S&P GLOBAL INC (SPGI)
US78409V1044 - Common Stock
We assign a fundamental rating of 5 out of 10 to SPGI. SPGI was compared to 218 industry peers in the Capital Markets industry. SPGI has only an average score on both its financial health and profitability. SPGI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SPGI was profitable.
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 5.88%. This is in the better half of the industry: SPGI outperforms 74.42% of its industry peers.
The Return On Equity of SPGI (10.45%) is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 7.73%, SPGI is doing good in the industry, outperforming 76.74% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SPGI is significantly above the industry average of 6.96%.
The 3 year average ROIC (14.45%) for SPGI is well above the current ROIC(7.73%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 10.45% | ||
| ROIC | 7.73% |
ROA(3y)9.91%
ROA(5y)13.42%
ROE(3y)55.14%
ROE(5y)213.63%
ROIC(3y)14.45%
ROIC(5y)21.39%
1.3 Margins
The Profit Margin of SPGI (25.80%) is better than 63.26% of its industry peers.
SPGI's Profit Margin has declined in the last couple of years.
SPGI has a Operating Margin of 40.09%. This is in the better half of the industry: SPGI outperforms 67.44% of its industry peers.
In the last couple of years the Operating Margin of SPGI has declined.
SPGI has a better Gross Margin (68.70%) than 71.16% of its industry peers.
In the last couple of years the Gross Margin of SPGI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.09% | ||
| PM (TTM) | 25.8% | ||
| GM | 68.7% |
OM growth 3Y-10.61%
OM growth 5Y-4.71%
PM growth 3Y-12.56%
PM growth 5Y-7.65%
GM growth 3Y-2.39%
GM growth 5Y-1.69%
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 a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.61 indicates that SPGI is not in any danger for bankruptcy at the moment.
The Altman-Z score of SPGI (4.61) is better than 86.05% of its industry peers.
The Debt to FCF ratio of SPGI is 2.22, which is a good value as it means it would take SPGI, 2.22 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SPGI (2.22) is better than 81.86% of its industry peers.
SPGI has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.34, SPGI is in the better half of the industry, outperforming 75.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.22 | ||
| Altman-Z | 4.61 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
SPGI has a Current Ratio of 0.94. 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 (0.94) which is comparable to the rest of the industry.
A Quick Ratio of 0.94 indicates that SPGI may have some problems paying its short term obligations.
The Quick ratio of SPGI (0.94) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
SPGI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.37%, which is quite impressive.
Measured over the past years, SPGI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.21% on average per year.
SPGI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.09%.
The Revenue has been growing by 14.83% on average over the past years. This is quite good.
EPS 1Y (TTM)25.37%
EPS 3Y2.56%
EPS 5Y8.21%
EPS Q2Q%21.18%
Revenue 1Y (TTM)12.09%
Revenue growth 3Y18.86%
Revenue growth 5Y14.83%
Sales Q2Q%15.92%
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 11.93% on average per year.
Based on estimates for the next years, SPGI will show a small growth in Revenue. The Revenue will grow by 6.70% on average per year.
EPS Next Y23.53%
EPS Next 2Y16.57%
EPS Next 3Y15.1%
EPS Next 5Y11.93%
Revenue Next Year12.58%
Revenue Next 2Y9.43%
Revenue Next 3Y8.87%
Revenue Next 5Y6.7%
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 accelerating.
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
With a Price/Earnings ratio of 34.14, SPGI can be considered very expensive at the moment.
SPGI's Price/Earnings ratio is a bit more expensive when compared to the industry. SPGI is more expensive than 73.02% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.20. SPGI is around the same levels.
A Price/Forward Earnings ratio of 30.02 indicates a quite expensive valuation of SPGI.
SPGI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. SPGI is more expensive than 70.70% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SPGI to the average of the S&P500 Index (24.00), we can say SPGI is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.14 | ||
| Fwd PE | 30.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SPGI is valued a bit cheaper than 65.12% of the companies in the same industry.
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 | 31.03 | ||
| EV/EBITDA | 25.2 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of SPGI may justify a higher PE ratio.
SPGI's earnings are expected to grow with 15.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.45
PEG (5Y)4.16
EPS Next 2Y16.57%
EPS Next 3Y15.1%
5. Dividend
5.1 Amount
With a yearly dividend of 0.71%, SPGI is not a good candidate for dividend investing.
SPGI's Dividend Yield is slightly below the industry average, which is at 9.01.
With a Dividend Yield of 0.71, SPGI pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
5.2 History
The dividend of SPGI is nicely growing with an annual growth rate of 11.99%!
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)11.99%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
32.01% of the earnings are spent on dividend by SPGI. This is a low number and sustainable payout ratio.
The dividend of SPGI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP32.01%
EPS Next 2Y16.57%
EPS Next 3Y15.1%
S&P GLOBAL INC
NYSE:SPGI (11/22/2024, 8:05:56 PM)
After market: 514.46 0 (0%)514.46
+3.09 (+0.6%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap159.64B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.14 | ||
| Fwd PE | 30.02 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.45
PEG (5Y)4.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 10.45% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 40.09% | ||
| PM (TTM) | 25.8% | ||
| GM | 68.7% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)25.37%
EPS 3Y2.56%
EPS 5Y
EPS Q2Q%
EPS Next Y23.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.09%
Revenue growth 3Y18.86%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y