S&P Global is a provider of financial information, analytics and benchmarks that combines high margins with strong cash generation — the company reported a net margin near 29.2% and trailing twelve‑month operating cash flow of $5.74B . Business Performance & Financial Health The business shows sustained per‑share compounding: 5‑year diluted EPS CAGR is about 13.83% and 5‑year revenue‑per‑share CAG
S&P Global is a provider of financial information, analytics and benchmarks that combines high margins with strong cash generation — the company reported a net margin near 29.2% and trailing twelve‑month operating cash flow of $5.74B.
The business shows sustained per‑share compounding: 5‑year diluted EPS CAGR is about 13.83% and 5‑year revenue‑per‑share CAGR is roughly 15.56%, with most recent levels of diluted EPS at $14.65 and revenue per share at $50.27. Margins are a clear strength: gross margin is roughly 67.5%, operating margin about 42.8%, and free cash flow margin around 28.5%, while operating cash flow (TTM $5.74B) has consistently exceeded net income (TTM $4.47B), supporting cash‑driven earnings quality.
Leverage appears conservative on headline measures: debt‑to‑equity is 0.3407 and interest coverage is about 18.8x.
Areas of genuine concern include near‑term liquidity and momentum. The current ratio is below 1.0 at 0.8244, which points to tighter short‑term liquidity. Growth momentum has also moderated from a mid‑2024 peak—diluted EPS growth swung as high as 46.7% in 2024‑Q4 but has decelerated to about 16.1% year‑over‑year most recently, while revenue‑per‑share growth slowed to 7.9% year‑over‑year.
On capital deployment, financing cash flow remains a persistent outflow (TTM financing cash flow about −$5.06B) even as investing outflows have narrowed to −$334.0M TTM; and market pricing sits at a trailing P/E near 35.7x.
Key fundamental metrics to watch going forward include top‑line and earnings per‑share momentum (see Revenue & Net Income, EPS Diluted & Revenue per Share and Revenue & EPS Growth — latest Rev/Share growth 7.9% and 1‑yr EPS growth 16.1%), margin trends and cash conversion (see Profit Margin Trends and Earnings Quality Analysis — gross ~67.5%, FCF margin ~28.5%, OCF $5.74B vs NI $4.47B), capital allocation and financing flows (see Strategic Capital Allocation — financing cash flow −$5.06B TTM), return on equity (see Return on Equity (ROE) — most recent ROE 14.4%) and the evolving price multiple (see Price-to-Earnings (PE) Ratio Trend — P/E ~35.7x).
The foundation of business quality and long-term value creation
S&P Global Inc.'s revenue has trended upward over the last several years and most recently across 2024–2025. Quarterly revenue climbed from $3.59B in 2024-12 to $3.92B in 2025-12, with a mild mid-2025 dip to $3.75B in 2025-06 before rebounding to new highs in Q3–Q4 2025. Over a longer horizon, revenue has roughly doubled from the approximately $1.5–$1.7B quarterly range in 2018–2019 to near $4.0B in late 2025.
Net income has been more variable but shows a pronounced improvement in the most recent quarters. After a low of $578.0M in 2023-12, net income rose into 2024 and 2025, peaking at $1.18B in 2025-09 and finishing the year at $1.13B in 2025-12. The most recent quarterly revenue was $3.92B. The most recent quarterly net income was $1.13B.
Why Growth Matters
Consistent revenue and earnings growth are the lifeblood of successful long-term investments. Companies that can grow their top line (revenue) and bottom line (net income) over many years demonstrate they have products or services customers value and are willing to pay for repeatedly.
Revenue Growth shows whether the company is expanding its market reach, gaining market share, or successfully launching new products.Net Income Growth demonstrates the company can convert that revenue into actual profits while managing costs effectively.
Look for steady, sustainable growth rather than erratic spikes. The best businesses compound earnings year after year, creating tremendous value for shareholders over time. Companies that can grow earnings faster than revenue are improving their profitability—a sign of operational excellence and competitive strength.
