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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 alongside Moody's and Fitch Group, S&P Global 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 (data, analytics, and research) and S&P Global Platts (information on commodity and energy markets). Its S&P Dow Jones Indices business is a global index provider maintaining a variety of indices to meet an array of investor needs. S&P Global's largest market is the US, which generates about six-tenths of the company's revenue.

Operations

S&P Global operations consist of four reportable segments: S&P Global Ratings ("Ratings"), S&P Global Market Intelligence ("Market Intelligence"), S&P Global Platts ("Platts") and S&P Dow Jones Indices ("Indices").

S&P Global's Ratings business segment generates more than 45% of the company's total sales and provides credit ratings, research, and analytics to investors, issuers, and other market participants. The company earns a fee from an issuer (such as a corporation or government entity) to assign a credit rating or engage in other analytical activities.

The Market Intelligence accounts for around 30% of sales and helps the financial community track performance, identify business ideas, perform risk analysis, and industry dynamics. It comprises three business lines: Desktop (product suite for finance professionals), Data Management Solutions (customizable data feeds), and Credit Rick Solutions (sales of credit ratings-related information and research).

S&P Dow Jones Indices accounts for about 15% of sales and maintains a range of stock indices for investors, including the Dow Jones Industrial Average and S&P 500. Indices primarily derive fee revenue from exchange traded funds and mutual funds based on assets, and to a lesser extent from subscription and transaction fees.

S&P Global Platts generates the remaining revenue (more than 10%), providing information and benchmark prices for the commodity and energy markets. Platts earns revenue from subscriptions, licensing, conference sponsorship, consulting engagements, and events.

Geographic Reach

New York-based S&P Global has more than 105 offices worldwide, including about 35 in the US some in Massachusetts, Colorado, Chicago, Texas, New Jersey and Los Angeles.

The US is S&P Global's largest market at around 60% of sales. Europe generates roughly 25% and the Asia/Pacific region generates more than 10%. The remaining 5% of revenue comes from other regions.

Sales and Marketing

S&P Global Inc. serve their global customers through a broad range of products and services available through both third-party and proprietary distribution channels.

The company spent approximately $34 million on advertising in 2019.

Financial Performance

S&P Global's revenue has grown year-over-year during the most recent five-year period. Net income has been more sporadic, climbing in 2018 and 2019, after a decline in 2017.

Revenue increased 7% from $6.2 billion in 2018 to $6.7 billion in 2019, with an unfavorable impact of 1 percentage point from foreign exchange rates. The increase was driven by revenue growth at all of our reportable segments.

Net income grew to $2.1 billion from $2 billion in 2018.

Cash at the end of 2019 was $2.9 billion. Cash from operations was $2.8 billion, while investing activities used $131 million. Cash used for financing activities increased to $1.8 billion in 2019 from $2.3 billion in 2017.

Strategy

S&P Global regularly launches new products as part of investment and productivity initiatives. The company launched several new technology-driven products in 2019, including Textual Data Analytics and Kensho's Scribe, which add new capabilities to its earnings call transcript business. New ESG-related products (that incorporate environmental, social, and corporate governance criteria) include Climate Risk Analysis by Trucost, Platts low-sulfur marine fuel futures contracts, and E-mini S&P 500 ESG Futures contracts.

In March of 2019, S&P entered into an agreement to sell Standard & Poor's Investment Advisory Services LLC ("SPIAS"), a business within its Market Intelligence segment, to Goldman Sachs Asset Management ("GSAM"). SPIAS provides non-discretionary investment advice across institutional sub-advisory and intermediary distribution channels globally.

Mergers and Acquisitions

In early 2020, S&P Global acquired ESG Ratings Business from Switzerland-based, RobecoSAM for an undisclosed amount. The ESG Ratings Business is comprised of two units: one administering the SAM CSA for the purpose of issuing ESG Ratings and a second that provides in-depth reports to companies seeking to understand their performance relative to their peers. "Through this acquisition, S&P Global is bringing an additional layer of critical insight to our leading suite of ESG product offerings, which will further enable our customers to create resilient strategies, build a sustainable future, and meet the expectations of an evolving market," says Douglas Peterson, S&P Global President and CEO. The acquisition will bolster S&P Global's position as the premier resource for essential environmental, social, and governance (ESG) insights and product solutions for its customers.

S&P made two acquisitions in 2019 to expand S&P Global Platts. It acquired Canadian Enerdata, an independent provider of energy data and information to Canada, to further enhance its North American natural gas offering. Earlier in the year it acquired Live Rice Index, a global provider of information and benchmark price assessments for the rice industry. The purchase expands Platts' portfolio of agricultural price assessments and extends its data and news coverage in key export regions for international grains.

In mid-2019, S&P Global acquired India-based, Orion technology center from Ness Technologies. Orion technology provides support to strategic business programs and digital infrastructure. "With Orions state-of-the-art facility, we aim to enhance S&P Globals technology and innovation capabilities, serving the rapidly expanding needs of our customers and our business partners", said S&P Globals chief data and technology officer Nick Cafferillo.

Company Background

The company traces its roots back to 1860 when Henry Varnum Poor published an investor's guide to the US railroad industry. Meanwhile, in 1923 Standard Statistics Co. began rating mortgage bonds. The two companies merged in 1941 to form Standard & Poor's. The company was acquired by publisher McGraw-Hill in 1966. The parent company later organized its business placing S&P Global within its McGraw Hill Financial operations.

After it sold off all its businesses not relating to its core mission of providing financial and credit information, in 2016 the company changed its name from McGraw-Hill Financial to S&P Global. Disposals included its education business, its construction business, and J.D. Power (marketing information services).

S&P Global Inc.

55 Water St FL 37
New York, NY 10041-3205
Phone: 1 (212) 438-1000

Firm 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): 22,500

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