NYSE:INFO

Stock Analysis Report

Executive Summary

IHS Markit Ltd. provides critical information, analytics, and solutions for various industries and markets that drive economies worldwide.


Snowflake Analysis

Proven track record with mediocre balance sheet.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.1%

INFO

-2.5%

US Professional Services

-1.1%

US Market


1 Year Return

6.1%

INFO

-11.4%

US Professional Services

-13.6%

US Market

Return vs Industry: INFO exceeded the US Professional Services industry which returned -11.4% over the past year.

Return vs Market: INFO exceeded the US Market which returned -13.6% over the past year.


Shareholder returns

INFOIndustryMarket
7 Day-2.1%-2.5%-1.1%
30 Day-18.1%-20.2%-17.8%
90 Day-23.1%-21.5%-22.5%
1 Year6.3%6.1%-10.7%-11.4%-11.9%-13.6%
3 Year38.4%38.2%17.2%13.5%12.1%4.9%
5 Year69.2%68.8%32.1%25.0%30.5%16.3%

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?

26.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: INFO ($58.3) is trading above our estimate of fair value ($53.36)

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 (26.5x) compared to the Professional Services industry average (12.4x).

PE vs Market: INFO is poor value based on its PE Ratio (26.5x) compared to the US market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: INFO's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: INFO is overvalued based on its PB Ratio (2.8x) compared to the US Professional Services industry average (1.7x).


Next Steps

Future Growth

How is IHS Markit forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

-6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INFO's earnings are forecast to decline over the next 3 years (-6.2% per year).

Earnings vs Market: INFO's earnings are forecast to decline over the next 3 years (-6.2% per year).

High Growth Earnings: INFO's earnings are forecast to decline over the next 3 years.

Revenue vs Market: INFO's revenue (5.3% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: INFO's revenue (5.3% 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 (11.4%).


Next Steps

Past Performance

How has IHS Markit performed over the past 5 years?

30.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INFO has a large one-off gain of $422.3M impacting its February 29 2020 financial results.

Growing Profit Margin: INFO's current net profit margins (19.7%) are higher than last year (10%).


Past Earnings Growth Analysis

Earnings Trend: INFO's earnings have grown significantly by 30% per year over the past 5 years.

Accelerating Growth: INFO's earnings growth over the past year (113.6%) exceeds its 5-year average (30% per year).

Earnings vs Industry: INFO earnings growth over the past year (113.6%) exceeded the Professional Services industry 13.9%.


Return on Equity

High ROE: INFO's Return on Equity (10.4%) is considered low.


Next Steps

Financial Health

How is IHS Markit's financial position?


Financial Position Analysis

Short Term Liabilities: INFO's short term assets ($1.3B) do not cover its short term liabilities ($1.9B).

Long Term Liabilities: INFO's short term assets ($1.3B) do not cover its long term liabilities ($6.1B).


Debt to Equity History and Analysis

Debt Level: INFO's debt to equity ratio (62.1%) is considered high.

Reducing Debt: INFO's debt to equity ratio has reduced from 93.1% to 62.1% over the past 5 years.

Debt Coverage: INFO's debt is well covered by operating cash flow (22.7%).

Interest Coverage: INFO's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet

Inventory Level: INFO has a low level of unsold assets or inventory.

Debt Coverage by Assets: INFO's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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

1.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: INFO's dividend (1.17%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2%).

High Dividend: INFO's dividend (1.17%) is low compared to the top 25% of dividend payers in the US market (5.56%).


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 low payout ratio (7.7%), INFO's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of INFO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Lance Uggla (57yo)

2.33s

Tenure

US$13,067,316

Compensation

Mr. Lance Uggla serves as Director at Mastercard Incorporated since June 25, 2019. He serves as Chairman and Chief Executive Officer at IHS Markit Ltd. Mr. Uggla served as the President of Markit Ltd. sinc ...


