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 230 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 (6.60%) is better than 80.00% of its industry peers.
With a decent Return On Equity value of 11.84%, SPGI is doing good in the industry, outperforming 65.65% of the companies in the same industry.
SPGI has a better Return On Invested Capital (8.67%) than 83.91% 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 7.27%.
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's Profit Margin of 27.27% is fine compared to the rest of the industry. SPGI outperforms 68.26% of its industry peers.
In the last couple of years the Profit Margin of SPGI has declined.
SPGI has a Operating Margin of 41.07%. This is in the better half of the industry: SPGI outperforms 71.74% of its industry peers.
SPGI's Operating Margin has declined in the last couple of years.
SPGI has a better Gross Margin (69.47%) than 73.48% 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
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.
The debt/assets ratio for SPGI has remained at the same level compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.61 indicates that SPGI is not in any danger for bankruptcy at the moment.
SPGI's Altman-Z score of 4.61 is amongst the best of the industry. SPGI outperforms 84.78% of its industry peers.
SPGI has a debt to FCF ratio of 2.05. This is a good value and a sign of high solvency as SPGI would need 2.05 years to pay back of all of its debts.
SPGI has a better Debt to FCF ratio (2.05) than 82.17% 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.
SPGI has a better Debt to Equity ratio (0.34) than 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.05 | ||
| Altman-Z | 4.61 |
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.
Looking at the Current ratio, with a value of 0.90, SPGI is doing worse than 60.00% of the companies in the same industry.
A Quick Ratio of 0.90 indicates that SPGI may have some problems paying its short term obligations.
SPGI has a Quick ratio of 0.90. This is comparable to the rest of the industry: SPGI outperforms 43.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
SPGI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.30%, 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.
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 10.56% yearly.
Based on estimates for the next years, SPGI will show a small growth in Revenue. The Revenue will grow by 6.27% on average per year.
EPS Next Y9.79%
EPS Next 2Y10.79%
EPS Next 3Y11.17%
EPS Next 5Y10.56%
Revenue Next Year5.75%
Revenue Next 2Y6.44%
Revenue Next 3Y6.7%
Revenue Next 5Y6.27%
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.
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
A Price/Earnings ratio of 31.82 indicates a quite expensive valuation of SPGI.
Compared to the rest of the industry, the Price/Earnings ratio of SPGI indicates a slightly more expensive valuation: SPGI is more expensive than 71.30% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.03, SPGI is valued a bit more expensive.
With a Price/Forward Earnings ratio of 26.52, SPGI can be considered very expensive at the moment.
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 66.09% 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 (21.94), we can say SPGI is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.82 | ||
| Fwd PE | 26.52 |
4.2 Price Multiples
68.70% of the companies in the same industry are more expensive than SPGI, based on the Enterprise Value to EBITDA ratio.
SPGI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.25 | ||
| EV/EBITDA | 23.34 |
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.
PEG (NY)3.25
PEG (5Y)3.03
EPS Next 2Y10.79%
EPS Next 3Y11.17%
5. Dividend
5.1 Amount
With a yearly dividend of 0.74%, SPGI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.20, SPGI is paying slightly less dividend.
With a Dividend Yield of 0.74, SPGI pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
5.2 History
On average, the dividend of SPGI grows each year by 9.40%, which is quite nice.
SPGI has paid a dividend for at least 10 years, which is a reliable track record.
SPGI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.4%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
SPGI pays out 28.92% of its income as dividend. This is a 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 2Y10.79%
EPS Next 3Y11.17%
511.32
+1.05 (+0.21%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners90.06%
Inst Owner Change0.09%
Ins Owners0.03%
Ins Owner Change6.57%
Market Cap156.82B
Analysts85.81
Price Target600.48 (17.44%)
Short Float %0.89%
Short Ratio1.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
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)-3.6%
PT rev (3m)0.13%
EPS NQ rev (1m)-5.49%
EPS NQ rev (3m)-5.66%
EPS NY rev (1m)-0.74%
EPS NY rev (3m)-1.57%
Revenue NQ rev (1m)-3.34%
Revenue NQ rev (3m)-3.51%
Revenue NY rev (1m)-0.88%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.82 | ||
| Fwd PE | 26.52 | ||
| P/S | 10.82 | ||
| P/FCF | 28.25 | ||
| P/OCF | 27.54 | ||
| P/B | 4.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.34 |
EPS(TTM)16.07
EY3.14%
EPS(NY)19.28
Fwd EY3.77%
FCF(TTM)18.1
FCFY3.54%
OCF(TTM)18.57
OCFY3.63%
SpS47.25
BVpS108.81
TBVpS-58.35
PEG (NY)3.25
PEG (5Y)3.03
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 | 4.61 |
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 Y9.79%
EPS Next 2Y10.79%
EPS Next 3Y11.17%
EPS Next 5Y10.56%
Revenue 1Y (TTM)12.98%
Revenue growth 3Y19.64%
Revenue growth 5Y16.23%
Sales Q2Q%8.19%
Revenue Next Year5.75%
Revenue Next 2Y6.44%
Revenue Next 3Y6.7%
Revenue Next 5Y6.27%
EBIT growth 1Y21.84%
EBIT growth 3Y8.58%
EBIT growth 5Y11.89%
EBIT Next Year11.35%
EBIT Next 3Y9.16%
EBIT Next 5Y7.86%
FCF growth 1Y93.15%
FCF growth 3Y16.02%
FCF growth 5Y15.9%
OCF growth 1Y91.4%
OCF growth 3Y16.5%
OCF growth 5Y15.43%