S&P Global Inc. (SPGI) Stock Analysis
S&P Global Inc. (SPGI) Stock Analysis
Analysis from 10-Q filed 2025-10-30. Data as of Q4 2025.
Overall Grade: F (Concerning)
S&P Global Inc. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | N/A | Below expectations |
| FCF Margin | 35.6% | Strong cash generation |
| Debt/Equity | 0.4x | Conservative leverage |
Investment Thesis: Healthy free cash flow margin of 35.6% provides financial flexibility for growth and shareholder returns.
Explore S&P Global Inc.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: S&P Global Inc. earns N/A ROIC
S&P Global Inc.'s trailing-twelve-month ROIC of N/A (sector median: 5.2%), driven by NOPAT margin of 32.7% combined with asset turnover of 0.0x. Source: 10-Q filed 2025-10-30. Gross margin of 70.2% with operating margin at 42.2% reflects strong pricing power.
| Metric | SPGI | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | N/A | Red flag | Below sector median of 5.2% |
| Gross Margin | 70.2% | Excellent | Strong pricing power |
| Operating Margin | 42.2% | Excellent | Efficient operations |
Cash Flow: S&P Global Inc. generates $5.5B FCF at 35.6% margin, positive NaN/8 quarters
S&P Global Inc. generated $5.5B in free cash flow (TTM), a 35.6% FCF margin, a margin that ranks Top 5% in Technology. Operating cash flow exceeds net income by 1.3x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-30.
| Metric | SPGI | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 35.6% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $5.5B | Good | Positive cash generation |
| OCF/Net Income | 1.3x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: S&P Global Inc. at 0.4x leverage
S&P Global Inc.'s debt-to-equity ratio of 0.4x reflects moderate leverage. Total debt of $13.1B offset by $1.8B in cash. Source: 10-Q filed 2025-10-30.
| Metric | SPGI | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.4x | Good | Conservative capital structure |
| Net Cash Position | $-11.3B | Warning | Net debt position |
Valuation: S&P Global Inc. trades at 35.6x earnings
S&P Global Inc. trades at a P/E of 35.6x. Free cash flow yield of 3.4% reflects market expectations for growth.
| Metric | SPGI | Rating | Context |
|---|---|---|---|
| P/E Ratio | 35.6x | Adequate | Premium valuation |
| EV/Sales | 10.4x | Warning | Growth premium priced in |
| FCF Yield | 3.4% | Adequate | Lower cash yield |
| Dividend Yield | 0.7% | Adequate | Growth focus over income |
Capital Allocation: S&P Global Inc. returns 4.2% shareholder yield
S&P Global Inc.'s total shareholder yield is 4.2% (dividends 0.7% + buybacks 3.5%). Source: 10-Q filed 2025-10-30.
| Metric | SPGI | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 4.2% | Good | Dividend + buyback yield combined |
| Buyback Yield | 3.5% | Good | Active share repurchases |
| Total Capital Returned (TTM) | $6.7B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Free Cash Flow Margin | 35.6% | Top 5% | 3.9x above |
| Gross Margin | 70.2% | Top 50% | 1.4x above |
| Operating Margin | 42.2% | Top 5% | 8.7x above |
| P/E Ratio | 35.6x | N/A | - |
Financial Scorecard
| Metric | SPGI | Rating | Sector Context |
|---|---|---|---|
| Free Cash Flow Margin | 35.6% | Excellent | Top 5% of sector (median: 9.1%) |
| Gross Margin | 70.2% | Excellent | Top 50% of sector (median: 51.8%) |
| Debt to Equity Ratio | 42.0% | Good | Moderate leverage |
| P/E Ratio (Price-to-Earnings) | 35.6x | Adequate | High expectations priced in |
| Free Cash Flow Yield | 3.4% | Adequate | Moderate yield |
Frequently Asked Questions
Q: What is S&P Global Inc.'s Return on Invested Capital (ROIC)?
S&P Global Inc. (SPGI) has a trailing twelve-month Return on Invested Capital (ROIC) of N/A. This compares below the sector median of 5.2%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is S&P Global Inc.'s Free Cash Flow Margin?
S&P Global Inc. (SPGI) has a free cash flow margin of 35.6%, generating $5.5 billion in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is S&P Global Inc. stock overvalued or undervalued?
S&P Global Inc. (SPGI) trades at a P/E ratio of 35.6x, which is above the sector median of N/A. The EV/Sales multiple is 10.4x. Free cash flow yield is 3.4%, which is in line with market averages.
Q: Does S&P Global Inc. pay a dividend?
S&P Global Inc. (SPGI) currently pays a dividend yield of 0.7%. Including share buybacks, the total shareholder yield is 4.2%. The relatively low yield suggests the company prioritizes growth reinvestment over income distribution.
Q: What is S&P Global Inc.'s revenue and earnings growth?
S&P Global Inc. (SPGI) grew revenue by 7.9% year-over-year. Earnings per share increased by 18.7% compared to the prior year. Modest growth indicates a mature business with stable demand.
Q: Is S&P Global Inc. buying back stock?
S&P Global Inc. (SPGI) repurchased $5.5 billion of stock over the trailing twelve months. This represents a buyback yield of 3.5%.
Q: How does S&P Global Inc. compare to competitors in Technology?
Compared to other companies in Technology, S&P Global Inc. (SPGI) shows: ROIC of N/A is below the sector median of 5.2% (NaNx median). FCF margin of 35.6% exceeds the sector median of 9.1% (Top 5% of sector). Gross margin at 70.2% is 18.4 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.
Q: What warning signs should I watch for with S&P Global Inc.?
S&P Global Inc. (SPGI) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-10-30. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.