CEO Compensation Analysis

Compensation vs Market: Lance's total compensation ($USD13.07M) is about average for companies of similar size in the US market ($USD11.86M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Lance Uggla
Chairman & CEO2.33yrsUS$13.07m0.35% $80.9m
Jonathan Gear
CFO & Executive VP0.17yrUS$2.91m0.043% $10.0m
Sari Granat
Executive VP1.25yrsUS$2.45m0.0063% $1.5m
Adam Kansler
Executive VP & President of Financial Servicesno dataUS$2.76m0.024% $5.5m
Michael Easton
Senior VP & Chief Accounting Officer3.17yrsno data0.0049% $1.1m
Yaacov Mutnikas
CTO & Chief Data Scientist2.25yrsno datano data
Eric Boyer
Vice Presidentno datano datano data
Napoleon Rumteen
Vice President of Sales1yrno datano data
Ronnie West
Executive VP & Chief People Officer1.25yrsno datano data
Atul Arya
Senior Vice President of Energy Insightno datano datano data

1.3yrs

Average Tenure

48.5yo

Average Age

Experienced Management: INFO's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Lance Uggla
Chairman & CEO2.33yrsUS$13.07m0.35% $80.9m
William Ford
Independent Director10.25yrsUS$299.98k0.0055% $1.3m
Ruann Ernst
Independent Director3.75yrsUS$269.98k0.0037% $853.5k
Jean-Paul Montupet
Independent Director8.25yrsUS$287.48k0.00089% $207.0k
Robert Kelly
Lead Director3.75yrsUS$319.98k0.019% $4.4m
Deborah McWhinney
Independent Director5.25yrsUS$274.98k0.0035% $811.7k
Dinyar Devitre
Independent Director7.42yrsUS$299.98k0.013% $3.0m
Richard Roedel
Independent Director16.25yrsUS$294.98k0.012% $2.9m
James Rosenthal
Independent Director6.58yrsUS$269.98k0.0041% $958.2k
Nicoletta Giadrossi
Independent Director2.25yrsUS$269.98k0.00090% $209.3k

5.9yrs

Average Tenure

64.5yo

Average Age

Experienced Board: INFO's board of directors are considered experienced (5.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: INFO insiders have sold more shares than they have bought 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$23.257b
  • Shares outstanding: 398.92m
  • Website: https://www.ihsmarkit.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INFONYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2005
0M3BST (Boerse-Stuttgart)YesCommon StockDEEURNov 2005
0M3DB (Deutsche Boerse AG)YesCommon StockDEEURNov 2005
0UAILSE (London Stock Exchange)YesCommon StockGBUSDNov 2005
INFO NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNNov 2005
I1NF34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

Biography

IHS Markit Ltd. provides critical information, analytics, and solutions for various industries and markets that drive economies worldwide. The company’s information, analytics, and solutions enhance operational efficiency and offer deep insights for customers in business, finance, and government. Its Financial Services segment offers pricing and reference data, indices, valuation and trading services, trade processing, enterprise software, and managed services to traders, portfolio managers, risk managers, research professionals, and other financial market participants, as well as operations, compliance, and enterprise data managers. The company’s Transportation segment provides authoritative analysis, as well as sales and production forecasts for light vehicles, medium and heavy commercial vehicles, powertrains, components, and technology systems; and predictive analytics and marketing automation software. It also offers comprehensive data on ships, as well as monthly import and export statistics on approximately 100 countries. The company’s Resources segment provides upstream services, including technical information, analytical tools, and market forecasting and consulting for the upstream industry; and downstream information, such as market forecasting, midstream market analysis and supply chain data, refining and marketing economics, and oil product pricing information for the chemical, refined products, agriculture, and power industries. It also offers data for manufacturing processes, as well as capital expenditure, cost, price, production, trade, demand, and capacity industry analysis and forecasts. The company’s Consolidated Markets & Solutions segment provides discovery technologies, research tools, and software-based engineering decision engines; performance and analysis for technology, media, and telecom industries; and economic and risk data, forecast, and analytic tools. The company was founded in 1959 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 01:38
End of Day Share Price2020/04/01 00:00
Earnings2020/02/29
Annual Earnings2019/11/30


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.