S&P GLOBAL INC (SPGI) Stock Fundamental Analysis
NYSE:SPGI - New York Stock Exchange, Inc. - US78409V1044 - Common Stock - Currency: USD
SPGI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 236 industry peers in the Capital Markets industry. While SPGI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 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.
In the past year SPGI had a positive cash flow from operations.
Each year in the past 5 years SPGI has been profitable.
In the past 5 years SPGI always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 6.60%, SPGI belongs to the best of the industry, outperforming 80.93% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.84%, SPGI is in the better half of the industry, outperforming 67.37% of the companies in the same industry.
The Return On Invested Capital of SPGI (8.67%) is better than 83.05% 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 7.89%.
The 3 year average ROIC (7.04%) for SPGI is below the current ROIC(8.67%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 27.27%, SPGI is in the better half of the industry, outperforming 70.34% of the companies in the same industry.
In the last couple of years the Profit Margin of SPGI has declined.
With a decent Operating Margin value of 41.07%, SPGI is doing good in the industry, outperforming 72.03% of the companies in the same industry.
SPGI's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 69.47%, SPGI is in the better half of the industry, outperforming 74.58% 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 | 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
The number of shares outstanding for SPGI has been reduced compared to 1 year ago.
SPGI has more shares outstanding than it did 5 years ago.
SPGI has about the same debt/assets ratio as last year.
2.2 Solvency
An Altman-Z score of 4.89 indicates that SPGI is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.89, SPGI belongs to the best of the industry, outperforming 84.75% of the companies in the same industry.
The Debt to FCF ratio of SPGI is 2.05, which is a good value as it means it would take SPGI, 2.05 years of fcf income to pay off all of its debts.
SPGI has a Debt to FCF ratio of 2.05. This is amongst the best in the industry. SPGI outperforms 84.32% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that SPGI is not too dependend on debt financing.
The Debt to Equity ratio of SPGI (0.34) is better than 72.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.05 | ||
| Altman-Z | 4.89 |
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.
The Current ratio of SPGI (0.90) is worse than 60.59% of its industry peers.
SPGI has a Quick Ratio of 0.90. 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 (0.90) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.38% over the past year.
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.
SPGI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.69%.
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)14.38%
EPS 3Y4.67%
EPS 5Y10.51%
EPS Q2Q%9.65%
Revenue 1Y (TTM)13.69%
Revenue growth 3Y19.64%
Revenue growth 5Y16.23%
Sales Q2Q%5.8%
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 10.20% yearly.
The Revenue is expected to grow by 5.93% on average over the next years.
EPS Next Y10.29%
EPS Next 2Y11%
EPS Next 3Y11.22%
EPS Next 5Y10.2%
Revenue Next Year6.23%
Revenue Next 2Y6.66%
Revenue Next 3Y6.93%
Revenue Next 5Y5.93%
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
With a Price/Earnings ratio of 33.15, SPGI can be considered very expensive at the moment.
72.03% of the companies in the same industry are cheaper than SPGI, based on the Price/Earnings ratio.
SPGI's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.82.
A Price/Forward Earnings ratio of 28.19 indicates a quite expensive valuation of SPGI.
Based on the Price/Forward Earnings ratio, SPGI is valued a bit more expensive than 68.22% of the companies in the same industry.
SPGI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.15 | ||
| Fwd PE | 28.19 |
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 66.53% of the companies listed in the same industry.
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 | 30.15 | ||
| EV/EBITDA | 25.09 |
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.
PEG (NY)3.22
PEG (5Y)3.15
EPS Next 2Y11%
EPS Next 3Y11.22%
5. Dividend
5.1 Amount
SPGI has a yearly dividend return of 0.73%, which is pretty low.
Compared to an average industry Dividend Yield of 8.06, SPGI is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.35, SPGI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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 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.
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.
DP28.92%
EPS Next 2Y11%
EPS Next 3Y11.22%
545.66
-5.44 (-0.99%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners89.49%
Inst Owner Change0.26%
Ins Owners0.03%
Ins Owner Change4.5%
Market Cap167.35B
Analysts85.63
Price Target606.91 (11.22%)
Short Float %0.96%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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)1.08%
PT rev (3m)1.64%
EPS NQ rev (1m)1.61%
EPS NQ rev (3m)-3.85%
EPS NY rev (1m)0.25%
EPS NY rev (3m)-0.28%
Revenue NQ rev (1m)0.86%
Revenue NQ rev (3m)-2.37%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.15 | ||
| Fwd PE | 28.19 | ||
| P/S | 11.55 | ||
| P/FCF | 30.15 | ||
| P/OCF | 29.39 | ||
| P/B | 5.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.09 |
EPS(TTM)16.46
EY3.02%
EPS(NY)19.36
Fwd EY3.55%
FCF(TTM)18.1
FCFY3.32%
OCF(TTM)18.57
OCFY3.4%
SpS47.25
BVpS108.81
TBVpS-58.35
PEG (NY)3.22
PEG (5Y)3.15
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 | 4.89 |
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)14.38%
EPS 3Y4.67%
EPS 5Y10.51%
EPS Q2Q%9.65%
EPS Next Y10.29%
EPS Next 2Y11%
EPS Next 3Y11.22%
EPS Next 5Y10.2%
Revenue 1Y (TTM)13.69%
Revenue growth 3Y19.64%
Revenue growth 5Y16.23%
Sales Q2Q%5.8%
Revenue Next Year6.23%
Revenue Next 2Y6.66%
Revenue Next 3Y6.93%
Revenue Next 5Y5.93%
EBIT growth 1Y21.84%
EBIT growth 3Y8.58%
EBIT growth 5Y11.89%
EBIT Next Year9.66%
EBIT Next 3Y8.45%
EBIT Next 5Y7.58%
FCF growth 1Y93.15%
FCF growth 3Y16.02%
FCF growth 5Y15.9%
OCF growth 1Y91.4%
OCF growth 3Y16.5%
OCF growth 5Y15.43%