Don't Buy S&P Global (SPGI) Before Checking Its Fundamentals!

S&P Global moved 1.3% this afternoon session, trading between a high of $361.63 and a low of $356.84 per share. Yesterday the stock finished at $356.42 per share, compared to an average analyst target price of $446.4.

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 finance: consumer services company is based in the United States, and over the last twelve months it has returned a dividend yield of 1.0%. S&P Global has trailing twelve months earnings per share (EPS) of 7.09, which at today's prices amounts to a price to earnings (P/E) ratio of 50.9.

Based on its expected future earnings growth, the company has a price to earnings growth (PEG) ratio of 2.13. Usually a PEG ratio between 0 and 1 indicates a potentially undervalued company.

Snapshot of S&P Global's Operating Margins:

Date Reported Total Revenue ($ k) Operating Expenses ($ k) Operating Margins (%) YoY Growth (%)
2023-02-10 11,181,000 -4,396,000 27 -47.06
2022-02-08 8,297,000 -1,892,000 51 6.25
2021-02-09 7,442,000 -1,747,000 48 2.13
2020-02-10 6,699,000 -1,546,000 47 4.44
2019-02-13 6,258,000 -1,630,000 45 4.65
2018-02-09 6,063,000 -1,758,000 43

S&P Global's operating margins have averaged 43.5% over the last 6 years, which is significantly higher than the Diversified Financial industry average of 15.89%. However the firm's margins are declining at a compounded yearly rate of -7.5%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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