S&P Global Inc. Fundamental Analysis
S&P Global Inc. (SPGI) shows moderate financial fundamentals with a PE ratio of 26.44, profit margin of 30.37%, and ROE of 14.80%. The company generates $15.7B in annual revenue with moderate year-over-year growth of 7.94%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze SPGI's fundamental strength across five key dimensions:
Efficiency Score
WeakSPGI struggles to generate sufficient returns from assets.
Valuation Score
ModerateSPGI shows balanced valuation metrics.
Growth Score
ExcellentSPGI delivers strong and consistent growth momentum.
Financial Health Score
ModerateSPGI shows balanced financial health with some risks.
Profitability Score
ModerateSPGI maintains healthy but balanced margins.
Key Financial Metrics
Is SPGI Expensive or Cheap?
P/E Ratio
SPGI trades at 26.44 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SPGI's PEG of 1.10 indicates fair valuation.
Price to Book
The market values S&P Global Inc. at 4.05 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 14.53 times EBITDA. This signals the market has high growth expectations.
How Well Does SPGI Make Money?
Net Profit Margin
For every $100 in sales, S&P Global Inc. keeps $30.37 as profit after all expenses.
Operating Margin
Core operations generate 43.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.80 in profit for every $100 of shareholder equity.
ROA
S&P Global Inc. generates $7.86 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
S&P Global Inc. generates strong operating cash flow of $5.71B, reflecting robust business health.
Free Cash Flow
S&P Global Inc. generates strong free cash flow of $5.53B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $18.69 in free cash annually.
FCF Yield
SPGI converts 4.42% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.44
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.05
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.99
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.44
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.68
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How SPGI Stacks Against Its Sector Peers
| Metric | SPGI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.44 | 19.38 | Worse (Expensive) |
| ROE | 14.80% | 804.00% | Weak |
| Net Margin | 30.37% | -7623.00% (disorted) | Strong |
| Debt/Equity | 0.44 | 1.07 | Strong (Low Leverage) |
| Current Ratio | 0.68 | 609.22 | Weak Liquidity |
| ROA | 7.86% | -20946.00% (disorted) | Weak |
SPGI outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews S&P Global Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
62.94%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
51.14%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
25.26%
Industry Style: Value, Dividend, Cyclical
High Growth