ALPHABET INC-CL C (GOOG) Stock Fundamental Analysis
USA - NASDAQ:GOOG - US02079K1079 - Common Stock
274.477 USD
+6.05 (+2.25%)
Overall GOOG gets a fundamental rating of 7 out of 10. We evaluated GOOG against 70 industry peers in the Interactive Media & Services industry. GOOG has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. GOOG is growing strongly while it is still valued neutral. This is a good combination! These ratings could make GOOG a good candidate 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.
Each year in the past 5 years GOOG has been profitable.
Each year in the past 5 years GOOG had a positive operating cash flow.
1.2 Ratios
GOOG's Return On Assets of 23.02% is amongst the best of the industry. GOOG outperforms 92.86% of its industry peers.
Looking at the Return On Equity, with a value of 31.85%, GOOG belongs to the top of the industry, outperforming 95.71% of the companies in the same industry.
GOOG's Return On Invested Capital of 25.81% is amongst the best of the industry. GOOG outperforms 92.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GOOG is significantly above the industry average of 13.27%.
The last Return On Invested Capital (25.81%) for GOOG is above the 3 year average (24.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.02% | ||
| ROE | 31.85% | ||
| ROIC | 25.81% |
ROA(3y)19%
ROA(5y)18.15%
ROE(3y)26.75%
ROE(5y)25.71%
ROIC(3y)24.15%
ROIC(5y)21.77%
1.3 Margins
GOOG has a better Profit Margin (31.12%) than 90.00% of its industry peers.
In the last couple of years the Profit Margin of GOOG has grown nicely.
GOOG has a Operating Margin of 33.53%. This is amongst the best in the industry. GOOG outperforms 95.71% of its industry peers.
In the last couple of years the Operating Margin of GOOG has grown nicely.
GOOG's Gross Margin of 58.94% is in line compared to the rest of the industry. GOOG outperforms 48.57% of its industry peers.
GOOG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.53% | ||
| PM (TTM) | 31.12% | ||
| GM | 58.94% |
OM growth 3Y2.06%
OM growth 5Y7.91%
PM growth 3Y-1.04%
PM growth 5Y6.16%
GM growth 3Y0.73%
GM growth 5Y0.93%
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
GOOG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for GOOG has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 16.52 indicates that GOOG is not in any danger for bankruptcy at the moment.
GOOG has a Altman-Z score of 16.52. This is amongst the best in the industry. GOOG outperforms 95.71% of its industry peers.
The Debt to FCF ratio of GOOG is 0.40, which is an excellent value as it means it would take GOOG, only 0.40 years of fcf income to pay off all of its debts.
GOOG has a better Debt to FCF ratio (0.40) than 81.43% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that GOOG is not too dependend on debt financing.
GOOG's Debt to Equity ratio of 0.07 is in line compared to the rest of the industry. GOOG outperforms 54.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | 16.52 |
ROIC/WACC2.53
WACC10.21%
2.3 Liquidity
A Current Ratio of 1.90 indicates that GOOG should not have too much problems paying its short term obligations.
With a Current ratio value of 1.90, GOOG perfoms like the industry average, outperforming 51.43% of the companies in the same industry.
GOOG has a Quick Ratio of 1.90. This is a normal value and indicates that GOOG is financially healthy and should not expect problems in meeting its short term obligations.
GOOG has a Quick ratio (1.90) which is comparable to the rest of the industry.
GOOG does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.9 | ||
| Quick Ratio | 1.9 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.97% over the past year.
GOOG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.25% yearly.
Looking at the last year, GOOG shows a quite strong growth in Revenue. The Revenue has grown by 13.13% in the last year.
The Revenue has been growing by 16.68% on average over the past years. This is quite good.
EPS 1Y (TTM)26.97%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%22.22%
Revenue 1Y (TTM)13.13%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%13.79%
3.2 Future
The Earnings Per Share is expected to grow by 17.81% on average over the next years. This is quite good.
The Revenue is expected to grow by 11.30% on average over the next years. This is quite good.
EPS Next Y27.03%
EPS Next 2Y16.95%
EPS Next 3Y15.93%
EPS Next 5Y17.81%
Revenue Next Year12.84%
Revenue Next 2Y12.26%
Revenue Next 3Y11.68%
Revenue Next 5Y11.3%
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
With a Price/Earnings ratio of 31.01, GOOG can be considered very expensive at the moment.
GOOG's Price/Earnings ratio is in line with the industry average.
GOOG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.00.
Based on the Price/Forward Earnings ratio of 24.93, the valuation of GOOG can be described as rather expensive.
GOOG's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of GOOG to the average of the S&P500 Index (22.87), we can say GOOG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.01 | ||
| Fwd PE | 24.93 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GOOG.
GOOG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.75 | ||
| EV/EBITDA | 21.83 |
4.3 Compensation for Growth
The 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.
