S&P GLOBAL INC (SPGI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SPGI - US78409V1044 - Common Stock
528.63 USD
+0.51 (+0.1%)
528.59 USD
-0.04 (-0.01%)
Overall SPGI gets a fundamental rating of 5 out of 10. We evaluated SPGI against 237 industry peers in the Capital Markets industry. SPGI scores excellent on profitability, but 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.
- In the past year SPGI had a positive cash flow from operations.
- 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
- Looking at the Return On Assets, with a value of 7.06%, SPGI is in the better half of the industry, outperforming 79.32% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 12.69%, SPGI is in the better half of the industry, outperforming 70.89% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 9.20%, SPGI belongs to the best of the industry, outperforming 84.39% of the companies in the same industry.
- 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 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
- SPGI has a Profit Margin of 28.10%. This is in the better half of the industry: SPGI outperforms 70.89% of its industry peers.
- SPGI's Profit Margin has declined in the last couple of years.
- SPGI has a better Operating Margin (42.03%) than 76.37% of its industry peers.
- 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 70.04% of its industry peers.
- SPGI's Gross Margin has been stable in the last couple of years.
| 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.
- Compared to 1 year ago, SPGI has about the same debt to assets ratio.
2.2 Solvency
- SPGI has a debt to FCF ratio of 2.08. This is a good value and a sign of high solvency as SPGI would need 2.08 years to pay back of all of its debts.
- SPGI's Debt to FCF ratio of 2.08 is amongst the best of the industry. SPGI outperforms 85.65% 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.
- With a decent Debt to Equity ratio value of 0.34, SPGI is doing good in the industry, outperforming 70.89% 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.
- SPGI has a Current ratio (0.97) which is comparable to the rest of the industry.
- SPGI has a Quick 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 Quick ratio (0.97) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 14.80% over the past year.
- SPGI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.51% yearly.
- SPGI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.04%.
- 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
- SPGI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.15% yearly.
- 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 30.56, the valuation of SPGI can be described as expensive.
- Based on the Price/Earnings ratio, SPGI is valued a bit more expensive than the industry average as 74.26% of the companies are valued more cheaply.
- SPGI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- SPGI is valuated quite expensively with a Price/Forward Earnings ratio of 26.05.
- SPGI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. SPGI is more expensive than 62.87% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, SPGI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.56 | ||
| Fwd PE | 26.05 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SPGI indicates a somewhat cheap valuation: SPGI is cheaper than 68.78% of the companies listed in the same industry.
- SPGI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.31 | ||
| EV/EBITDA | 22.64 |
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.
- SPGI's earnings are expected to grow with 13.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.93
PEG (5Y)2.91
EPS Next 2Y13.65%
EPS Next 3Y13.03%
5. Dividend
5.1 Amount
- SPGI has a yearly dividend return of 0.72%, which is pretty low.
- Compared to an average industry Dividend Yield of 5.87, 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 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.
- SPGI's earnings are growing more than its dividend. This makes the dividend growth 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%.