ALPHABET INC-CL C (GOOG)
US02079K1079 - Common Stock
GOOG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make GOOG a good candidate 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.
Each year in the past 5 years GOOG has been profitable.
In the past 5 years GOOG always reported a positive cash flow from operatings.
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.
With an excellent Return On Equity value of 28.14%, GOOG belongs to the best of the industry, outperforming 92.54% of the companies in the same industry.
GOOG has a better Return On Invested Capital (24.32%) than 97.01% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GOOG is significantly above the industry average of 9.82%.
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.
The Operating Margin of GOOG (29.68%) is better than 95.52% of its industry peers.
In the last couple of years the Operating Margin of GOOG has grown nicely.
GOOG has a Gross Margin (57.25%) which is in line with its industry peers.
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.
GOOG has less shares outstanding than it did 1 year ago.
GOOG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, GOOG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 14.04 indicates that GOOG is not in any danger for bankruptcy at the moment.
GOOG has a better Altman-Z score (14.04) than 95.52% of its industry peers.
The Debt to FCF ratio of GOOG is 0.20, which is an excellent value as it means it would take GOOG, only 0.20 years of fcf income to pay off all of its debts.
GOOG's Debt to FCF ratio of 0.20 is amongst the best of the industry. GOOG outperforms 83.58% 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.
GOOG has a Debt to Equity ratio of 0.05. This is comparable to the rest of the industry: GOOG outperforms 46.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.2 | ||
| Altman-Z | 14.04 |
ROIC/WACC2.7
WACC9.01%
2.3 Liquidity
GOOG has a Current Ratio of 2.15. This indicates that GOOG is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.15, GOOG is in line with its industry, outperforming 46.27% 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.
GOOG has a Quick ratio (2.15) which is comparable to the rest of the 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.
Measured over the past years, GOOG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.55% on average per year.
GOOG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.78%.
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
GOOG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.96% yearly.
The Revenue is expected to grow by 10.62% on average over the next years. This is quite good.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 27.19, the valuation of GOOG can be described as expensive.
68.66% of the companies in the same industry are more expensive than GOOG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.60, GOOG is valued at the same level.
With a Price/Forward Earnings ratio of 21.95, GOOG is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GOOG indicates a somewhat cheap valuation: GOOG is cheaper than 64.18% of the companies listed in the same industry.
GOOG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.19 | ||
| Fwd PE | 21.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GOOG is valued a bit cheaper than 65.67% of the companies in the same industry.
GOOG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GOOG is cheaper than 67.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.7 | ||
| EV/EBITDA | 18.88 |
4.3 Compensation for Growth
The 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.
GOOG's earnings are expected to grow with 16.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.3
PEG (5Y)1.39
EPS Next 2Y18.01%
EPS Next 3Y16.71%
5. Dividend
5.1 Amount
GOOG has a yearly dividend return of 0.46%, which is pretty low.
GOOG's Dividend Yield is rather good when compared to the industry average which is at 15.83. GOOG pays more dividend than 91.04% of the companies in the same industry.
With a Dividend Yield of 0.46, GOOG pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
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 (5/17/2024, 7:02:21 PM)
After market: 177.36 +0.07 (+0.04%)177.29
+1.86 (+1.06%)
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 Cap2190.95B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
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 | 27.19 | ||
| Fwd PE | 21.95 | ||
| 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)1.3
PEG (5Y)1.39
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
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y