ALPHABET INC-CL C (GOOG) Stock Fundamental Analysis
NASDAQ:GOOG - Nasdaq - US02079K1079 - Common Stock - Currency: USD
Taking everything into account, GOOG scores 7 out of 10 in our fundamental rating. GOOG was compared to 71 industry peers in the Interactive Media & Services industry. GOOG gets an excellent profitability rating and is at the same time showing great financial health properties. GOOG is not overvalued while it is showing excellent growth. This is an interesting combination. This makes GOOG very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year GOOG was profitable.
GOOG had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 22.24%, GOOG belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
The Return On Equity of GOOG (30.80%) is better than 95.45% of its industry peers.
With an excellent Return On Invested Capital value of 27.32%, GOOG belongs to the best of the industry, outperforming 95.45% 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 12.51%.
The 3 year average ROIC (24.15%) for GOOG is below the current ROIC(27.32%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.24% | ||
| ROE | 30.8% | ||
| ROIC | 27.32% |
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
With an excellent Profit Margin value of 28.60%, GOOG belongs to the best of the industry, outperforming 92.42% of the companies in the same industry.
GOOG's Profit Margin has improved in the last couple of years.
The Operating Margin of GOOG (32.79%) is better than 96.97% of its industry peers.
In the last couple of years the Operating Margin of GOOG has grown nicely.
GOOG has a Gross Margin of 58.24%. This is comparable to the rest of the industry: GOOG outperforms 48.48% of its industry peers.
GOOG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.79% | ||
| PM (TTM) | 28.6% | ||
| GM | 58.24% |
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.
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 12.96 indicates that GOOG is not in any danger for bankruptcy at the moment.
GOOG has a Altman-Z score of 12.96. This is amongst the best in the industry. GOOG outperforms 92.42% of its industry peers.
The Debt to FCF ratio of GOOG is 0.17, which is an excellent value as it means it would take GOOG, only 0.17 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 0.17, GOOG is doing good in the industry, outperforming 78.79% of the companies in the same industry.
A Debt/Equity ratio of 0.03 indicates that GOOG is not too dependend on debt financing.
The Debt to Equity ratio of GOOG (0.03) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.17 | ||
| Altman-Z | 12.96 |
ROIC/WACC3.03
WACC9.01%
2.3 Liquidity
GOOG has a Current Ratio of 1.84. 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 Current ratio (1.84) which is comparable to the rest of the industry.
A Quick Ratio of 1.84 indicates that GOOG should not have too much problems paying its short term obligations.
GOOG has a Quick ratio of 1.84. This is comparable to the rest of the industry: GOOG outperforms 48.48% of its industry peers.
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 | 1.84 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
GOOG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.79%, which is quite impressive.
Measured over the past years, GOOG shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.25% on average per year.
Looking at the last year, GOOG shows a quite strong growth in Revenue. The Revenue has grown by 13.87% in the last year.
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)38.79%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%31.1%
Revenue 1Y (TTM)13.87%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%11.77%
3.2 Future
Based on estimates for the next years, GOOG will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.13% on average per year.
Based on estimates for the next years, GOOG will show a quite strong growth in Revenue. The Revenue will grow by 10.86% on average per year.
EPS Next Y14.44%
EPS Next 2Y14.59%
EPS Next 3Y14.36%
EPS Next 5Y16.13%
Revenue Next Year11.28%
Revenue Next 2Y11.12%
Revenue Next 3Y11.12%
Revenue Next 5Y10.86%
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.
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
The Price/Earnings ratio is 22.02, which indicates a rather expensive current valuation of GOOG.
65.15% of the companies in the same industry are more expensive than GOOG, based on the Price/Earnings ratio.
GOOG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.43.
GOOG is valuated rather expensively with a Price/Forward Earnings ratio of 19.24.
60.61% of the companies in the same industry are more expensive than GOOG, based on the Price/Forward Earnings ratio.
