📊 S&P Global beat expectations again. Yet the market punished the stock anyway. Opportunity?
Dnes reportoval výsledky jeden z mojich najobľúbenejÅ¡Ãch compounderov – S&P Global ($SPGI).
Honestly? It showed again why it's one of the highest-quality companies you can find on the exchange today.
Key numbers:
✅ Revenue +11% ✅ Adjusted EPS +23% ✅ Operating margin rose to 54.3% ✅ Ratings segment +17% ✅ Strong free cash flow ✅ Full-year outlook raised ✅ Buybacks of more than $7 billion planned this year
Those are definitely not the numbers of a company whose business is slowing down.
Quite the opposite.
SPGI continues to do exactly what I expect from a high-quality compounder – growing revenue, growing even faster at the profit level, expanding margins and generating huge amounts of cash.
So why is the stock falling?
In my view, the market is mainly looking ahead.
The biggest concern is that the Ratings segment is currently benefiting from a strong bond issuance market, which may not stay as strong forever.
That’s a fair point, in my opinion.
The question, though, is:
Does that really change the long-term investment thesis?
For me, it doesn’t.
What do I like most about SPGI?
It’s not a company built on just one product.
It has several businesses with extraordinarily strong competitive advantages:
📊 credit ratings,
📈 indices (including the S&P 500),
📚 financial data and analytics,
âš¡ energy and commodity data.
A large portion of revenue is recurring, margins are among the highest in the entire financial sector, and the company consistently generates high free cash flow.
That’s exactly how I picture a high-quality business.
The market grapples with short-term fears. I’m looking 10 years ahead.
If the company’s fundamentals are improving, but the share price falls in the short term, I don’t automatically see it as a problem.
On the contrary.
It’s a moment when I ask myself whether I’m not getting an opportunity to buy an even higher-quality business at a better price.
In my view, S&P Global is still one of the highest-quality companies you can own on the US market today.
Not because it beats expectations every quarter.
But because for decades, it has managed to do the most important thing – consistently increase the value of its business.
📌 Do you have SPGI in your portfolio? Or do you think it’s still too expensive, even after today’s drop?
