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

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$155.75 $0.08 (0.05%) SPGI stock closing price Sep 21, 2017 (Closing)
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ES&P Global
Updated on : Sep 21, 2017
previous close
SPGI 155.8 (0%)
S&P 500 2500.6 (0%)
Closing Price On: Sep 20, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Business Information Services
Sector :
Business Services
5 Quarter Revenue
Revenue Growth
2017-Q2
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-1.7%
Operating Profit
Operating Margin:
60.1%
Sector Average:
8.7%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
3.57B
Debt/Equity Ratio:
 3.32
Compared to the industry
Cash Flow
Operating cash flow:
$321M
Net Income:
$421M
Dividend Yield
SPGI dividend yield:
0.99%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
Recent Growth
Long Term Growth
High Debt Burden
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
SPGI PS :
6.9
Industry PS :
1.6
Sector:   Business Services.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
65.9%
Return on Equity:
316.4%
Free Cash Flow Margin:
19.1%
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SPGI Stock Analysis

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View ES&P Global stock analysis video. This is our analyst opinion covering the buy and sell arguments for SPGI stock.

S&P Global Inc Stock Rating 3.7/5

Our ES&P Global stock opinion is based on fundamentals of the company. This ES&P Global stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy SPGI stock?

  • The TTM operating margin was good at 60.1% for ES&P Global.
  • Net margins stood at a healthy 38.8% (average) for ES&P Global in the Trailing Twelve Months.
  • ES&P Global generates a high return on invested capital of 65.9%.
  • ES&P Global has a good Return On Equity (ROE) of 316.4%.
  • ES&P Global has a healthy FCF (Free Cash Flow) margin of 19.1%.

Should you sell SPGI stock?

  • 2017 Q2 revenue growth of 1.8% YoY was meagre.
  • Revenue declined at a CAGR of -1.7% over the last 5 years.
  • With a debt/equity ratio of  3.32, ES&P Global is highly leveraged in comparison to Business Services peers.
  • The company is trading at a price to sales multiple of 6.9, which is higher in comparison to the Business Information Services industry average of 1.6, making SPGI stock expensive.

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