ALPHABET INC-CL A (1GOOGL.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1GOOGL - US02079K3059 - Common Stock
281.4 EUR
+0.95 (+0.34%)
Taking everything into account, 1GOOGL scores 7 out of 10 in our fundamental rating. 1GOOGL was compared to 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! This makes 1GOOGL very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
- 1GOOGL had positive earnings in the past year.
- In the past year 1GOOGL had a positive cash flow from operations.
- Each year in the past 5 years 1GOOGL has been profitable.
- 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 89.47% of the companies in the same industry.
- The Return On Equity of 1GOOGL (32.12%) is better than 89.47% of its industry peers.
- 1GOOGL has a Return On Invested Capital of 24.90%. This is in the better half of the industry: 1GOOGL outperforms 73.68% of its industry peers.
- 1GOOGL had an Average Return On Invested Capital over the past 3 years of 24.19%. This 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 89.47% 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 73.68% of its industry peers.
- In the last couple of years the Operating Margin of 1GOOGL has grown nicely.
- 1GOOGL's Gross Margin of 59.17% is in line compared to the rest of the industry. 1GOOGL outperforms 47.37% 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.
- Compared to 1 year ago, 1GOOGL has less shares outstanding
- 1GOOGL has less shares outstanding than it did 5 years ago.
- 1GOOGL has a better debt/assets ratio than last year.
2.2 Solvency
- 1GOOGL has an Altman-Z score of 18.56. This indicates that 1GOOGL is financially healthy and has little risk of bankruptcy at the moment.
- 1GOOGL has a Altman-Z score of 18.56. This is amongst the best in the industry. 1GOOGL outperforms 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.
- 1GOOGL has a better Debt to FCF ratio (0.29) than 84.21% 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 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 18.56 |
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.
- Looking at the Current ratio, with a value of 1.75, 1GOOGL is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
- 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.
- Looking at the Quick ratio, with a value of 1.75, 1GOOGL is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
| 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
- 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
- Based on estimates for the next years, 1GOOGL will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.87% on average per year.
- 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
- 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 33.86.
- The rest of the industry has a similar Price/Earnings ratio as 1GOOGL.
- 1GOOGL is valuated rather expensively when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 28.83, which means the current valuation is very expensive for 1GOOGL.
- The rest of the industry has a similar Price/Forward Earnings ratio as 1GOOGL.
- When comparing the Price/Forward Earnings ratio of 1GOOGL to the average of the S&P500 Index (25.98), we can say 1GOOGL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.86 | ||
| Fwd PE | 28.83 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1GOOGL.
- 1GOOGL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.64 | ||
| EV/EBITDA | 26.51 |
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.
- 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)0.95
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.
- 1GOOGL's Dividend Yield is comparable with the industry average which is at 1.20.
- With a Dividend Yield of 0.25, 1GOOGL pays less dividend than the S&P500 average, which is at 1.82.
| 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 2Y19.79%
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.