S&P Global Inc. at a Glance

Uppers

  • Staple in the publishing industry for over a century
  • Vast brand recognition including Standard’s & Poor, McGraw-Hill Education and J.D. Power and Associates

Downers

  • Competition from digital media which provides quick and easy access to a vast amount of free resources
  • The company is targeting a $100 million reduction in expenses, which may include staffing

The Bottom Line

  • The McGraw-Hill Companies, Inc. is a leading global financial information and education company whose brands include Standard's & Poor, McGraw-Hill Education, Platt's energy and information series and J.D. Power and Associates. The company's goal is to help professionals and students succeed in the “knowledge economy.”

About S&P Global Inc.

S&P Global (formerly McGraw-Hill Financial) is a provider of credit ratings, benchmarks, and analytics for the global capital and commodity markets. The company was a leading publisher of textbooks, tests, and related materials, serving the elementary, secondary, and higher education markets through McGraw-Hill Education (MHE) before it spun that business off in 2013. Its products include businesses include S&P Ratings (indexes and credit ratings) and S&P Indices (financial and business information).

Operations

S&P Global has three reportable segments: Ratings, Market and Commodities Intelligence, and S&P Dow Jones Indices.

Market and Commodities Intelligence is the largest segment. It contributed for 45% of the company's total revenue in fiscal 2016. The segment helps the financial community track performance, generate better investment returns, identify new trading and investment ideas, perform risk analysis, develop mitigation strategies, and provide high-value information. It includes the following business lines: Financial Data & Analytics, Risk Services and S&P Global Platts.

The Ratings segment (44% of revenue in fiscal 2016) provides credit ratings, research and analytics to investors, issuers and other market participants.

S&P Dow Jones Indices (11% of revenue in fiscal 2016) maintains a wide variety of indices for investors. It makes its money from investment vehicles, exchange listed derivatives, index-related licensing fees, and data and customized index subscription fees.

Geographic Reach

S&P Global operates in 95 countries around the world. The company has more than 100 office locations with about 30 in the US. The US is the company's largest market, accounting for more than 60% of the company's revenue, while Europe is responsible for roughly 25% of total revenue, and Asia 10%.

Sales and Marketing

S&P Global's Ratings segment serves investors, corporations, governments, municipalities, commercial and investment banks, insurance companies, asset managers, and other debt issuers.

The company's Market and Commodities Intelligence segment serves asset managers, investment banks, investors, brokers, financial advisors, and insurance companies among others.

S&P Global spends millions per year on advertising and promotional costs. It spent $35 million on advertising in fiscal 2016.

Financial Performance

S&P Global's revenue has been growing year-over-year.

In fiscal 2016, revenue climbed $5.6 billion (up from $5.3 billion the prior fiscal year) as increases in average contract values for each new customer relationships drove growth in the Capital IQ and SNL segment. Points of strength were S&P Capital IQ Desktop, RatingsXpress and RatingsDirect.

S&P Global's net income nearly doubled in fiscal 2016 compared to the previous fiscal period. It claimed a net income of $2.1 billion in fiscal 2016, up from $1.2 billion for 2015. This was a result of higher net revenue combined with a decrease in selling and general expenses.

Net cash from operations was $1.4 billion in fiscal 2016, up from $195 million for 2015.

Strategy

S&P Global spun off its education business (and changed its name) in response to decreased spending on elementary and high school textbooks. Its financial business, which provides global financial information, research, and analytics tools to investment advisors, wealth managers, and institutional investors, has fared better.

Mergers and Acquisitions

In 2016 S&P Global acquired RigData, a provider of daily information on rig activity for the natural gas and oil markets across North America. The acquisition strengthened S&P Global's position in natural gas and enhanced its oil offering.

S&P Global also acquired PIRA Energy Group, a leader in global energy market analysis, in 2016. The acquisition extended S&P Global's energy analytical capabilities.

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S&P Global Inc.

55 Water St
New York, NY 10041-0016

Stats

  • Employer Type: Public
  • Stock Symbol: SPGI
  • Stock Exchange: NYSE
  • President and CEO: Douglas L. Peterson
  • President and CEO: Douglas L. Peterson
  • EVP and CFO: Ewout L. Steenbergen
  • 2016 Employees: 20,000

Major Office Locations

  • New York, NY

Other Locations

  • Phoenix, AZ
  • Laguna Beach, CA
  • Salinas, CA
  • San Francisco, CA
  • Denver, CO
  • Englewood, CO
  • Greenwood Village, CO
  • Washington, DC
  • Chicago, IL
  • Shawnee, KS
  • Boston, MA
  • Sturbridge, MA
  • East Windsor, NJ
  • Cleveland, OH
  • Groveport, OH
  • Leetonia, OH
  • Philadelphia, PA
  • Smicksburg, PA
  • Dallas, TX
  • Houston, TX
  • Glen Allen, VA
  • Green Bay, WI
  • Ciudad De Buenos Aires, Argentina
  • Ilderton, Canada
  • North Vancouver, Canada
  • Beijing, China
  • Gurgaon, India
  • Hyderabad, India
  • Rangareddy, India
  • Chiyoda-Ku, Japan
  • Moscow, Russia
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