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 has a great profitability rating, 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
In the past year SPGI was profitable.
SPGI had a positive operating cash flow in the past year.
In the past 5 years SPGI has always been profitable.
Each year in the past 5 years SPGI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SPGI (6.60%) is better than 81.12% of its industry peers.
With a decent Return On Equity value of 11.84%, SPGI is doing good in the industry, outperforming 67.38% of the companies in the same industry.
SPGI's Return On Invested Capital of 8.67% is amongst the best of the industry. SPGI outperforms 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 7.84%.
The last Return On Invested Capital (8.67%) for SPGI is above the 3 year average (7.04%), which is a sign of increasing profitability.
| 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.
SPGI's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 41.07%, SPGI is doing good in 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.
The Gross Margin of SPGI (69.47%) is better than 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
Compared to 1 year ago, SPGI has less shares outstanding
The number of shares outstanding for SPGI has been increased compared to 5 years ago.
SPGI has about the same debt/assets ratio as last year.
2.2 Solvency
SPGI has an Altman-Z score of 4.75. This indicates that SPGI is financially healthy and has little risk of bankruptcy at the moment.
SPGI has a better Altman-Z score (4.75) 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.
SPGI has a Debt to FCF ratio of 2.05. This is amongst the best in 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.
The Debt to Equity ratio of SPGI (0.34) is better than 72.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.05 | ||
| Altman-Z | 4.75 |
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's Current ratio of 0.90 is on the low side compared to the rest of the industry. SPGI is outperformed by 62.23% of its industry peers.
A Quick Ratio of 0.90 indicates that SPGI may have some problems paying its short term obligations.
SPGI's Quick ratio of 0.90 is in line compared to the rest of the industry. SPGI outperforms 41.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.30% 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.
The Revenue has grown by 12.98% in the past year. This is quite good.
The Revenue has been growing by 16.23% on average over the past years. This is quite good.
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.
SPGI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.93% yearly.
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
Based on the Price/Earnings ratio of 32.99, 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 72.10% of the companies in the same industry.
SPGI is valuated rather expensively when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 27.43, which means the current valuation is very expensive for SPGI.
Based on the Price/Forward Earnings ratio, SPGI is valued a bit more expensive than the industry average as 66.09% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.74, SPGI is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.99 | ||
| Fwd PE | 27.43 |
4.2 Price Multiples
67.81% of the companies in the same industry are more expensive than SPGI, based on the Enterprise Value to EBITDA ratio.
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 | 29.29 | ||
| EV/EBITDA | 24.19 |
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)3.14
EPS Next 2Y10.91%
EPS Next 3Y11.17%
5. Dividend
5.1 Amount
With a yearly dividend of 0.73%, SPGI is not a good candidate for dividend investing.
SPGI's Dividend Yield is slightly below the industry average, which is at 8.10.
With a Dividend Yield of 0.73, SPGI pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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 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.
The dividend of SPGI is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP28.92%
EPS Next 2Y10.91%
EPS Next 3Y11.17%
530.18
+0.57 (+0.11%)
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 Cap162.61B
Analysts85.63
Price Target600.45 (13.25%)
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 | 32.99 | ||
| Fwd PE | 27.43 | ||
| P/S | 11.22 | ||
| P/FCF | 29.29 | ||
| P/OCF | 28.56 | ||
| P/B | 4.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.19 |
EPS(TTM)16.07
EY3.03%
EPS(NY)19.33
Fwd EY3.65%
FCF(TTM)18.1
FCFY3.41%
OCF(TTM)18.57
OCFY3.5%
SpS47.25
BVpS108.81
TBVpS-58.35
PEG (NY)3.29
PEG (5Y)3.14
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 | 4.75 |
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%