ES&P Global Stock Analysis, Valuation (NYSE:SPGI)

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$187.58 $0.32 (0.17%) SPGI stock closing price Feb 21, 2018 (Closing)
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ES&P Global
Updated on : Feb 21, 2018
previous close
SPGI 187.6 (0%)
S&P 500 2701.3 (0%)
Closing Price On: Feb 21, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Business Information Services
Sector :
Business Services
5 Quarter Revenue
Revenue Growth
2017-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
0%
Operating Profit
Operating Margin:
42.3%
Sector Average:
8.4%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
3.57B
Debt/Equity Ratio:
 4.65
Compared to the industry
Cash Flow
Operating cash flow:
$813M
Net Income:
$263M
Dividend Yield
SPGI dividend yield:
0.87%
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
FCF Margin
Long Term Growth
High Debt Burden
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
SPGI PS :
7.9
Industry PS :
1.7
Sector:   Business Services.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
46.3%
Return on Equity:
174.9%
Free Cash Flow Margin:
48.3%
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SPGI Stock Analysis

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Take a look at Amigobulls ES&P Global stock analysis video. This is our analyst opinion covering the buy and sell arguments for SPGI stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

S&P Global Inc Stock Rating 3.5/5

Amigobulls SPGI stock analysis uses latest quarter 2017 Q4 financial data like ES&P Global revenue growth, profit margins and cash flows. ES&P Global valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Our ES&P Global stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy SPGI stock?

  • ES&P Global had a healthy average operating margin of 42.3% over the last 4 quarters.
  • LTM Net margins were good at 24.7% for ES&P Global.
  • The company has an operating cash flow which is 3.1 times the net income. We see this as a positive signal.
  • ES&P Global has an attractive ROIC (Return on Invested Capital) of 46.3%
  • ES&P Global has a good Return On Equity (ROE) of 174.9%.
  • ES&P Global has a healthy FCF (Free Cash Flow) margin of 48.3%.

Should you sell SPGI stock?

  • Revenue declined at a CAGR of 0% over the last 5 years.
  • ES&P Global has a debt/equity ratio of  4.65, which is worse than the average in the Business Services sector.
  • Trading at a PE ratio of 27.2, SPGI stock is overvalued in comparison to industry average multiple of 22.1.
  • The company is trading at a price to sales multiple of 7.9, which is higher in comparison to the Business Information Services industry average of 1.7, making SPGI stock expensive.

Comments on this video and ES&P Global stock

Amigobulls ES&P Global stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of SPGI stock. The fundamentals of a company are vital to identify long-term investment opportunities.

ES&P Global revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of ES&P Global stock.