This Score-Card analysis of S&P Global Inc (SPGI) attributes an Overall Score to a company by analyzing several aspects that I consider to be among the most important.
In summary, a company to have an overall score close to 100% must have the following characteristics:
- Report high growth rates in the last 3 years (and in the last quarter) in terms of Revenue, Gross Profit, Operating Income and Net Income. Furthermore, it must operate with high and improving margins in recent years.
- Analysts expect Earnings Per Share (EPS) and revenues to grow in the short term (in the next quarter) and in the medium to long term (in the next 5 years). Moreover, they expect the company to be undervalued at current prices and in the last quarter their EPS expectations must have been beaten with a consequent rise in share prices.
- The stock price of the company must have outperformed the S&P 500 index and in the last 3 months the Hedge Funds and Insiders bought shares in the company.
The overall score ranges from 0% (if the characteristics listed above are all very negative) to +100% and it is unlikely that there will be a company with a +100% score because the requirements for achieving this score are very high, however a score higher than +70% can be considered good.
This analysis alone is not enough to decide whether or not to invest in a company because it does not provide indications on the timing of entry, but it is a good starting point.
Score-Card analysis of S&P Global Inc (SPGI)
- Overall Score: +75%
- Excellent Net income growth in the last quarter (+ 24.6%) and in the last 3 years (+ 81%), the Net Margin also improved (+ 48%).
- Revenue increased by 22.4% (quarterly Revenue + 9.2% compared to the same quarter 12 months before).
- Growth can continue according to analysts.
- They expect annual growth of EPS by 9.6% for the next 5 years.
- Furthermore, they think SPGI is undervalued by 9.18% despite the outperformance over the last 6 months compared to the S&P 500 index.
- Hedge Funds and Insiders have reduced their positions in the last quarter.
S&P Global Inc. is an American publicly traded corporation headquartered in Manhattan, New York City. Its primary areas of business are financial information and analytics. It is the parent company of S&P Global Ratings, S&P Global Market Intelligence, and S&P Global Platts, and is the majority owner of the S&P Dow Jones Indices joint venture.
The overall score of SPGI is 75% .
In the last 6 months, SPGI has overperformed the S&P500 index by 9,2% and analysts believe the company is undervalued by 8,5% .
In the last quarter, the company reported revenue of 1689 million, up by 9,2% compared to the same quarter 12 months earlier. Revenue TTM (Trailing-12-Months) are equal to 6501 million, up by 22,4% in the last 3 years.
SPGI reported an operating income of 891 million in the last quarter, an improvement of 26,6% compared to the same quarter 12 months earlier, also reporting an improvement of 15,8% in the operating margin. Considering the sum of the last four quarters (TTM), SPGI reports an operating income of 3113,0 Million , a growth of 62,4% compared to three years ago and an improvement of 32,7% in the operating margin.
SPGI reported a net income of 617 million in the last quarter, an improvement of 24,6% compared to the same quarter 12 months earlier, also reporting an improvement of 14,1% in the net margin. The TTM net income is 2093 million , a growth of 81,1% compared to three years ago and the net margin has improved by 48,0% .
In the next quarter, analysts expect growth in EPS (Earnings Per Share) of 8,6% and a growth in revenue of 10,4% . Furthermore, they expect an annual growth of SPGI EPS by 9,6% for the next 5 years.
In the last quarter, SPGI reported better EPS than analysts’ expectations and the stock price reacted by increasing by 3,1% .
Finally, in the last quarter the Hedge Funds have decreased their positions by 1.6M shares. The Insiders have sold shares worth $830.18k .
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Sources & additional info
*The comparison with the S&P 500 index (black line) is visible inside the graph.
*Information updated to the last quarterly report available
*Data in Millions of Dollars
*Data from zacks.com, tipranks.com, reuters.com, finance.yahoo.com
*Company information from wikipedia.com
DISCLAIMER: The information in this blog post represents my own analysis/opinions and does not contain a recommendation for any particular security or investment. Stocks trading involves substantial risk of loss and is not suitable for every investor. Trade responsibly.