ALPHABET INC-CL C (GOOG) Stock Fundamental Analysis
NASDAQ:GOOG - Nasdaq - US02079K1079 - Common Stock - Currency: USD
GOOG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, GOOG could be worth investigating further 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.
In the past 5 years GOOG has always been profitable.
Each year in the past 5 years GOOG had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 23.35%, GOOG belongs to the best of the industry, outperforming 94.29% of the companies in the same industry.
The Return On Equity of GOOG (32.15%) is better than 94.29% of its industry peers.
With an excellent Return On Invested Capital value of 26.71%, GOOG belongs to the best of the industry, outperforming 95.71% of the companies in the same industry.
GOOG had an Average Return On Invested Capital over the past 3 years of 24.15%. This is significantly above the industry average of 12.03%.
The 3 year average ROIC (24.15%) for GOOG is below the current ROIC(26.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.35% | ||
| ROE | 32.15% | ||
| ROIC | 26.71% |
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 (30.86%) than 92.86% of its industry peers.
In the last couple of years the Profit Margin of GOOG has grown nicely.
GOOG's Operating Margin of 33.15% is amongst the best of the industry. GOOG outperforms 95.71% of its industry peers.
In the last couple of years the Operating Margin of GOOG has grown nicely.
The Gross Margin of GOOG (58.59%) is comparable to the rest of the industry.
GOOG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.15% | ||
| PM (TTM) | 30.86% | ||
| GM | 58.59% |
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
GOOG 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, GOOG has less shares outstanding
The number of shares outstanding for GOOG has been reduced compared to 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 12.44 indicates that GOOG is not in any danger for bankruptcy at the moment.
GOOG has a better Altman-Z score (12.44) than 90.00% of its industry peers.
GOOG has a debt to FCF ratio of 0.19. This is a very positive value and a sign of high solvency as it would only need 0.19 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.19, GOOG is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
GOOG has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of GOOG (0.04) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.19 | ||
| Altman-Z | 12.44 |
ROIC/WACC3
WACC8.9%
2.3 Liquidity
A Current Ratio of 1.77 indicates that GOOG should not have too much problems paying its short term obligations.
GOOG has a Current ratio (1.77) which is comparable to the rest of the industry.
GOOG has a Quick Ratio of 1.77. This is a normal value and indicates that GOOG is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.77, GOOG perfoms like the industry average, outperforming 41.43% 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 | 1.77 | ||
| Quick Ratio | 1.77 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.29% 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
Looking at the last year, GOOG shows a quite strong growth in Revenue. The Revenue has grown by 13.07% 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)29.29%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%20.11%
Revenue 1Y (TTM)13.07%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%12.04%
3.2 Future
The Earnings Per Share is expected to grow by 15.78% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.45% on average over the next years. This is quite good.
EPS Next Y22.56%
EPS Next 2Y14.12%
EPS Next 3Y13.91%
EPS Next 5Y15.78%
Revenue Next Year10.4%
Revenue Next 2Y10.45%
Revenue Next 3Y10.44%
Revenue Next 5Y10.45%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 21.32, which indicates a rather expensive current valuation of GOOG.
Compared to the rest of the industry, the Price/Earnings ratio of GOOG indicates a somewhat cheap valuation: GOOG is cheaper than 62.86% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.28. GOOG is valued slightly cheaper when compared to this.
GOOG is valuated rather expensively with a Price/Forward Earnings ratio of 17.15.
GOOG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GOOG is cheaper than 67.14% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, GOOG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.32 | ||
| Fwd PE | 17.15 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GOOG indicates a somewhat cheap valuation: GOOG is cheaper than 67.14% of the companies listed in the same industry.
GOOG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.13 | ||
| EV/EBITDA | 14.7 |
4.3 Compensation for Growth
GOOG's 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.
GOOG's earnings are expected to grow with 13.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.95
PEG (5Y)0.84
EPS Next 2Y14.12%
EPS Next 3Y13.91%
5. Dividend
5.1 Amount
GOOG has a yearly dividend return of 0.47%, which is pretty low.
