Investors should take note of NASDAQ:GOOGL, a growth stock that remains attractively priced.

Here's ALPHABET INC-CL A (NASDAQ:GOOGL) for you, a growth stock our stock screener believes is undervalued. NASDAQ:GOOGL is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

A Closer Look at Growth for NASDAQ:GOOGL

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:GOOGL was assigned a score of 7 for growth:

• 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.
• Measured over the past years, GOOGL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.55% on average per year.
• 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.
• 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.
• Based on estimates for the next years, GOOGL will show a quite strong growth in Revenue. The Revenue will grow by 10.62% on average per year.

Looking at the Valuation

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:GOOGL has received a 6 out of 10:

• Based on the Price/Earnings ratio, GOOGL is valued a bit cheaper than 71.01% of the companies in the same industry.
• The average S&P500 Price/Earnings ratio is at 29.81. GOOGL is valued slightly cheaper when compared to this.
• Based on the Price/Forward Earnings ratio, GOOGL is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
• 72.46% of the companies in the same industry are more expensive than GOOGL, based on the Enterprise Value to EBITDA ratio.
• 65.22% of the companies in the same industry are more expensive than GOOGL, based on the Price/Free Cash Flow ratio.
• 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.
• A more expensive valuation may be justified as GOOGL's earnings are expected to grow with 21.15% in the coming years.

Deciphering NASDAQ:GOOGL's Health Rating

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:GOOGL has achieved a 9 out of 10:

• GOOGL has an Altman-Z score of 13.39. This indicates that GOOGL is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of GOOGL (13.39) is better than 92.75% of its industry peers.
• 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.
• Looking at the Debt to FCF ratio, with a value of 0.23, GOOGL belongs to the top of the industry, outperforming 84.06% of the companies in the same industry.
• GOOGL has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
• 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.

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:

• The Return On Assets of GOOGL (21.13%) is better than 97.10% of its industry peers.
• GOOGL has a Return On Equity of 29.15%. This is amongst the best in the industry. GOOGL outperforms 95.65% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 25.85%, GOOGL belongs to the top of the industry, outperforming 98.55% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for GOOGL is significantly above the industry average of 10.43%.
• The 3 year average ROIC (22.84%) for GOOGL is below the current ROIC(25.85%), indicating increased profibility in the last year.
• GOOGL has a Profit Margin of 26.70%. This is amongst the best in the industry. GOOGL outperforms 95.65% of its industry peers.
• GOOGL has a Operating Margin of 30.77%. This is amongst the best in the industry. GOOGL outperforms 98.55% of its industry peers.
• GOOGL's Operating Margin has improved in the last couple of years.

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

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.