S&P GLOBAL INC (SPGI) Stock Fundamental Analysis
NYSE:SPGI - New York Stock Exchange, Inc. - US78409V1044 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to SPGI. SPGI was compared to 230 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. 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.
In the past year SPGI had a positive cash flow from operations.
SPGI had positive earnings in each of the past 5 years.
Each year in the past 5 years SPGI had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.60%, SPGI is doing good in the industry, outperforming 79.57% of the companies in the same industry.
With a decent Return On Equity value of 11.84%, SPGI is doing good in the industry, outperforming 63.91% of the companies in the same industry.
SPGI has a Return On Invested Capital of 8.67%. This is amongst the best in the industry. SPGI outperforms 83.48% 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 7.09%.
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
SPGI's Profit Margin of 27.27% is fine compared to the rest of the industry. SPGI outperforms 66.96% of its industry peers.
SPGI's Profit Margin has declined in the last couple of years.
The Operating Margin of SPGI (41.07%) is better than 71.74% of its industry peers.
SPGI's Operating Margin has declined in the last couple of years.
SPGI has a Gross Margin of 69.47%. This is in the better half of the industry: SPGI outperforms 73.91% 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
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.
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 4.54 indicates that SPGI is not in any danger for bankruptcy at the moment.
The Altman-Z score of SPGI (4.54) is better than 85.65% 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.
The Debt to FCF ratio of SPGI (2.05) is better than 82.61% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that SPGI is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.34, SPGI is doing good in the industry, outperforming 73.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.05 | ||
| Altman-Z | 4.54 |
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.
SPGI has a Current ratio (0.90) which is comparable to the rest of the industry.
A Quick Ratio of 0.90 indicates that SPGI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.90, SPGI is in line with its industry, outperforming 44.78% of the companies in the same industry.
| 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.
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 12.98% in the last year.
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)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
Based on estimates for the next years, SPGI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.56% on average per year.
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 Y10.6%
EPS Next 2Y11.3%
EPS Next 3Y11.51%
EPS Next 5Y10.56%
Revenue Next Year6.24%
Revenue Next 2Y6.74%
Revenue Next 3Y6.98%
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
SPGI is valuated quite expensively with a Price/Earnings ratio of 31.12.
SPGI's Price/Earnings ratio is a bit more expensive when compared to the industry. SPGI is more expensive than 72.17% of the companies in the same industry.
SPGI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.88.
With a Price/Forward Earnings ratio of 25.69, SPGI can be considered very expensive at the moment.
SPGI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. SPGI is more expensive than 66.52% of the companies in the same industry.
SPGI's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.12 | ||
| Fwd PE | 25.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SPGI is valued a bit cheaper than the industry average as 69.57% of the companies are valued more expensively.
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 | 27.63 | ||
| EV/EBITDA | 22.9 |
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)2.93
PEG (5Y)2.96
EPS Next 2Y11.3%
EPS Next 3Y11.51%
5. Dividend
5.1 Amount
SPGI has a yearly dividend return of 0.78%, which is pretty low.
SPGI's Dividend Yield is slightly below the industry average, which is at 8.30.
Compared to an average S&P500 Dividend Yield of 2.45, SPGI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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
28.92% of the earnings are spent on dividend by SPGI. This is a low number and 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 2Y11.3%
EPS Next 3Y11.51%
500.05
+8.29 (+1.69%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners90.06%
Inst Owner Change0.81%
Ins Owners0.03%
Ins Owner Change10.12%
Market Cap153.36B
Analysts85.16
Price Target597.14 (19.42%)
Short Float %0.84%
Short Ratio1.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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)4.21%
Min EPS beat(2)2.18%
Max EPS beat(2)6.25%
EPS beat(4)4
Avg EPS beat(4)5.41%
Min EPS beat(4)2.18%
Max EPS beat(4)8.53%
EPS beat(8)6
Avg EPS beat(8)3.41%
EPS beat(12)9
Avg EPS beat(12)2.54%
EPS beat(16)11
Avg EPS beat(16)2.68%
Revenue beat(2)2
Avg Revenue beat(2)0.28%
Min Revenue beat(2)0.03%
Max Revenue beat(2)0.53%
Revenue beat(4)4
Avg Revenue beat(4)1.11%
Min Revenue beat(4)0.03%
Max Revenue beat(4)2.14%
Revenue beat(8)6
Avg Revenue beat(8)0.32%
Revenue beat(12)7
Avg Revenue beat(12)-0.22%
Revenue beat(16)9
Avg Revenue beat(16)-0.98%
PT rev (1m)-4.13%
PT rev (3m)-0.32%
EPS NQ rev (1m)-0.6%
EPS NQ rev (3m)-0.17%
EPS NY rev (1m)-1.04%
EPS NY rev (3m)1.17%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)-0.75%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.12 | ||
| Fwd PE | 25.69 | ||
| P/S | 10.58 | ||
| P/FCF | 27.63 | ||
| P/OCF | 26.93 | ||
| P/B | 4.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.9 |
EPS(TTM)16.07
EY3.21%
EPS(NY)19.46
Fwd EY3.89%
FCF(TTM)18.1
FCFY3.62%
OCF(TTM)18.57
OCFY3.71%
SpS47.26
BVpS108.81
TBVpS-58.35
PEG (NY)2.93
PEG (5Y)2.96
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 | 4.54 |
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 Y10.6%
EPS Next 2Y11.3%
EPS Next 3Y11.51%
EPS Next 5Y10.56%
Revenue 1Y (TTM)12.98%
Revenue growth 3Y19.64%
Revenue growth 5Y16.23%
Sales Q2Q%8.19%
Revenue Next Year6.24%
Revenue Next 2Y6.74%
Revenue Next 3Y6.98%
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%