| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 5.90 | -89 |
| Graham Formula | n/a |
IHS Markit Ltd. (LSE: 0UAI.L) is a global leader in providing critical information, analytics, and solutions across multiple industries, including financial services, transportation, resources, and consolidated markets. Headquartered in London, the company serves businesses, financial institutions, and governments with data-driven insights that enhance operational efficiency and strategic decision-making. IHS Markit operates through four key segments: Financial Services, offering pricing data, indices, and trading solutions; Transportation, delivering vehicle market forecasts and maritime data; Resources, providing upstream and downstream energy analytics; and Consolidated Markets & Solutions, which includes economic forecasting and risk assessment tools. Founded in 1959, IHS Markit has established itself as a trusted partner in data intelligence, helping clients navigate complex market dynamics. The company's diversified revenue streams and strong industry positioning make it a key player in the Industrials sector, particularly within business equipment and analytics services.
IHS Markit presents a compelling investment case due to its diversified revenue streams, strong market positioning, and high-margin analytics business. With FY2021 revenue of $4.66B and net income of $1.21B, the company demonstrates robust profitability (EPS diluted: $3.01). Its operating cash flow of $1.49B supports financial stability, though investors should note its significant total debt of $4.96B. The company's beta of 1.05 suggests moderate market correlation, making it a relatively stable pick within the Industrials sector. A dividend yield of $0.51 per share adds income appeal. However, risks include exposure to cyclical industries (e.g., automotive, energy) and integration challenges post its merger with S&P Global in 2022. Long-term growth depends on continued demand for data analytics across sectors.
IHS Markit holds a competitive edge through its comprehensive, industry-specific datasets and analytics platforms, particularly in financial services and transportation. Its Financial Services segment competes with Bloomberg and Refinitiv by offering specialized indices and trade processing solutions. In Transportation, its vehicle forecasting tools are industry benchmarks, though competitors like J.D. Power challenge its used-car analytics. The Resources segment’s energy data competes with Wood Mackenzie and Rystad Energy, but IHS Markit’s integration of upstream and downstream insights provides a unique advantage. The company’s moat lies in its long-standing client relationships and high switching costs due to deeply embedded workflows. However, it faces pressure from niche players offering cheaper, disruptive solutions in areas like alternative data analytics. Post-merger with S&P Global, the combined entity strengthens its competitive position but must navigate antitrust scrutiny and overlapping product lines.