NASDAQ:GOOGL stands out as a growth opportunity that won't break the bank.

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.

How do we evaluate the Growth for NASDAQ:GOOGL?

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:GOOGL has received a 7 out of 10:

• GOOGL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 44.72%, 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.
• Looking at the last year, GOOGL shows a quite strong growth in Revenue. The Revenue has grown by 14.38% in the last year.
• 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.
• The Earnings Per Share is expected to grow by 19.52% 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 11.47% yearly.

Assessing Valuation Metrics for NASDAQ:GOOGL

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:GOOGL was assigned a score of 5 for valuation:

• Based on the Price/Earnings ratio, GOOGL is valued a bit cheaper than 67.16% of the companies in the same industry.
• GOOGL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GOOGL is cheaper than 62.69% 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.
• 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.
• GOOGL's earnings are expected to grow with 22.12% in the coming years. This may justify a more expensive valuation.

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 9 out of 10:

• GOOGL has an Altman-Z score of 15.13. This indicates that GOOGL is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 15.13, GOOGL belongs to the top of the industry, outperforming 91.04% of the companies in the same industry.
• GOOGL has a debt to FCF ratio of 0.26. This is a very positive value and a sign of high solvency as it would only need 0.26 years to pay back of all of its debts.
• GOOGL's Debt to FCF ratio of 0.26 is amongst the best of the industry. GOOGL outperforms 82.09% of its industry peers.
• GOOGL has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
• GOOGL does not score too well on the current and quick ratio evaluation. However, as it has 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's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:GOOGL, the assigned 9 is a significant indicator of profitability:

• The Return On Assets of GOOGL (21.91%) is better than 98.51% of its industry peers.
• Looking at the Return On Equity, with a value of 30.01%, GOOGL belongs to the top of the industry, outperforming 98.51% of the companies in the same industry.
• GOOGL has a Return On Invested Capital of 26.84%. This is amongst the best in the industry. GOOGL outperforms 97.01% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for GOOGL is significantly above the industry average of 12.59%.
• 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.
• GOOGL has a better Profit Margin (27.74%) than 95.52% of its industry peers.
• GOOGL has a Operating Margin of 32.02%. This is amongst the best in the industry. GOOGL outperforms 98.51% of its industry peers.
• In the last couple of years the Operating Margin of GOOGL has grown nicely.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

Keep in mind

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.