Year-over-year growth rates for revenue and earnings per share
Reading the Growth Rate Chart
This chart converts the absolute per-share figures into year-over-year percentage changes, making it easy to see whether growth is accelerating, decelerating, or reverting to trend — regardless of the company's absolute size.
Revenue per Share Growth (1-year, split-adjusted) measures how quickly the top line is expanding on a per-share basis. Sustained positive growth signals that the company continues to win customers and grow its addressable market.EPS Diluted Growth (1-year, split-adjusted) measures how quickly earnings are compounding for each shareholder. When EPS growth consistently outpaces revenue growth, operating leverage and margin expansion are at work.
Look for consistency, not just magnitude. A company that reliably grows EPS 10–15% per year is far more valuable than one that alternates between 50% spikes and deep contractions. Negative EPS growth during a period of positive revenue growth is a red flag — costs are rising faster than sales. Quarters where both lines converge near zero or go negative deserve close scrutiny.
How revenue converts to net income for the most recent annual period
Period Information
Report Type: Annual (10-K)
Period: Jan 2025 to Dec 2025
Analyzing long-term margin stability and competitive positioning
S&P Global Inc.'s net profit margin shows a clear multi-quarter recovery since mid-2023 after a prior period of elevated margins in 2020–2021 followed by a decline. Net margin reached a trough around 19.5% in 2023‑06 and then rose steadily through 2023–2025 (20.2% in 2023‑09, 21.0% in 2023‑12, 22.0% in 2024‑03, 25.0% in 2024‑06, 25.8% in 2024‑09, 27.1% in 2024‑12, 27.3% in 2025‑03 and 2025‑06, 28.1% in 2025‑09), finishing the series at 29.2% in 2025‑12.
Gross and operating margins moved to more stable levels after larger swings earlier in the sample. Gross margin has been roughly mid‑60s in recent quarters, rising modestly from 65.7% (2023‑03) to 67.5% (2024‑03). Operating margin climbed from the mid‑30s in late 2022 (36.1% at 2022‑12) into the low‑40s through 2023 and early 2024, reaching 42.8% at 2024‑03. The most recent observed values are: Gross Margin 67.5% (period end 2024‑03‑31), Operating Margin 42.8% (period end 2024‑03‑31), and Net Profit Margin 29.2% (period end 2025‑12‑31).
Understanding Profit Margins
Between Jan 2025 and Dec 2025, Sp Global Inc converts every dollar of revenue through the following stages:
Sustainable competitive advantages reveal themselves through consistently superior profit margins over extended periods. Companies with durable economic moats maintain pricing power and operational efficiency that competitors struggle to match.
A sign of durable competitive advantage is earning sustained higher margins than competitors.Look for margins that remain stable or improve over time, especially during economic downturns. Declining margins may signal increasing competition, pricing pressure, or deteriorating business fundamentals.
Comparing reported earnings to actual cash generation
Over the past several quarters, S&P Global Inc.’s operating cash flow (TTM) has trended higher, moving from roughly $4.06B at 2024-03-31 to a plateau near $5.6–$5.7B through 2024–2025 and reaching $5.74B as of 2026-03-31. Trailing twelve-month net income has also risen over the same recent period, climbing from $3.85B at 2024-12-31 to $4.47B at 2025-12-31. In the most recent comparable readings, operating cash flow exceeds net income, indicating cash generation above reported earnings in the latest periods.
Notable inflection points in the series include a period in 2022 where net income exceeded operating cash flow, e.g., 2022-06 net income $3.62B vs. operating cash flow $2.58B, followed by a recovery and acceleration in operating cash flow beginning in early 2024 (2024-03 $4.06B to 2024-06 $4.85B). Since mid-2024, both metrics have generally trended upward with operating cash flow maintaining a consistent premium to net income. The most recent trailing twelve-month operating cash flow was $5.74B and the most recent trailing twelve-month net income was $4.47B.
The Earnings vs. Cash Flow Gap
Reported earnings (Net Income) doesn't always reflect actual cash generation. Companies use accrual accounting, which recognizes revenue when earned and expenses when incurred—not when cash actually changes hands. This creates timing differences and opportunities for accounting discretion that can mask underlying business health.
