ALPHABET INC-CL C (GOOG)
US02079K1079 - Common Stock
GOOG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 68 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 growing strongly while it is still valued neutral. This is a good combination! With these ratings, GOOG could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year GOOG was profitable.
In the past year GOOG had a positive cash flow from operations.
GOOG had positive earnings in each of the past 5 years.
GOOG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GOOG has a Return On Assets of 20.23%. This is amongst the best in the industry. GOOG outperforms 94.03% of its industry peers.
Looking at the Return On Equity, with a value of 28.14%, GOOG belongs to the top of the industry, outperforming 92.54% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 24.32%, GOOG belongs to the top of the industry, outperforming 97.01% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GOOG is significantly above the industry average of 10.06%.
The 3 year average ROIC (22.54%) for GOOG is below the current ROIC(24.32%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.23% | ||
| ROE | 28.14% | ||
| ROIC | 24.32% |
ROA(3y)18.64%
ROA(5y)16.19%
ROE(3y)26.56%
ROE(5y)22.96%
ROIC(3y)22.54%
ROIC(5y)18.85%
1.3 Margins
Looking at the Profit Margin, with a value of 25.90%, GOOG belongs to the top of the industry, outperforming 91.04% of the companies in the same industry.
GOOG's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 29.68%, GOOG belongs to the top of the industry, outperforming 95.52% of the companies in the same industry.
In the last couple of years the Operating Margin of GOOG has grown nicely.
With a Gross Margin value of 57.25%, GOOG perfoms like the industry average, outperforming 41.79% 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 | 29.68% | ||
| PM (TTM) | 25.9% | ||
| GM | 57.25% |
OM growth 3Y8.32%
OM growth 5Y3.8%
PM growth 3Y2.86%
PM growth 5Y1.34%
GM growth 3Y2.05%
GM growth 5Y0.16%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GOOG is creating value.
Compared to 1 year ago, GOOG has less shares outstanding
Compared to 5 years ago, GOOG has less shares outstanding
GOOG has a better debt/assets ratio than last year.
2.2 Solvency
GOOG has an Altman-Z score of 13.82. This indicates that GOOG is financially healthy and has little risk of bankruptcy at the moment.
GOOG has a better Altman-Z score (13.82) than 94.03% of its industry peers.
The Debt to FCF ratio of GOOG is 0.20, which is an excellent value as it means it would take GOOG, only 0.20 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.20, GOOG belongs to the best of the industry, outperforming 85.07% of the companies in the same industry.
A Debt/Equity ratio of 0.05 indicates that GOOG is not too dependend on debt financing.
GOOG has a Debt to Equity ratio (0.05) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.2 | ||
| Altman-Z | 13.82 |
ROIC/WACC2.68
WACC9.07%
2.3 Liquidity
A Current Ratio of 2.15 indicates that GOOG has no problem at all paying its short term obligations.
GOOG has a Current ratio (2.15) which is comparable to the rest of the industry.
GOOG has a Quick Ratio of 2.15. This indicates that GOOG is financially healthy and has no problem in meeting its short term obligations.
GOOG has a Quick ratio (2.15) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 45.21% over the past year.
Measured over the past years, GOOG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.55% on average per year.
The Revenue has grown by 11.78% in the past year. This is quite good.
Measured over the past years, GOOG shows a quite strong growth in Revenue. The Revenue has been growing by 17.57% on average per year.
EPS 1Y (TTM)45.21%
EPS 3Y25.49%
EPS 5Y19.55%
EPS growth Q2Q61.54%
Revenue 1Y (TTM)11.78%
Revenue growth 3Y18.98%
Revenue growth 5Y17.57%
Revenue growth Q2Q15.41%
3.2 Future
The Earnings Per Share is expected to grow by 19.96% on average over the next years. This is quite good.
GOOG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.62% yearly.
EPS Next Y20.95%
EPS Next 2Y18.01%
EPS Next 3Y16.71%
EPS Next 5Y19.96%
Revenue Next Year11.93%
Revenue Next 2Y11.2%
Revenue Next 3Y10.44%
Revenue Next 5Y10.62%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.67, the valuation of GOOG can be described as expensive.
Based on the Price/Earnings ratio, GOOG is valued a bit cheaper than 71.64% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.91, GOOG is valued at the same level.
The Price/Forward Earnings ratio is 21.53, which indicates a rather expensive current valuation of GOOG.
Based on the Price/Forward Earnings ratio, GOOG is valued a bit cheaper than 65.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GOOG to the average of the S&P500 Index (20.51), we can say GOOG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.67 | ||
| Fwd PE | 21.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GOOG is valued a bit cheaper than the industry average as 65.67% of the companies are valued more expensively.
GOOG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GOOG is cheaper than 67.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.09 | ||
| EV/EBITDA | 18.48 |
4.3 Compensation for Growth
GOOG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of GOOG may justify a higher PE ratio.
A more expensive valuation may be justified as GOOG's earnings are expected to grow with 16.71% in the coming years.
PEG (NY)1.27
PEG (5Y)1.36
EPS Next 2Y18.01%
EPS Next 3Y16.71%
5. Dividend
5.1 Amount
GOOG has a yearly dividend return of 0.47%, which is pretty low.
GOOG's Dividend Yield is rather good when compared to the industry average which is at 16.13. GOOG pays more dividend than 91.04% of the companies in the same industry.
With a Dividend Yield of 0.47, GOOG pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
5.2 History
GOOG does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y18.01%
EPS Next 3Y16.71%
ALPHABET INC-CL C
NASDAQ:GOOG (5/15/2024, 7:00:01 PM)
Premarket: 174.08 +0.2 (+0.12%)173.88
+1.95 (+1.13%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2148.81B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
Dividend Growth(5Y)
DP
Div Incr Years
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Surprises & Revisions
EPS beat(2)
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EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.67 | ||
| Fwd PE | 21.53 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.27
PEG (5Y)1.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.23% | ||
| ROE | 28.14% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.68% | ||
| PM (TTM) | 25.9% | ||
| GM | 57.25% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.15 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)45.21%
EPS 3Y25.49%
EPS 5Y
EPS growth Q2Q
EPS Next Y20.95%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.78%
Revenue growth 3Y18.98%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
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