For those who appreciate growth without the sticker shock, NASDAQ:GOOGL is worth considering.

Last update: Aug 1, 2024

ALPHABET INC-CL A (NASDAQ:GOOGL) was identified as an affordable growth stock by our stock screener. NASDAQ:GOOGL is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

What does the Growth looks like for NASDAQ:GOOGL

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:GOOGL, the assigned 7 reflects its growth potential:

GOOGL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.67%, which is quite impressive.
GOOGL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.55% yearly.
GOOGL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.38%.
The Revenue has been growing by 17.57% on average over the past years. This is quite good.
The Earnings Per Share is expected to grow by 19.96% on average over the next years. This is quite good.
GOOGL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.62% yearly.

Valuation Assessment of NASDAQ:GOOGL

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:GOOGL boasts a 6 out of 10:

GOOGL's Price/Earnings ratio is a bit cheaper when compared to the industry. GOOGL is cheaper than 68.12% of the companies in the same industry.
Based on the Price/Forward Earnings ratio, GOOGL is valued a bit cheaper than the industry average as 68.12% of the companies are valued more expensively.
Based on the Enterprise Value to EBITDA ratio, GOOGL is valued a bit cheaper than 69.57% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GOOGL is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
GOOGL's 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.
A more expensive valuation may be justified as GOOGL's earnings are expected to grow with 21.15% in the coming years.

Evaluating Health: 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:

An Altman-Z score of 13.68 indicates that GOOGL is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 13.68, GOOGL belongs to the best of the industry, outperforming 92.75% of the companies in the same industry.
The Debt to FCF ratio of GOOGL is 0.23, which is an excellent value as it means it would take GOOGL, only 0.23 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GOOGL (0.23) is better than 85.51% of its industry peers.
A Debt/Equity ratio of 0.04 indicates that GOOGL is not too dependend on debt financing.
A Current Ratio of 2.08 indicates that GOOGL has no problem at all paying its short term obligations.
A Quick Ratio of 2.08 indicates that GOOGL has no problem at all paying its short term obligations.

Profitability Insights: NASDAQ:GOOGL

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:GOOGL, the assigned 9 is noteworthy for profitability:

The Return On Assets of GOOGL (21.13%) is better than 97.10% of its industry peers.
GOOGL has a better Return On Equity (29.15%) than 94.20% of its industry peers.
GOOGL has a Return On Invested Capital of 25.85%. This is amongst the best in the industry. GOOGL outperforms 98.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GOOGL is significantly above the industry average of 10.49%.
The 3 year average ROIC (22.84%) for GOOGL is below the current ROIC(25.85%), indicating increased profibility in the last year.
GOOGL's Profit Margin of 26.70% is amongst the best of the industry. GOOGL outperforms 94.20% of its industry peers.
Looking at the Operating Margin, with a value of 30.77%, GOOGL belongs to the top of the industry, outperforming 98.55% 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.

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

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.