Net Income (the "earnings" number) can be influenced by non-cash items like depreciation, stock-based compensation, and changes in accounting estimates.Operating Cash Flow, however, shows the actual cash the business generates from its core operations—a harder number to manipulate.
What to Look For
Key Insight: Companies with durable competitive advantages typically show operating cash flow that meets or exceeds net income over time, demonstrating they convert accounting profits into actual cash that can be returned to shareholders or reinvested in the business.
Measuring management's efficiency at generating profits from shareholder capital
S&P Global Inc.'s return on equity has shown a steady upward trend across recent quarters, rising from 7.7% at 2023-12-31 through incremental gains in 2024 and 2025 to 14.4% at 2025-12-31. Quarterly values moved from 8.2% (2024-03-31) to 9.5% (2024-06-30), 10.4% (2024-09-30), 11.6% (2024-12-31), 11.8% (2025-03-31), 12.0% (2025-06-30), 12.7% (2025-09-30) and 14.4% (2025-12-31), with the latest quarters showing consistent sequential increases and a larger uptick in the most recent quarter.
The historical series contains notable inflection points: ROE was negative in parts of 2014, then moved to very large positive readings through 2015–2021 (hundreds to thousands of percent), before settling into single- and low-double-digit levels from 2022 onward. The most recent ROE was 14.4%.
The Gold Standard of Profitability
Return on Equity (ROE) is a powerful measure of how effectively a company's management is using the money shareholders have invested. Calculated by dividing Net Income by Shareholders' Equity, it reveals how much profit is generated for every dollar of equity capital.
A consistently high ROE (typically above 15-20%) is often the signature of a "quality" business with a durable competitive advantage. It indicates that the company can generate high returns on its own capital, which it can then reinvest at these high rates to compound value over time.
What to Look For:
How the company generates and deploys its cash
S&P Global Inc.'s trailing twelve‑month operating cash flow has shown a steady upward trend over the displayed period, rising from roughly $2.6B in 2022 to the mid‑$5B range in 2024–2026. In recent quarters the company has continued to expand operating cash generation, with a small increase from $5.65B at 2025‑12 to $5.74B at 2026‑03.
Investing cash flow has been more volatile: large positive investing inflows appeared through 2022 and into 2023, followed by a shift to negative investing outflows across 2024–2026. The most recent TTM investing outflow narrowed from -$704.0M at 2025‑12 to -$334.0M at 2026‑03.
Financing cash flow has been persistently negative across the period, peaking in magnitude at -$11.33B (2022‑12) before moderating to around -$5B; the latest TTM financing outflow moved from -$4.93B to -$5.06B.
Understanding Company Strategy
Capital allocation refers to how management decides to spend and invest the company's cash. Analyzing the three primary categories of cash flow reveals a company's true operational strategy:
What to look for: Is the company bootstrapping (funding growth solely from operating cash)? Are they borrowing to fund aggressive expansion or dividends? Or are they capital raising by issuing new shares, potentially diluting your ownership? A healthy, mature company typically generates strong operating cash, moderately invests in growth, and returns the surplus to shareholders through financing activities.
Net assets attributable to each share — the accounting floor of intrinsic value
Why Book Value per Share Matters
Book value per share is the net worth of the company — total assets minus total liabilities — divided by shares outstanding (split-adjusted). It represents the theoretical liquidation value per share if every asset were sold and every liability repaid at balance-sheet carrying values. It is the accounting foundation upon which much of equity valuation is built.
A steadily rising book value per share is one of the most reliable signals of compounding wealth creation. It means the company is retaining earnings and building net worth faster than it is returning capital or eroding it. Warren Buffett famously tracked Berkshire Hathaway's book value per share for decades as his primary measure of intrinsic value growth.
Context is essential. Asset-heavy businesses (banks, manufacturers, utilities) should be judged by book value more directly than asset-light businesses (software, consumer brands), where intangible assets like intellectual property and customer loyalty may far exceed their balance-sheet carrying values. A company trading at a large premium to book value is not necessarily overvalued — it may simply possess competitive advantages that accounting rules do not capture. Conversely, a declining book value per share — especially over multiple years — is a serious warning sign of capital destruction.
