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S&P Global (SPGI)
NYSE:SPGI
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S&P Global
(NYSE:SPGI)
74Outperform
Positive Factors
Financial Performance
SPGI's billed issuance rose 6% year-over-year in February, reversing the decline seen in January.
Mergers and Acquisitions
The closed merger with INFO has further diversified SPGI's offerings, potentially reducing focus on volatile debt issuance.
Revenue Growth
Market Intelligence revenues grew 5% year-over-year, with retention at the highest in six quarters, indicating potential for accelerated growth.
Negative Factors
Corporate Issuance
Total corporate issuance declined -16% in February, and Structured issuance declined -19%.
Issuance Decline
Aggregate issuance declined -17% year-over-year.
Market Conditions
Global issuance slowed in February against difficult comps amid rising global trade tensions.
S&P Global (SPGI) vs. S&P 500 (SPY)
Market Cap
$160.30B
Dividend Yield0.75%
Average Volume (3M)1.41M
Price to Earnings (P/E)41.4
Beta (1Y)1.02
Revenue Growth13.68%
EPS Growth49.90%
CountryUS
Employees42,350
SectorFinancial
Sector Strength84
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)12.35
Shares Outstanding313,840,580
10 Day Avg. Volume1,313,919
30 Day Avg. Volume1,407,102
Financial Highlights & Ratios
PEG Ratio0.83
Price to Book (P/B)N/A
Price to Sales (P/S)10.79
Price to Cash Flow (P/CF)22.00
P/FCF Ratio22.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$610.21Price Target Upside24.69% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
S&P Global Business Overview & Revenue Model
Company DescriptionS&P Global (SPGI) is a leading provider of credit ratings, benchmarks, analytics, and data to the global capital and commodity markets. The company operates through several key segments, including S&P Global Ratings, S&P Global Market Intelligence, S&P Dow Jones Indices, and S&P Global Platts. These divisions offer a wide range of products and services such as credit ratings, research, investment and index data, and commodity and energy market information, serving financial institutions, corporations, governments, and individuals worldwide.
How the Company Makes MoneyS&P Global generates revenue through a diversified business model encompassing several key streams. The S&P Global Ratings segment earns fees from providing credit ratings and related research, which are essential for investors and issuers in evaluating credit risk. S&P Global Market Intelligence generates income by offering subscription-based financial data, research, and analytical tools to help clients make informed investment and business decisions. The S&P Dow Jones Indices segment profits from licensing fees for its indices, which are used as benchmarks for investment products like ETFs. Lastly, S&P Global Platts earns revenue by providing market data and price assessments for commodities and energy markets, with clients ranging from traders to governments. The company also benefits from strategic partnerships and acquisitions that expand its product offerings and market reach.
S&P Global Financial Statement Overview
Summary
S&P Global exhibits a strong financial performance with notable growth in revenue and profitability. The balance sheet is well-structured, though maintaining debt levels is crucial. Robust cash flow generation supports liquidity and operational flexibility.Income Statement
S&P Global demonstrates strong revenue growth with a 13.7% increase from 2023 to 2024. The gross profit margin remains at a robust 100% due to the nature of its business structure. The net profit margin improved significantly, reaching 27.1% in 2024 from 21% in 2023, indicating enhanced operational efficiency. EBIT and EBITDA margins also show impressive growth, underscoring efficient cost management.90
Very Positive
Balance Sheet
The company's balance sheet reflects a solid equity position with a debt-to-equity ratio of 0.36 in 2024, showcasing prudent leverage use. The return on equity improved to 11.6%, indicating effective use of shareholders' funds. The equity ratio stands at 55%, highlighting a balanced financial structure. However, the company should continue monitoring its debt levels to maintain financial stability.75
Positive
Cash Flow
S&P Global shows a robust free cash flow growth of 56% from 2023 to 2024, reinforcing its financial health and capacity to fund operations and investments. The operating cash flow to net income ratio of 1.48 indicates strong cash generation relative to earnings. The free cash flow to net income ratio also supports a healthy cash position, ensuring liquidity and operational flexibility.85
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 14.21B | 12.50B | 11.18B | 8.30B | 7.44B | Gross Profit |
| 9.82B | 8.36B | 7.42B | 6.10B | 5.35B | EBIT |
| 5.58B | 4.02B | 3.12B | 4.22B | 3.62B | EBITDA |
| 5.58B | 5.14B | 4.95B | 4.71B | 4.08B | Net Income Common Stockholders |
| 3.85B | 2.63B | 3.25B | 3.02B | 2.34B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.69B | 1.32B | 1.29B | 6.50B | 4.12B | Total Assets |
| 60.22B | 60.59B | 61.78B | 15.03B | 12.54B | Total Debt |
| 11.93B | 12.00B | 11.53B | 4.61B | 4.65B | Net Debt |
| 10.27B | 10.71B | 10.25B | -1.90B | 532.00M | Total Liabilities |
| 22.71B | 22.49B | 22.04B | 9.49B | 9.19B | Stockholders Equity |
| 33.16B | 34.20B | 36.48B | 2.11B | 571.00M |
| Cash Flow | Free Cash Flow | |||
| 5.57B | 3.57B | 2.51B | 3.56B | 3.49B | Operating Cash Flow |
| 5.69B | 3.71B | 2.60B | 3.60B | 3.57B | Investing Cash Flow |
| -255.00M | 562.00M | 3.63B | -120.00M | -240.00M | Financing Cash Flow |
| -5.00B | -4.28B | -11.33B | -1.01B | -2.17B |
S&P Global Technical Analysis
Negative
489.38
Price Trends
513.99
Negative
508.80
Negative
500.03
Negative
Market Momentum
-1.51
Negative
53.37
Neutral
71.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPGI, the sentiment is Negative. The current price of 489.38 is below the 20-day moving average (MA) of 497.16, below the 50-day MA of 513.99, and below the 200-day MA of 500.03, indicating a bearish trend. The MACD of -1.51 indicates Negative momentum. The RSI at 53.37 is Neutral, neither overbought nor oversold. The STOCH value of 71.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SPGI.
