S&P GLOBAL INC (SPGI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SPGI - US78409V1044 - Common Stock
527.67 USD
+1 (+0.19%)
Taking everything into account, SPGI scores 5 out of 10 in our fundamental rating. SPGI was compared to 237 industry peers in the Capital Markets industry. While SPGI has a great profitability rating, 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
- SPGI had positive earnings in the past year.
- SPGI had a positive operating cash flow in the past year.
- In the past 5 years SPGI has always been profitable.
- In the past 5 years SPGI always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of SPGI (7.06%) is better than 79.32% of its industry peers.
- SPGI's Return On Equity of 12.69% is fine compared to the rest of the industry. SPGI outperforms 70.89% of its industry peers.
- 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 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 70.89% 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 76.37% 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 70.04% 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.
- Compared to 5 years ago, SPGI has more shares outstanding
- 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 has a Debt to FCF ratio of 2.08. This is amongst the best in the industry. SPGI outperforms 85.65% of its industry peers.
- 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 70.89% 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 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.
- Looking at the Quick ratio, with a value of 0.97, SPGI is in line with its industry, outperforming 42.62% 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.
- The Earnings Per Share has been growing by 10.51% on average over the past years. This is quite good.
- Looking at the last year, SPGI shows a quite strong growth in Revenue. The Revenue has grown by 9.04% in the last year.
- The Revenue has been growing by 16.23% on average over the past years. This is quite good.
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
- 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
- SPGI is valuated quite expensively with a Price/Earnings ratio of 30.50.
- Compared to the rest of the industry, the Price/Earnings ratio of SPGI indicates a slightly more expensive valuation: SPGI is more expensive than 74.26% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, SPGI is valued at the same level.
- SPGI is valuated quite expensively with a Price/Forward Earnings ratio of 26.00.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SPGI indicates a slightly more expensive valuation: SPGI is more expensive than 62.87% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of SPGI to the average of the S&P500 Index (25.95), we can say SPGI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.5 | ||
| Fwd PE | 26 |
4.2 Price Multiples
- 68.78% 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 | 29.26 | ||
| EV/EBITDA | 22.58 |
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 13.03% in the coming years.
PEG (NY)1.93
PEG (5Y)2.9
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 5.87.
- With a Dividend Yield of 0.72, SPGI pays less dividend than the S&P500 average, which is at 1.82.
| 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 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
- 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%.