Investors seeking growth at a reasonable cost should explore NASDAQ:GOOGL.

Our stock screener has singled out ALPHABET INC-CL A (NASDAQ:GOOGL) as an attractive growth opportunity. NASDAQ:GOOGL is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

Unpacking NASDAQ:GOOGL's Growth Rating

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:GOOGL has achieved a 7 out of 10:

• The Earnings Per Share has grown by an impressive 44.72% over the past year.
• 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 14.38%.
• Measured over the past years, GOOGL shows a quite strong growth in Revenue. The Revenue has been growing by 17.57% on average per year.
• Based on estimates for the next years, GOOGL will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.52% 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 11.47% on average per year.

Valuation Examination 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:

• 63.64% of the companies in the same industry are more expensive than GOOGL, based on the Price/Earnings ratio.
• 62.12% of the companies in the same industry are more expensive than GOOGL, based on the Price/Forward Earnings ratio.
• 65.15% of the companies in the same industry are more expensive than GOOGL, based on the Enterprise Value to EBITDA ratio.
• 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 22.12% in the coming years.

ChartMill's Evaluation of Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:GOOGL scores a 9 out of 10:

• GOOGL has an Altman-Z score of 14.57. This indicates that GOOGL is financially healthy and has little risk of bankruptcy at the moment.
• GOOGL's Altman-Z score of 14.57 is amongst the best of the industry. GOOGL outperforms 92.42% of its industry peers.
• The Debt to FCF ratio of GOOGL is 0.26, which is an excellent value as it means it would take GOOGL, only 0.26 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 0.26, GOOGL belongs to the top of the industry, outperforming 80.30% of the companies in the same industry.
• A Debt/Equity ratio of 0.04 indicates that GOOGL is not too dependend on debt financing.
• The current and quick ratio evaluation for GOOGL is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

A Closer Look at Profitability for NASDAQ:GOOGL

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:GOOGL scores a 9 out of 10:

• GOOGL's Return On Assets of 21.91% is amongst the best of the industry. GOOGL outperforms 98.48% of its industry peers.
• GOOGL has a Return On Equity of 30.01%. This is amongst the best in the industry. GOOGL outperforms 98.48% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 26.84%, GOOGL belongs to the top of the industry, outperforming 98.48% of the companies in the same industry.
• GOOGL had an Average Return On Invested Capital over the past 3 years of 22.84%. This is significantly above the industry average of 10.97%.
• The last Return On Invested Capital (26.84%) for GOOGL is above the 3 year average (22.84%), which is a sign of increasing profitability.
• The Profit Margin of GOOGL (27.74%) is better than 95.45% of its industry peers.
• GOOGL's Operating Margin of 32.02% is amongst the best of the industry. GOOGL outperforms 98.48% of its industry peers.
• In the last couple of years the Operating Margin of GOOGL has grown nicely.

Every day, new Affordable Growth stocks can be found on ChartMill 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.