S&P GLOBAL INC (SPGI)
US78409V1044 - Common Stock
SPGI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 212 industry peers in the Capital Markets industry. SPGI has an average financial health and profitability rating. SPGI is valied quite expensively at the moment, while 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.
SPGI had positive earnings in each of the past 5 years.
In the past 5 years SPGI always reported a positive cash flow from operatings.
1.2 Ratios
SPGI has a Return On Assets (4.67%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 8.22%, SPGI is in line with its industry, outperforming 43.75% of the companies in the same industry.
SPGI has a Return On Invested Capital of 6.78%. This is in the better half of the industry: SPGI outperforms 71.63% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SPGI is above the industry average of 10.67%.
The 3 year average ROIC (14.45%) for SPGI is well above the current ROIC(6.78%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.67% | ||
| ROE | 8.22% | ||
| ROIC | 6.78% |
ROA(3y)9.91%
ROA(5y)13.42%
ROE(3y)55.14%
ROE(5y)213.63%
ROIC(3y)14.45%
ROIC(5y)21.39%
1.3 Margins
The Profit Margin of SPGI (22.01%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of SPGI has declined.
The Operating Margin of SPGI (37.53%) is better than 62.02% of its industry peers.
SPGI's Operating Margin has declined in the last couple of years.
SPGI has a better Gross Margin (67.47%) than 65.38% of its industry peers.
In the last couple of years the Gross Margin of SPGI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.53% | ||
| PM (TTM) | 22.01% | ||
| GM | 67.47% |
OM growth 3Y-10.61%
OM growth 5Y-4.71%
PM growth 3Y-12.56%
PM growth 5Y-7.65%
GM growth 3Y-2.39%
GM growth 5Y-1.69%
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 a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.97 indicates that SPGI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.97, SPGI belongs to the top of the industry, outperforming 82.69% of the companies in the same industry.
SPGI has a debt to FCF ratio of 2.98. This is a good value and a sign of high solvency as SPGI would need 2.98 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.98, SPGI is doing good in the industry, outperforming 74.52% of the companies in the same industry.
A Debt/Equity ratio of 0.33 indicates that SPGI is not too dependend on debt financing.
SPGI has a Debt to Equity ratio of 0.33. This is in the better half of the industry: SPGI outperforms 74.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.98 | ||
| Altman-Z | 3.97 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.92 indicates that SPGI may have some problems paying its short term obligations.
The Current ratio of SPGI (0.92) is worse than 62.50% of its industry peers.
SPGI has a Quick Ratio of 0.92. 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 0.92, SPGI is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
SPGI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.85%, which is quite good.
The Earnings Per Share has been growing by 8.21% on average over the past years. This is quite good.
Looking at the last year, SPGI shows a small growth in Revenue. The Revenue has grown by 7.34% in the last year.
Measured over the past years, SPGI shows a quite strong growth in Revenue. The Revenue has been growing by 14.83% on average per year.
EPS 1Y (TTM)17.85%
EPS 3Y2.56%
EPS 5Y8.21%
EPS growth Q2Q27.3%
Revenue 1Y (TTM)7.34%
Revenue growth 3Y18.86%
Revenue growth 5Y14.83%
Revenue growth Q2Q10.47%
3.2 Future
The Earnings Per Share is expected to grow by 12.04% on average over the next years. This is quite good.
Based on estimates for the next years, SPGI will show a small growth in Revenue. The Revenue will grow by 6.66% on average per year.
EPS Next Y13.48%
EPS Next 2Y13.73%
EPS Next 3Y13.37%
EPS Next 5Y12.04%
Revenue Next Year7.24%
Revenue Next 2Y7.67%
Revenue Next 3Y7.5%
Revenue Next 5Y6.66%
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 accelerating.
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 31.56.
Based on the Price/Earnings ratio, SPGI is valued a bit more expensive than 78.37% of the companies in the same industry.
SPGI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.28, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 26.07, 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 72.60% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.88. SPGI is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.56 | ||
| Fwd PE | 26.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SPGI is valued a bit cheaper than the industry average as 60.58% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as SPGI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.9 | ||
| EV/EBITDA | 24.04 |
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.
SPGI's earnings are expected to grow with 13.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.34
PEG (5Y)3.85
EPS Next 2Y13.73%
EPS Next 3Y13.37%
5. Dividend
5.1 Amount
With a yearly dividend of 0.87%, SPGI is not a good candidate for dividend investing.
SPGI's Dividend Yield is slightly below the industry average, which is at 7.27.
Compared to an average S&P500 Dividend Yield of 2.41, SPGI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
5.2 History
On average, the dividend of SPGI grows each year by 11.99%, 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)11.99%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
40.49% of the earnings are spent on dividend by SPGI. This is a bit on the high side, but may be sustainable.
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.
DP40.49%
EPS Next 2Y13.73%
EPS Next 3Y13.37%
S&P GLOBAL INC
NYSE:SPGI (5/3/2024, 7:19:21 PM)
After market: 425.18 0 (0%)425.18
+8.22 (+1.97%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap133.04B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.56 | ||
| Fwd PE | 26.07 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.34
PEG (5Y)3.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.67% | ||
| ROE | 8.22% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 37.53% | ||
| PM (TTM) | 22.01% | ||
| GM | 67.47% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)17.85%
EPS 3Y2.56%
EPS 5Y
EPS growth Q2Q
EPS Next Y13.48%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.34%
Revenue growth 3Y18.86%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y