ALPHABET INC-CL C (GOOG)
US02079K1079 - Common Stock
We assign a fundamental rating of 8 out of 10 to GOOG. GOOG was compared to 72 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! These ratings would make GOOG suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
GOOG had positive earnings in the past year.
In the past year GOOG had a positive cash flow from operations.
GOOG had positive earnings in each of the past 5 years.
In the past 5 years GOOG always reported a positive cash flow from operatings.
1.2 Ratios
GOOG has a Return On Assets of 21.91%. This is amongst the best in the industry. GOOG outperforms 97.18% of its industry peers.
With an excellent Return On Equity value of 30.01%, GOOG belongs to the best of the industry, outperforming 97.18% of the companies in the same industry.
GOOG has a better Return On Invested Capital (26.84%) than 97.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GOOG is significantly above the industry average of 10.97%.
The last Return On Invested Capital (26.84%) for GOOG is above the 3 year average (22.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.91% | ||
| ROE | 30.01% | ||
| ROIC | 26.84% |
ROA(3y)18.64%
ROA(5y)16.19%
ROE(3y)26.56%
ROE(5y)22.96%
ROIC(3y)22.84%
ROIC(5y)19.1%
1.3 Margins
GOOG has a better Profit Margin (27.74%) than 94.37% of its industry peers.
In the last couple of years the Profit Margin of GOOG has remained more or less at the same level.
GOOG has a Operating Margin of 32.02%. This is amongst the best in the industry. GOOG outperforms 97.18% of its industry peers.
GOOG's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 57.96%, GOOG perfoms like the industry average, outperforming 46.48% of the companies in the same industry.
GOOG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.02% | ||
| PM (TTM) | 27.74% | ||
| GM | 57.96% |
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.
GOOG has less shares outstanding than it did 1 year ago.
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 14.81 indicates that GOOG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 14.81, GOOG belongs to the top of the industry, outperforming 94.37% of the companies in the same industry.
The Debt to FCF ratio of GOOG is 0.26, which is an excellent value as it means it would take GOOG, only 0.26 years of fcf income to pay off all of its debts.
GOOG's Debt to FCF ratio of 0.26 is amongst the best of the industry. GOOG outperforms 80.28% of its industry peers.
GOOG has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
GOOG has a Debt to Equity ratio (0.04) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.26 | ||
| Altman-Z | 14.81 |
ROIC/WACC2.94
WACC9.13%
2.3 Liquidity
A Current Ratio of 1.95 indicates that GOOG should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.95, GOOG is in line with its industry, outperforming 47.89% of the companies in the same industry.
A Quick Ratio of 1.95 indicates that GOOG should not have too much problems paying its short term obligations.
GOOG has a Quick ratio (1.95) which is in line with its industry peers.
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 | 1.95 | ||
| Quick Ratio | 1.95 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 44.72% over the past year.
GOOG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.55% yearly.
The Revenue has grown by 14.38% in the past year. This is quite good.
GOOG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.57% yearly.
EPS 1Y (TTM)44.72%
EPS 3Y25.49%
EPS 5Y19.55%
EPS Q2Q%36.77%
Revenue 1Y (TTM)14.38%
Revenue growth 3Y18.98%
Revenue growth 5Y17.57%
Sales Q2Q%15.09%
3.2 Future
The Earnings Per Share is expected to grow by 19.52% 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 11.47% yearly.
EPS Next Y42.19%
EPS Next 2Y26.17%
EPS Next 3Y22.12%
EPS Next 5Y19.52%
Revenue Next Year14.5%
Revenue Next 2Y13.09%
Revenue Next 3Y12.26%
Revenue Next 5Y11.47%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
A Price/Earnings ratio of 25.96 indicates a quite expensive valuation of GOOG.
64.79% of the companies in the same industry are more expensive than GOOG, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.17. GOOG is around the same levels.
Based on the Price/Forward Earnings ratio of 21.20, the valuation of GOOG can be described as rather expensive.
Based on the Price/Forward Earnings ratio, GOOG is valued a bit cheaper than the industry average as 63.38% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of GOOG to the average of the S&P500 Index (23.68), we can say GOOG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.96 | ||
| Fwd PE | 21.2 |
4.2 Price Multiples
64.79% of the companies in the same industry are more expensive than GOOG, based on the Enterprise Value to EBITDA ratio.
GOOG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.93 | ||
| EV/EBITDA | 18.19 |
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 22.12% in the coming years.
PEG (NY)0.62
PEG (5Y)1.33
EPS Next 2Y26.17%
EPS Next 3Y22.12%
5. Dividend
5.1 Amount
With a yearly dividend of 0.42%, GOOG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.94, GOOG pays a better dividend. On top of this GOOG pays more dividend than 91.55% of the companies listed in the same industry.
