Looking for growth without the hefty price tag? Consider NASDAQ:GOOG.

Last update: Jan 1, 2025

ALPHABET INC-CL C (NASDAQ:GOOG) has caught the eye of our stock screener as an affordable growth stock. NASDAQ:GOOG is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

A Closer Look at Growth for NASDAQ:GOOG

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:GOOG, the assigned 7 reflects its growth potential:

The Earnings Per Share has grown by an impressive 44.72% 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.
Looking at the last year, GOOG shows a quite strong growth in Revenue. The Revenue has grown by 14.38% in the last year.
GOOG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.57% yearly.
Based on estimates for the next years, GOOG will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.52% on average per year.
GOOG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.47% yearly.

Deciphering NASDAQ:GOOG's Valuation Rating

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:GOOG scores a 5 out of 10:

GOOG's Price/Earnings ratio is a bit cheaper when compared to the industry. GOOG is cheaper than 62.12% of the companies in the same industry.
GOOG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GOOG is cheaper than 60.61% of the companies in the same industry.
GOOG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GOOG is cheaper than 63.64% of the companies in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GOOG has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as GOOG's earnings are expected to grow with 22.12% in the coming years.

Understanding NASDAQ:GOOG's Health Score

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:GOOG has achieved a 8 out of 10:

GOOG has an Altman-Z score of 14.65. This indicates that GOOG is financially healthy and has little risk of bankruptcy at the moment.
GOOG's Altman-Z score of 14.65 is amongst the best of the industry. GOOG outperforms 93.94% of its industry peers.
The Debt to FCF ratio of GOOG is 0.26, which is an excellent value as it means it would take GOOG, only 0.26 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 0.26, GOOG is doing good in the industry, outperforming 78.79% of the companies in the same industry.
A Debt/Equity ratio of 0.04 indicates that GOOG is not too dependend on debt financing.
The current and quick ratio evaluation for GOOG is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Analyzing Profitability Metrics

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:GOOG, the assigned 9 is a significant indicator of profitability:

With an excellent Return On Assets value of 21.91%, GOOG belongs to the best of the industry, outperforming 96.97% of the companies in the same industry.
GOOG has a better Return On Equity (30.01%) than 96.97% of its industry peers.
GOOG's Return On Invested Capital of 26.84% is amongst the best of the industry. GOOG outperforms 96.97% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GOOG is significantly above the industry average of 10.97%.
The last Return On Invested Capital (26.84%) for GOOG is above the 3 year average (22.84%), which is a sign of increasing profitability.
GOOG has a better Profit Margin (27.74%) than 93.94% of its industry peers.
GOOG has a Operating Margin of 32.02%. This is amongst the best in the industry. GOOG outperforms 96.97% of its industry peers.
In the last couple of years the Operating Margin of GOOG has grown nicely.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Our latest full fundamental report of GOOG contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.