ALPHABET INC-CL C (GOOG) Stock Fundamental Analysis
NASDAQ:GOOG - Nasdaq - US02079K1079 - Common Stock - Currency: USD
Taking everything into account, GOOG scores 8 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
GOOG had positive earnings in the past year.
In the past year GOOG had a positive cash flow from operations.
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
GOOG has a better Return On Assets (21.91%) than 97.01% of its industry peers.
GOOG has a better Return On Equity (30.01%) than 97.01% of its industry peers.
GOOG has a Return On Invested Capital of 26.84%. This is amongst the best in the industry. GOOG outperforms 95.52% 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 12.59%.
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 94.03% 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 97.01% of its industry peers.
In the last couple of years the Operating Margin of GOOG has grown nicely.
GOOG's Gross Margin of 57.96% is in line compared to the rest of the industry. GOOG outperforms 47.76% of its industry peers.
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
GOOG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
GOOG has less shares outstanding than it did 1 year ago.
GOOG has less shares outstanding than it did 5 years ago.
GOOG has a better debt/assets ratio than last year.
2.2 Solvency
GOOG has an Altman-Z score of 15.37. This indicates that GOOG is financially healthy and has little risk of bankruptcy at the moment.
GOOG has a Altman-Z score of 15.37. This is amongst the best in the industry. GOOG outperforms 92.54% of its industry peers.
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 80.60% 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.
Looking at the Debt to Equity ratio, with a value of 0.04, GOOG is in line with its industry, outperforming 56.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.26 | ||
| Altman-Z | 15.37 |
ROIC/WACC2.9
WACC9.24%
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 50.75% of the companies in the same industry.
GOOG has a Quick Ratio of 1.95. 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 1.95, GOOG perfoms like the industry average, outperforming 50.75% 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 | 1.95 | ||
| Quick Ratio | 1.95 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 44.72% over the past year.
The Earnings Per Share has been growing by 19.55% on average over the past years. This is quite good.
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.
Based on estimates for the next years, GOOG will show a quite strong growth in Revenue. The Revenue will grow by 11.47% on average per year.
EPS Next Y42.19%
EPS Next 2Y26.17%
EPS Next 3Y22.12%
EPS Next 5Y19.52%
Revenue Next Year14.49%
Revenue Next 2Y13.07%
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.
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
GOOG is valuated quite expensively with a Price/Earnings ratio of 26.78.
Compared to the rest of the industry, the Price/Earnings ratio of GOOG indicates a somewhat cheap valuation: GOOG is cheaper than 65.67% of the companies listed in the same industry.
GOOG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.58, which is the current average of the S&P500 Index.
GOOG is valuated rather expensively with a Price/Forward Earnings ratio of 21.87.
GOOG's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.47. GOOG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.78 | ||
| Fwd PE | 21.87 |
4.2 Price Multiples
64.18% 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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.27 | ||
| EV/EBITDA | 19.1 |
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)0.63
PEG (5Y)1.37
EPS Next 2Y26.17%
EPS Next 3Y22.12%
5. Dividend
5.1 Amount
With a yearly dividend of 0.40%, GOOG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.89, GOOG pays a better dividend. On top of this GOOG pays more dividend than 91.04% of the companies listed in the same industry.
With a Dividend Yield of 0.40, GOOG pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
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 (1/24/2025, 8:00:01 PM)
After market: 201.749 -0.15 (-0.07%)201.9
+2.32 (+1.16%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners81.14%
Inst Owner Change0.03%
Ins Owners0.07%
Ins Owner Change0%
Market Cap2471.46B
Analysts81.82
Price Target213.89 (5.94%)
Short Float %0.72%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)0.03%
PT rev (3m)3.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.89%
EPS NY rev (1m)0%
EPS NY rev (3m)4.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.78 | ||
| Fwd PE | 21.87 | ||
| P/S | 7.27 | ||
| P/FCF | 44.27 | ||
| P/OCF | 23.52 | ||
| P/B | 7.87 | ||
| P/tB | 8.76 | ||
| EV/EBITDA | 19.1 |
EPS(TTM)7.54
EY3.73%
EPS(NY)9.23
Fwd EY4.57%
FCF(TTM)4.56
FCFY2.26%
OCF(TTM)8.59
OCFY4.25%
SpS27.76
BVpS25.66
TBVpS23.05
PEG (NY)0.63
PEG (5Y)1.37
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 | 15.37 |
F-Score8
WACC9.24%
ROIC/WACC2.9
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 Year14.49%
Revenue Next 2Y13.07%
Revenue Next 3Y12.26%
Revenue Next 5Y11.47%
EBIT growth 1Y33.53%
EBIT growth 3Y28.87%
EBIT growth 5Y22.04%
EBIT Next Year75.68%
EBIT Next 3Y31.82%
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%