S&P GLOBAL INC (SPGI) Stock Fundamental Analysis
NYSE:SPGI - New York Stock Exchange, Inc. - US78409V1044 - Common Stock - Currency: USD
SPGI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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
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.
SPGI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.60%, SPGI belongs to the top of the industry, outperforming 81.55% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.84%, SPGI is in the better half of the industry, outperforming 67.81% of the companies in the same industry.
SPGI has a better Return On Invested Capital (8.67%) than 82.83% 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 7.86%.
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's Profit Margin of 27.27% is fine compared to the rest of the industry. SPGI outperforms 70.39% of its industry peers.
SPGI's Profit Margin has declined in the last couple of years.
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's Gross Margin of 69.47% is fine compared to the rest of the industry. SPGI outperforms 74.25% of its industry peers.
SPGI's Gross Margin has been stable in the last couple of years.
| 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
SPGI has less shares outstanding than it did 1 year ago.
SPGI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SPGI has remained at the same level compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.71 indicates that SPGI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.71, SPGI belongs to the top of the industry, outperforming 83.26% of the companies in the same industry.
SPGI has a debt to FCF ratio of 2.05. This is a good value and a sign of high solvency as SPGI would need 2.05 years to pay back of all of its debts.
SPGI's Debt to FCF ratio of 2.05 is amongst the best of the industry. SPGI outperforms 84.12% 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.
SPGI has a Debt to Equity ratio of 0.34. This is in the better half of the industry: SPGI outperforms 72.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.05 | ||
| Altman-Z | 4.71 |
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.
SPGI has a worse Current ratio (0.90) than 61.80% 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 42.06% 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.
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 12.98%.
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
SPGI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.20% yearly.
The Revenue is expected to grow by 5.93% on average over the next years.
EPS Next Y10.29%
EPS Next 2Y11%
EPS Next 3Y11.22%
EPS Next 5Y10.2%
Revenue Next Year5.98%
Revenue Next 2Y6.54%
Revenue Next 3Y6.79%
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.
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
The Price/Earnings ratio is 32.63, which means the current valuation is very expensive for SPGI.
71.24% of the companies in the same industry are cheaper than SPGI, based on the Price/Earnings ratio.
SPGI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.50.
SPGI is valuated quite expensively with a Price/Forward Earnings ratio of 27.09.
Based on the Price/Forward Earnings ratio, SPGI is valued a bit more expensive than the industry average as 65.67% of the companies are valued more cheaply.
SPGI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.63 | ||
| Fwd PE | 27.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SPGI is valued a bit cheaper than the industry average as 69.53% 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 | 28.97 | ||
| EV/EBITDA | 23.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SPGI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.17
PEG (5Y)3.1
EPS Next 2Y11%
EPS Next 3Y11.22%
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 7.76, SPGI is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.35, 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 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 28.92% of its income as dividend. This is a 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 2Y11%
EPS Next 3Y11.22%
524.38
-0.98 (-0.19%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners89.49%
Inst Owner Change0.01%
Ins Owners0.03%
Ins Owner Change4.5%
Market Cap160.83B
Analysts85.63
Price Target600.45 (14.51%)
Short Float %0.93%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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)0.51%
EPS NQ rev (3m)-4.89%
EPS NY rev (1m)0.45%
EPS NY rev (3m)-1.32%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)-3%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.63 | ||
| Fwd PE | 27.09 | ||
| P/S | 11.1 | ||
| P/FCF | 28.97 | ||
| P/OCF | 28.25 | ||
| P/B | 4.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.99 |
EPS(TTM)16.07
EY3.06%
EPS(NY)19.36
Fwd EY3.69%
FCF(TTM)18.1
FCFY3.45%
OCF(TTM)18.57
OCFY3.54%
SpS47.25
BVpS108.81
TBVpS-58.35
PEG (NY)3.17
PEG (5Y)3.1
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 | 4.71 |
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 Y10.29%
EPS Next 2Y11%
EPS Next 3Y11.22%
EPS Next 5Y10.2%
Revenue 1Y (TTM)12.98%
Revenue growth 3Y19.64%
Revenue growth 5Y16.23%
Sales Q2Q%8.19%
Revenue Next Year5.98%
Revenue Next 2Y6.54%
Revenue Next 3Y6.79%
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%