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 has a great profitability rating, there are some minor concerns on its financial health. SPGI is quite expensive at the moment. 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.
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
The Return On Assets of SPGI (6.60%) is better than 79.65% of its industry peers.
SPGI's Return On Equity of 11.84% is fine compared to the rest of the industry. SPGI outperforms 65.37% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.67%, SPGI belongs to the top of the industry, outperforming 83.98% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SPGI is in line with the industry average of 7.23%.
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 has a better Profit Margin (27.27%) than 67.97% 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 71.86% of its industry peers.
SPGI's Operating Margin has declined in the last couple of years.
SPGI's Gross Margin of 69.47% is fine compared to the rest of the industry. SPGI outperforms 73.59% of its industry peers.
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
Compared to 1 year ago, SPGI has less shares outstanding
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
SPGI has an Altman-Z score of 4.69. This indicates that SPGI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.69, SPGI belongs to the top of the industry, outperforming 85.28% 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 better Debt to FCF ratio (2.05) than 82.25% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that SPGI is not too dependend on debt financing.
SPGI's Debt to Equity ratio of 0.34 is fine compared to the rest of the industry. SPGI outperforms 74.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.05 | ||
| Altman-Z | 4.69 |
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.
The Current ratio of SPGI (0.90) is worse than 60.61% of its industry peers.
A Quick Ratio of 0.90 indicates that SPGI may have some problems paying its short term obligations.
The Quick ratio of SPGI (0.90) is comparable to the rest of the 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.
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
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.
The Revenue is expected to grow by 6.27% on average over the next years.
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.
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
A Price/Earnings ratio of 32.51 indicates a quite expensive valuation of SPGI.
70.56% of the companies in the same industry are cheaper than SPGI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.25, SPGI is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 27.10, the valuation of SPGI can be described as expensive.
Based on the Price/Forward Earnings ratio, SPGI is valued a bit more expensive than the industry average as 65.37% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of SPGI to the average of the S&P500 Index (21.27), we can say SPGI is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.51 | ||
| Fwd PE | 27.1 |
4.2 Price Multiples
SPGI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SPGI is cheaper than 69.26% of the companies in the same industry.
SPGI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.87 | ||
| EV/EBITDA | 23.86 |
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)3.32
PEG (5Y)3.09
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 8.28, SPGI is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.37, 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.
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%
522.46
+3.18 (+0.61%)
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 Change6.48%
Market Cap160.24B
Analysts85.81
Price Target600.48 (14.93%)
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 | 32.51 | ||
| Fwd PE | 27.1 | ||
| P/S | 11.06 | ||
| P/FCF | 28.87 | ||
| P/OCF | 28.14 | ||
| P/B | 4.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.86 |
EPS(TTM)16.07
EY3.08%
EPS(NY)19.28
Fwd EY3.69%
FCF(TTM)18.1
FCFY3.46%
OCF(TTM)18.57
OCFY3.55%
SpS47.25
BVpS108.81
TBVpS-58.35
PEG (NY)3.32
PEG (5Y)3.09
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 | 4.69 |
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%