ALPHABET INC-CL C (1GOOG.MI) Stock Fundamental Analysis
BIT:1GOOG - Euronext Milan - US02079K1079 - Common Stock - Currency: EUR
1GOOG gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 20 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 has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! This makes 1GOOG very considerable for value and 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.
Each year in the past 5 years 1GOOG has been profitable.
In the past 5 years 1GOOG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 23.35%, 1GOOG belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
1GOOG's Return On Equity of 32.15% is fine compared to the rest of the industry. 1GOOG outperforms 80.00% of its industry peers.
With an excellent Return On Invested Capital value of 26.71%, 1GOOG belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1GOOG is above the industry average of 20.61%.
The last Return On Invested Capital (26.71%) for 1GOOG is above the 3 year average (24.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.35% | ||
| ROE | 32.15% | ||
| ROIC | 26.71% |
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
The Profit Margin of 1GOOG (30.86%) is better than 85.00% of its industry peers.
1GOOG's Profit Margin has improved in the last couple of years.
1GOOG's Operating Margin of 33.15% is amongst the best of the industry. 1GOOG outperforms 85.00% of its industry peers.
In the last couple of years the Operating Margin of 1GOOG has grown nicely.
The Gross Margin of 1GOOG (58.59%) 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 | 33.15% | ||
| PM (TTM) | 30.86% | ||
| GM | 58.59% |
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.
1GOOG has less shares outstanding than it did 1 year ago.
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 12.47 indicates that 1GOOG is not in any danger for bankruptcy at the moment.
1GOOG's Altman-Z score of 12.47 is fine compared to the rest of the industry. 1GOOG outperforms 65.00% of its industry peers.
The Debt to FCF ratio of 1GOOG is 0.19, which is an excellent value as it means it would take 1GOOG, only 0.19 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.19, 1GOOG belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
1GOOG has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of 1GOOG (0.04) is better than 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.19 | ||
| Altman-Z | 12.47 |
ROIC/WACC2.87
WACC9.31%
2.3 Liquidity
1GOOG has a Current Ratio of 1.77. This is a normal value and indicates that 1GOOG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of 1GOOG (1.77) is comparable to the rest of the industry.
A Quick Ratio of 1.77 indicates that 1GOOG should not have too much problems paying its short term obligations.
1GOOG's Quick ratio of 1.77 is in line compared to the rest of the industry. 1GOOG outperforms 60.00% of its industry peers.
The current and quick ratio evaluation for 1GOOG is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.77 |
3. Growth
3.1 Past
1GOOG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.29%, 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.
The Revenue has grown by 13.07% in the past year. This is quite good.
The Revenue has been growing by 16.68% on average over the past years. This is quite good.
EPS 1Y (TTM)29.29%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%20.11%
Revenue 1Y (TTM)13.07%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%12.04%
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 15.78% yearly.
The Revenue is expected to grow by 10.45% on average over the next years. This is quite good.
EPS Next Y22.82%
EPS Next 2Y14.2%
EPS Next 3Y13.87%
EPS Next 5Y15.78%
Revenue Next Year10.5%
Revenue Next 2Y10.5%
Revenue Next 3Y10.45%
Revenue Next 5Y10.45%
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
1GOOG is valuated rather expensively with a Price/Earnings ratio of 21.05.
Compared to the rest of the industry, the Price/Earnings ratio of 1GOOG indicates a rather cheap valuation: 1GOOG is cheaper than 85.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of 1GOOG to the average of the S&P500 Index (27.41), we can say 1GOOG is valued slightly cheaper.
1GOOG is valuated correctly with a Price/Forward Earnings ratio of 16.91.
85.00% of the companies in the same industry are more expensive than 1GOOG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of 1GOOG to the average of the S&P500 Index (35.19), we can say 1GOOG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.05 | ||
| Fwd PE | 16.91 |
4.2 Price Multiples
70.00% of the companies in the same industry are more expensive than 1GOOG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, 1GOOG is valued a bit cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.77 | ||
| EV/EBITDA | 14.76 |
4.3 Compensation for Growth
1GOOG's 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.