GOOG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.65.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.02 | ||
| Fwd PE | 19.24 |
4.2 Price Multiples
GOOG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GOOG is cheaper than 68.18% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GOOG is valued a bit cheaper than the industry average as 60.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.74 | ||
| EV/EBITDA | 15.45 |
4.3 Compensation for Growth
GOOG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 14.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.52
PEG (5Y)0.87
EPS Next 2Y14.59%
EPS Next 3Y14.36%
5. Dividend
5.1 Amount
With a yearly dividend of 0.43%, 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 90.91% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, GOOG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
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 7.35% of its income as dividend. This is a sustainable payout ratio.
DP7.35%
EPS Next 2Y14.59%
EPS Next 3Y14.36%
NASDAQ:GOOG (2/26/2025, 10:01:10 AM)
177.26
-0.11 (-0.06%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners81.23%
Inst Owner Change-87.41%
Ins Owners0.08%
Ins Owner Change0%
Market Cap2163.99B
Analysts81.52
Price Target219.37 (23.76%)
Short Float %0.76%
Short Ratio2.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
Yearly Dividend0.6
Dividend Growth(5Y)N/A
DP7.35%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.81%
Min EPS beat(2)-1.9%
Max EPS beat(2)11.53%
EPS beat(4)2
Avg EPS beat(4)7.56%
Min EPS beat(4)-1.9%
Max EPS beat(4)21.13%
EPS beat(8)5
Avg EPS beat(8)5.61%
EPS beat(12)5
Avg EPS beat(12)-0.11%
EPS beat(16)9
Avg EPS beat(16)7.6%
Revenue beat(2)0
Avg Revenue beat(2)-1.85%
Min Revenue beat(2)-3.01%
Max Revenue beat(2)-0.7%
Revenue beat(4)0
Avg Revenue beat(4)-1.62%
Min Revenue beat(4)-3.01%
Max Revenue beat(4)-0.51%
Revenue beat(8)0
Avg Revenue beat(8)-1.57%
Revenue beat(12)0
Avg Revenue beat(12)-2.27%
Revenue beat(16)3
Avg Revenue beat(16)-0.95%
PT rev (1m)2.56%
PT rev (3m)6.37%
EPS NQ rev (1m)-1.02%
EPS NQ rev (3m)-1.57%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)-0.77%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.02 | ||
| Fwd PE | 19.24 | ||
| P/S | 6.18 | ||
| P/FCF | 29.74 | ||
| P/OCF | 17.27 | ||
| P/B | 6.66 | ||
| P/tB | 7.38 | ||
| EV/EBITDA | 15.45 |
EPS(TTM)8.05
EY4.54%
EPS(NY)9.21
Fwd EY5.2%
FCF(TTM)5.96
FCFY3.36%
OCF(TTM)10.26
OCFY5.79%
SpS28.67
BVpS26.63
TBVpS24.02
PEG (NY)1.52
PEG (5Y)0.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.24% | ||
| ROE | 30.8% | ||
| ROCE | 31.78% | ||
| ROIC | 27.32% | ||
| ROICexc | 37.16% | ||
| ROICexgc | 42.23% | ||
| OM | 32.79% | ||
| PM (TTM) | 28.6% | ||
| GM | 58.24% | ||
| FCFM | 20.79% |
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-Score8
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.17 | ||
| Debt/EBITDA | 0.08 | ||
| Cap/Depr | 343.12% | ||
| Cap/Sales | 15.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.32% | ||
| Profit Quality | 72.68% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.84 | ||
| Altman-Z | 12.96 |
F-Score8
WACC9.01%
ROIC/WACC3.03
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)38.79%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%31.1%
EPS Next Y14.44%
EPS Next 2Y14.59%
EPS Next 3Y14.36%
EPS Next 5Y16.13%
Revenue 1Y (TTM)13.87%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%11.77%
Revenue Next Year11.28%
Revenue Next 2Y11.12%
Revenue Next 3Y11.12%
Revenue Next 5Y10.86%
EBIT growth 1Y30.1%
EBIT growth 3Y13.04%
EBIT growth 5Y25.91%
EBIT Next Year57.49%
EBIT Next 3Y27.12%
EBIT Next 5Y20.96%
FCF growth 1Y4.7%
FCF growth 3Y2.78%
FCF growth 5Y18.63%
OCF growth 1Y23.15%
OCF growth 3Y10.99%
OCF growth 5Y18.11%