NYSE:SPGI

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Solid track record with adequate balance sheet and pays a dividend.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SPGI's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

3.0%

SPGI

-0.2%

US Capital Markets

2.3%

US Market


1 Year Return

6.9%

SPGI

16.9%

US Capital Markets

23.8%

US Market

Return vs Industry: SPGI underperformed the US Capital Markets industry which returned 16.9% over the past year.

Return vs Market: SPGI underperformed the US Market which returned 23.8% over the past year.


Shareholder returns

SPGIIndustryMarket
7 Day3.0%-0.2%2.3%
30 Day-0.5%5.7%4.8%
90 Day-6.6%20.9%14.5%
1 Year7.8%6.9%19.8%16.9%26.6%23.8%
3 Year76.4%71.5%28.0%18.2%45.0%35.4%
5 Year290.9%270.7%139.6%109.8%126.2%101.0%

Long-Term 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?

46.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SPGI ($315.14) is trading below our estimate of fair value ($585.91)

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


Price To Earnings Ratio

PE vs Industry: SPGI is poor value based on its PE Ratio (31.4x) compared to the US Capital Markets industry average (27.2x).

PE vs Market: SPGI is poor value based on its PE Ratio (31.4x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: SPGI is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: SPGI is overvalued based on its PB Ratio (171.5x) compared to the US Capital Markets industry average (5.1x).


Next Steps

Future Growth

How is S&P Global forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

7.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPGI's forecast earnings growth (7.6% per year) is above the savings rate (2%).

Earnings vs Market: SPGI's earnings (7.6% per year) are forecast to grow slower than the US market (21.6% per year).

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

Revenue vs Market: SPGI's revenue (4.9% per year) is forecast to grow slower than the US market (10.6% per year).

High Growth Revenue: SPGI's revenue (4.9% 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 (291%).


Next Steps

Past Performance

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

15.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPGI has high quality earnings.

Growing Profit Margin: SPGI's current net profit margins (33.2%) are higher than last year (32.2%).


Past Earnings Growth Analysis

Earnings Trend: SPGI has become profitable over the past 5 years, growing earnings by 15.5% per year.

Accelerating Growth: SPGI's earnings growth over the past year (15.9%) exceeds its 5-year average (15.5% per year).

Earnings vs Industry: SPGI earnings growth over the past year (15.9%) exceeded the Capital Markets industry 4.9%.


Return on Equity

High ROE: Whilst SPGI's Return on Equity (86.91%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is S&P Global's financial position?


Financial Position Analysis

Short Term Liabilities: SPGI's short term assets ($4.8B) exceed its short term liabilities ($2.8B).

Long Term Liabilities: SPGI's short term assets ($4.8B) do not cover its long term liabilities ($5.6B).


Debt to Equity History and Analysis

Debt Level: SPGI's debt to equity ratio (136.6%) is considered high.

Reducing Debt: SPGI's debt to equity ratio has reduced from 231.8% to 136.6% over the past 5 years.

Debt Coverage: SPGI's debt is well covered by operating cash flow (83.5%).

Interest Coverage: SPGI's interest payments on its debt are well covered by EBIT (19x coverage).


Balance Sheet


Next Steps

Dividend

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

0.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SPGI's dividend (0.85%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.38%).

High Dividend: SPGI's dividend (0.85%) is low compared to the top 25% of dividend payers in the US market (3.86%).


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 (25.7%), 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 (21.9% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Doug Peterson (62 yo)

7.17yrs

Tenure

US$12,152,512

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Doug's total compensation ($USD12.15M) is about average for companies of similar size in the US market ($USD10.57M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Douglas Peterson
President7.17yrsUS$12.15m0.061%
$ 46.1m
John Berisford
President of S&P Global Ratings Incno dataUS$3.41m0.011%
$ 8.7m
Martina Cheung
President of S&P Global Market Intelligenceno dataUS$2.70m0.0033%
$ 2.5m
Ewout Steenbergen
Executive VP & CFO4.17yrsUS$4.90m0.0058%
$ 4.4m
Daniel Draper
Chief Executive Officer of S&P Dow Jones Indices LLCno datano data0.000050%
$ 37.9k
Christopher Craig
Senior VP2.33yrsno data0.0019%
$ 1.4m
Sitarama Kocherlakota
Executive VP & Chief Information Officer3yrsno data0.0023%
$ 1.8m
Robert Merritt
Senior Vice President of Investor Relationsno datano datano data
Steven Kemps
Executive VP & General Counsel4.42yrsUS$2.79m0.0036%
$ 2.8m
David Guarino
Chief Communications Officerno datano datano data
Mark Blake
Senior VP of Corporate Development & Strategy3.5yrsno datano data
Dimitra Manis
Executive VP & Chief People Officer2.67yrsno data0.0012%
$ 909.9k

3.5yrs

Average Tenure

52.5yo

Average Age

Experienced Management: SPGI's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Douglas Peterson
President7.17yrsUS$12.15m0.061%
$ 46.1m
Harold McGraw
Chairman Emeritus5.75yrsUS$363.55kno data
Charles Haldeman
Independent Non-Executive Director8.5yrsUS$422.13k0.0013%
$ 947.8k
Richard Thornburgh
Independent Non-Executive Chairman0.25yrUS$297.13k0.00054%
$ 409.4k
Edward Rust
Independent Director20yrsUS$285.13k0.00083%
$ 629.3k
Marco Alvera
Independent Director3.83yrsUS$282.13k0.00017%
$ 128.9k
William Green
Independent Director10yrsUS$285.13k0.00042%
$ 318.5k
Kurt Schmoke
Independent Director17.92yrsUS$270.13k0.00043%
$ 326.0k
Monique Leroux
Independent Director4.25yrsUS$275.13k0.00021%
$ 159.2k
Rebecca Jacoby
Independent Director6.25yrsUS$272.13k0.00017%
$ 128.9k
Maria Morris
Independent Director4.25yrsUS$292.13k0.00017%
$ 128.9k
Stephanie Hill
Independent Director4yrsUS$275.13k0.00017%
$ 128.9k

6.0yrs

Average Tenure

66yo

Average Age

Experienced Board: SPGI's board of directors are considered experienced (6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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

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$75.823b
  • Shares outstanding: 240.60m
  • 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
SPGIWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
SPGI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COM SHS 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 Analysis2021/01/24 00:31
End of Day Share Price2021/01/22 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.