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%)
Taking everything into account, SPGI scores 5 out of 10 in our fundamental rating. SPGI was compared to 238 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 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.
- 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's Return On Assets of 7.06% is fine compared to the rest of the industry. SPGI outperforms 79.41% of its industry peers.
- SPGI has a better Return On Equity (12.69%) than 71.01% of its industry peers.
- The Return On Invested Capital of SPGI (9.20%) is better than 84.45% of its industry peers.
- SPGI had an Average Return On Invested Capital over the past 3 years of 7.04%. This is in line with the industry average of 7.27%.
- The 3 year average ROIC (7.04%) for SPGI is below the current ROIC(9.20%), indicating increased profibility in the last year.
| 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
- SPGI has a Profit Margin of 28.10%. This is in the better half of the industry: SPGI outperforms 71.01% 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 42.03%, SPGI is in the better half of 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.
- With a decent Gross Margin value of 62.66%, SPGI is doing good in the industry, outperforming 70.17% of the companies in the same industry.
- 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
- SPGI has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for SPGI has been increased compared to 5 years ago.
- Compared to 1 year ago, SPGI has about the same debt to assets ratio.
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.
- With an excellent Debt to FCF ratio value of 2.08, SPGI belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
- A Debt/Equity ratio of 0.34 indicates that SPGI is not too dependend on debt financing.
- SPGI has a better Debt to Equity ratio (0.34) than 71.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.08 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- SPGI has a Current Ratio of 0.97. 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 (0.97) which is in line with its industry peers.
- 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.
- Looking at the last year, SPGI shows a quite strong growth in Revenue. The Revenue has grown by 9.04% in the last year.
- 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)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.
- SPGI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.21% yearly.
EPS Next Y15.63%
EPS Next 2Y13.48%
EPS Next 3Y12.91%
EPS Next 5Y12.15%
Revenue Next Year8.56%
Revenue Next 2Y8%
Revenue Next 3Y7.77%
Revenue Next 5Y7.21%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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 30.84, SPGI can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of SPGI indicates a slightly more expensive valuation: SPGI is more expensive than 74.79% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. SPGI is around the same levels.
- The Price/Forward Earnings ratio is 26.38, which means the current valuation is very expensive for SPGI.
- SPGI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. SPGI is more expensive than 63.87% of the companies in the same industry.
- 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 | 26.38 |
4.2 Price Multiples
- SPGI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SPGI is cheaper than 68.91% of the companies in the same industry.
- SPGI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.59 | ||
| EV/EBITDA | 23.11 |
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.
- A more expensive valuation may be justified as SPGI's earnings are expected to grow with 12.91% in the coming years.
PEG (NY)1.97
PEG (5Y)2.93
EPS Next 2Y13.48%
EPS Next 3Y12.91%
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 6.10, SPGI is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.82, 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 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
- SPGI pays out 27.50% of its income as dividend. This is a sustainable payout ratio.
- SPGI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP27.5%
EPS Next 2Y13.48%
EPS Next 3Y12.91%
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 15.63% 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%.