ALPHABET INC-CL C (GOOG) Stock Fundamental Analysis
USA - NASDAQ:GOOG - US02079K1079 - Common Stock
293.85 USD
+8.89 (+3.12%)
We assign a fundamental rating of 7 out of 10 to GOOG. GOOG was compared to 70 industry peers in the Interactive Media & Services industry. Both the health and profitability get an excellent rating, making GOOG a very profitable company, without any liquidiy or solvency issues. GOOG is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make GOOG suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
GOOG had positive earnings in the past year.
GOOG had a positive operating cash flow in the past year.
GOOG had positive earnings in each of the past 5 years.
In the past 5 years GOOG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 23.16%, GOOG belongs to the top of the industry, outperforming 95.71% of the companies in the same industry.
With an excellent Return On Equity value of 32.12%, GOOG belongs to the best of the industry, outperforming 95.71% of the companies in the same industry.
GOOG's Return On Invested Capital of 24.90% is amongst the best of the industry. GOOG outperforms 91.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GOOG is significantly above the industry average of 13.26%.
The 3 year average ROIC (24.19%) for GOOG is below the current ROIC(24.90%), indicating increased profibility in the last year.
| 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
GOOG's Profit Margin of 32.23% is amongst the best of the industry. GOOG outperforms 90.00% of its industry peers.
GOOG's Profit Margin has improved in the last couple of years.
GOOG has a better Operating Margin (32.83%) than 95.71% of its industry peers.
GOOG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 59.17%, GOOG is in line with its industry, outperforming 48.57% of the companies in the same industry.
In the last couple of years the Gross Margin of GOOG 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 GOOG is creating value.
GOOG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, GOOG has less shares outstanding
GOOG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 16.26 indicates that GOOG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 16.26, GOOG belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
GOOG 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.
GOOG's Debt to FCF ratio of 0.29 is amongst the best of the industry. GOOG outperforms 82.86% of its industry peers.
GOOG has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.06, GOOG is in line with its industry, outperforming 55.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 16.26 |
ROIC/WACC2.48
WACC10.04%
2.3 Liquidity
GOOG has a Current Ratio of 1.75. This is a normal value and indicates that GOOG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of GOOG (1.75) is comparable to the rest of the industry.
GOOG has a Quick Ratio of 1.75. This is a normal value and indicates that GOOG 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, GOOG is in line with its industry, outperforming 45.71% of the companies in the same industry.
The current and quick ratio evaluation for GOOG 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 | 1.75 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
GOOG 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
GOOG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.42%.
Measured over the past years, GOOG 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 17.13% on average over the next years. This is quite good.
Based on estimates for the next years, GOOG will show a quite strong growth in Revenue. The Revenue will grow by 12.36% on average per year.
EPS Next Y32.67%
EPS Next 2Y18.31%
EPS Next 3Y17.12%
EPS Next 5Y17.13%
Revenue Next Year13.73%
Revenue Next 2Y13.22%
Revenue Next 3Y12.76%
Revenue Next 5Y12.36%
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
The Price/Earnings ratio is 29.89, which means the current valuation is very expensive for GOOG.
Compared to the rest of the industry, the Price/Earnings ratio of GOOG is on the same level as its industry peers.
GOOG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.51, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 26.08, the valuation of GOOG can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GOOG is on the same level as its industry peers.
GOOG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.89 | ||
| Fwd PE | 26.08 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GOOG.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GOOG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.32 | ||
| EV/EBITDA | 22.58 |
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.
GOOG has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as GOOG's earnings are expected to grow with 17.12% in the coming years.
PEG (NY)0.91
PEG (5Y)1.18
EPS Next 2Y18.31%
EPS Next 3Y17.12%
5. Dividend
5.1 Amount
With a yearly dividend of 0.30%, GOOG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.80, GOOG pays a better dividend. On top of this GOOG pays more dividend than 88.57% of the companies listed in the same industry.
With a Dividend Yield of 0.30, GOOG pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
5.2 History
GOOG is new to the dividend game and has less than 3 years of track record.
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 GOOG. This is a low number and sustainable payout ratio.
