3 Reasons We Love S&P Global (SPGI)

While the S&P 500 is up 16.5% since March 2025, S&P Global (currently trading at $544.40 per share) has lagged behind, posting a return of 10.1%. This may have investors wondering how to approach the situation.

Taking into account the weaker price action, is now a good time to buy SPGI? Find out in our full research report, it’s free.

Why Is S&P Global a Good Business?

Tracing its roots back to 1860 when it published the first railroad industry manual, S&P Global (NYSE:SPGI) provides credit ratings, market intelligence, commodity data, automotive analytics, and financial indices that help investors and businesses make decisions.

1. Long-Term Revenue Growth Shows Strong Momentum

Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years.

Thankfully, S&P Global’s 13% annualized revenue growth over the last five years was solid. Its growth beat the average financials company and shows its offerings resonate with customers.S&P Global Quarterly Revenue

2. EPS Surges Higher Over the Last Two Years

Although long-term earnings trends give us the big picture, we like to analyze EPS over a shorter period to see if we are missing a change in the business.

S&P Global’s EPS grew at a remarkable 18.6% compounded annual growth rate over the last two years, higher than its 10.2% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.S&P Global Trailing 12-Month EPS (Non-GAAP)

3. Stellar ROE Showcases Lucrative Growth Opportunities

Return on equity (ROE) measures how effectively banks generate profit from each dollar of shareholder equity - a critical funding source. High-ROE institutions typically compound shareholder wealth faster over time through retained earnings, share repurchases, and dividend payments.

Over the last five years, S&P Global has averaged an ROE of 35.1%, exceptional for a company operating in a sector where the average shakes out around 10% and those putting up 25%+ are greatly admired. This shows S&P Global has a strong competitive moat.S&P Global Return on Equity

Final Judgment

These are just a few reasons S&P Global is a rock-solid business worth owning. With its shares underperforming the market lately, the stock trades at 31.2× forward P/E (or $544.40 per share). Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More Than S&P Global

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Story Continues

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