S&P Global (SPGI, Financial) has revealed plans to spin off its Mobility division into an independent public company in a strategic move aimed at enhancing long-term value creation. The separation will allow S&P Global to focus on its core strengths, including credit ratings, benchmarks, analytics, and workflow solutions through its key divisions: S&P Global Market Intelligence, S&P Global Ratings, S&P Global Commodity Insights, and S&P Dow Jones Indices.
This restructuring will streamline S&P Global's operations and sharpen its strategic focus, enhancing its capabilities in servicing public and private markets. The company aims to leverage a strong leadership team with deep industry experience to continue fostering growth in product innovation and AI initiatives. These steps are expected to build upon S&P Global’s track record of profitable growth and success among global brands.
S&P Global plans to share further details about its strategic objectives over the coming years during an Investor Day scheduled for November 13, 2025.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 21 analysts, the average target price for S&P Global Inc (SPGI, Financial) is $585.43 with a high estimate of $629.00 and a low estimate of $520.00. The average target implies an upside of 22.13% from the current price of $479.37. More detailed estimate data can be found on the S&P Global Inc (SPGI) Forecast page.
Based on the consensus recommendation from 26 brokerage firms, S&P Global Inc's (SPGI, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for S&P Global Inc (SPGI, Financial) in one year is $536.00, suggesting a upside of 11.81% from the current price of $479.37. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the S&P Global Inc (SPGI) Summary page.
SPGI Key Business Developments
Release Date: February 11, 2025
- Revenue Growth: Increased 14% for the full year 2024, excluding Engineering Solutions.
- Adjusted EPS Growth: Increased 25% in 2024, exceeding guidance midpoint by over 13%.
- Margin Expansion: Expanded by over 300 basis points in 2024.
- Shareholder Returns: $4.4 billion returned through dividends and repurchase of 6.7 million shares in 2024.
- Adjusted Free Cash Flow: Targeting $6 billion in 2025, with a plan to return 85% or more to shareholders.
- Ratings Revenue: Increased 27% in Q4 2024, driven by refinancing activity and strong CLO volumes.
- Indices Revenue: Increased 21% in Q4 2024, with asset-linked fees up 31%.
- Commodity Insights Revenue: Increased 10% in Q4 2024, driven by energy transition products.
- Mobility Revenue: Increased 9% in Q4 2024, driven by CARFAX and insurance-related products.
- Market Intelligence Revenue: Increased 5% in Q4 2024, with improved retention rates.
- Energy Transition and Sustainability Revenue: Grew 23% to $104 million in Q4 2024.
- Private Market Solutions Revenue: Grew 29% to $146 million in Q4 2024.
- Vitality Index: $409 million in Q4 2024, representing 11% of total revenue.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- S&P Global Inc (SPGI, Financial) reported a 15% increase in revenue for 2024, excluding divested Engineering Solutions, with strong growth in subscription products.
- The company achieved a 25% growth in adjusted EPS, surpassing the midpoint of initial guidance by over 13%.
- S&P Global Inc (SPGI) expanded its margins by more than 300 basis points, demonstrating operational excellence.
- The company returned $4.4 billion to shareholders in 2024 through dividends and share repurchases, with plans for continued strong capital returns in 2025.
- S&P Global Inc (SPGI) is making significant investments in technology and AI, including the launch of new AI-driven products and enhancements to existing offerings.
Negative Points
- The company faces a highly competitive environment in financial services, with elevated price sensitivity impacting market intelligence.
- S&P Global Inc (SPGI) anticipates a challenging comparison for 2025 due to the record issuance year in 2024, which may affect growth expectations.
- There is caution and uncertainty around the macroeconomic environment, particularly in Europe and Asia, which could impact overall performance.
- The company experienced elevated expenses in 2024 related to incentive compensation and commissions, affecting margin expansion in some divisions.
- S&P Global Inc (SPGI) is dealing with market headwinds in its Market Intelligence and Mobility divisions, which could impact future growth.
