SPGI S&P Global Inc. - Fundamental Analysis
BULLISH
SPGI Stock | Fundamental Analysis & Investment Insights
NYSE
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Financial Services
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Financial Data & Stock Exchanges
Current Price
$493.9
Analyst Target
$611.4
+23.8% Upside
52W High
$579.05
52W Low
$427.14
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
92%
Analysis Accuracy
S&P Global (SPGI) presents a compelling investment case supported by robust earnings growth, industry-leading margins, and strong analyst conviction, despite near-term price underperformance. The stock trades at a premium valuation (P/E 35.97) relative to sector peers (avg 19.84), but this is justified by superior profitability (44.32% operating margin) and consistent earnings beats over the past five years. While insider selling over the last six months raises a minor caution, the company’s financial health remains solid with low leverage (D/E 0.32) and a sustainable dividend policy. Against a sector experiencing strong revenue momentum (avg 25.46%), SPGI’s 8.8% YoY revenue growth appears modest, yet its 24.1% earnings growth and pricing power in credit ratings and data analytics suggest durable competitive advantages.
Key Strengths
Exceptional operating margin of 44.32%, significantly above sector average of ~24% and peer group, reflecting pricing power and high operating leverage
Consistent earnings outperformance: 21 of the last 25 quarters beat estimates, with an average surprise of 5.35% over the last four quarters
Strong earnings growth of 24.1% YoY and 21.6% EPS growth, outpacing revenue growth due to margin expansion and cost discipline
Attractive financial health with low debt/equity ratio of 0.32, well below sector average of 0.70, providing capital flexibility
High analyst conviction with a unanimous 'strong_buy' recommendation from 20 analysts and a $611.40 mean target price, implying 23.8% upside
Key Risks
Premium valuation metrics: P/E of 35.97 and P/S of 10.14 are substantially above sector averages (19.84 and ~5.5), increasing sensitivity to growth deceleration
Moderate revenue growth of 8.8% YoY lags sector average of 25.46%, raising concerns about top-line scalability in a high-beta financial environment
Insider selling activity: $2.12M in sales over the past six months with zero buys, signaling potential caution among executives
Current and quick ratios below 1.0 (0.97 and 0.78), indicating tight short-term liquidity, though typical for asset-light financial data firms
Limited visibility on free cash flow and enterprise value due to missing data, creating opacity in capital efficiency and intrinsic value assessment
AI Fair Value Estimate
Based on comprehensive analysis
$611.4
+23.8% above current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
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Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare SPGI against industry averages and similar companies
Insider Trading & Analyst Ratings
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