ALPHABET INC-CL C (1GOOG.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1GOOG - US02079K1079 - Common Stock
281.75 EUR
-0.7 (-0.25%)
We assign a fundamental rating of 6 out of 10 to 1GOOG. 1GOOG was compared to 19 industry peers in the Interactive Media & Services industry. 1GOOG scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 1GOOG is valued quite expensively, but it does show have an excellent growth rating. 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.
- In the past 5 years 1GOOG always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of 1GOOG (23.16%) is better than 78.95% of its industry peers.
- With a decent Return On Equity value of 32.12%, 1GOOG is doing good in the industry, outperforming 78.95% of the companies in the same industry.
- 1GOOG has a Return On Invested Capital of 24.90%. This is in the better half of the industry: 1GOOG outperforms 63.16% 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
- 1GOOG's Profit Margin of 32.23% is fine compared to the rest of the industry. 1GOOG outperforms 78.95% of its industry peers.
- In the last couple of years the Profit Margin of 1GOOG has grown nicely.
- With a decent Operating Margin value of 32.83%, 1GOOG is doing good in the industry, outperforming 63.16% of the companies in the same industry.
- In the last couple of years the Operating Margin of 1GOOG has grown nicely.
- With a Gross Margin value of 59.17%, 1GOOG is not doing good in the industry: 63.16% of the companies in the same industry are doing better.
- 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 | 32.83% | ||
| 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
- Compared to 5 years ago, 1GOOG has less shares outstanding
- 1GOOG has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 18.71 indicates that 1GOOG is not in any danger for bankruptcy at the moment.
- The Altman-Z score of 1GOOG (18.71) is better than 100.00% of its industry peers.
- 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.
- 1GOOG's Debt to FCF ratio of 0.29 is fine compared to the rest of the industry. 1GOOG outperforms 73.68% of its industry peers.
- A Debt/Equity ratio of 0.06 indicates that 1GOOG is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.06, 1GOOG is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 18.71 |
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.
- 1GOOG's Current ratio of 1.75 is in line compared to the rest of the industry. 1GOOG outperforms 57.89% of its industry peers.
- A Quick Ratio of 1.75 indicates that 1GOOG should not have too much problems paying its short term obligations.
- 1GOOG has a Quick ratio (1.75) which is in line with 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.
- The Earnings Per Share has been growing by 25.25% on average over the past years. This is a very strong growth
- 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
- 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
- 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
- A Price/Earnings ratio of 34.19 indicates a quite expensive valuation of 1GOOG.
- 1GOOG's Price/Earnings is on the same level as the industry average.
- 1GOOG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 29.10, the valuation of 1GOOG can be described as expensive.
- 1GOOG's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, 1GOOG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.19 | ||
| Fwd PE | 29.1 |
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 63.16% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as 1GOOG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.14 | ||
| EV/EBITDA | 26.76 |
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)0.96
PEG (5Y)1.35
EPS Next 2Y19.79%
EPS Next 3Y18.39%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.25%, 1GOOG is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.20, 1GOOG pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, 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
- 1GOOG pays out 8.01% of its income as dividend. This is a 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%.