S&P Global Inc. Mobility Spin

S&P Global has completed the spin-off of its Mobility business, shifting its focus toward high-margin financial data and analytics. The move is expected to drive margin expansion and a valuation re-rating by reducing conglomerate complexity.

Key Takeaways

• 1.The completion of the Mobility spin on 7/1 simplifies SPGI's business structure and removes a non-core, lower-margin segment.
• 2.Post-spin, SPGI's financial profile is expected to improve with structurally higher consolidated EBITDA margins.
• 3.Management intends to use $2bn in proceeds from the Mobility dividend to de-lever and fund $4.5bn in share repurchases.

Table of Contents

• Financial profile improves post spin with higher margins and cleaner mix
• Estimate revisions reflect Mobility removal with mix-driven margin upside despite lower earnings base
• Valuation upside emerges post spin as pure play mix drives higher implied multiples and removes conglomerate discount
• Valuation & Risks
• Financial Model

Document Preview

Page 1 of 5

Subscribe for full accessStart Free Trial