S&P Global (SPGI) AI Stock Analysis

• Market Cap: $159.07B
• Dividend Yield: 0.71%
• Average Volume (3M): 1.33M
• Price to Earnings (P/E): 41.8
• Beta (1Y): 1.00
• Revenue Growth: 13.68%
• EPS Growth: 49.90%
• Country: US
• Employees: 42,350
• Sector: Financial
• Sector Strength: 93
• Industry: Capital Markets
• EPS (TTM): 12.35
• Shares Outstanding: 307,800,000
• 10 Day Avg. Volume: 1,327,065
• 30 Day Avg. Volume: 1,326,147
• PEG Ratio: 0.84
• Price to Book (P/B): N/A
• Price to Sales (P/S): 11.20
• Price to Cash Flow (P/CF): 22.90
• P/FCF Ratio: 22.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $607.87
• Price Target Upside: 16.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

S&P Global's strong financial performance and positive earnings outlook are significant strengths, supported by robust cash flow and strategic initiatives in growth areas. The technical indicators suggest positive momentum, although caution is warranted due to potential overbought conditions. The high valuation reflects future growth expectations, but it also suggests a premium price. Overall, the company is well-positioned, though careful monitoring of market dynamics and debt management will be important.

Positive Factors

Market Intelligence Performance

Market Intelligence revenues grew 5% year-over-year, with retention at the highest in six quarters, indicating potential for accelerated growth.

Merger and Diversification

The merger with INFO has diversified SPGI's offerings, potentially shifting investor focus away from volatile debt issuance.

Negative Factors

Issuance Decline

SPGI's billed issuance fell 3% year-over-year in January, marking the first decline in 13 months.

S&P Global Business Overview & Revenue Model

Company Description

S&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 Money

S&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 strong financial performance with solid revenue growth and profitability. The balance sheet is well-structured, though debt levels need monitoring. Cash flow generation is robust, ensuring liquidity and operational flexibility. Overall, the company is positioned well for future growth with an emphasis on efficiency.

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.

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.

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.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
9.56B	14.21B	12.50B	11.18B	8.30B	7.44B
	Gross Profit
6.66B	9.82B	8.36B	7.42B	6.10B	5.35B
	EBIT
3.51B	5.58B	4.02B	3.12B	4.22B	3.62B
	EBITDA
4.77B	5.58B	5.14B	4.95B	4.71B	4.08B
	Net Income Common Stockholders
3.68B	3.85B	2.63B	3.25B	3.02B	2.34B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.69B	1.69B	1.32B	1.29B	6.50B	4.12B
	Total Assets
60.22B	60.22B	60.59B	61.78B	15.03B	12.54B
	Total Debt
11.93B	11.93B	12.00B	11.53B	4.61B	4.65B
	Net Debt
10.27B	10.27B	10.71B	10.25B	-1.90B	532.00M
	Total Liabilities
22.71B	22.71B	22.49B	22.04B	9.49B	9.19B
	Stockholders Equity
33.16B	33.16B	34.20B	36.48B	2.11B	571.00M
Cash Flow		Free Cash Flow
2.53B	5.57B	3.57B	2.51B	3.56B	3.49B
	Operating Cash Flow
2.58B	5.69B	3.71B	2.60B	3.60B	3.57B
	Investing Cash Flow
3.66B	-255.00M	562.00M	3.63B	-120.00M	-240.00M
	Financing Cash Flow
-7.75B	-5.00B	-4.28B	-11.33B	-1.01B	-2.17B

S&P Global Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 522.90
• 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 Neutral. The current price of 522.9 is below the 20-day moving average (MA) of 529.38, above the 50-day MA of 513.16, and above the 200-day MA of 493.02, indicating a neutral trend. The MACD of 2.86 indicates Positive momentum. The RSI at 48.83 is Neutral, neither overbought nor oversold. The STOCH value of 24.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SPGI.

S&P Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MCO	81 Outperform	$86.63B	42.73	59.80%	0.72%	19.81%	28.97%
SPGI	78 Outperform	$159.07B	41.85	11.44%	0.71%	13.68%	49.90%
ICE	77 Outperform	$97.59B	35.52	10.32%	1.06%	15.32%	14.02%
NDAQ	75 Outperform	$45.30B	40.84	10.15%	1.19%	21.96%	-8.37%
FDS	73 Outperform	$16.91B	31.86	27.04%	0.94%	5.02%	12.58%
MSCI	70 Outperform	$44.08B	40.41	-117.99%	1.16%	12.94%	-2.54%
Sector *	64 Neutral	$14.34B	10.61	9.28%	4.07%	18.04%	-9.54%

S&P Global Corporate Events

S&P Global Releases Q3 2024 Earnings Report

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.

S&P Global Announces Leadership Changes and Separation Agreement

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.

S&P Global Appoints Eric Aboaf as New CFO

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.