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 232 industry peers in the Capital Markets industry. SPGI scores excellent on profitability, but 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.
SPGI had a positive operating cash flow in the past year.
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
The Return On Assets of SPGI (6.60%) is better than 79.74% of its industry peers.
SPGI's Return On Equity of 11.84% is fine compared to the rest of the industry. SPGI outperforms 65.52% of its industry peers.
SPGI's Return On Invested Capital of 8.67% is amongst the best of the industry. SPGI outperforms 82.76% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SPGI is in line with the industry average of 7.88%.
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 68.53% of the companies in the same industry.
In the last couple of years the Profit Margin of SPGI has declined.
SPGI has a better Operating Margin (41.07%) than 71.98% of its industry peers.
SPGI's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 69.47%, SPGI is doing good in the industry, outperforming 73.71% 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
SPGI has less shares outstanding than it did 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
SPGI has an Altman-Z score of 4.63. This indicates that SPGI is financially healthy and has little risk of bankruptcy at the moment.
SPGI has a better Altman-Z score (4.63) than 83.19% 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.
With an excellent Debt to FCF ratio value of 2.05, SPGI belongs to the best of the industry, outperforming 83.62% of the companies in the same industry.
SPGI has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
SPGI's Debt to Equity ratio of 0.34 is fine compared to the rest of the industry. SPGI outperforms 72.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.05 | ||
| Altman-Z | 4.63 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
SPGI has a Current 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 worse Current ratio (0.90) than 61.64% 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.
Looking at the Quick ratio, with a value of 0.90, SPGI is in line with its industry, outperforming 42.24% of the companies in the same industry.
| 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 19.30% over the past year.
SPGI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.51% yearly.
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
The Earnings Per Share is expected to grow by 10.20% on average over the next years. This is quite good.
SPGI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.93% yearly.
EPS Next Y9.79%
EPS Next 2Y10.79%
EPS Next 3Y11.17%
EPS Next 5Y10.2%
Revenue Next Year5.82%
Revenue Next 2Y6.48%
Revenue Next 3Y6.7%
Revenue Next 5Y5.93%
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 stable.
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 31.98.
SPGI's Price/Earnings ratio is a bit more expensive when compared to the industry. SPGI is more expensive than 73.28% of the companies in the same industry.
When comparing the Price/Earnings ratio of SPGI to the average of the S&P500 Index (26.55), we can say SPGI is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 26.66, the valuation of SPGI can be described as expensive.
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 65.09% of the companies listed in the same industry.
SPGI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.98 | ||
| Fwd PE | 26.66 |
4.2 Price Multiples
SPGI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SPGI is cheaper than 68.10% of the companies in the same industry.
SPGI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.4 | ||
| EV/EBITDA | 23.49 |
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.
The decent profitability rating of SPGI may justify a higher PE ratio.
PEG (NY)3.27
PEG (5Y)3.04
EPS Next 2Y10.79%
EPS Next 3Y11.17%
5. Dividend
5.1 Amount
SPGI has a yearly dividend return of 0.74%, which is pretty low.
Compared to an average industry Dividend Yield of 8.22, SPGI is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.39, SPGI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
5.2 History
The dividend of SPGI is nicely growing with an annual growth rate of 9.40%!
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.
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 2Y10.79%
EPS Next 3Y11.17%
513.98
+0.06 (+0.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners90.06%
Inst Owner Change0.12%
Ins Owners0.03%
Ins Owner Change6.76%
Market Cap157.64B
Analysts85.63
Price Target600.45 (16.82%)
Short Float %0.98%
Short Ratio2.27
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)0%
PT rev (3m)-3.6%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-5.69%
EPS NY rev (1m)-0.74%
EPS NY rev (3m)-1.69%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)-3.41%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.98 | ||
| Fwd PE | 26.66 | ||
| P/S | 10.88 | ||
| P/FCF | 28.4 | ||
| P/OCF | 27.68 | ||
| P/B | 4.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.49 |
EPS(TTM)16.07
EY3.13%
EPS(NY)19.28
Fwd EY3.75%
FCF(TTM)18.1
FCFY3.52%
OCF(TTM)18.57
OCFY3.61%
SpS47.25
BVpS108.81
TBVpS-58.35
PEG (NY)3.27
PEG (5Y)3.04
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 | 4.63 |
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 5Y10.2%
Revenue 1Y (TTM)12.98%
Revenue growth 3Y19.64%
Revenue growth 5Y16.23%
Sales Q2Q%8.19%
Revenue Next Year5.82%
Revenue Next 2Y6.48%
Revenue Next 3Y6.7%
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%