S&P Global (SPGI) AI Stock Analysis

• Market Cap: $157.67B
• Dividend Yield: 0.72%
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 40.3
• Beta (1Y): 0.97
• Revenue Growth: 12.98%
• EPS Growth: 42.72%
• Country: US
• Employees: 42,350
• Sector: Financial
• Sector Strength: 84
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 4.37
• Shares Outstanding: 306,700,000
• 10 Day Avg. Volume: 912,627
• 30 Day Avg. Volume: 1,112,581
• PEG Ratio: 12.49
• Price to Book (P/B): 4.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.05
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 2.98
• Enterprise Value/Gross Profit: 16.99
• Enterprise Value/Ebitda: 6.22
• 1Y Price Target: $586.80
• Price Target Upside: 14.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 76 Outperform
• Price Target: ―

S&P Global's overall stock score of 76 reflects its strong financial health and positive earnings guidance, emphasizing growth in revenue and profitability. Technical analysis indicates caution due to mixed signals, while the valuation shows high market expectations. The earnings call was generally positive, highlighting strategic growth areas but also acknowledging market challenges.

Positive Factors

Generative AI Momentum

Generative AI momentum appears to be picking up steam, with benefits to product development and operating efficiency starting to shine through.

Market Stabilization

May sessions have already shown a market stabilization, and an improved outlook is expected.

Negative Factors

Macroeconomic Uncertainty

Heightened macroeconomic uncertainty has led to depressed issuance volumes, particularly for high yield.

Weaker Issuance Expectations

Full-year guidance was modestly lowered due to weaker issuance expectations in ratings and lower AUM in indices.

S&P Global Business Overview & Revenue Model

Company Description

S&P Global Inc. (SPGI) is a leading provider of credit ratings, benchmarks, analytics, and data to the global capital and commodity markets. The company operates through several segments, including S&P Global Ratings, S&P Global Market Intelligence, S&P Dow Jones Indices, and S&P Global Platts. These divisions provide essential insights, data, and analytics to financial institutions, corporations, governments, and individuals, helping them make informed business and investment decisions.

How the Company Makes Money

S&P Global makes money primarily through subscription-based services, transaction fees, and licensing agreements. Its key revenue streams include credit ratings services, which offer assessments of creditworthiness for issuers and debt securities, and comprise a significant portion of its revenue. S&P Global Market Intelligence generates income by providing data, research, and analytics services to various industries. The S&P Dow Jones Indices segment earns revenue through licensing its indices to financial products, such as ETFs and mutual funds, while collecting fees based on assets under management. Additionally, S&P Global Platts provides pricing and analytics for the commodity and energy markets, generating revenue through subscriptions and licensing fees. Strategic partnerships and acquisitions also enhance the company's ability to expand its product offerings and capture new markets, contributing to its financial growth.

S&P Global Financial Statement Overview

Summary

S&P Global shows impressive financial health with strong revenue growth, high profitability margins, and effective balance sheet management. The company efficiently generates and utilizes cash, maintaining steady growth and stability. These factors contribute to the company's resilience and potential for continued success in the financial industry.

Income Statement

S&P Global has demonstrated strong revenue growth, with a 29.9% increase from 2021 to 2025 TTM. The gross profit margin is robust at 75.4% for TTM, and the net profit margin is healthy at 27.3%. The EBIT and EBITDA margins are also strong at 40.4% and 46.0% respectively, indicating efficient cost management and operational effectiveness.

Balance Sheet

The company maintains a solid balance sheet with a debt-to-equity ratio of 0.36, suggesting manageable leverage levels. The equity ratio stands at 55.9%, indicating a strong equity base relative to total assets. Return on equity is commendable at 11.8%, reflecting effective use of equity to generate profits.

