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.
Some of the quality metrics of NASDAQ:GOOGL highlighted
Over the past 5 years, ALPHABET INC-CL A has experienced impressive revenue growth, with 17.57% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
With a robust ROIC excluding cash and goodwill at 41.82%, ALPHABET INC-CL A showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
The Debt/Free Cash Flow Ratio of ALPHABET INC-CL A stands at 0.26, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
With a favorable Profit Quality (5-year) ratio of 95.79%, ALPHABET INC-CL A showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
With a robust 5-year EBIT growth of 22.04%, ALPHABET INC-CL A showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
The EBIT 5-year growth of ALPHABET INC-CL A has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.
Fundamental Analysis Observations
ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.
GOOGL gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 73 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! This makes GOOGL very considerable for growth and quality investing!
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.