Compared to an average industry Dividend Yield of 3.05, GOOG pays a better dividend. On top of this GOOG pays more dividend than 91.43% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, GOOG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
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
GOOG pays out 8.83% of its income as dividend. This is a sustainable payout ratio.
DP8.83%
EPS Next 2Y14.12%
EPS Next 3Y13.91%
179.76
+2.85 (+1.61%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners80.92%
Inst Owner Change-0.79%
Ins Owners0.05%
Ins Owner Change0%
Market Cap2181.39B
Analysts81.56
Price Target206.56 (14.91%)
Short Float %0.57%
Short Ratio1.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
Yearly Dividend0.6
Dividend Growth(5Y)N/A
DP8.83%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.81%
Min EPS beat(2)-1.9%
Max EPS beat(2)9.52%
EPS beat(4)2
Avg EPS beat(4)4.66%
Min EPS beat(4)-1.9%
Max EPS beat(4)11.53%
EPS beat(8)5
Avg EPS beat(8)5.99%
EPS beat(12)6
Avg EPS beat(12)1.28%
EPS beat(16)9
Avg EPS beat(16)4.36%
Revenue beat(2)0
Avg Revenue beat(2)-2.35%
Min Revenue beat(2)-3.01%
Max Revenue beat(2)-1.7%
Revenue beat(4)0
Avg Revenue beat(4)-1.92%
Min Revenue beat(4)-3.01%
Max Revenue beat(4)-0.7%
Revenue beat(8)0
Avg Revenue beat(8)-1.56%
Revenue beat(12)0
Avg Revenue beat(12)-2.16%
Revenue beat(16)2
Avg Revenue beat(16)-1.3%
PT rev (1m)-0.77%
PT rev (3m)-7.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.24%
EPS NY rev (1m)0.07%
EPS NY rev (3m)7.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.71%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.32 | ||
| Fwd PE | 17.15 | ||
| P/S | 6.06 | ||
| P/FCF | 29.13 | ||
| P/OCF | 16.45 | ||
| P/B | 6.32 | ||
| P/tB | 6.97 | ||
| EV/EBITDA | 14.7 |
EPS(TTM)8.43
EY4.69%
EPS(NY)10.48
Fwd EY5.83%
FCF(TTM)6.17
FCFY3.43%
OCF(TTM)10.93
OCFY6.08%
SpS29.64
BVpS28.45
TBVpS25.8
PEG (NY)0.95
PEG (5Y)0.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.35% | ||
| ROE | 32.15% | ||
| ROCE | 31.07% | ||
| ROIC | 26.71% | ||
| ROICexc | 35.54% | ||
| ROICexgc | 40% | ||
| OM | 33.15% | ||
| PM (TTM) | 30.86% | ||
| GM | 58.59% | ||
| FCFM | 20.82% |
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%
ROICexcg growth 3Y-6.79%
ROICexcg 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-Score7
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.19 | ||
| Debt/EBITDA | 0.09 | ||
| Cap/Depr | 352.27% | ||
| Cap/Sales | 16.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.77% | ||
| Profit Quality | 67.46% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.77 | ||
| Altman-Z | 12.44 |
F-Score7
WACC8.9%
ROIC/WACC3
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)29.29%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%20.11%
EPS Next Y22.56%
EPS Next 2Y14.12%
EPS Next 3Y13.91%
EPS Next 5Y15.78%
Revenue 1Y (TTM)13.07%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%12.04%
Revenue Next Year10.4%
Revenue Next 2Y10.45%
Revenue Next 3Y10.44%
Revenue Next 5Y10.45%
EBIT growth 1Y25.93%
EBIT growth 3Y13.04%
EBIT growth 5Y25.91%
EBIT Next Year56.95%
EBIT Next 3Y26.18%
EBIT Next 5Y21.09%
FCF growth 1Y20.95%
FCF growth 3Y2.78%
FCF growth 5Y18.63%
OCF growth 1Y47.5%
OCF growth 3Y10.99%
OCF growth 5Y18.11%