S&P Global Poised for Growth Amidst Market Stability

S&P Global sees strong growth prospects as the environment stabilizes. With revenue and EPS growth projected amid a recovering macro landscape, the company stands out to investors looking for stable opportunities.

Date: 25-02-2025

AI Rating: 7

Overview of S&P Global
S&P Global demonstrates solid performance over recent years, witnessing an 80% stock rally. The firm is strategically well-positioned within the financial services domain, serving notable clients, including major companies in the Fortune 100 and 500. Notably, the company has also incorporated AI technologies for enhanced data services.

Key Financial Metrics
S&P Global’s revenue has shown a healthy compound annual growth rate (CAGR) of 16% from 2019 to 2024, while Earnings Per Share (EPS) growth has expanded at an 8% CAGR over the same period. The company experienced fluctuations in its EPS, with declines of 18% in 2022 and 19% in 2023 due to rising interest rates affecting debt issuance. Nevertheless, there is optimism about a rebound in net profits for 2024.

Future Projections
Looking ahead, S&P Global forecasts revenue growth between 5% and 7% and a significant projected increase in EPS between 73% and 76% for 2025. This highlights a potential reversal of the previous downturn and signals optimistic market expectations. The company also plans to continue repurchasing shares, which could provide support for further EPS growth.

Dividend Outlook
S&P Global's dividend yield currently sits at 0.7%, demonstrating a consistent history of annual increases over the past 51 years, making it a Dividend King. The company’s prudent management of its free cash flow for dividends suggests potential for more aggressive increases in the future.

Stocks: SPGI