NYSE:INFO

Stock Analysis Report

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Market Cap

US$44.0b

Last Updated

2021/06/24 02:56 UTC

Data Sources

Company Financials +

Executive Summary

IHS Markit Ltd. provides critical information, analytics, and solutions for various industries and markets worldwide. More Details


Snowflake Analysis

Mediocre balance sheet unattractive dividend payer.


Similar Companies

Share Price & News

How has IHS Markit's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: INFO is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: INFO's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.8%

INFO

0.4%

US Professional Services

0.5%

US Market


1 Year Return

54.0%

INFO

37.0%

US Professional Services

42.6%

US Market

Return vs Industry: INFO exceeded the US Professional Services industry which returned 37% over the past year.

Return vs Market: INFO exceeded the US Market which returned 42.6% over the past year.


Shareholder returns

INFOIndustryMarket
7 Day1.8%0.4%0.5%
30 Day5.1%-1.4%1.9%
90 Day14.7%9.3%7.9%
1 Year55.3%54.0%38.0%37.0%44.9%42.6%
3 Year118.3%115.4%64.6%60.2%64.4%54.1%
5 Year247.1%242.6%145.1%128.5%128.3%102.7%

Long-Term Price Volatility Vs. Market

How volatile is IHS Markit's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is IHS Markit undervalued compared to its fair value and its price relative to the market?

82.02x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: INFO ($110.47) is trading above our estimate of fair value ($102.28)

Significantly Below Fair Value: INFO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: INFO is poor value based on its PE Ratio (82x) compared to the US Professional Services industry average (27.7x).

PE vs Market: INFO is poor value based on its PE Ratio (82x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: INFO is poor value based on its PEG Ratio (5.4x)


Price to Book Ratio

PB vs Industry: INFO is overvalued based on its PB Ratio (5.1x) compared to the US Professional Services industry average (3.2x).


Future Growth

How is IHS Markit forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

15.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INFO's forecast earnings growth (15.3% per year) is above the savings rate (2%).

Earnings vs Market: INFO's earnings (15.3% per year) are forecast to grow slower than the US market (15.7% per year).

High Growth Earnings: INFO's earnings are forecast to grow, but not significantly.

Revenue vs Market: INFO's revenue (6.1% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: INFO's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: INFO's Return on Equity is forecast to be low in 3 years time (12.4%).


Past Performance

How has IHS Markit performed over the past 5 years?

28.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INFO has a large one-off loss of $210.1M impacting its May 31 2021 financial results.

Growing Profit Margin: INFO's current net profit margins (12.4%) are lower than last year (19.7%).


Past Earnings Growth Analysis

Earnings Trend: INFO's earnings have grown significantly by 28.6% per year over the past 5 years.

Accelerating Growth: INFO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: INFO had negative earnings growth (-39.1%) over the past year, making it difficult to compare to the Professional Services industry average (18.7%).


Return on Equity

High ROE: INFO's Return on Equity (6.1%) is considered low.


Financial Health

How is IHS Markit's financial position?


Financial Position Analysis

Short Term Liabilities: INFO's short term assets ($2.3B) do not cover its short term liabilities ($2.4B).

Long Term Liabilities: INFO's short term assets ($2.3B) do not cover its long term liabilities ($5.6B).


Debt to Equity History and Analysis

Debt Level: INFO's debt to equity ratio (58.8%) is considered high.

Reducing Debt: INFO's debt to equity ratio has reduced from 140.1% to 58.8% over the past 5 years.

Debt Coverage: INFO's debt is well covered by operating cash flow (24.7%).

Interest Coverage: INFO's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet


Dividend

What is IHS Markit current dividend yield, its reliability and sustainability?

0.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: INFO's dividend (0.72%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.3%).

High Dividend: INFO's dividend (0.72%) is low compared to the top 25% of dividend payers in the US market (3.46%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether INFO's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if INFO's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.7%), INFO's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: INFO's dividends in 3 years are forecast to be well covered by earnings (25% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Lance Uggla (58 yo)

3.42yrs

Tenure

US$15,065,334

Compensation

Mr. Lance Uggla serves as Independent Director at Mastercard Incorporated since June 25, 2019. He serves as Chairman and Chief Executive Officer at IHS Markit Ltd. since January 1, 2018. Mr. Uggla served a...


CEO Compensation Analysis

Compensation vs Market: Lance's total compensation ($USD15.07M) is above average for companies of similar size in the US market ($USD11.28M).

Compensation vs Earnings: Lance's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: INFO's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: INFO's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: INFO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

IHS Markit Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: IHS Markit Ltd.
  • Ticker: INFO
  • Exchange: NYSE
  • Founded: 1959
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: US$44.025b
  • Shares outstanding: 398.52m
  • Website: https://www.ihsmarkit.com

Number of Employees


Location

  • IHS Markit Ltd.
  • Ropemaker Place
  • 4th Floor
  • London
  • Greater London
  • EC2Y 9LY
  • United Kingdom

Listings


Biography

IHS Markit Ltd. provides critical information, analytics, and solutions for various industries and markets worldwide. The company’s information, analytics, and solutions enhance operational efficiency and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/24 02:56
End of Day Share Price2021/06/23 00:00
Earnings2021/05/31
Annual Earnings2020/11/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.