S&P Global Inc. (SPGI) Bundle
A Brief History of S&P Global Inc.
Overview
S&P Global Inc., a leading provider of financial market intelligence, has undergone significant transformations over the years. As of 2024, it continues to expand its services and drive growth across various segments.
Financial Performance
For the three months ended September 30, 2024, S&P Global reported a net income of $1,047 million, up from $814 million in the same period of 2023. The company’s comprehensive income attributable to S&P Global Inc. was $1,096 million compared to $709 million in 2023.
Revenue Growth
Revenue for the third quarter of 2024 increased by 36% to $1,110 million, driven by substantial growth in transaction revenue, which rose 83% to $597 million. Non-transaction revenue grew 4% to $513 million.
| Period | Net Income ($ million) | Revenue ($ million) | Operating Profit ($ million) |
|---|---|---|---|
| Q3 2024 | 1,047 | 1,110 | 676 |
| Q3 2023 | 814 | 819 | 459 |
Segment Performance
S&P Global operates through five reportable segments: Market Intelligence, Ratings, Commodity Insights, Mobility, and Indices. For the nine months ended September 30, 2024, the segment revenues were as follows:
| Segment | Revenue ($ million) | Operating Profit ($ million) |
|---|---|---|
| Market Intelligence | 3,459 | 649 |
| Ratings | 3,307 | 2,080 |
| Commodity Insights | 1,597 | 643 |
| Mobility | 1,198 | 247 |
| Indices | 1,193 | 816 |
Cash Flow and Investments
As of September 30, 2024, S&P Global's cash and cash equivalents totaled $1,696 million, an increase from $1,290 million at the end of 2023. The company reported net cash provided by operating activities of $3,949 million for the first nine months of 2024, a 66% increase compared to the prior year.
Debt Position
S&P Global's total debt as of September 30, 2024, was $11,402 million, with long-term debt amounting to $11,398 million. The company made a significant repayment of $47 million on its 3.625% senior note during the second quarter of 2024.
Acquisitions and Strategic Initiatives
In May 2024, S&P Global completed the acquisition of World Hydrogen Leaders, enhancing its capabilities in market data and insights. This acquisition contributed positively to revenue growth in the Commodity Insights segment.
Stock Performance
During the nine months ended September 30, 2024, S&P Global repurchased a total of 3.8 million shares for $2 billion.
Future Outlook
The company aims to continue leveraging its market position and expand its service offerings to drive future growth and shareholder value.
A Who Owns S&P Global Inc. (SPGI)
Institutional Ownership
As of 2024, S&P Global Inc. (SPGI) is predominantly owned by institutional investors, which hold approximately 85% of the total shares outstanding. The following table summarizes the major institutional shareholders and their ownership percentages:
| Institution | Ownership Percentage | Shares Held (in millions) |
|---|---|---|
| The Vanguard Group, Inc. | 8.50% | 26.3 |
| BlackRock, Inc. | 8.20% | 25.5 |
| State Street Corporation | 4.50% | 14.0 |
| Fidelity Investments | 3.60% | 11.2 |
| Invesco Ltd. | 3.40% | 10.6 |
| Other Institutions | 53.30% | 166.0 |
Insider Ownership
Insider ownership at S&P Global is relatively low, with executives and board members holding about 1.5% of the total shares. The following table provides details on the top insiders:
| Insider Name | Title | Ownership Percentage | Shares Held (in millions) |
|---|---|---|---|
| Douglas L. Peterson | President & CEO | 0.35% | 1.1 |
| Ellen O. Coleman | Executive Vice President | 0.25% | 0.8 |
| Other Executives | Various | 0.90% | 2.8 |
Shareholder Composition
The shareholder composition indicates a diverse mix of institutional, retail, and insider investors. As of the latest reports, the breakdown is as follows:
| Shareholder Type | Percentage of Total Shares |
|---|---|
| Institutional Investors | 85% |
| Retail Investors | 13.5% |
| Insiders | 1.5% |
Market Capitalization and Stock Performance
As of the end of Q3 2024, S&P Global Inc. has a market capitalization of approximately $97 billion. The stock has shown strong performance, with a year-to-date increase of 23%.
Recent Developments
In 2024, S&P Global has continued to expand its business through strategic acquisitions and partnerships, further solidifying its position in the financial data and analytics market. The company reported a revenue increase of 14% year-over-year, largely driven by its Ratings and Market Intelligence segments.
Dividend Information
S&P Global has a strong history of returning value to shareholders through dividends. As of September 30, 2024, the company declared a dividend of $2.73 per share for the fiscal year, reflecting a consistent increase in shareholder returns.
