ALPHABET INC-CL A (1GOOGL.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1GOOGL - US02079K3059 - Common Stock
279.85 EUR
-0.4 (-0.14%)
1GOOGL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 19 industry peers in the Interactive Media & Services industry. Both the health and profitability get an excellent rating, making 1GOOGL a very profitable company, without any liquidiy or solvency issues. 1GOOGL is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make 1GOOGL suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year 1GOOGL was profitable.
- In the past year 1GOOGL had a positive cash flow from operations.
- In the past 5 years 1GOOGL has always been profitable.
- 1GOOGL 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 23.16%, 1GOOGL belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
- With an excellent Return On Equity value of 32.12%, 1GOOGL belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 24.90%, 1GOOGL is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for 1GOOGL is significantly below the industry average of 108.93%.
- The last Return On Invested Capital (24.90%) for 1GOOGL 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
- 1GOOGL's Profit Margin of 32.23% is amongst the best of the industry. 1GOOGL outperforms 94.74% of its industry peers.
- 1GOOGL's Profit Margin has improved in the last couple of years.
- 1GOOGL's Operating Margin of 32.83% is fine compared to the rest of the industry. 1GOOGL outperforms 78.95% of its industry peers.
- 1GOOGL's Operating Margin has improved in the last couple of years.
- 1GOOGL has a Gross Margin of 59.17%. This is comparable to the rest of the industry: 1GOOGL outperforms 52.63% of its industry peers.
- In the last couple of years the Gross Margin of 1GOOGL 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
- 1GOOGL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for 1GOOGL has been reduced compared to 1 year ago.
- 1GOOGL has less shares outstanding than it did 5 years ago.
- 1GOOGL has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 18.62 indicates that 1GOOGL is not in any danger for bankruptcy at the moment.
- 1GOOGL has a better Altman-Z score (18.62) than 84.21% of its industry peers.
- The Debt to FCF ratio of 1GOOGL is 0.29, which is an excellent value as it means it would take 1GOOGL, only 0.29 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.29, 1GOOGL belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
- 1GOOGL has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
- 1GOOGL has a better Debt to Equity ratio (0.06) than 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 18.62 |
ROIC/WACC2.81
WACC8.86%
2.3 Liquidity
- 1GOOGL has a Current Ratio of 1.75. This is a normal value and indicates that 1GOOGL is financially healthy and should not expect problems in meeting its short term obligations.
- 1GOOGL has a Current ratio of 1.75. This is in the better half of the industry: 1GOOGL outperforms 73.68% of its industry peers.
- 1GOOGL has a Quick Ratio of 1.75. This is a normal value and indicates that 1GOOGL is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Quick ratio value of 1.75, 1GOOGL is doing good in the industry, outperforming 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
- 1GOOGL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.37%, which is quite impressive.
- The Earnings Per Share has been growing by 25.25% on average over the past years. This is a very strong growth
- The Revenue has grown by 13.42% in the past year. This is quite good.
- Measured over the past years, 1GOOGL shows a quite strong growth in Revenue. The Revenue has been growing by 16.68% on average per year.
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
- 1GOOGL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.87% yearly.
- The Revenue is expected to grow by 12.67% on average over the next years. This is quite good.
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.
- 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
- Based on the Price/Earnings ratio of 33.96, the valuation of 1GOOGL can be described as expensive.
- 63.16% of the companies in the same industry are more expensive than 1GOOGL, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.60. 1GOOGL is around the same levels.
- The Price/Forward Earnings ratio is 28.90, which means the current valuation is very expensive for 1GOOGL.
- 1GOOGL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1GOOGL is cheaper than 63.16% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, 1GOOGL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.96 | ||
| Fwd PE | 28.9 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1GOOGL is on the same level as its industry peers.
- 1GOOGL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.77 | ||
| EV/EBITDA | 26.61 |
4.3 Compensation for Growth
- 1GOOGL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- 1GOOGL has an outstanding profitability rating, which may justify a higher PE ratio.
- 1GOOGL'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)1.34
EPS Next 2Y19.79%
EPS Next 3Y18.39%
5. Dividend
5.1 Amount
- 1GOOGL has a yearly dividend return of 0.25%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.20, 1GOOGL has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, 1GOOGL'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
- 1GOOGL 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 A / 1GOOGL.MI FAQ
What is the ChartMill fundamental rating of ALPHABET INC-CL A (1GOOGL.MI) stock?
ChartMill assigns a fundamental rating of 7 / 10 to 1GOOGL.MI.
What is the valuation status for 1GOOGL stock?
ChartMill assigns a valuation rating of 4 / 10 to ALPHABET INC-CL A (1GOOGL.MI). This can be considered as Fairly Valued.
How profitable is ALPHABET INC-CL A (1GOOGL.MI) stock?
ALPHABET INC-CL A (1GOOGL.MI) has a profitability rating of 8 / 10.
How financially healthy is ALPHABET INC-CL A?
The financial health rating of ALPHABET INC-CL A (1GOOGL.MI) is 8 / 10.
Can you provide the expected EPS growth for 1GOOGL stock?
The Earnings per Share (EPS) of ALPHABET INC-CL A (1GOOGL.MI) is expected to grow by 35.48% in the next year.