How much of the company is financed by debt versus shareholders' equity
Reading the Debt-to-Equity Ratio
The debt-to-equity (D/E) ratio compares total financial debt to shareholders' equity. A ratio of 1.0 means the company has borrowed one dollar for every dollar of equity; a ratio of 2.0 means it has borrowed twice as much as it owns. Financial leverage amplifies both returns and risk: in good times, debt turbocharges equity returns; in bad times, it accelerates losses and can threaten solvency.
Trends matter more than a single number. A rising D/E ratio can mean the company is taking on debt to fund growth — potentially value-creating if returns exceed the cost of capital. But it can also mean equity is being eroded through losses or that the business is borrowing simply to sustain operations. A falling D/E ratio generally reflects strengthening financial health: earnings are being retained, debt maturities are being paid down, or both.
Industry norms vary enormously. Capital-intensive sectors (utilities, real estate, financials) routinely carry high D/E ratios that would be alarming in, say, a technology company. Always compare against sector peers. As a rough rule of thumb, a D/E above 2× in a cyclical business warrants careful scrutiny of interest coverage and refinancing risk.
Short-term liquidity — can the company cover its near-term obligations?
Liquidity: Can the Business Pay Its Bills?
The current ratio is calculated as current assets divided by current liabilities. A ratio of 1.5 means the company has $1.50 of short-term assets — cash, receivables, inventory — for every $1.00 of obligations due within the next twelve months. It is the most direct measure of near-term financial resilience: can the business meet its obligations without needing to raise new capital or sell long-term assets at a discount?
A ratio above 1.0 is generally healthy, meaning current assets exceed current liabilities. A ratio consistently above 2.0 may indicate the company is holding excess cash or inventory that could be deployed more productively. A ratio below 1.0 is a warning sign — the company is relying on future cash generation or external financing to cover its near-term obligations, which is manageable in normal conditions but dangerous during a downturn.
Trends and context matter.A declining current ratio isn't always alarming — highly efficient businesses (e.g., large retailers with reliable daily cash flows) often run leaner balance sheets intentionally. Conversely, a rapidly rising current ratio can signal slowing sales causing inventory to build, or customers taking longer to pay. Always compare the trend against industry peers and cross-reference with the cash flow statement to assess whether the business is genuinely liquid or just holding non-cash current assets.
How much the market is paying for each dollar of company earnings
S&P Global Inc.'s trailing twelve‑month price-to-earnings ratio peaked in mid‑2023 at 52.1x and has trended lower with intermittent rebounds through 2024–2025. The series shows 50.7x at , moved through 46.2x () and 44.4x (), then settled near the high‑30s for several quarters (39.4x at ; 39.2x at ). In 2025 the ratio was 40.1x at , fell to 35.2x at and ticked up slightly to 35.7x by .
The data include earlier extreme outliers in 2015 and some missing values in 2014–2015, but the most relevant recent pattern is the contraction from the 2023 peak toward mid‑30s. The most recent Price-to-Earnings (P/E) ratio was 35.7x.
What Is the PE Ratio?
The Price-to-Earnings (PE) ratio is one of the most widely used valuation metrics in investing. It divides the current stock price by the company's earnings per share (EPS), revealing how much investors are willing to pay for each dollar of earnings. A high PE can signal that the market expects strong future growth, while a low PE may suggest undervaluation—or reflect genuine concerns about the company's prospects.
Context matters:PE ratios vary significantly across industries. High-growth technology companies routinely trade at PE ratios above 30x or 40x, while mature, low-growth sectors like utilities or financials often trade closer to 10–15x. Always compare a company's PE to its own history and its industry peers, not just an absolute number.
What to Look For:
Key Insight:The PE ratio is a snapshot of market sentiment and expectations. Tracking it over time alongside earnings trends reveals whether the market's valuation has expanded or contracted—and whether that change is justified by fundamentals.