S&P Global (SPGI) AI Stock Analysis

• Market Cap: $154.35B
• Dividend Yield: 0.78%
• Average Volume (3M): 1.27M
• Price to Earnings (P/E): 38.9
• Beta (1Y): 0.93
• Revenue Growth: 10.72%
• EPS Growth: 23.30%
• Country: US
• Employees: 42,350
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 4.43
• Shares Outstanding: 305,300,000
• 10 Day Avg. Volume: 1,732,702
• 30 Day Avg. Volume: 1,267,731
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 11.98
• Enterprise Value/Gross Profit: 17.20
• Enterprise Value/Ebitda: 24.84
• 1Y Price Target: $625.50
• Price Target Upside: 28.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 69 Neutral
• Price Target: $556.00 ▲(14.65% Upside)

S&P Global's overall stock score reflects strong financial performance and positive earnings call highlights, offset by bearish technical indicators and a high valuation. The company's robust profitability and strategic initiatives in AI and data distribution are significant strengths, while the current technical weakness and valuation concerns present risks.

Positive Factors

Strategic Partnerships

The collaboration aims to enhance private markets performance analytics, leveraging S&P Global's iLEVEL platform. This strengthens its market position by expanding data offerings and client base, providing a durable competitive advantage in private markets.

AI and Data Distribution

Investments in AI and strategic partnerships enhance S&P Global's data distribution capabilities, driving innovation and efficiency. This positions the company to capitalize on structural trends in data analytics, supporting long-term growth.

Market Intelligence Growth

The strong growth in the Market Intelligence segment indicates robust demand for data and analytics services, reinforcing S&P Global's market leadership and supporting sustained revenue expansion.

Negative Factors

Ratings Revenue Challenges

Declines in Ratings transaction revenue reflect potential vulnerabilities in demand, which could impact revenue stability if market conditions do not improve, posing a risk to long-term financial performance.

Cash Flow Growth Concerns

Slowing cash flow growth could strain S&P Global's ability to fund operations and investments, potentially affecting its financial flexibility and ability to capitalize on growth opportunities.

Commodity Insights Uncertainty

Sanctions-related headwinds in Commodity Insights could lead to revenue volatility, impacting the segment's contribution to overall growth and profitability if geopolitical tensions persist.

S&P Global Business Overview & Revenue Model

Company Description

S&P Global (SPGI) is a leading provider of financial information and analytics, serving a diverse range of clients across various sectors including finance, investment, and corporate management. The company operates through four main segments: Ratings, Market Intelligence, Platts, and S&P Dow Jones Indices. S&P Global Ratings offers credit ratings and research, Market Intelligence provides data and analytics for financial markets, Platts focuses on energy and commodities information, and S&P Dow Jones Indices manages a wide array of market indices that are benchmarks for investment performance.

How the Company Makes Money

S&P Global generates revenue through multiple key streams. The Ratings segment earns fees from issuing credit ratings to corporations, governments, and other entities, driven by the volume of ratings and ongoing surveillance fees. Market Intelligence derives income from subscriptions to its data and analytics services, which assist clients in making informed investment and business decisions. Platts generates revenue through its pricing services and market reports related to energy and commodities, which are essential for market participants. Lastly, S&P Dow Jones Indices earns licensing fees from investment funds and financial products that track its indices. The company also benefits from strategic partnerships with financial institutions and technology firms, enhancing its data offerings and expanding its client base.

S&P Global Financial Statement Overview

Summary

S&P Global demonstrates strong financial performance with high profitability and operational efficiency. The income statement shows robust margins, while the balance sheet reflects financial stability with manageable debt levels. Despite a slight decline in cash flow growth, cash generation remains healthy.

Income Statement

S&P Global's income statement shows strong profitability with a consistent increase in revenue over the years. The TTM data indicates a gross profit margin of 69.67% and a net profit margin of 27.30%, reflecting efficient cost management and strong bottom-line performance. The revenue growth rate is modest at 1.42% for the TTM, but the company has shown steady growth over the past years. EBIT and EBITDA margins are robust, indicating strong operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.36, indicating a conservative leverage approach. The return on equity is healthy at 11.98% for the TTM, showcasing effective use of equity capital. The equity ratio stands at 55.47%, suggesting a strong equity base relative to total assets. Overall, the balance sheet indicates financial stability with manageable debt levels.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow growth at -2.52% for the TTM, which could be a concern if it persists. However, the operating cash flow to net income ratio is strong at 0.93, indicating good cash generation relative to net income. The free cash flow to net income ratio is also solid at 0.97, suggesting efficient cash conversion. Overall, cash flow remains healthy despite recent growth challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.70B	14.21B	12.50B	11.18B	8.30B	7.44B
Gross Profit	10.24B	9.82B	8.36B	7.43B	6.12B	5.35B
EBITDA	7.09B	6.78B	5.15B	6.02B	4.46B	3.58B
Net Income	4.01B	3.85B	2.63B	3.25B	3.02B	2.34B
Balance Sheet
Total Assets	60.40B	60.22B	60.59B	61.78B	15.03B	12.54B
Cash, Cash Equivalents and Short-Term Investments	1.85B	1.69B	1.32B	1.30B	6.51B	4.12B
Total Debt	11.90B	11.93B	12.00B	11.65B	4.70B	4.75B
Total Liabilities	22.43B	22.71B	22.49B	22.04B	9.49B	9.19B
Stockholders Equity	33.50B	33.16B	34.20B	36.48B	2.03B	509.00M
Cash Flow
Free Cash Flow	5.41B	5.57B	3.57B	2.51B	3.56B	3.49B
Operating Cash Flow	5.58B	5.69B	3.71B	2.60B	3.60B	3.57B
Investing Cash Flow	-67.00M	-255.00M	562.00M	3.63B	-120.00M	-240.00M
Financing Cash Flow	-5.75B	-5.00B	-4.28B	-11.33B	-1.01B	-2.17B

S&P Global Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 484.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 484.94 is below the 20-day moving average (MA) of 530.21, below the 50-day MA of 539.49, and below the 200-day MA of 513.22, indicating a bearish trend. The MACD of -13.51 indicates Positive momentum. The RSI at 21.77 is Positive, neither overbought nor oversold. The STOCH value of 6.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SPGI.

S&P Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ICE	81 Outperform	96.20B	32.26	10.56%	1.13%	11.44%	29.10%
CME	77 Outperform	95.30B	25.59	13.54%	3.98%	11.15%	13.98%
MCO	71 Outperform	85.18B	40.35	53.99%	0.78%	11.47%	16.14%
MSCI	71 Outperform	43.82B	37.53	-133.00%	1.24%	10.48%	0.98%
NDAQ	70 Outperform	50.01B	33.49	12.77%	1.18%	23.55%	49.91%
SPGI	69 Neutral	$154.35B	38.86	11.76%	0.78%	10.72%	23.30%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

S&P Global Corporate Events

S&P Global Reports 6% Revenue Increase in Q2 2025

On July 31, 2025, S&P Global reported a 6% increase in second-quarter revenue to $3.755 billion, driven by growth in Market Intelligence and S&P Dow Jones Indices. The company announced the appointment of Bill Eager as President of S&P Global Mobility, effective August 15, 2025, as part of the planned separation of Mobility into a standalone public company. The company also plans additional share repurchases and updated its full-year revenue growth guidance to 5%-7%, with a focus on customer engagement and innovation.