ALPHABET INC-CL C (GOOG)
US02079K1079 - Common Stock
Taking everything into account, GOOG scores 7 out of 10 in our fundamental rating. GOOG was compared to 68 industry peers in the Interactive Media & Services industry. GOOG has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. GOOG is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make GOOG suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year GOOG was profitable.
GOOG had a positive operating cash flow in the past year.
In the past 5 years GOOG has always been profitable.
Each year in the past 5 years GOOG had a positive operating cash flow.
1.2 Ratios
GOOG has a Return On Assets of 20.23%. This is amongst the best in the industry. GOOG outperforms 94.03% of its industry peers.
GOOG has a Return On Equity of 28.14%. This is amongst the best in the industry. GOOG outperforms 92.54% of its industry peers.
The Return On Invested Capital of GOOG (24.32%) is better than 97.01% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GOOG is significantly above the industry average of 9.68%.
The 3 year average ROIC (22.54%) for GOOG is below the current ROIC(24.32%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.23% | ||
| ROE | 28.14% | ||
| ROIC | 24.32% |
ROA(3y)18.64%
ROA(5y)16.19%
ROE(3y)26.56%
ROE(5y)22.96%
ROIC(3y)22.54%
ROIC(5y)18.85%
1.3 Margins
The Profit Margin of GOOG (25.90%) is better than 91.04% of its industry peers.
In the last couple of years the Profit Margin of GOOG has remained more or less at the same level.
GOOG's Operating Margin of 29.68% is amongst the best of the industry. GOOG outperforms 95.52% of its industry peers.
In the last couple of years the Operating Margin of GOOG has grown nicely.
With a Gross Margin value of 57.25%, GOOG perfoms like the industry average, outperforming 41.79% of the companies in the same industry.
In the last couple of years the Gross Margin of GOOG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.68% | ||
| PM (TTM) | 25.9% | ||
| GM | 57.25% |
OM growth 3Y8.32%
OM growth 5Y3.8%
PM growth 3Y2.86%
PM growth 5Y1.34%
GM growth 3Y2.05%
GM growth 5Y0.16%
2. Health
2.1 Basic Checks
GOOG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for GOOG has been reduced compared to 1 year ago.
Compared to 5 years ago, GOOG has less shares outstanding
Compared to 1 year ago, GOOG has an improved debt to assets ratio.
2.2 Solvency
GOOG has an Altman-Z score of 13.76. This indicates that GOOG is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 13.76, GOOG belongs to the top of the industry, outperforming 94.03% of the companies in the same industry.
GOOG has a debt to FCF ratio of 0.20. This is a very positive value and a sign of high solvency as it would only need 0.20 years to pay back of all of its debts.
GOOG's Debt to FCF ratio of 0.20 is amongst the best of the industry. GOOG outperforms 85.07% of its industry peers.
GOOG has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.05, GOOG perfoms like the industry average, outperforming 46.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.2 | ||
| Altman-Z | 13.76 |
ROIC/WACC2.67
WACC9.1%
2.3 Liquidity
A Current Ratio of 2.15 indicates that GOOG has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.15, GOOG is in line with its industry, outperforming 40.30% of the companies in the same industry.
A Quick Ratio of 2.15 indicates that GOOG has no problem at all paying its short term obligations.
With a Quick ratio value of 2.15, GOOG perfoms like the industry average, outperforming 40.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 45.21% over the past year.
GOOG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.55% yearly.
Looking at the last year, GOOG shows a quite strong growth in Revenue. The Revenue has grown by 11.78% in the last year.
Measured over the past years, GOOG shows a quite strong growth in Revenue. The Revenue has been growing by 17.57% on average per year.
EPS 1Y (TTM)45.21%
EPS 3Y25.49%
EPS 5Y19.55%
EPS growth Q2Q61.54%
Revenue 1Y (TTM)11.78%
Revenue growth 3Y18.98%
Revenue growth 5Y17.57%
Revenue growth Q2Q15.41%
3.2 Future
Based on estimates for the next years, GOOG will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.96% on average per year.
GOOG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.62% yearly.
EPS Next Y20.95%
EPS Next 2Y18.01%
EPS Next 3Y16.71%
EPS Next 5Y19.96%
Revenue Next Year11.93%
Revenue Next 2Y11.2%
Revenue Next 3Y10.44%
Revenue Next 5Y10.62%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
GOOG is valuated quite expensively with a Price/Earnings ratio of 26.33.
GOOG's Price/Earnings ratio is a bit cheaper when compared to the industry. GOOG is cheaper than 71.64% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.11, GOOG is valued at the same level.
With a Price/Forward Earnings ratio of 21.25, GOOG is valued on the expensive side.
Based on the Price/Forward Earnings ratio, GOOG is valued a bit cheaper than 67.16% of the companies in the same industry.
GOOG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.33 | ||
| Fwd PE | 21.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GOOG is valued a bit cheaper than the industry average as 68.66% of the companies are valued more expensively.
GOOG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GOOG is cheaper than 64.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.7 | ||
| EV/EBITDA | 18.38 |
4.3 Compensation for Growth
GOOG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of GOOG may justify a higher PE ratio.
A more expensive valuation may be justified as GOOG's earnings are expected to grow with 16.71% in the coming years.
PEG (NY)1.26
PEG (5Y)1.35
EPS Next 2Y18.01%
EPS Next 3Y16.71%
5. Dividend
5.1 Amount
With a yearly dividend of 0.48%, GOOG is not a good candidate for dividend investing.
GOOG's Dividend Yield is rather good when compared to the industry average which is at 14.35. GOOG pays more dividend than 91.04% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, GOOG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
5.2 History
GOOG is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y18.01%
EPS Next 3Y16.71%
ALPHABET INC-CL C
NASDAQ:GOOG (5/8/2024, 11:06:09 AM)
171.67
-1.31 (-0.76%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2121.50B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.33 | ||
| Fwd PE | 21.25 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.26
PEG (5Y)1.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.23% | ||
| ROE | 28.14% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.68% | ||
| PM (TTM) | 25.9% | ||
| GM | 57.25% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.15 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)45.21%
EPS 3Y25.49%
EPS 5Y
EPS growth Q2Q
EPS Next Y20.95%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.78%
Revenue growth 3Y18.98%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
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