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Reasonable growth and debt and a high ROIC for ALPHABET INC-CL A (NASDAQ:GOOGL).

By Mill Chart

Last update: Jun 17, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if ALPHABET INC-CL A (NASDAQ:GOOGL) is suited for quality investing. Investors should of course do their own research, but we spotted ALPHABET INC-CL A showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.


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Key Considerations for Quality Investors.

  • ALPHABET INC-CL A has demonstrated significant revenue growth over the past 5 years, with a 17.57% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • With a notable ROIC excluding cash and goodwill at 41.62%, ALPHABET INC-CL A demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • With a favorable Debt/Free Cash Flow Ratio of 0.2, ALPHABET INC-CL A showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • ALPHABET INC-CL A exhibits impressive Profit Quality (5-year) with a 95.79% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • ALPHABET INC-CL A has consistently achieved strong EBIT growth over the past 5 years, with a 22.04% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • ALPHABET INC-CL A demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Zooming in on the fundamentals.

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

GOOGL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 68 industry peers in the Interactive Media & Services industry. GOOGL scores excellent points on both the profitability and health parts. This is a solid base for a good stock. GOOGL is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make GOOGL suitable for growth and quality investing!

Check the latest full fundamental report of GOOGL for a complete fundamental analysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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