S&P Global Ratings Revises Outlook for Vedanta Resources to Negative
August 11, 2023
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S&P ($NYSE:SPGI) Global Ratings has announced a revision of its outlook for Vedanta Resources from stable to negative. It serves a broad array of investors, issuers, and other market participants worldwide. The downgrade in outlook for Vedanta Resources comes in the wake of a challenging period for the company. Its balance sheet has been under pressure due to rising debt and weak financial performance.
The company has been working to reduce its debt levels but is yet to show significant progress in this regard. S&P Global believes that Vedanta Resources needs to improve its financial performance and liquidity position in order to turn the current outlook around. The revised outlook for Vedanta Resources is a reminder of the importance of sound financial management and strong corporate governance practices for companies. Going forward, it is important for the company to ensure that its financial position remains sound in order to avoid any further credit rating downgrades.
Price History
This followed the company’s warning that its financial performance for the next two quarters would be lower than expected. The news caused the stock to open at $384.6 and close at $386.8, up 0.8% from its prior closing price of $383.7. This suggests investors are not overly concerned about the outlook change.
However, S&P Global‘s decision to revise the outlook has raised concerns about the company’s ability to manage its debt. It remains to be seen if Vedanta Resources will be able to improve its financial situation in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for S&p Global. More…
| Total Revenues | Net Income | Net Margin |
| 12.06k | 2.35k | 19.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for S&p Global. More…
| Operations | Investing | Financing |
| 3.29k | 539 | -5.8k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for S&p Global. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 60.7k | 21.63k | 110.56 |
Key Ratios Snapshot
Some of the financial key ratios for S&p Global are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 19.0% | -0.1% | 30.3% |
| FCF Margin | ROE | ROA |
| 26.4% | 6.4% | 3.8% |
Analysis
We recently conducted an analysis of S&P Global‘s wellbeing here at GoodWhale. The results of our analysis can be seen in our Star Chart, which shows that S&P Global has a strong health score of 8/10. Considering its cashflows and debt, S&P Global is more than capable of sustaining future operations in times of crisis. Based on our analysis, S&P Global is classified as a ‘gorilla’ type of company, which we conclude to have achieved stable and high revenue or earning growth due to its strong competitive advantage. This makes it an attractive option for investors who are interested in dividends, growth, and profitability. However, it should be noted that asset management is one area that S&P Global could improve on. More…
Peers
In the world of financial analysis and investment, there are a few major players that everyone knows. S&P Global Inc is one of these companies, and they frequently compete with others such as OTC Markets Group Inc, Euromoney Institutional Investor PLC, and Nasdaq Inc. All of these companies provide essential services to their clients, and all are leaders in their field. Though they may compete with each other, they also frequently collaborate in order to provide the best possible service to their clients.
– OTC Markets Group Inc ($OTCPK:OTCM)
OTC Markets Group Inc is a United States financial market providing price and liquidity information for almost 10,000 over-the-counter securities. The company has a market capitalization of 664.01 million as of 2022 and a return on equity of 76.45%. The company operates three markets: the OTCQX Best Market, the OTCQB Venture Market, and the Pink Open Market. The company also provides a range of services for broker-dealers, including trade reporting, regulatory compliance, and market data.
– Euromoney Institutional Investor PLC ($LSE:ERM)
Euromoney Institutional Investor PLC is a provider of business information and capital markets intelligence. The company has a market cap of 1.58B as of 2022 and a return on equity of 2.93%. The company provides analysis and data on the global financial markets, including capital markets, banking, and asset management. The company also offers conferences, training, and publications.
– Nasdaq Inc ($NASDAQ:NDAQ)
Nasdaq is a leading global provider of trading, clearing, exchange technology, listing, information and public company services. It offers a wide range of products and services for businesses of all sizes, from startups to large enterprises. Nasdaq is home to some of the world’s most innovative companies, including Tesla, Microsoft, and Apple. It is also one of the largest exchanges in the world, with a market capitalization of over $30 billion. Nasdaq’s return on equity is an impressive 16.97%. This means that for every $1 invested in the company, shareholders can expect to receive $0.17 in return. Nasdaq’s strong market position and profitability make it an attractive investment for many investors.
Summary
S&P Global Ratings recently revised their outlook for Vedanta Resources from stable to negative. The lowered outlook is attributed to the company’s weak liquidity, with S&P Global concerned about Vedanta’s ability to meet its financial obligations. They cite a low liquidity cushion and weak operating performance as reasons for this decision. The revision indicates that investors should exercise caution when considering Vedanta securities.
S&P Global has also lowered the company’s corporate credit rating and expressed concern over the likelihood of a debt-funded dividend payment. The company’s ability to raise additional financing is also of concern, given the difficult macroeconomic environment. Consequently, investors should seek independent financial advice before investing in Vedanta’s securities.
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