1GOOG's earnings are expected to grow with 13.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)0.83
EPS Next 2Y14.2%
EPS Next 3Y13.87%
5. Dividend
5.1 Amount
1GOOG has a yearly dividend return of 0.46%, which is pretty low.
Compared to an average industry Dividend Yield of 1.84, 1GOOG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, 1GOOG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1GOOG pays out 8.83% of its income as dividend. This is a sustainable payout ratio.
DP8.83%
EPS Next 2Y14.2%
EPS Next 3Y13.87%
BIT:1GOOG (7/10/2025, 7:00:00 PM)
151.98
+3 (+2.01%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners80.92%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap1844.28B
Analysts81.59
Price Target181.75 (19.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
Yearly Dividend0.51
Dividend Growth(5Y)N/A
DP8.83%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.81%
Min EPS beat(2)-1.9%
Max EPS beat(2)9.52%
EPS beat(4)2
Avg EPS beat(4)4.66%
Min EPS beat(4)-1.9%
Max EPS beat(4)11.53%
EPS beat(8)5
Avg EPS beat(8)5.99%
EPS beat(12)6
Avg EPS beat(12)1.28%
EPS beat(16)9
Avg EPS beat(16)4.36%
Revenue beat(2)0
Avg Revenue beat(2)-2.35%
Min Revenue beat(2)-3.01%
Max Revenue beat(2)-1.7%
Revenue beat(4)0
Avg Revenue beat(4)-1.92%
Min Revenue beat(4)-3.01%
Max Revenue beat(4)-0.7%
Revenue beat(8)0
Avg Revenue beat(8)-1.56%
Revenue beat(12)0
Avg Revenue beat(12)-2.16%
Revenue beat(16)2
Avg Revenue beat(16)-1.3%
PT rev (1m)0.85%
PT rev (3m)-10.05%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)1.19%
EPS NY rev (1m)0.28%
EPS NY rev (3m)7.66%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.05 | ||
| Fwd PE | 16.91 | ||
| P/S | 5.99 | ||
| P/FCF | 28.77 | ||
| P/OCF | 16.25 | ||
| P/B | 6.24 | ||
| P/tB | 6.88 | ||
| EV/EBITDA | 14.76 |
EPS(TTM)7.22
EY4.75%
EPS(NY)8.99
Fwd EY5.91%
FCF(TTM)5.28
FCFY3.48%
OCF(TTM)9.35
OCFY6.15%
SpS25.37
BVpS24.35
TBVpS22.08
PEG (NY)0.92
PEG (5Y)0.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.35% | ||
| ROE | 32.15% | ||
| ROCE | 31.07% | ||
| ROIC | 26.71% | ||
| ROICexc | 35.54% | ||
| ROICexgc | 40% | ||
| OM | 33.15% | ||
| PM (TTM) | 30.86% | ||
| GM | 58.59% | ||
| FCFM | 20.82% |
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-Score7
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.19 | ||
| Debt/EBITDA | 0.09 | ||
| Cap/Depr | 352.27% | ||
| Cap/Sales | 16.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.77% | ||
| Profit Quality | 67.46% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.77 | ||
| Altman-Z | 12.47 |
F-Score7
WACC9.31%
ROIC/WACC2.87
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)29.29%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%20.11%
EPS Next Y22.82%
EPS Next 2Y14.2%
EPS Next 3Y13.87%
EPS Next 5Y15.78%
Revenue 1Y (TTM)13.07%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%12.04%
Revenue Next Year10.5%
Revenue Next 2Y10.5%
Revenue Next 3Y10.45%
Revenue Next 5Y10.45%
EBIT growth 1Y25.93%
EBIT growth 3Y13.04%
EBIT growth 5Y25.91%
EBIT Next Year56.95%
EBIT Next 3Y26.18%
EBIT Next 5Y21.09%
FCF growth 1Y20.95%
FCF growth 3Y2.78%
FCF growth 5Y18.63%
OCF growth 1Y47.5%
OCF growth 3Y10.99%
OCF growth 5Y18.11%