Conclusion
Overall, S&P Global Inc. displays a robust ownership structure, characterized by significant institutional investment, low insider ownership, and a growing retail investor base. This dynamic positions the company well for future growth in the competitive financial services sector.
S&P Global Inc. (SPGI) Mission Statement
Company Overview
S&P Global Inc. (SPGI) operates as a provider of credit ratings, benchmarks, analytics, and workflow solutions in the global capital, commodity, and automotive markets. The company's mission is to accelerate progress by delivering essential intelligence that helps its clients make informed decisions.
Mission Statement
The mission statement of S&P Global emphasizes the commitment to provide trusted insights and analytics that power global markets. The company aims to deliver exceptional customer experience through innovation, integrity, and partnership.
Core Values
- Integrity: Upholding the highest standards in all operations.
- Discovery: Encouraging innovation and exploration in analytics.
- Partnership: Building strong relationships with clients and stakeholders.
Strategic Objectives for 2024
In 2024, S&P Global focuses on several strategic objectives to fulfill its mission:
- Enhancing customer support and user experience.
- Driving organic revenue growth and maintaining EBITA margin targets.
- Investing in technology and data management capabilities.
Financial Performance
For the nine months ended September 30, 2024, S&P Global reported the following financial highlights:
| Metric | 2024 | 2023 | % Change |
|---|---|---|---|
| Revenue (in millions) | $10,616 | $9,345 | 14% |
| Net Income (in millions) | $3,200 | $2,249 | 42% |
| Earnings per Share (Diluted) | $9.50 | $6.40 | 48% |
| Operating Profit (in millions) | $4,271 | $3,130 | 36% |
Segment Performance
The following table summarizes revenue by segment for the nine months ended September 30, 2024:
| Segment | Revenue (in millions) |
|---|---|
| Market Intelligence | $3,459 |
| Ratings | $3,307 |
| Commodity Insights | $1,597 |
| Mobility | $1,198 |
| Indices | $1,193 |
Recent Developments
S&P Global continues to enhance its market position through strategic acquisitions and divestitures, including:
- Acquisition of World Hydrogen Leaders in May 2024.
- Sale of S&P Global Engineering Solutions in May 2023.
Conclusion
As S&P Global navigates the complexities of global markets, its mission and strategic objectives reflect a commitment to driving progress and delivering value to its stakeholders.
How S&P Global Inc. (SPGI) Works
Overview of S&P Global Inc.
S&P Global Inc. operates as a provider of financial information and analytics. The company is organized into four primary business segments: Ratings, Market Intelligence, Commodities Insights, and Indices. Each segment serves distinct market needs and contributes to the overall revenue of the company.
Financial Performance
As of September 30, 2024, S&P Global reported consolidated revenue of $10,616 million for the nine months, representing a 14% increase compared to $9,345 million for the same period in 2023. The revenue breakdown is as follows:
| Segment | Revenue (in millions) | % Change |
|---|---|---|
| Ratings | $3,307 | 33% |
| Market Intelligence | $649 | 8% |
| Commodity Insights | $643 | 22% |
| Mobility | $247 | 16% |
| Indices | $816 | 17% |
Revenue Breakdown
The revenue for S&P Global is derived primarily from subscription and transaction-based services. For the three months ended September 30, 2024, the revenue composition was:
| Type of Revenue | Revenue (in millions) | % of Total Revenue |
|---|---|---|
| Subscription Revenue | $1,864 | 52% |
| Non-subscription Revenue | $735 | 21% |
| Non-transaction Revenue | $466 | 13% |
| Asset-linked Fees | $266 | 7% |
| Sales Usage-based Royalties | $102 | 3% |
Operating Expenses
For the nine months ended September 30, 2024, total operating expenses were $6,397 million, reflecting a 4% increase from $6,179 million in the prior year. The breakdown of operating expenses is as follows:
| Type of Expense | Amount (in millions) |
|---|---|
| Operating-related Expenses | $3,277 |
| Selling and General Expenses | $2,247 |
| Depreciation and Amortization | $873 |
Net Income
Net income attributable to S&P Global for the nine months ended September 30, 2024, was $2,972 million, a significant increase from $2,047 million in the same period of the previous year. This reflects a 45% increase, demonstrating strong operational efficiency and revenue growth.
