In the world of growth stocks, NASDAQ:GOOGL shines as a value proposition.

Discover ALPHABET INC-CL A (NASDAQ:GOOGL), an undervalued growth gem identified by our stock screener. NASDAQ:GOOGL is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

What does the Growth looks like for NASDAQ:GOOGL

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:GOOGL scores a 7 out of 10:

• The Earnings Per Share has grown by an impressive 45.21% over the past year.
• The Earnings Per Share has been growing by 19.55% on average over the past years. This is quite good.
• Looking at the last year, GOOGL shows a quite strong growth in Revenue. The Revenue has grown by 11.78% in the last year.
• The Revenue has been growing by 17.57% on average over the past years. This is quite good.
• Based on estimates for the next years, GOOGL will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.96% on average per year.
• The Revenue is expected to grow by 10.62% on average over the next years. This is quite good.

A Closer Look at Valuation for NASDAQ:GOOGL

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:GOOGL has earned a 5 for valuation:

• 64.18% of the companies in the same industry are more expensive than GOOGL, based on the Price/Earnings ratio.
• GOOGL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GOOGL is cheaper than 65.67% of the companies in the same industry.
• Based on the Enterprise Value to EBITDA ratio, GOOGL is valued a bit cheaper than the industry average as 65.67% of the companies are valued more expensively.
• Based on the Price/Free Cash Flow ratio, GOOGL is valued a bit cheaper than the industry average as 67.16% of the companies are valued more expensively.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• GOOGL has an outstanding profitability rating, which may justify a higher PE ratio.
• GOOGL's earnings are expected to grow with 20.88% in the coming years. This may justify a more expensive valuation.

Assessing Health for NASDAQ:GOOGL

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:GOOGL has received a 8 out of 10:

• GOOGL has an Altman-Z score of 14.80. This indicates that GOOGL is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of GOOGL (14.80) is better than 94.03% of its industry peers.
• The Debt to FCF ratio of GOOGL is 0.20, which is an excellent value as it means it would take GOOGL, only 0.20 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 0.20, GOOGL belongs to the top of the industry, outperforming 85.07% of the companies in the same industry.
• GOOGL has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
• A Current Ratio of 2.15 indicates that GOOGL has no problem at all paying its short term obligations.
• A Quick Ratio of 2.15 indicates that GOOGL has no problem at all paying its short term obligations.

Evaluating Profitability: NASDAQ:GOOGL

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:GOOGL has achieved a 9:

• GOOGL has a Return On Assets of 20.23%. This is amongst the best in the industry. GOOGL outperforms 95.52% of its industry peers.
• GOOGL has a Return On Equity of 28.14%. This is amongst the best in the industry. GOOGL outperforms 94.03% of its industry peers.
• With an excellent Return On Invested Capital value of 24.32%, GOOGL belongs to the best of the industry, outperforming 98.51% of the companies in the same industry.
• GOOGL had an Average Return On Invested Capital over the past 3 years of 22.54%. This is significantly above the industry average of 10.03%.
• The last Return On Invested Capital (24.32%) for GOOGL is above the 3 year average (22.54%), which is a sign of increasing profitability.
• The Profit Margin of GOOGL (25.90%) is better than 92.54% of its industry peers.
• Looking at the Operating Margin, with a value of 29.68%, GOOGL belongs to the top of the industry, outperforming 97.01% of the companies in the same industry.
• In the last couple of years the Operating Margin of GOOGL has grown nicely.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.