ALPHABET INC-CL C (1GOOG.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1GOOG - US02079K1079 - Common Stock
281.75 EUR
-0.7 (-0.25%)
Taking everything into account, 1GOOG scores 7 out of 10 in our fundamental rating. 1GOOG was compared to 19 industry peers in the Interactive Media & Services industry. Both the health and profitability get an excellent rating, making 1GOOG a very profitable company, without any liquidiy or solvency issues. 1GOOG is not overvalued while it is showing excellent growth. This is an interesting combination. This makes 1GOOG very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year 1GOOG was profitable.
- 1GOOG had a positive operating cash flow in the past year.
- In the past 5 years 1GOOG has always been profitable.
- 1GOOG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of 1GOOG (23.16%) is better than 84.21% of its industry peers.
- The Return On Equity of 1GOOG (32.12%) is better than 84.21% of its industry peers.
- 1GOOG has a better Return On Invested Capital (24.90%) than 68.42% of its industry peers.
- 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
- Looking at the Profit Margin, with a value of 32.23%, 1GOOG belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
- In the last couple of years the Profit Margin of 1GOOG has grown nicely.
- 1GOOG's Operating Margin of 32.83% is fine compared to the rest of the industry. 1GOOG outperforms 68.42% of its industry peers.
- 1GOOG's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 59.17%, 1GOOG is in line with its industry, outperforming 42.11% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
- Compared to 1 year ago, 1GOOG has an improved debt to assets ratio.
2.2 Solvency
- 1GOOG has an Altman-Z score of 18.58. 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 18.58, 1GOOG belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
- The Debt to FCF ratio of 1GOOG is 0.29, which is an excellent value as it means it would take 1GOOG, only 0.29 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 0.29, 1GOOG is doing good in the industry, outperforming 78.95% of the companies in the same industry.
- A Debt/Equity ratio of 0.06 indicates that 1GOOG is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.06, 1GOOG is doing good in the industry, outperforming 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 18.58 |
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 better than 63.16% of its industry peers.
- 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.
- The Quick ratio of 1GOOG (1.75) is better than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 30.37% over the past year.
- 1GOOG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.25% yearly.
- 1GOOG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.42%.
- The Revenue has been growing by 16.68% on average over the past years. This is quite good.
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
- Based on estimates for the next years, 1GOOG will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.87% on average per year.
- 1GOOG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.67% yearly.
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
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 33.90, the valuation of 1GOOG can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as 1GOOG.
- When comparing the Price/Earnings ratio of 1GOOG to the average of the S&P500 Index (27.25), we can say 1GOOG is valued slightly more expensively.
- With a Price/Forward Earnings ratio of 28.87, 1GOOG can be considered very expensive at the moment.
- 1GOOG's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. 1GOOG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.9 | ||
| Fwd PE | 28.87 |
4.2 Price Multiples
- 1GOOG's Enterprise Value to EBITDA is on the same level as the industry average.
- 1GOOG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.71 | ||
| EV/EBITDA | 26.55 |
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.
- 1GOOG has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as 1GOOG's earnings are expected to grow with 18.39% in the coming years.
PEG (NY)0.96
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.
- With a Dividend Yield of 0.25, 1GOOG pays less dividend than the S&P500 average, which is at 1.82.
| 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%.