Now trading at a price of $377.36, S&P Global has moved 0.6% so far today. In contrast, the S&P 500 index moved 0.8%. Read below for a basic value analysis of S&P Global.
S&P Global shares moved -11.2% over the last 52 weeks, with a high of $423.55 and a low of $279.32. During this time, the stock outperformed the S&P 500 index by 1.3%. As of January 2022, the company's 50-day average price is $352.0. S&P Global Inc., together with its subsidiaries, provides credit ratings, benchmarks, analytics, and workflow solutions in the global capital, commodity, and automotive markets. The large-cap Financial Services company has 22,091 full time employees and is based in New York, NY. S&P Global has returned a 0.9% dividend yield over the last 12 months.
The Company Has a Steady Stream of Strong Cash Flows:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | |
|---|---|---|---|
| Revenue (MM) | $6,699 | $7,442 | $8,297 |
| Revenue Growth | n/a | 11.09% | 11.49% |
| Operating Margins | 47.4% | 48.4% | 50.7% |
| Operating Margins Growth | n/a | 2.11% | 4.75% |
| Net Margins | 31.69% | 31.43% | 36.45% |
| Net Margins Growth | n/a | -0.82% | 15.97% |
| Earnings Per Share | $8.6 | $9.66 | $12.51 |
| EPS Growth | n/a | 12.33% | 29.5% |
| Free Cash Flow (MM) | $2,661 | $3,491 | $3,563 |
| FCF Growth | n/a | 31.19% | 2.06% |
| Capital Expenditures (MM) | -$115 | -$76 | -$35 |
| Net Debt / EBITDA | 0.36 | 0.03 | -0.52 |
S&P Global Is Currently Fairly Valued:
Compared to the Financial Services sector's average of 13.34, S&P Global has a trailing twelve month P/E ratio of 32.3 and, according to its EPS guidance of 12.44, an expected P/E ratio of 30.3. S&P Global's PEG ratio is 2.36 based on its 13.67% annual average growth rate of historical and projected earnings per share. However, we believe that it is more prudent to calculate the PEG ratio using the broader market's 5-year expected EPS growth rate of 13.05%, because the growth rate implied by S&P Global's past and expected EPS is probably not sustainable. This more prudent approach shows a PEG ratio of 2.47, which suggests that the company's shares are actually overvalued.
S&P Global's P/B ratio is 3.3 compared to its sector average of 1.95. The company is likely overvalued in terms of its net asset value. The company's shares are currently trading 132.5% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 3-year average EPS * book value per share) = √(22.5 * 10.26 * 114.079) = $162.28
S&P Global's strong cash flow trend and reasonable levels of debt attenuate the company's lofty valuation in terms of earnings and assets.
S&P Global Is the Subject of Mixed Market Indicators:
16 analysts are following S&P Global and have set target prices ranging from $377 to $434 per share. On average, they have given the company a rating of buy. At the current price of $377.36, SPGI is trading -6.01% away from its average analyst target price of $401.5 per share, implying an analyst consensus of some upside potential for the stock.
The company has a very low short interest since 1.2% of the company's shares are tied to short positions. Institutions own 91.3% of S&P Global's shares, while the insider ownership rate stands at 0.19%. The biggest shareholder is the Vanguard Group, Inc. with a 9% stake in the company worth approximately $11,035,804,795.
