NYSE:SPGI

Stock Analysis Report

Executive Summary

S&P Global Inc., together with its subsidiaries, provides ratings, benchmarks, analytics, and data to the capital and commodity markets worldwide.

Rewards

Trading at 25.5% below its fair value

Earnings are forecast to grow 8.75% per year

Earnings grew by 22.5% over the past year

Pays a reliable dividend of 0.84%

Risk Analysis

No risks detected for SPGI from our risk checks.


Snowflake Analysis

Proven track record average dividend payer.


Similar Companies

Share Price & News

How has S&P Global's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SPGI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

SPGI

0.1%

US Capital Markets

0.6%

US Market


1 Year Return

62.8%

SPGI

22.4%

US Capital Markets

20.8%

US Market

Return vs Industry: SPGI exceeded the US Capital Markets industry which returned 22.4% over the past year.

Return vs Market: SPGI exceeded the US Market which returned 20.8% over the past year.


Shareholder returns

SPGIIndustryMarket
7 Day-1.2%0.1%0.6%
30 Day4.3%4.6%2.5%
90 Day8.5%6.1%4.9%
1 Year64.4%62.8%24.9%22.4%23.5%20.8%
3 Year147.5%139.8%41.7%33.6%46.5%37.0%
5 Year219.2%201.2%76.7%60.2%64.6%46.5%

Price Volatility Vs. Market

How volatile is S&P Global's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is S&P Global undervalued compared to its fair value and its price relative to the market?

25.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SPGI ($271.2) is trading below our estimate of fair value ($364.13)

Significantly Below Fair Value: SPGI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SPGI is good value based on its PE Ratio (32x) compared to the Capital Markets industry average (33.4x).

PE vs Market: SPGI is poor value based on its PE Ratio (32x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: SPGI is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: SPGI is overvalued based on its PB Ratio (191.6x) compared to the US Capital Markets industry average (6.3x).


Next Steps

Future Growth

How is S&P Global forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPGI's forecast earnings growth (8.8% per year) is above the savings rate (1.7%).

Earnings vs Market: SPGI's earnings (8.8% per year) are forecast to grow slower than the US market (14.4% per year).

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

Revenue vs Market: SPGI's revenue (5.6% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: SPGI's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SPGI's Return on Equity is forecast to be very high in 3 years time (246.7%).


Next Steps

Past Performance

How has S&P Global performed over the past 5 years?

29.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPGI has high quality earnings.

Growing Profit Margin: SPGI's current net profit margins (32.2%) are higher than last year (27.1%).


Past Earnings Growth Analysis

Earnings Trend: SPGI's earnings have grown significantly by 29.5% per year over the past 5 years.

Accelerating Growth: SPGI's earnings growth over the past year (22.5%) is below its 5-year average (29.5% per year).

Earnings vs Industry: SPGI earnings growth over the past year (22.5%) exceeded the Capital Markets industry 20.6%.


Return on Equity

High ROE: Whilst SPGI's Return on Equity (93.45%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is S&P Global's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

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

Debt Coverage by Assets: SPGI's debt is covered by short term assets (assets are 1x debt).


Financial Institutions Analysis

Asset Level: SPGI's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if SPGI has a sufficient allowance for bad loans.

Low Risk Liabilities: SPGI reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if SPGI has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SPGI has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if SPGI has an appropriate level of bad loans.


Next Steps

Dividend

What is S&P Global's current dividend yield, its reliability and sustainability?

0.84%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years0.9%

Current dividend yield vs market & industry

Notable Dividend: SPGI's dividend (0.84%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: SPGI's dividend (0.84%) is low compared to the top 25% of dividend payers in the US market (3.71%).


Stability and Growth of Payments

Stable Dividend: SPGI's dividends per share have been stable in the past 10 years.

Growing Dividend: SPGI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26%), SPGI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SPGI's dividends in 3 years are forecast to be well covered by earnings (21.3% payout ratio).


Next Steps

Management

What is the CEO of S&P Global's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Doug Peterson (60yo)

6.1yrs

Tenure

US$12,360,845

Compensation

Mr. Douglas L. Peterson, also known as Doug, has been the Chief Executive Officer, President of S&P Global Inc. since November 1, 2013 and has been its Executive Director since July 11, 2013. Mr. Peterson  ...


CEO Compensation Analysis

Compensation vs Market: Doug's total compensation ($USD12.36M) is about average for companies of similar size in the US market ($USD10.94M).

