S&P Global Inc. (SPGI)

Sector: Financials|Industry: Financial Data & Stock Exchanges|Market Cap: $156.77B|Employees: 40.5K


S&P Global Inc. provides credit ratings, benchmarks, analytics, and workflow solutions across global capital, commodity, and automotive markets. Its primary revenue streams are from subscriptions and transactions, serving a diverse client base including asset managers, banks, and corporations. The company holds a leading market position due to its extensive data and analytics capabilities, global reach, and strong brand reputation.

  1. Filings
  2. Company Profile

Business Summary

S&P Global Inc. provides credit ratings, benchmarks, analytics, and workflow solutions for the global capital, commodity, and automotive markets. It serves a variety of clients including asset managers, investment banks, commercial banks, insurance companies, exchanges, trading firms, and issuers in the capital markets; producers, traders, and intermediaries within the energy, petrochemicals, metals & steel, and agriculture sectors in the commodity markets; and manufacturers, suppliers, dealerships, service shops, and consumers in the automotive markets. S&P Global distributes its products and services through both third-party and proprietary channels.

Key Statistics

  • Employees: 40,450 (as of December 31, 2023)
  • Geographic Footprint: Over 25 countries (S&P Global Ratings); offices in 135 locations (S&P Global Inc.)
  • Headquarters: 55 Water Street, New York, NY 10041
  • Founded: 1925
  • Revenue: $12.50 billion (FY2023)
  • Market Capitalization: $127.5 billion (as of June 30, 2023)
  • Key Subsidiaries/Brands: S&P Global Market Intelligence, S&P Global Ratings, S&P Global Commodity Insights, S&P Global Mobility, S&P Dow Jones Indices

Leadership

  • CEO: Douglas L. Peterson
  • CFO: Ewout L. Steenbergen
  • Interim CFO (effective February 12, 2024): Christopher F. Craig
  • Board Chair: Richard E. Thornburgh
  • Other Key Executives: Adam Kansler (President, S&P Global Market Intelligence), Martina L. Cheung (President, S&P Global Ratings), Saugata Saha (President, S&P Global Commodity Insights), Edouard Tavernier (President, S&P Global Mobility), Dan Draper (CEO, S&P Dow Jones Indices), S. Swamy Kocherlakota (Executive Vice President, Chief Digital Solutions Officer), Steven J. Kemps (Executive Vice President, Chief Legal Officer), Dimitra Manis (Executive Vice President, Chief Purpose Officer), Sally Moore (Executive Vice President, Global Head of Strategy, M&A and Partnerships)

Key Financial Metrics

  • Annual Revenue: $12.50 billion (FY2023)
  • Net Income: $2.63 billion (FY2023)
  • Market Cap: $127.5 billion (as of June 30, 2023)
  • Total Assets: $60.59 billion (FY2023)
  • Key Financial Highlights: Revenue increased 12% year-over-year. Operating profit decreased 19% year-over-year. Diluted EPS decreased 19% year-over-year.

Products and Services

S&P Global offers a diverse range of products and services across its five key segments:

  • S&P Global Market Intelligence: Provides multi-asset-class data, analytics, and workflow solutions. Includes desktop products, data & advisory solutions, enterprise solutions, and credit & risk solutions.
  • S&P Global Ratings: Offers credit ratings, research, and analytics, providing information, ratings, and benchmarks to investors and market participants.
  • S&P Global Commodity Insights: Provides essential price data, analytics, industry insights, and software & services for the commodity and energy markets.
  • S&P Global Mobility: Offers solutions for the automotive value chain, including vehicle manufacturers, suppliers, retailers, consumers, and finance and insurance companies.
  • S&P Dow Jones Indices: Maintains a wide variety of valuation and index benchmarks for investment advisors, wealth managers, and institutional investors.

Key Business Segments

S&P Global operates through five key business segments: S&P Global Market Intelligence, S&P Global Ratings, S&P Global Commodity Insights, S&P Global Mobility, and S&P Dow Jones Indices. As of May 2, 2023, S&P Global divested its Engineering Solutions business.

Business Strategy

S&P Global's strategy, "Powering Global Markets," focuses on delivering an exceptional customer experience. The company aims to achieve this through enhancing foundational capabilities, evolving and growing core businesses, and pursuing growth via adjacencies. Key strategic priorities for 2024 include meeting financial targets, realizing merger/integration commitments, prioritizing customer needs and experience, investing in customer-facing solutions, driving growth and innovation, strengthening data and technology capabilities, developing leadership and talent, and enhancing risk management, security, and sustainability.

Industry Context

S&P Global operates within the financial information services industry, facing intense competition from both traditional and non-traditional providers. The company competes based on quality of offerings, client service, reputation, price, geographic scope, product range, and technological innovation.

Risk Factors

  • Cybersecurity Risks: S&P Global acknowledges its increased risk of cyberattacks due to its size, scale, and role in global markets. The company handles sensitive data, including material non-public information, making it a target for sophisticated attacks.
  • Innovation and Competition: The rapid pace of technological change requires continuous innovation and investment. Failure to compete effectively with new products and services could negatively impact profitability.
  • Regulatory Changes: The financial services industry is highly regulated, and increasing regulations, especially regarding credit ratings and benchmarks, can increase costs and compliance risks.
  • Data and Information Dependence: S&P Global relies on data from third-party suppliers. Loss of key suppliers, data errors, or delays could disrupt services and impact the business.
  • Global Operations Risks: Operating in various countries exposes S&P Global to a range of legal, economic, and political risks, including international trade restraints, economic sanctions, and varying data privacy regulations.

Last Updated

2024-02-08

(Generated from latest 10-K filing)