DP8.01%
EPS Next 2Y18.31%
EPS Next 3Y17.12%
NASDAQ:GOOG (11/19/2025, 2:49:07 PM)
293.85
+8.89 (+3.12%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners81.14%
Inst Owner Change-3.7%
Ins Owners0.05%
Ins Owner Change0%
Market Cap3.55T
Revenue(TTM)385.48B
Net Income(TTM)124.25B
Analysts82.43
Price Target263.95 (-10.18%)
Short Float %0.68%
Short Ratio1.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
Yearly Dividend0.6
Dividend Growth(5Y)N/A
DP8.01%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.04%
Min EPS beat(2)2.67%
Max EPS beat(2)29.41%
EPS beat(4)3
Avg EPS beat(4)9.93%
Min EPS beat(4)-1.9%
Max EPS beat(4)29.41%
EPS beat(8)5
Avg EPS beat(8)8.98%
EPS beat(12)8
Avg EPS beat(12)6.1%
EPS beat(16)9
Avg EPS beat(16)3.08%
Revenue beat(2)0
Avg Revenue beat(2)-0.46%
Min Revenue beat(2)-0.53%
Max Revenue beat(2)-0.4%
Revenue beat(4)0
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-3.01%
Max Revenue beat(4)-0.4%
Revenue beat(8)0
Avg Revenue beat(8)-1.37%
Revenue beat(12)0
Avg Revenue beat(12)-1.56%
Revenue beat(16)1
Avg Revenue beat(16)-1.78%
PT rev (1m)9.59%
PT rev (3m)19.04%
EPS NQ rev (1m)2.49%
EPS NQ rev (3m)2.77%
EPS NY rev (1m)4.27%
EPS NY rev (3m)8.02%
Revenue NQ rev (1m)1.92%
Revenue NQ rev (3m)2.1%
Revenue NY rev (1m)0.83%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.89 | ||
| Fwd PE | 26.08 | ||
| P/S | 9.22 | ||
| P/FCF | 48.32 | ||
| P/OCF | 23.47 | ||
| P/B | 9.19 | ||
| P/tB | 10.05 | ||
| EV/EBITDA | 22.58 |
EPS(TTM)9.83
EY3.35%
EPS(NY)11.27
Fwd EY3.83%
FCF(TTM)6.08
FCFY2.07%
OCF(TTM)12.52
OCFY4.26%
SpS31.87
BVpS31.99
TBVpS29.24
PEG (NY)0.91
PEG (5Y)1.18
Graham Number84.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.16% | ||
| ROE | 32.12% | ||
| ROCE | 28.96% | ||
| ROIC | 24.9% | ||
| ROICexc | 32.14% | ||
| ROICexgc | 35.65% | ||
| OM | 32.83% | ||
| PM (TTM) | 32.23% | ||
| GM | 59.17% | ||
| FCFM | 19.08% |
ROA(3y)19%
ROA(5y)18.15%
ROE(3y)26.75%
ROE(5y)25.71%
ROIC(3y)24.19%
ROIC(5y)21.8%
ROICexc(3y)36.15%
ROICexc(5y)36.02%
ROICexgc(3y)42.2%
ROICexgc(5y)42.5%
ROCE(3y)28.15%
ROCE(5y)25.36%
ROICexgc growth 3Y-6.64%
ROICexgc growth 5Y3.77%
ROICexc growth 3Y-5.3%
ROICexc growth 5Y5.86%
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%
F-Score6
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.29 | ||
| Debt/EBITDA | 0.15 | ||
| Cap/Depr | 403.46% | ||
| Cap/Sales | 20.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.82% | ||
| Profit Quality | 59.2% | ||
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.75 | ||
| Altman-Z | 16.26 |
F-Score6
WACC10.04%
ROIC/WACC2.48
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)30.37%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%46.23%
EPS Next Y32.67%
EPS Next 2Y18.31%
EPS Next 3Y17.12%
EPS Next 5Y17.13%
Revenue 1Y (TTM)13.42%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%15.95%
Revenue Next Year13.73%
Revenue Next 2Y13.22%
Revenue Next 3Y12.76%
Revenue Next 5Y12.36%
EBIT growth 1Y16.37%
EBIT growth 3Y13.22%
EBIT growth 5Y26.03%
EBIT Next Year60.51%
EBIT Next 3Y28.69%
EBIT Next 5Y24.81%
FCF growth 1Y-5.24%
FCF growth 3Y2.78%
FCF growth 5Y18.63%
OCF growth 1Y42.26%
OCF growth 3Y10.99%
OCF growth 5Y18.11%
ALPHABET INC-CL C / GOOG FAQ
What is the fundamental rating for GOOG stock?
ChartMill assigns a fundamental rating of 7 / 10 to GOOG.
What is the valuation status for GOOG stock?
ChartMill assigns a valuation rating of 4 / 10 to ALPHABET INC-CL C (GOOG). This can be considered as Fairly Valued.
How profitable is ALPHABET INC-CL C (GOOG) stock?
ALPHABET INC-CL C (GOOG) has a profitability rating of 9 / 10.
What is the valuation of ALPHABET INC-CL C based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ALPHABET INC-CL C (GOOG) is 29.89 and the Price/Book (PB) ratio is 9.19.
What is the financial health of ALPHABET INC-CL C (GOOG) stock?
The financial health rating of ALPHABET INC-CL C (GOOG) is 9 / 10.