329.14 USD
+3.13 (+0.96%)
329.89 USD
+0.75 (+0.23%)
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. GOOG scores excellent points on both the profitability and health parts. This is a solid base for a good stock. GOOG is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make GOOG suitable 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.
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 23.16%, GOOG belongs to the best 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.
Looking at the Return On Invested Capital, with a value of 24.90%, GOOG belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GOOG is significantly above the industry average of 13.70%.
The last Return On Invested Capital (24.90%) for GOOG is above the 3 year average (24.19%), which is a sign of increasing profitability.
| 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 91.43% of its industry peers.
In the last couple of years the Profit Margin of GOOG has grown nicely.
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.
GOOG has a Gross Margin (59.17%) which is in line with its industry peers.
GOOG's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for GOOG has been reduced compared to 1 year ago.
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 18.22 indicates that GOOG is not in any danger for bankruptcy at the moment.
GOOG has a Altman-Z score of 18.22. This is amongst the best in the industry. GOOG outperforms 95.71% of its industry peers.
The Debt to FCF ratio of GOOG is 0.29, which is an excellent value as it means it would take GOOG, only 0.29 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.29, GOOG belongs to the top of the industry, outperforming 82.86% of the companies in the same industry.
A Debt/Equity ratio of 0.06 indicates that GOOG is not too dependend on debt financing.
GOOG has a Debt to Equity ratio of 0.06. This is comparable to the rest of the industry: GOOG outperforms 54.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 18.22 |
ROIC/WACC2.83
WACC8.8%
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.
With a Current ratio value of 1.75, GOOG perfoms like the industry average, outperforming 48.57% of the companies in the same industry.
A Quick Ratio of 1.75 indicates that GOOG should not have too much problems paying its short term obligations.
The Quick ratio of GOOG (1.75) 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 | 1.75 | ||
| 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%.
The Revenue has been growing by 16.68% on average over the past years. This is quite good.
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
Based on estimates for the next years, GOOG will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.13% on average per year.
The Revenue is expected to grow by 12.49% on average over the next years. This is quite good.
EPS Next Y35.39%
EPS Next 2Y19.53%
EPS Next 3Y18.08%
EPS Next 5Y17.13%
Revenue Next Year13.9%
Revenue Next 2Y13.65%
Revenue Next 3Y13.17%
Revenue Next 5Y12.49%
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
Based on the Price/Earnings ratio of 33.48, the valuation of GOOG can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as GOOG.
When comparing the Price/Earnings ratio of GOOG to the average of the S&P500 Index (27.19), we can say GOOG is valued slightly more expensively.
A Price/Forward Earnings ratio of 28.62 indicates a quite expensive valuation of GOOG.
GOOG's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.88. GOOG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.48 | ||
| Fwd PE | 28.62 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GOOG is on the same level as its industry peers.
GOOG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54 | ||
| EV/EBITDA | 25.93 |
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.
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 18.08% in the coming years.
PEG (NY)0.95
PEG (5Y)1.33
EPS Next 2Y19.53%
EPS Next 3Y18.08%
5. Dividend
5.1 Amount
GOOG has a yearly dividend return of 0.26%, which is pretty low.
Compared to an average industry Dividend Yield of 0.47, 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 0.26, GOOG pays less dividend than the S&P500 average, which is at 1.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
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 8.01% of its income as dividend. This is a sustainable payout ratio.
DP8.01%
EPS Next 2Y19.53%
EPS Next 3Y18.08%
329.14
+3.13 (+0.96%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners81.24%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner Change0%
Market Cap3.97T
Revenue(TTM)385.48B
Net Income(TTM)124.25B
Analysts82.57
Price Target323.23 (-1.8%)
Short Float %0.97%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
Yearly Dividend0.6
Dividend Growth(5Y)N/A
DP8.01%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)4.34%
PT rev (3m)34.2%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)2.9%
EPS NY rev (1m)0.04%
EPS NY rev (3m)6.4%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)2.21%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.48 | ||
| Fwd PE | 28.62 | ||
| P/S | 10.3 | ||
| P/FCF | 54 | ||
| P/OCF | 26.23 | ||
| P/B | 10.27 | ||
| P/tB | 11.23 | ||
| EV/EBITDA | 25.93 |
EPS(TTM)9.83
EY2.99%
EPS(NY)11.5
Fwd EY3.49%
FCF(TTM)6.1
FCFY1.85%
OCF(TTM)12.55
OCFY3.81%
SpS31.94
BVpS32.06
TBVpS29.3
PEG (NY)0.95
PEG (5Y)1.33
Graham Number84.21
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 | 18.22 |
F-Score6
WACC8.8%
ROIC/WACC2.83
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 Y35.39%
EPS Next 2Y19.53%
EPS Next 3Y18.08%
EPS Next 5Y17.13%
Revenue 1Y (TTM)13.42%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%15.95%
Revenue Next Year13.9%
Revenue Next 2Y13.65%
Revenue Next 3Y13.17%
Revenue Next 5Y12.49%
EBIT growth 1Y16.37%
EBIT growth 3Y13.22%
EBIT growth 5Y26.03%
EBIT Next Year59.97%
EBIT Next 3Y31.67%
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
Can you provide the ChartMill fundamental rating for ALPHABET INC-CL C?
ChartMill assigns a fundamental rating of 7 / 10 to GOOG.
Can you provide the valuation status for ALPHABET INC-CL C?
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 financial health of ALPHABET INC-CL C (GOOG) stock?
The financial health rating of ALPHABET INC-CL C (GOOG) is 9 / 10.
Can you provide the dividend sustainability for GOOG stock?
The dividend rating of ALPHABET INC-CL C (GOOG) is 3 / 10 and the dividend payout ratio is 8.01%.