Summary
- S&P Global is a leading provider of independent ratings, benchmarks, analytics, and data to the capital and commodity markets worldwide. It acquired close competitor IHS Markit in January 2022.
- S&P Global's divisions are leaders in oligopolistic industries, generate substantial recurring revenue, enjoy strong operating leverage, and delivered consistent long-term growth.
- The company is well-positioned to capture integration synergies from its acquisition of IHS Markit and leverage artificial intelligence/machine learning technologies to provide more value for its customers.
- The earnings yield is just under 4%--roughly in line with its closest competitors and current 10-year treasury yields.
- There are near-term revenue and valuation risks, but the stock may be attractive for long-term investors.
For further details see:
S&P Global: Reliable Long-Term Grower With Additional Upside From AI-Created Value For Customers