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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.

Say "AAA!". One of the big-three credit ratings agencies, S&P Global (formerly McGraw-Hill Financial) assigns companies, local governments, and countries its well-known credit scores ranging from D (lowest) to AAA (highest). It also assigns ratings to corporate or municipal bonds and other individual debt issues. S&P Global's other businesses include S&P Global Market Intelligence, S&P Dow Jones Indices, and S&P Global Platts. Its largest market is the US, which generates around 60% of the company's revenue. After it sold its education and construction businesses, in 2016 the company changed its name from McGraw-Hill Financial to S&P Global.

Operations

S&P Global has four reportable segments: Ratings; Market and Commodities Intelligence; S&P Dow Jones Indices; and Global Platts.

The Ratings segment generates roughly 50% of S&P Global's total sales and provides credit ratings, research, and analytics to investors, issuers, and other market participants.

The Market and Commodities Intelligence accounts for around 40% of sales and helps the financial community track performance, improve investment returns, perform risk analysis, and develop mitigation strategies. It comprises three business lines: Desktop, Data Management Solutions, and Risk Services.

S&P Dow Jones accounts for around 10% of sales and maintains a range of stock indices for investors, including the Dow Jones Industrial Average and S&P 500.

S&P Global Platts, a separate division since the start of 2018, provides information and benchmark prices for the commodity and energy markets.

Geographic Reach

New York-based S&P Global has more than 100 offices worldwide, including around 30 in the US. The US is S&P Global's largest market at around 60% of sales. Europe generates some 25% and the Asia/Pacific region more than 10%. The Global Platts division is headquartered in London.

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 investment managers, investment banks, private equity firms, insurance companies, commercial banks, corporations, professional services firms, and government agencies and regulators; as well as producers, traders and intermediaries within energy, metals and agriculture markets.

S&P Global Platts markets to traders, analysts, risk managers, and purchasing agents in public and private sector organizations.

The company spends millions per year on advertising and promotional costs.

Financial Performance

S&P Global's revenue has been growing year on year in all segments and major territories.

In fiscal 2017, sales grew a further 7% to $6.1 billion. Higher bank loan and corporate bond ratings revenue drove strong growth in the Ratings segment, while Indices grew its revenue 15% thanks to an increase in assets under management for exchange traded funds and mutual funds. Gains in Ratings and Indices were partially offset by disposals in the Market and Commodities Intelligence segment, which saw revenue shrink 5% as a result. During 2017 it sold S&P Securities Evaluations, S&P Credit Market Analysis, and J.D. Power.

Net income fell to $1.5 billion from a high of $2.1 billion in 2016, largely a result of the $1.1 billion gain on the sale of the J.D. Power and Associates business recorded in 2016. Underlying profitability was slightly stronger in 2017 than 2016 due to lower expense relating to disposals.

Cash from operations increased 29% to $2.0 billion due higher results from operations, partially offset by the timing of tax payments.

Strategy

Over the last several years S&P Global has sold off all its businesses not relating to its core mission of providing financial and credit information. Disposals have included its education business, its construction business, and J.D. Power (marketing information services). In 2019 the company agreed to sell its model portfolio business to Goldman Sachs. The unit uses ETFs and mutual funds to build portfolios for financial advisers. The division also manages equity portfolios using a rules-based investment process and advises on assets of more than $33 billion.

Strong demand for S&P's Global Platts services led to the company separating it out as a distinct reportable segment. It will continue to develop its product offerings and analytic capabilities and pursue growth in new markets and geographies.

Mergers and Acquisitions

In April 2018 S&P Global completed its acquisition of Kensho Technologies, a provider of analytics, artificial intelligence, machine learning, and data visualization systems. Its primary customers are Wall Street banks, investment institutions, and the National Security community.

In February 2018 the company acquired Panjiva, Inc., a privately-held company that provides global supply chain insights by leveraging data science and technology to make sense of large, unstructured datasets.

S&P Global Inc.

55 WATER ST
New York, NY 10041-0004
Phone: 1 (212) 438-1000

Stats

Employer Type: Publicly Owned
Stock Symbol: SPGI
Stock Exchange: , NYSE
Chairman: Charles E. Haldeman
President and CEO: Douglas L. Peterson
EVP and CFO: Ewout L. Steenbergen
Employees (This Location): 750
Employees (All Locations): 21,200

Major Office Locations

New York, NY

Other Locations

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
New York, NY
Groveport, OH
Leetonia, OH
Philadelphia, PA
Smicksburg, PA
Dallas, TX
Houston, TX
Charlottesville, VA
Glen Allen, VA
Green Bay, WI
Ahmedabad, India
Gurgaon, India
Hyderabad, India
Rangareddy, India
Chiyoda-Ku, Japan
North Vancouver, Canada
Moscow, Russia
Tsim Sha Tsui, Hong Kong
Singapore, Singapore
Geroldswil, Switzerland