ALPHABET INC-CL C (1GOOG.MI) Stock Fundamental Analysis
BIT:1GOOG - Euronext Milan - US02079K1079 - Common Stock - Currency: EUR
1GOOG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 21 industry peers in the Interactive Media & Services industry. 1GOOG has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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
1GOOG had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 22.24%, 1GOOG belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
1GOOG has a Return On Equity of 30.80%. This is in the better half of the industry: 1GOOG outperforms 71.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 27.32%, 1GOOG is in the better half of the industry, outperforming 76.19% 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 30.09%.
The last Return On Invested Capital (27.32%) for 1GOOG is above the 3 year average (24.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.24% | ||
| ROE | 30.8% | ||
| ROIC | 27.32% |
ROA(3y)19%
ROA(5y)18.15%
ROE(3y)26.75%
ROE(5y)25.71%
ROIC(3y)24.15%
ROIC(5y)21.77%
1.3 Margins
1GOOG has a Profit Margin of 28.60%. This is amongst the best in the industry. 1GOOG outperforms 80.95% of its industry peers.
In the last couple of years the Profit Margin of 1GOOG has grown nicely.
With an excellent Operating Margin value of 32.79%, 1GOOG belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
1GOOG's Operating Margin has improved in the last couple of years.
1GOOG has a Gross Margin (58.24%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of 1GOOG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.79% | ||
| PM (TTM) | 28.6% | ||
| GM | 58.24% |
OM growth 3Y2.06%
OM growth 5Y7.91%
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
Compared to 5 years ago, 1GOOG has less shares outstanding
Compared to 1 year ago, 1GOOG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 11.46 indicates that 1GOOG is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1GOOG (11.46) is better than 80.95% of its industry peers.
1GOOG has a debt to FCF ratio of 0.17. This is a very positive value and a sign of high solvency as it would only need 0.17 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.17, 1GOOG belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
A Debt/Equity ratio of 0.03 indicates that 1GOOG is not too dependend on debt financing.
1GOOG has a Debt to Equity ratio of 0.03. This is amongst the best in the industry. 1GOOG outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.17 | ||
| Altman-Z | 11.46 |
ROIC/WACC3.03
WACC9.02%
2.3 Liquidity
1GOOG has a Current Ratio of 1.84. This is a normal value and indicates that 1GOOG is financially healthy and should not expect problems in meeting its short term obligations.
1GOOG's Current ratio of 1.84 is fine compared to the rest of the industry. 1GOOG outperforms 71.43% of its industry peers.
1GOOG has a Quick Ratio of 1.84. This is a normal value and indicates that 1GOOG is financially healthy and should not expect problems in meeting its short term obligations.
1GOOG has a Quick ratio of 1.84. This is in the better half of the industry: 1GOOG outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 38.79% over the past year.
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.
1GOOG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.87%.
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)38.79%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%31.1%
Revenue 1Y (TTM)13.87%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%11.77%
3.2 Future
The Earnings Per Share is expected to grow by 15.11% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.80% on average over the next years. This is quite good.
EPS Next Y12.77%
EPS Next 2Y13.57%
EPS Next 3Y13.23%
EPS Next 5Y15.11%
Revenue Next Year10.72%
Revenue Next 2Y10.76%
Revenue Next 3Y10.9%
Revenue Next 5Y10.8%
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.
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
The Price/Earnings ratio is 20.49, which indicates a rather expensive current valuation of 1GOOG.
Based on the Price/Earnings ratio, 1GOOG is valued cheaper than 80.95% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.79, 1GOOG is valued a bit cheaper.
The Price/Forward Earnings ratio is 18.18, which indicates a rather expensive current valuation of 1GOOG.
Based on the Price/Forward Earnings ratio, 1GOOG is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, 1GOOG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.49 | ||
| Fwd PE | 18.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1GOOG indicates a somewhat cheap valuation: 1GOOG is cheaper than 61.90% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1GOOG indicates a somewhat cheap valuation: 1GOOG is cheaper than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.68 | ||
| EV/EBITDA | 13.04 |
4.3 Compensation for Growth
1GOOG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 13.23% in the coming years.
PEG (NY)1.6
PEG (5Y)0.81
EPS Next 2Y13.57%
EPS Next 3Y13.23%
5. Dividend
5.1 Amount
With a yearly dividend of 0.50%, 1GOOG is not a good candidate for dividend investing.
In the last 3 months the price of 1GOOG has falen by -22.35%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.79, 1GOOG pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.50, 1GOOG pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
7.35% of the earnings are spent on dividend by 1GOOG. This is a low number and sustainable payout ratio.
