ALPHABET INC-CL C (1GOOG.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1GOOG - US02079K1079 - Common Stock
282.45 EUR
+3 (+1.07%)
1GOOG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 19 industry peers in the Interactive Media & Services industry. 1GOOG gets an excellent profitability rating and is at the same time showing great financial health properties. 1GOOG shows excellent growth, but is valued quite expensive already. With these ratings, 1GOOG could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
- 1GOOG had positive earnings in the past year.
- 1GOOG had a positive operating cash flow in the past year.
- 1GOOG had positive earnings in each of the past 5 years.
- Each year in the past 5 years 1GOOG had a positive operating cash flow.
1.2 Ratios
- 1GOOG's Return On Assets of 23.16% is amongst the best of the industry. 1GOOG outperforms 81.82% of its industry peers.
- With an excellent Return On Equity value of 32.12%, 1GOOG belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 24.90%, 1GOOG is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for 1GOOG is significantly below the industry average of 108.93%.
- The last Return On Invested Capital (24.90%) for 1GOOG is above the 3 year average (24.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.16% | ||
| ROE | 32.12% | ||
| ROIC | 24.9% |
ROA(3y)19%
ROA(5y)18.15%
ROE(3y)26.75%
ROE(5y)25.71%
ROIC(3y)24.19%
ROIC(5y)21.8%
1.3 Margins
- The Profit Margin of 1GOOG (32.23%) is better than 81.82% of its industry peers.
- 1GOOG's Profit Margin has improved in the last couple of years.
- 1GOOG has a Operating Margin of 32.83%. This is in the better half of the industry: 1GOOG outperforms 68.18% of its industry peers.
- In the last couple of years the Operating Margin of 1GOOG has grown nicely.
- 1GOOG's Gross Margin of 59.17% is on the low side compared to the rest of the industry. 1GOOG is outperformed by 63.64% of its industry peers.
- 1GOOG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.83% | ||
| PM (TTM) | 32.23% | ||
| GM | 59.17% |
OM growth 3Y2.22%
OM growth 5Y8.01%
PM growth 3Y-1.04%
PM growth 5Y6.16%
GM growth 3Y0.73%
GM growth 5Y0.93%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1GOOG is creating value.
- Compared to 1 year ago, 1GOOG has less shares outstanding
- 1GOOG has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for 1GOOG has been reduced compared to a year ago.
2.2 Solvency
- 1GOOG has an Altman-Z score of 18.49. This indicates that 1GOOG is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 18.49, 1GOOG belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
- 1GOOG has a debt to FCF ratio of 0.29. This is a very positive value and a sign of high solvency as it would only need 0.29 years to pay back of all of its debts.
- 1GOOG's Debt to FCF ratio of 0.29 is fine compared to the rest of the industry. 1GOOG outperforms 72.73% of its industry peers.
- A Debt/Equity ratio of 0.06 indicates that 1GOOG is not too dependend on debt financing.
- 1GOOG has a better Debt to Equity ratio (0.06) than 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 18.49 |
ROIC/WACC2.81
WACC8.86%
2.3 Liquidity
- A Current Ratio of 1.75 indicates that 1GOOG should not have too much problems paying its short term obligations.
- The Current ratio of 1GOOG (1.75) is comparable to the rest of the industry.
- 1GOOG has a Quick Ratio of 1.75. This is a normal value and indicates that 1GOOG is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.75, 1GOOG perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
- 1GOOG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.37%, which is quite impressive.
- Measured over the past years, 1GOOG shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.25% on average per year.
- Looking at the last year, 1GOOG shows a quite strong growth in Revenue. The Revenue has grown by 13.42% in the last year.
- 1GOOG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.68% yearly.
EPS 1Y (TTM)30.37%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%46.23%
Revenue 1Y (TTM)13.42%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%15.95%
3.2 Future
- 1GOOG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.87% yearly.
- Based on estimates for the next years, 1GOOG will show a quite strong growth in Revenue. The Revenue will grow by 12.67% on average per year.
EPS Next Y35.48%
EPS Next 2Y19.79%
EPS Next 3Y18.39%
EPS Next 5Y16.87%
Revenue Next Year13.94%
Revenue Next 2Y13.85%
Revenue Next 3Y13.55%
Revenue Next 5Y12.67%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 33.75, 1GOOG can be considered very expensive at the moment.
- 1GOOG's Price/Earnings ratio is in line with the industry average.
- 1GOOG is valuated rather expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 28.71, which means the current valuation is very expensive for 1GOOG.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1GOOG is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. 1GOOG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.75 | ||
| Fwd PE | 28.71 |
4.2 Price Multiples
- 1GOOG's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 1GOOG is more expensive than 63.64% of the companies in the same industry.
- 1GOOG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.41 | ||
| EV/EBITDA | 26.39 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of 1GOOG may justify a higher PE ratio.
- 1GOOG's earnings are expected to grow with 18.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.95
PEG (5Y)1.34
EPS Next 2Y19.79%
EPS Next 3Y18.39%
5. Dividend
5.1 Amount
- 1GOOG has a yearly dividend return of 0.25%, which is pretty low.
- 1GOOG's Dividend Yield is a higher than the industry average which is at 1.20.
- Compared to an average S&P500 Dividend Yield of 1.81, 1GOOG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 8.01% of the earnings are spent on dividend by 1GOOG. This is a low number and sustainable payout ratio.
DP8.01%
EPS Next 2Y19.79%
EPS Next 3Y18.39%
ALPHABET INC-CL C / 1GOOG.MI FAQ
Can you provide the ChartMill fundamental rating for ALPHABET INC-CL C?
ChartMill assigns a fundamental rating of 6 / 10 to 1GOOG.MI.
Can you provide the valuation status for ALPHABET INC-CL C?
ChartMill assigns a valuation rating of 3 / 10 to ALPHABET INC-CL C (1GOOG.MI). This can be considered as Overvalued.
Can you provide the profitability details for ALPHABET INC-CL C?
ALPHABET INC-CL C (1GOOG.MI) has a profitability rating of 7 / 10.
Can you provide the financial health for 1GOOG stock?
The financial health rating of ALPHABET INC-CL C (1GOOG.MI) is 7 / 10.
Can you provide the dividend sustainability for 1GOOG stock?
The dividend rating of ALPHABET INC-CL C (1GOOG.MI) is 3 / 10 and the dividend payout ratio is 8.01%.