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


Management Age and Tenure

1.9yrs

Average Tenure

52yo

Average Age

Experienced Management: SPGI's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

5.8yrs

Average Tenure

66yo

Average Age

Experienced Board: SPGI's board of directors are considered experienced (5.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$830,18004 Nov 19
Nicholas Cafferillo
EntityIndividual
Role
Chief Technology Officer
Chief Data & Technology Officer
Shares3,219
Max PriceUS$257.90
SellUS$2,506,98209 Aug 19
Nicholas Cafferillo
EntityIndividual
Role
Chief Technology Officer
Chief Data & Technology Officer
Shares9,911
Max PriceUS$253.55
SellUS$1,374,32607 Aug 19
Steven Kemps
EntityIndividual
Shares5,500
Max PriceUS$250.01
SellUS$893,12509 May 19
Courtney Geduldig
EntityIndividual
Shares4,105
Max PriceUS$217.57
SellUS$477,06809 May 19
Nancy Luquette
EntityIndividual
Shares2,200
Max PriceUS$216.85
SellUS$1,955,26306 Mar 19
John Berisford
EntityIndividual
Role
Top Key Executive
President of S&P Global Ratings Inc
Shares9,669
Max PriceUS$202.79

Ownership Breakdown

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


Management Team

  • Martin Fraenkel (58yo)

    President of S&P Global Platts Inc

    • Tenure: 0yrs
  • Alex Matturri (60yo)

    Chief Executive Officer of S&P Dow Jones Indices LLC

    • Tenure: 0yrs
    • Compensation: US$3.31m
  • John Berisford (55yo)

    President of S&P Global Ratings Inc

    • Tenure: 0yrs
    • Compensation: US$2.90m
  • Nick Cafferillo (47yo)

    Chief Data & Technology Officer

    • Tenure: 1.9yrs
  • Ewout Steenbergen (50yo)

    Executive VP & CFO

    • Tenure: 3.1yrs
    • Compensation: US$4.37m
  • Chip Merritt

    Senior Vice President of Investor Relations

    • Tenure: 0yrs
  • Martina Cheung (43yo)

    President of S&P Global Market Intelligence

    • Tenure: 0yrs
  • Sitarama Kocherlakota (52yo)

    Chief Information Officer

    • Tenure: 1.9yrs
  • Chris Craig (45yo)

    Senior VP

    • Tenure: 1.3yrs
  • Doug Peterson (60yo)

    President

    • Tenure: 6.1yrs
    • Compensation: US$12.36m

Board Members

  • Terry McGraw (71yo)

    Chairman Emeritus

    • Tenure: 4.7yrs
    • Compensation: US$363.55k
  • Ed Haldeman (71yo)

    Non-Executive Chairman of the Board

    • Tenure: 4.7yrs
    • Compensation: US$400.13k
  • Dick Thornburgh (67yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: US$268.13k
  • Ed Rust (69yo)

    Independent Director

    • Tenure: 18.9yrs
    • Compensation: US$273.13k
  • Bill Green (65yo)

    Independent Director

    • Tenure: 8.9yrs
    • Compensation: US$268.13k
  • Kurt Schmoke (70yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$249.13k
  • Monique Leroux (65yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$254.63k
  • Rebecca Jacoby (57yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$247.13k
  • Maria Morris (56yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$258.63k
  • Doug Peterson (60yo)

    President

    • Tenure: 6.1yrs
    • Compensation: US$12.36m

Company Information

S&P Global Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: S&P Global Inc.
  • Ticker: SPGI
  • Exchange: NYSE
  • Founded: 1860
  • Industry: Financial Exchanges and Data
  • Sector: Diversified Financials
  • Market Cap: US$66.281b
  • Shares outstanding: 244.40m
  • Website: https://www.spglobal.com

Number of Employees


Location

  • S&P Global Inc.
  • 55 Water Street
  • New York
  • New York
  • 10041
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPGINYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
SPGI *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
MHLDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0KYYLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
MHLETLX (Eurotlx)YesCommon StockITEURJan 1968
SPGIWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
SPGI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 0.25 COM USD1BRBRLMay 2019

Biography

S&P Global Inc., together with its subsidiaries, provides ratings, benchmarks, analytics, and data to the capital and commodity markets worldwide. The company operates through four segments: S&P Global Rat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/14 23:41
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.