S&P Global Inc. (NYSE: SPGI)

Sector: Financial Services Industry: Financial Data & Stock Exchanges CIK: 0000064040
Market Cap 157.13 Bn
P/B 4.74
P/E 37.25
P/S 10.47
ROIC (Qtr) 10.41
Div Yield % 0.74
Rev 1y % (Qtr) 8.76
Total Debt (Qtr) 11.87 Bn
Debt/Equity (Qtr) 0.36

About

S&P Global Inc., commonly known as S&P Global, is a prominent player in the financial services industry, specializing in credit ratings, benchmarks, analytics, and workflow solutions. The company's operations span across various sectors, including global capital, commodity, and automotive markets. S&P Global is organized into five primary businesses: Market Intelligence, Ratings, Commodity Insights, Mobility, and Indices. Market Intelligence, a global provider of multi-asset-class data and analytics, offers purpose-built workflow solutions designed...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 5.64B provides robust 0.48x coverage of total debt 11.87B, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 1.67B provide 557.33x coverage of short-term debt 3M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 5.64B provides exceptional 16.36x coverage of minority interest expenses 345M, showing strong core operations.
  • Operating cash flow of 5.64B provides exceptional 18.56x coverage of interest expenses 304M, showing strong debt service capability.
  • Operating cash flow of 5.64B provides strong 23.81x coverage of stock compensation 237M, indicating sustainable incentive practices.

Bear case

  • Operating cash flow of 5.64B barely covers its investment activities of (225M), with a coverage ratio of -25.08, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 5.64B provides thin coverage of dividend payments of (1.16B) with a -4.86 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 5.46B represents just -1365.25x of debt issuance (4M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • High financing cash flow of (5.45B) relative to working capital of (149M), which is 36.55x suggests concerning dependence on external funding for operational needs.
  • Long-term investments of 1.87B represent a high 2.87x of fixed assets 654M, indicating potential overexposure to financial assets versus operational capabilities.

Peer comparison

Companies in the Financial Data & Stock Exchanges
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SPGI S&P Global Inc. 157.13 Bn 37.25 10.47 11.87 Bn
2 CME Cme Group Inc. 96.82 Bn 26.05 15.13 152.46 Bn
3 ICE Intercontinental Exchange, Inc. 91.82 Bn 29.04 7.33 19.51 Bn
4 MCO Moodys Corp /De/ 90.39 Bn 40.28 12.05 7.36 Bn
5 COIN Coinbase Global, Inc. 62.10 Bn 19.30 8.10 7.59 Bn
6 NDAQ Nasdaq, Inc. 54.56 Bn 33.58 6.68 9.55 Bn
7 MSCI MSCI Inc. 43.97 Bn 35.94 14.39 5.62 Bn
8 CBOE Cboe Global Markets, Inc. 25.92 Bn 26.50 5.61 1.57 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.80 2.79
EV to Cash from Ops. EV/CFO 29.63 33.08
EV to Debt EV to Debt 14.09 17.54
EV to EBIT EV/EBIT 28.78 18.27
EV to EBITDA EV/EBITDA 23.18 20.66
EV to Free Cash Flow [EV/FCF] EV/FCF 30.61 -39.00
EV to Market Cap EV to Market Cap 1.06 1.08
EV to Revenue EV/Rev 11.14 29.85
Price to Book Value [P/B] P/B 4.74 -0.11
Price to Earnings [P/E] P/E 37.25 23.23
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 3.64 2.12
Dividend Payout Ratio % Div Payout % (Qtr) 27.50 32.37
Dividend per Basic Share Div per Share (Qtr) 3.79 2.63
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 21.12 26.82
Interest Coverage Int. cover (Qtr) 19.11 8.16
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -30.94 -11.26
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -1.47 21.19
Dividend Growth (1y) % Div 1y % (Qtr) 4.41 1.08
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 17.49 10.39
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 14.64 15.05
EBIT Growth (1y) % EBIT 1y % (Qtr) 19.55 17.06
EBT Growth (1y) % EBT 1y % (Qtr) 20.83 21.11
EPS Growth (1y) % EPS 1y % (Qtr) 21.23 31.00
FCF Growth (1y) % FCF 1y % (Qtr) 6.16 30.56
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 10.80 13.67
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.25 0.61
Cash Payout Ratio Cash Payout (Qtr) 0.20 0.24
Cash Ratio Cash Ratio (Qtr) 0.29 0.51
Current Ratio Curr Ratio (Qtr) 0.97 1.97
Debt to Equity Ratio Debt/Equity (Qtr) 0.36 0.56
Interest Cover Ratio Int Coverage (Qtr) 19.11 8.16
Times Interest Earned Times Interest Earned (Qtr) 19.11 8.16
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 46.60 -985.15
EBIT Margin % EBIT Margin % (Qtr) 38.70 -991.90
EBT Margin % EBT Margin % (Qtr) 36.67 -1,071.07
Gross Margin % Gross Margin % (Qtr) 70.00 72.61
Net Profit Margin % Net Margin % (Qtr) 28.10 -1,440.85