GOOG's earnings are expected to grow with 15.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.15
PEG (5Y)1.23
EPS Next 2Y16.95%
EPS Next 3Y15.93%
5. Dividend
5.1 Amount
With a yearly dividend of 0.33%, GOOG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.63, GOOG pays a better dividend. On top of this GOOG pays more dividend than 90.00% of the companies listed in the same industry.
With a Dividend Yield of 0.33, GOOG pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
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
GOOG pays out 8.54% of its income as dividend. This is a sustainable payout ratio.
DP8.54%
EPS Next 2Y16.95%
EPS Next 3Y15.93%
NASDAQ:GOOG (10/29/2025, 3:44:10 PM)
274.477
+6.05 (+2.25%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners81.14%
Inst Owner Change-3.96%
Ins Owners0.05%
Ins Owner Change0%
Market Cap3319.52B
Revenue(TTM)371.40B
Net Income(TTM)115.57B
Analysts82.19
Price Target240.85 (-12.25%)
Short Float %0.62%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
Yearly Dividend0.6
Dividend Growth(5Y)N/A
DP8.54%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.1%
Min EPS beat(2)2.67%
Max EPS beat(2)9.52%
EPS beat(4)3
Avg EPS beat(4)5.45%
Min EPS beat(4)-1.9%
Max EPS beat(4)11.53%
EPS beat(8)5
Avg EPS beat(8)5.77%
EPS beat(12)7
Avg EPS beat(12)2.18%
EPS beat(16)9
Avg EPS beat(16)2.23%
Revenue beat(2)0
Avg Revenue beat(2)-1.05%
Min Revenue beat(2)-1.7%
Max Revenue beat(2)-0.4%
Revenue beat(4)0
Avg Revenue beat(4)-1.45%
Min Revenue beat(4)-3.01%
Max Revenue beat(4)-0.4%
Revenue beat(8)0
Avg Revenue beat(8)-1.55%
Revenue beat(12)0
Avg Revenue beat(12)-1.93%
Revenue beat(16)1
Avg Revenue beat(16)-1.76%
PT rev (1m)2.45%
PT rev (3m)15.65%
EPS NQ rev (1m)-1.85%
EPS NQ rev (3m)2.22%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)3.43%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)2.54%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)2.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.01 | ||
| Fwd PE | 24.93 | ||
| P/S | 8.94 | ||
| P/FCF | 49.75 | ||
| P/OCF | 24.83 | ||
| P/B | 9.15 | ||
| P/tB | 10.04 | ||
| EV/EBITDA | 21.83 |
EPS(TTM)8.85
EY3.22%
EPS(NY)11.01
Fwd EY4.01%
FCF(TTM)5.52
FCFY2.01%
OCF(TTM)11.06
OCFY4.03%
SpS30.71
BVpS30.01
TBVpS27.33
PEG (NY)1.15
PEG (5Y)1.23
Graham Number77.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.02% | ||
| ROE | 31.85% | ||
| ROCE | 30.02% | ||
| ROIC | 25.81% | ||
| ROICexc | 33.49% | ||
| ROICexgc | 37.26% | ||
| OM | 33.53% | ||
| PM (TTM) | 31.12% | ||
| GM | 58.94% | ||
| FCFM | 17.97% |
ROA(3y)19%
ROA(5y)18.15%
ROE(3y)26.75%
ROE(5y)25.71%
ROIC(3y)24.15%
ROIC(5y)21.77%
ROICexc(3y)36.09%
ROICexc(5y)35.99%
ROICexgc(3y)42.14%
ROICexgc(5y)42.46%
ROCE(3y)28.1%
ROCE(5y)25.33%
ROICexgc growth 3Y-6.79%
ROICexgc growth 5Y3.67%
ROICexc growth 3Y-5.45%
ROICexc growth 5Y5.76%
OM growth 3Y2.06%
OM growth 5Y7.91%
PM growth 3Y-1.04%
PM growth 5Y6.16%
GM growth 3Y0.73%
GM growth 5Y0.93%
F-Score6
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.4 | ||
| Debt/EBITDA | 0.18 | ||
| Cap/Depr | 378.95% | ||
| Cap/Sales | 18.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.03% | ||
| Profit Quality | 57.74% | ||
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.9 | ||
| Altman-Z | 16.52 |
F-Score6
WACC10.21%
ROIC/WACC2.53
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)26.97%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%22.22%
EPS Next Y27.03%
EPS Next 2Y16.95%
EPS Next 3Y15.93%
EPS Next 5Y17.81%
Revenue 1Y (TTM)13.13%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%13.79%
Revenue Next Year12.84%
Revenue Next 2Y12.26%
Revenue Next 3Y11.68%
Revenue Next 5Y11.3%
EBIT growth 1Y23.29%
EBIT growth 3Y13.04%
EBIT growth 5Y25.91%
EBIT Next Year60.51%
EBIT Next 3Y28.69%
EBIT Next 5Y22.85%
FCF growth 1Y-6.14%
FCF growth 3Y2.78%
FCF growth 5Y18.63%
OCF growth 1Y34.87%
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 31.01 and the Price/Book (PB) ratio is 9.15.
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.