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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make 1GOOGL a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
- 1GOOGL had positive earnings in the past year.
- 1GOOGL had a positive operating cash flow in the past year.
- 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
- The Return On Assets of 1GOOGL (23.16%) is better than 94.74% of its industry peers.
- The Return On Equity of 1GOOGL (32.12%) is better than 94.74% of its industry peers.
- With a decent Return On Invested Capital value of 24.90%, 1GOOGL is doing good in the industry, outperforming 78.95% 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 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
- The Profit Margin of 1GOOGL (32.23%) is better than 94.74% of its industry peers.
- 1GOOGL's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 32.83%, 1GOOGL is doing good in the industry, outperforming 78.95% of the companies in the same industry.
- 1GOOGL's Operating Margin has improved in the last couple of years.
- The Gross Margin of 1GOOGL (59.17%) is comparable to the rest of the industry.
- 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
- 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.
- The number of shares outstanding for 1GOOGL has been reduced compared to 5 years ago.
- The debt/assets ratio for 1GOOGL has been reduced compared to a year ago.
2.2 Solvency
- 1GOOGL has an Altman-Z score of 18.38. This indicates that 1GOOGL is financially healthy and has little risk of bankruptcy at the moment.
- 1GOOGL has a Altman-Z score of 18.38. This is amongst the best in the industry. 1GOOGL outperforms 84.21% of its industry peers.
- 1GOOGL has a debt to FCF ratio of 0.29. This is a very positive value and a sign of high solvency as it would only need 0.29 years to pay back of all of its debts.
- 1GOOGL has a Debt to FCF ratio of 0.29. This is amongst the best in the industry. 1GOOGL outperforms 89.47% 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 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 18.38 |
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 better Current ratio (1.75) than 73.68% of its industry peers.
- A Quick Ratio of 1.75 indicates that 1GOOGL should not have too much problems paying 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
- 1GOOGL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.42%.
- The Revenue has been growing by 16.68% on average over the past years. This is quite good.
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
- 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 33.62.
- 1GOOGL's Price/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/Earnings ratio of 27.25, 1GOOGL is valued a bit more expensive.
- The Price/Forward Earnings ratio is 28.60, which means the current valuation is very expensive for 1GOOGL.
- 63.16% of the companies in the same industry are more expensive than 1GOOGL, based on the Price/Forward Earnings ratio.
- 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 | 33.62 | ||
| Fwd PE | 28.6 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.21 | ||
| EV/EBITDA | 26.2 |
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 excellent profitability rating of 1GOOGL 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)1.33
EPS Next 2Y19.79%
EPS Next 3Y18.39%
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 1.20.
- 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 2Y19.79%
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.