ALPHABET INC-CL A (1GOOGL.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1GOOGL - US02079K3059 - Common Stock
280.45 EUR
-1.9 (-0.67%)
Overall 1GOOGL gets a fundamental rating of 7 out of 10. We evaluated 1GOOGL against 22 industry peers in the Interactive Media & Services industry. 1GOOGL gets an excellent profitability rating and is at the same time showing great financial health properties. 1GOOGL is growing strongly while it is still valued neutral. This is a good combination! These ratings could make 1GOOGL a good candidate 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.
- 1GOOGL had positive earnings in each of the past 5 years.
- Each year in the past 5 years 1GOOGL had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 23.16%, 1GOOGL belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
- 1GOOGL's Return On Equity of 32.12% is amongst the best of the industry. 1GOOGL outperforms 90.91% of its industry peers.
- With a decent Return On Invested Capital value of 24.90%, 1GOOGL is doing good in the industry, outperforming 77.27% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for 1GOOGL is significantly below the industry average of 89.56%.
- 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
- The Profit Margin of 1GOOGL (32.23%) is better than 90.91% of its industry peers.
- 1GOOGL's Profit Margin has improved in the last couple of years.
- 1GOOGL has a better Operating Margin (32.83%) than 77.27% of its industry peers.
- 1GOOGL's Operating Margin has improved in the last couple of years.
- 1GOOGL has a Gross Margin (59.17%) which is comparable to the rest of the industry.
- 1GOOGL'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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1GOOGL is creating value.
- 1GOOGL has less shares outstanding than it did 1 year ago.
- 1GOOGL has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for 1GOOGL has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 18.44 indicates that 1GOOGL is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 18.44, 1GOOGL belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
- 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.
- 1GOOGL's Debt to FCF ratio of 0.29 is amongst the best of the industry. 1GOOGL outperforms 81.82% of its industry peers.
- 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 Debt to Equity ratio of 0.06. This is in the better half of the industry: 1GOOGL outperforms 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 18.44 |
ROIC/WACC2.8
WACC8.88%
2.3 Liquidity
- A Current Ratio of 1.75 indicates that 1GOOGL should not have too much problems paying its short term obligations.
- 1GOOGL has a better Current ratio (1.75) than 68.18% of its industry peers.
- A Quick Ratio of 1.75 indicates that 1GOOGL should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.75, 1GOOGL is in the better half of the industry, outperforming 68.18% 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.
- 1GOOGL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.25% yearly.
- 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
- The Earnings Per Share is expected to grow by 16.87% on average over the next years. This is quite good.
- 1GOOGL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.67% yearly.
EPS Next Y35.39%
EPS Next 2Y19.53%
EPS Next 3Y18.08%
EPS Next 5Y16.87%
Revenue Next Year13.91%
Revenue Next 2Y13.74%
Revenue Next 3Y13.39%
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
- 1GOOGL is valuated quite expensively with a Price/Earnings ratio of 33.39.
- Compared to the rest of the industry, the Price/Earnings ratio of 1GOOGL is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, 1GOOGL is valued a bit more expensive.
- A Price/Forward Earnings ratio of 28.54 indicates a quite expensive valuation of 1GOOGL.
- 1GOOGL's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. 1GOOGL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.39 | ||
| Fwd PE | 28.54 |
4.2 Price Multiples
- 1GOOGL's Enterprise Value to EBITDA is on the same level as the industry average.
- 1GOOGL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.86 | ||
| EV/EBITDA | 26.3 |
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.
- A more expensive valuation may be justified as 1GOOGL's earnings are expected to grow with 18.08% in the coming years.
PEG (NY)0.94
PEG (5Y)1.32
EPS Next 2Y19.53%
EPS Next 3Y18.08%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.25%, 1GOOGL is not a good candidate for dividend investing.
- 1GOOGL's Dividend Yield is comparable with the industry average which is at 1.07.
- 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
- 8.01% of the earnings are spent on dividend by 1GOOGL. This is a low number and sustainable payout ratio.
DP8.01%
EPS Next 2Y19.53%
EPS Next 3Y18.08%
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 35.39% in the next year.