Cash Flow

S&P Global exhibits robust cash flow management, with a high operating cash flow to net income ratio of 1.44, indicating strong cash generation relative to reported profits. The free cash flow to net income ratio is also strong at 1.40. Free cash flow growth has been steady, reflecting efficient capital expenditure management and consistent cash reserves for growth.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
14.49B	14.21B	12.50B	11.18B	8.30B	7.44B
	Gross Profit
9.78B	9.82B	8.36B	7.42B	6.10B	5.35B
	EBIT
5.85B	5.58B	4.02B	3.12B	4.22B	3.62B
	EBITDA
6.96B	6.78B	5.14B	4.95B	4.71B	4.08B
	Net Income Common Stockholders
3.95B	3.85B	2.63B	3.25B	3.02B	2.34B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.47B	1.69B	1.32B	1.29B	6.50B	4.12B
	Total Assets
59.89B	60.22B	60.59B	61.78B	15.03B	12.54B
	Total Debt
11.91B	11.93B	12.00B	11.53B	4.61B	4.65B
	Net Debt
10.44B	10.27B	10.71B	10.25B	-1.90B	532.00M
	Total Liabilities
22.16B	22.71B	22.49B	22.04B	9.49B	9.19B
	Stockholders Equity
33.37B	33.16B	34.20B	36.48B	2.11B	571.00M
Cash Flow		Free Cash Flow
5.55B	5.57B	3.57B	2.51B	3.56B	3.49B
	Operating Cash Flow
5.69B	5.69B	3.71B	2.60B	3.60B	3.57B
	Investing Cash Flow
-314.00M	-255.00M	562.00M	3.63B	-120.00M	-240.00M
	Financing Cash Flow
-5.44B	-5.00B	-4.28B	-11.33B	-1.01B	-2.17B

S&P Global Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 514.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPGI, the sentiment is Positive. The current price of 514.1 is above the 20-day moving average (MA) of 512.04, above the 50-day MA of 493.63, and above the 200-day MA of 503.91, indicating a bullish trend. The MACD of 6.07 indicates Positive momentum. The RSI at 55.68 is Neutral, neither overbought nor oversold. The STOCH value of 31.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPGI.

S&P Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CME	79 Outperform	$104.14B	29.05	13.40%	3.63%	11.72%	13.31%
ICE	79 Outperform	$102.41B	37.23	10.27%	1.02%	13.25%	10.82%
NDAQ	77 Outperform	$47.87B	37.81	11.43%	1.15%	25.89%	16.37%
SPGI	76 Outperform	$157.67B	40.27	11.68%	0.72%	12.98%	42.72%
MCO	75 Outperform	$86.65B	41.41	57.90%	0.73%	15.95%	26.38%
MSCI	71 Outperform	$43.79B	38.79	-117.99%	1.17%	11.67%	-0.89%
Sector *	64 Neutral	$12.78B	9.75	7.54%	17015.06%	12.09%	-7.43%

S&P Global Corporate Events

S&P Global Shareholders Meeting Highlights Key Votes

On May 7, 2025, S&P Global held its Annual Meeting of Shareholders where several key proposals were voted on. The election of directors saw all nominated individuals successfully elected, with varying levels of support. The advisory vote on executive compensation passed, though with notable opposition. The appointment of Ernst & Young LLP as the independent auditor for 2025 was ratified with significant approval. However, a shareholder proposal to amend the company’s clawback policy for unearned executive pay was overwhelmingly rejected.

The most recent analyst rating on (SPGI) stock is a Buy with a $550.00 price target. To see the full list of analyst forecasts on S&P Global stock, see the SPGI Stock Forecast page.

S&P Global Reports Q1 Revenue Increase and Spin-Off

On April 29, 2025, S&P Global reported an 8% increase in first-quarter revenue to $3.777 billion, with a 10% rise in GAAP net income. The company also announced plans to spin off its Mobility division into a standalone public entity to enhance shareholder value and focus on its core divisions. This strategic move aims to streamline operations and allow the new Mobility company to pursue growth in the automotive sector. Additionally, S&P Global is adjusting its full-year 2025 guidance, reflecting changes in revenue expectations and strategic investments.

S&P Global Announces Sale of OSTTRA Joint Venture

On April 14, 2025, S&P Global Inc. announced its agreement to sell OSTTRA, a joint venture with CME Group Inc. This move is part of S&P Global’s strategic efforts to streamline its operations and focus on core business areas, potentially impacting its market positioning and stakeholder interests.