S&P Global Risk Analysis
S&P Global disclosed 31 risk factors in its most recent earnings report. S&P Global reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
S&P Global Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $98.53B | 35.87 | 10.32% | 1.09% | 15.32% | 14.02% | |
75 Outperform | $16.62B | 31.07 | 28.12% | 0.95% | 4.66% | 11.15% | |
74 Outperform | $160.30B | 41.36 | 11.44% | 0.75% | 13.68% | 49.90% | |
73 Outperform | $44.02B | 40.39 | -117.99% | 1.21% | 12.94% | -2.54% | |
72 Outperform | $43.73B | 39.43 | 10.15% | 1.30% | 21.96% | -8.37% | |
70 Outperform | $84.33B | 41.62 | 59.80% | 0.79% | 19.81% | 28.97% | |
63 Neutral | $14.39B | 9.81 | 8.95% | 4.37% | 16.38% | -11.64% |
* Financial Sector Average
Performance Comparison
SPGI
S&P Global
489.38
61.01
14.24%
FDS
Factset Research
437.15
8.06
1.88%
ICE
Intercontinental Exchange
167.56
31.31
22.98%
MCO
Moody's
442.39
52.87
13.57%
MSCI
MSCI
544.18
8.21
1.53%
NDAQ
Nasdaq
73.79
12.59
20.57%
S&P Global Earnings Call Summary
Earnings Call Date: Feb 11, 2025 | % Change Since: -4.86% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance in 2024 with significant revenue growth and positive EPS expansion, bolstered by strategic investments and capital returns. However, there are challenges in the competitive landscape of Market Intelligence and concerns about the issuance environment in 2025.Highlights
Strong Revenue Growth
Excluding Engineering Solutions, revenue increased 15%. Market-driven businesses, Ratings and Indices, each grew by over 20% in Q4. Total revenue increased 14% for the year.
EPS and Margin Expansion
Adjusted EPS grew by 25%, exceeding the midpoint of initial guidance by more than 13%. Margins expanded by over 300 basis points in 2024.
Record Capital Returns
Returned $4.4 billion to shareholders through dividends and share repurchases. Announced the 52nd consecutive increase in cash dividend.
Energy Transition and Sustainability Growth
Revenue grew by 23% to $104 million in Q4, driven by Commodity Insights energy transition offerings.
Strong Demand for Private Markets Solutions
Revenue growth accelerated to 29% to $146 million in Q4, driven by private market ratings and assessments.
Lowlights
Market Intelligence Challenges
Experienced a highly competitive environment with elevated price sensitivity, impacting Market Intelligence.
Issuance Environment Concerns
Guidance indicates a challenging compare for 2025 in issuance due to strong 2024 performance. Maturity walls have decreased available near-term maturities for refinancing in 2025.
Company Guidance
During the conference call for S&P Global's Fourth Quarter and Full Year 2024 earnings, the company provided robust guidance for 2025, expecting revenue growth of 5% to 7% and adjusted operating margins between 49% and 50%. S&P Global aims to achieve double-digit growth in adjusted diluted EPS, projected to be in the range of $17 to $17.25. The company plans to continue its strong capital returns, having returned $4.4 billion to shareholders in 2024, and expects to maintain a free cash flow conversion rate at or above 100%, with approximately $6 billion in adjusted free cash flow anticipated for 2025. Key strategic areas like energy transition and sustainability, as well as private market solutions, are expected to drive this growth, with a focus on customer engagement and leveraging generative AI across operations and product offerings to enhance productivity and innovation.S&P Global Corporate Events
Financial Disclosures
S&P Global Releases Q3 2024 Earnings Report
Neutral
Oct 24, 2024
S&P Global Inc. released its earnings report for the third quarter of 2024, revealing insights into its operational results and financial condition, along with guidance for the year. This report provides valuable information for those interested in the company’s performance and future outlook in the financial markets.
Executive/Board Changes
S&P Global Announces Leadership Changes and Separation Agreement
Neutral
Oct 17, 2024
S&P Global Inc. has announced a separation agreement with Adam Kansler, providing him substantial severance benefits, including $4.5 million in severance pay, continued benefits, and a pro-rated bonus. In exchange, Kansler agrees to non-compete and non-solicitation terms. Additionally, Martina L. Cheung is set to become CEO, with a new executive team reporting to her starting November 1, 2024.
Executive/Board Changes
S&P Global Appoints Eric Aboaf as New CFO
Neutral
Oct 15, 2024
S&P Global has announced the appointment of Eric Aboaf as its new Chief Financial Officer, effective early 2025. Aboaf, currently CFO and Vice Chairman at State Street Corporation, will bring his extensive experience in finance to S&P Global. His compensation package includes a base salary of $825,000, potential bonuses, and significant equity-based awards, reflecting the Company’s strategic investment in his leadership. Aboaf will also receive a signing bonus and a one-time equity award to offset compensation forfeited from his previous employer.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.