the companies are valued more cheaply.
SPGI is valuated rather expensively when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
SPGI is valuated quite expensively with a Price/Forward Earnings ratio of 27.40.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SPGI indicates a slightly more expensive valuation: SPGI is more expensive than 66.09% of the companies listed in the same industry.
SPGI's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.96 | ||
| Fwd PE | 27.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SPGI is valued a bit cheaper than the industry average as 67.81% of the companies are valued more expensively.
SPGI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.26 | ||
| EV/EBITDA | 24.17 |
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)3.29
PEG (5Y)3.13
EPS Next 2Y10.91%
EPS Next 3Y11.17%
5. Dividend
5.1 Amount
SPGI has a yearly dividend return of 0.73%, which is pretty low.
Compared to an average industry Dividend Yield of 8.15, SPGI is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.38, SPGI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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 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
28.92% of the earnings are spent on dividend by SPGI. This is a low number and sustainable payout ratio.
SPGI's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP28.92%
EPS Next 2Y10.91%
EPS Next 3Y11.17%
529.61
+3.97 (+0.76%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners89.49%
Inst Owner Change-50.76%
Ins Owners0.03%
Ins Owner Change4.5%
Market Cap162.43B
Analysts85.63
Price Target600.45 (13.38%)
Short Float %0.85%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Yearly Dividend3.56
Dividend Growth(5Y)9.4%
DP28.92%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.3%
Min EPS beat(2)2.35%
Max EPS beat(2)6.25%
EPS beat(4)4
Avg EPS beat(4)5.45%
Min EPS beat(4)2.35%
Max EPS beat(4)8.53%
EPS beat(8)6
Avg EPS beat(8)3.43%
EPS beat(12)9
Avg EPS beat(12)2.55%
EPS beat(16)11
Avg EPS beat(16)2.69%
Revenue beat(2)2
Avg Revenue beat(2)0.33%
Min Revenue beat(2)0.13%
Max Revenue beat(2)0.53%
Revenue beat(4)4
Avg Revenue beat(4)1.13%
Min Revenue beat(4)0.13%
Max Revenue beat(4)2.14%
Revenue beat(8)6
Avg Revenue beat(8)0.33%
Revenue beat(12)7
Avg Revenue beat(12)-0.21%
Revenue beat(16)9
Avg Revenue beat(16)-0.97%
PT rev (1m)0%
PT rev (3m)-3.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.69%
EPS NY rev (1m)0.2%
EPS NY rev (3m)-1.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.96 | ||
| Fwd PE | 27.4 | ||
| P/S | 11.21 | ||
| P/FCF | 29.26 | ||
| P/OCF | 28.53 | ||
| P/B | 4.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.17 |
EPS(TTM)16.07
EY3.03%
EPS(NY)19.33
Fwd EY3.65%
FCF(TTM)18.1
FCFY3.42%
OCF(TTM)18.57
OCFY3.51%
SpS47.25
BVpS108.81
TBVpS-58.35
PEG (NY)3.29
PEG (5Y)3.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.6% | ||
| ROE | 11.84% | ||
| ROCE | 11.03% | ||
| ROIC | 8.67% | ||
| ROICexc | 8.92% | ||
| ROICexgc | 379.69% | ||
| OM | 41.07% | ||
| PM (TTM) | 27.27% | ||
| GM | 69.47% | ||
| FCFM | 38.3% |
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-Score7
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.05 | ||
| Debt/EBITDA | 1.6 | ||
| Cap/Depr | 12.13% | ||
| Cap/Sales | 0.99% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.85% | ||
| Profit Quality | 140.46% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 4.74 |
F-Score7
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)19.3%
EPS 3Y4.67%
EPS 5Y10.51%
EPS Q2Q%8.98%
EPS Next Y10.01%
EPS Next 2Y10.91%
EPS Next 3Y11.17%
EPS Next 5Y10.2%
Revenue 1Y (TTM)12.98%
Revenue growth 3Y19.64%
Revenue growth 5Y16.23%
Sales Q2Q%8.19%
Revenue Next Year5.82%
Revenue Next 2Y6.48%
Revenue Next 3Y6.7%
Revenue Next 5Y5.93%
EBIT growth 1Y21.84%
EBIT growth 3Y8.58%
EBIT growth 5Y11.89%
EBIT Next Year9.66%
EBIT Next 3Y8.45%
EBIT Next 5Y7.58%
FCF growth 1Y93.15%
FCF growth 3Y16.02%
FCF growth 5Y15.9%
OCF growth 1Y91.4%
OCF growth 3Y16.5%
OCF growth 5Y15.43%