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 238 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. While showing a medium growth rate, SPGI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year SPGI was profitable.
- In the past year SPGI had a positive cash flow from operations.
- SPGI had positive earnings in each of the past 5 years.
- Each year in the past 5 years SPGI had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of SPGI (7.06%) is better than 79.41% of its industry peers.
- SPGI has a Return On Equity of 12.69%. This is in the better half of the industry: SPGI outperforms 71.01% of its industry peers.
- SPGI's Return On Invested Capital of 9.20% is amongst the best of the industry. SPGI outperforms 84.45% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SPGI is in line with the industry average of 7.27%.
- The last Return On Invested Capital (9.20%) for SPGI is above the 3 year average (7.04%), which is a sign of increasing profitability.
| 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.
- SPGI's Profit Margin has declined in the last couple of years.
- With a decent Operating Margin value of 42.03%, SPGI is doing good in the industry, outperforming 76.47% of the companies in the same industry.
- In the last couple of years the Operating Margin of SPGI has declined.
- SPGI has a Gross Margin of 62.66%. This is in the better half of the industry: SPGI outperforms 70.17% 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 | 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.
- SPGI has about the same debt/assets ratio as last year.
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's Debt to FCF ratio of 2.08 is amongst the best of 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.
- With a decent Debt to Equity ratio value of 0.34, SPGI is doing good in the industry, outperforming 71.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.08 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 0.97 indicates that SPGI may have some problems paying its short term obligations.
- The Current ratio of SPGI (0.97) is comparable to the rest of the industry.
- A Quick Ratio of 0.97 indicates that SPGI may have some problems paying its short term obligations.
- With a Quick ratio value of 0.97, SPGI perfoms like the industry average, 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.
- 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.
- The Revenue has grown by 9.04% in the past year. This is quite good.
- 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
- 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.
- Based on estimates for the next years, SPGI will show a small growth in Revenue. The Revenue will grow by 7.21% on average per year.
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
- Based on the Price/Earnings ratio of 30.84, the valuation of SPGI can be described as expensive.
- SPGI's Price/Earnings ratio is a bit more expensive when compared to the industry. SPGI is more expensive than 74.79% of the companies in the same industry.
- SPGI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 26.30, SPGI can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, SPGI is valued a bit more expensive than the industry average as 63.45% of the companies are valued more cheaply.
- SPGI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.84 | ||
| Fwd PE | 26.3 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SPGI is valued a bit cheaper than the industry average as 68.91% 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 | 29.59 | ||
| EV/EBITDA | 22.86 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of SPGI 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.
- SPGI's Dividend Yield is slightly below the industry average, which is at 6.03.
- 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
- On average, the dividend of SPGI grows each year by 9.40%, which is quite nice.
- SPGI has paid a dividend for at least 10 years, which is 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
- 27.50% 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 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%.