DP7.35%
EPS Next 2Y13.57%
EPS Next 3Y13.23%
BIT:1GOOG (4/25/2025, 7:00:00 PM)
145.04
+11.64 (+8.73%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners81.23%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap1768.04B
Analysts81.56
Price Target181.35 (25.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
Yearly Dividend0.53
Dividend Growth(5Y)N/A
DP7.35%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.81%
Min EPS beat(2)-1.9%
Max EPS beat(2)11.53%
EPS beat(4)2
Avg EPS beat(4)7.56%
Min EPS beat(4)-1.9%
Max EPS beat(4)21.13%
EPS beat(8)5
Avg EPS beat(8)5.61%
EPS beat(12)5
Avg EPS beat(12)-0.11%
EPS beat(16)9
Avg EPS beat(16)7.6%
Revenue beat(2)0
Avg Revenue beat(2)-1.85%
Min Revenue beat(2)-3.01%
Max Revenue beat(2)-0.7%
Revenue beat(4)0
Avg Revenue beat(4)-1.62%
Min Revenue beat(4)-3.01%
Max Revenue beat(4)-0.51%
Revenue beat(8)0
Avg Revenue beat(8)-1.57%
Revenue beat(12)0
Avg Revenue beat(12)-2.27%
Revenue beat(16)3
Avg Revenue beat(16)-0.95%
PT rev (1m)-4.1%
PT rev (3m)-1.07%
EPS NQ rev (1m)-0.52%
EPS NQ rev (3m)-1.47%
EPS NY rev (1m)-1.46%
EPS NY rev (3m)-1.67%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-0.88%
Revenue NY rev (1m)-0.51%
Revenue NY rev (3m)-0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.49 | ||
| Fwd PE | 18.18 | ||
| P/S | 5.75 | ||
| P/FCF | 27.68 | ||
| P/OCF | 16.08 | ||
| P/B | 6.2 | ||
| P/tB | 6.87 | ||
| EV/EBITDA | 13.04 |
EPS(TTM)7.08
EY4.88%
EPS(NY)7.98
Fwd EY5.5%
FCF(TTM)5.24
FCFY3.61%
OCF(TTM)9.02
OCFY6.22%
SpS25.2
BVpS23.41
TBVpS21.11
PEG (NY)1.6
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.24% | ||
| ROE | 30.8% | ||
| ROCE | 31.78% | ||
| ROIC | 27.32% | ||
| ROICexc | 37.16% | ||
| ROICexgc | 42.23% | ||
| OM | 32.79% | ||
| PM (TTM) | 28.6% | ||
| GM | 58.24% | ||
| FCFM | 20.79% |
ROA(3y)19%
ROA(5y)18.15%
ROE(3y)26.75%
ROE(5y)25.71%
ROIC(3y)24.15%
ROIC(5y)21.77%
ROICexc(3y)36.09%
ROICexc(5y)35.99%
ROICexgc(3y)42.14%
ROICexgc(5y)42.46%
ROCE(3y)28.1%
ROCE(5y)25.33%
ROICexcg growth 3Y-6.79%
ROICexcg growth 5Y3.67%
ROICexc growth 3Y-5.45%
ROICexc growth 5Y5.76%
OM growth 3Y2.06%
OM growth 5Y7.91%
PM growth 3Y-1.04%
PM growth 5Y6.16%
GM growth 3Y0.73%
GM growth 5Y0.93%
F-Score8
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.17 | ||
| Debt/EBITDA | 0.08 | ||
| Cap/Depr | 343.12% | ||
| Cap/Sales | 15.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.32% | ||
| Profit Quality | 72.68% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.84 | ||
| Altman-Z | 11.46 |
F-Score8
WACC9.02%
ROIC/WACC3.03
Cap/Depr(3y)270.25%
Cap/Depr(5y)234.3%
Cap/Sales(3y)12.21%
Cap/Sales(5y)11.68%
Profit Quality(3y)88.97%
Profit Quality(5y)92.29%
High Growth Momentum
Growth
EPS 1Y (TTM)38.79%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%31.1%
EPS Next Y12.77%
EPS Next 2Y13.57%
EPS Next 3Y13.23%
EPS Next 5Y15.11%
Revenue 1Y (TTM)13.87%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%11.77%
Revenue Next Year10.72%
Revenue Next 2Y10.76%
Revenue Next 3Y10.9%
Revenue Next 5Y10.8%
EBIT growth 1Y30.1%
EBIT growth 3Y13.04%
EBIT growth 5Y25.91%
EBIT Next Year56.38%
EBIT Next 3Y26.58%
EBIT Next 5Y21.42%
FCF growth 1Y4.7%
FCF growth 3Y2.78%
FCF growth 5Y18.63%
OCF growth 1Y23.15%
OCF growth 3Y10.99%
OCF growth 5Y18.11%