With a Dividend Yield of 0.42, GOOG pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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
DPN/A
EPS Next 2Y26.17%
EPS Next 3Y22.12%
ALPHABET INC-CL C
NASDAQ:GOOG (12/23/2024, 1:27:03 PM)
195.76
+2.8 (+1.45%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners81.14%
Inst Owner Change-1.88%
Ins Owners0.07%
Ins Owner Change0%
Market Cap2396.30B
Analysts81.85
Price Target213.82 (9.23%)
Short Float %0.71%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.51%
Min EPS beat(2)-0.52%
Max EPS beat(2)11.53%
EPS beat(4)2
Avg EPS beat(4)8.03%
Min EPS beat(4)-0.52%
Max EPS beat(4)21.13%
EPS beat(8)5
Avg EPS beat(8)4.19%
EPS beat(12)6
Avg EPS beat(12)0.8%
EPS beat(16)10
Avg EPS beat(16)9.98%
Revenue beat(2)0
Avg Revenue beat(2)-1.49%
Min Revenue beat(2)-2.28%
Max Revenue beat(2)-0.7%
Revenue beat(4)0
Avg Revenue beat(4)-1.32%
Min Revenue beat(4)-2.28%
Max Revenue beat(4)-0.51%
Revenue beat(8)0
Avg Revenue beat(8)-1.63%
Revenue beat(12)1
Avg Revenue beat(12)-1.91%
Revenue beat(16)4
Avg Revenue beat(16)-0.52%
PT rev (1m)3.68%
PT rev (3m)1.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.89%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)4.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.96 | ||
| Fwd PE | 21.2 | ||
| P/S | 7.05 | ||
| P/FCF | 42.93 | ||
| P/OCF | 22.8 | ||
| P/B | 7.63 | ||
| P/tB | 8.49 | ||
| EV/EBITDA | 18.19 |
EPS(TTM)7.54
EY3.85%
EPS(NY)9.23
Fwd EY4.72%
FCF(TTM)4.56
FCFY2.33%
OCF(TTM)8.59
OCFY4.39%
SpS27.76
BVpS25.66
TBVpS23.05
PEG (NY)0.62
PEG (5Y)1.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.91% | ||
| ROE | 30.01% | ||
| ROCE | 31.14% | ||
| ROIC | 26.84% | ||
| ROICexc | 36.61% | ||
| ROICexgc | 41.82% | ||
| OM | 32.02% | ||
| PM (TTM) | 27.74% | ||
| GM | 57.96% | ||
| FCFM | 16.43% |
ROA(3y)18.64%
ROA(5y)16.19%
ROE(3y)26.56%
ROE(5y)22.96%
ROIC(3y)22.84%
ROIC(5y)19.1%
ROICexc(3y)38.45%
ROICexc(5y)34.29%
ROICexgc(3y)45.54%
ROICexgc(5y)41.2%
ROCE(3y)26.5%
ROCE(5y)22.15%
ROICexcg growth 3Y7.06%
ROICexcg growth 5Y0.67%
ROICexc growth 3Y8.78%
ROICexc growth 5Y2.82%
OM growth 3Y8.32%
OM growth 5Y3.8%
PM growth 3Y2.86%
PM growth 5Y1.34%
GM growth 3Y2.05%
GM growth 5Y0.16%
F-Score8
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.26 | ||
| Debt/EBITDA | 0.1 | ||
| Cap/Depr | 388.97% | ||
| Cap/Sales | 14.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.52% | ||
| Profit Quality | 59.22% | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.95 | ||
| Altman-Z | 14.81 |
F-Score8
WACC9.13%
ROIC/WACC2.94
Cap/Depr(3y)221.9%
Cap/Depr(5y)205.65%
Cap/Sales(3y)10.4%
Cap/Sales(5y)11.59%
Profit Quality(3y)94.12%
Profit Quality(5y)95.79%
High Growth Momentum
Growth
EPS 1Y (TTM)44.72%
EPS 3Y25.49%
EPS 5Y19.55%
EPS Q2Q%36.77%
EPS Next Y42.19%
EPS Next 2Y26.17%
EPS Next 3Y22.12%
EPS Next 5Y19.52%
Revenue 1Y (TTM)14.38%
Revenue growth 3Y18.98%
Revenue growth 5Y17.57%
Sales Q2Q%15.09%
Revenue Next Year14.5%
Revenue Next 2Y13.09%
Revenue Next 3Y12.26%
Revenue Next 5Y11.47%
EBIT growth 1Y33.53%
EBIT growth 3Y28.87%
EBIT growth 5Y22.04%
EBIT Next Year75.71%
EBIT Next 3Y31.68%
EBIT Next 5Y24.13%
FCF growth 1Y-10.74%
FCF growth 3Y17.5%
FCF growth 5Y24.93%
OCF growth 1Y13.24%
OCF growth 3Y16.04%
OCF growth 5Y16.23%