Debt Overview
As of September 30, 2024, S&P Global had total debt of $11,402 million, with long-term debt amounting to $11,398 million. The debt structure includes various senior notes with differing maturities and interest rates:
| Debt Type | Amount (in millions) | Maturity Date |
|---|---|---|
| 3.625% Senior Notes | $0 | 2024 |
| 4.75% Senior Notes | $4 | 2025 |
| 4.0% Senior Notes | $3 | 2026 |
| 2.95% Senior Notes | $498 | 2027 |
| 2.45% Senior Notes | $1,242 | 2027 |
| 4.75% Senior Notes | $801 | 2028 |
Cash Flow Summary
For the nine months ended September 30, 2024, S&P Global generated net cash from operating activities amounting to $3,949 million, an increase of 66% compared to the previous year. The cash flow from investing and financing activities was recorded as follows:
| Activity | Cash Flow (in millions) |
|---|---|
| Operating Activities | $3,949 |
| Investing Activities | $(262) |
| Financing Activities | $(3,280) |
Equity Position
S&P Global's total equity as of September 30, 2024, was $34,086 million, comprising common stock, additional paid-in capital, retained income, and accumulated other comprehensive loss. The equity structure is detailed below:
| Component | Amount (in millions) |
|---|---|
| Common Stock | $415 |
| Additional Paid-in Capital | $44,273 |
| Retained Income | $20,364 |
| Accumulated Other Comprehensive Loss | $(714) |
| Total SPGI Equity | $33,992 |
How S&P Global Inc. (SPGI) Makes Money
Revenue Streams
S&P Global Inc. (SPGI) generates revenue from several key segments, primarily through subscription and non-subscription services. The company’s revenue for the nine months ended September 30, 2024, totaled $10,616 million, reflecting a 14% increase from $9,345 million in the same period of 2023.
| Revenue Segment | 2024 (in millions) | 2023 (in millions) | % Change |
|---|---|---|---|
| Total Revenue | $10,616 | $9,345 | +14% |
| Subscription Revenue | $5,464 | $5,194 | +5% |
| Non-subscription / Transaction Revenue | $2,305 | $1,600 | +44% |
| Non-transaction Revenue | $1,365 | $1,276 | +7% |
| Asset-linked Fees | $756 | $638 | +18% |
| Sales Usage-Based Royalties | $296 | $257 | +15% |
Segment Performance
SPGI operates through various segments, with Ratings, Market Intelligence, Commodity Insights, Mobility, and Indices being the primary divisions. Each segment contributes differently to the overall revenue.
| Segment | Revenue (2024, in millions) | Revenue (2023, in millions) | % Change |
|---|---|---|---|
| Market Intelligence | $3,459 | $3,249 | +6% |
| Ratings | $2,080 | $1,422 | +46% |
| Commodity Insights | $643 | $527 | +22% |
| Mobility | $247 | $213 | +16% |
| Indices | $816 | $699 | +17% |
Key Financial Metrics
For the three months ended September 30, 2024, SPGI's total revenue was $3,575 million, which is a 16% increase from $3,084 million in the same period of 2023. The operating profit for this period was $1,434 million, reflecting a 33% increase from $1,074 million in the previous year.
| Financial Metric | Q3 2024 (in millions) | Q3 2023 (in millions) | % Change |
|---|---|---|---|
| Total Revenue | $3,575 | $3,084 | +16% |
| Operating Profit | $1,434 | $1,074 | +33% |
| Net Income | $1,047 | $814 | +29% |
Cost Structure and Profitability
SPGI's operating expenses for the nine months ended September 30, 2024, amounted to $6,397 million, a 4% increase from $6,179 million in the same period of 2023. This includes costs related to selling and general expenses, which were $2,247 million in 2024, up from $2,217 million in 2023.
| Expense Category | 2024 (in millions) | 2023 (in millions) | % Change |
|---|---|---|---|
| Operating-Related Expenses | $3,277 | $3,109 | +5% |
| Selling and General Expenses | $2,247 | $2,217 | +1% |
| Depreciation and Amortization | $873 | $853 | +2% |
Market Trends and Future Outlook
The company’s growth is driven by increased issuance volumes in corporate bonds and bank loans, which have seen a significant uptick due to higher refinancing activity. The Ratings segment, in particular, has benefitted from this trend, with transaction revenue rising sharply.
| Billed Issuance Volumes (in billions) | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Investment-Grade Billed Issuance | $1,242 | $877 | +42% |
| High-Yield Billed Issuance | $383 | $200 | +91% |
| Total Billed Issuance | $3,060 | $1,943 | +57% |
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Article updated on 8 Nov 2024
Resources:
- S&P Global Inc. (SPGI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of S&P Global Inc. (SPGI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View S&P Global Inc. (SPGI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.