ALPHABET INC-CL C (GOOG) Stock Fundamental Analysis
USA - NASDAQ:GOOG - US02079K1079 - Common Stock
287.43 USD
-4.31 (-1.48%)
286.59 USD
-0.84 (-0.29%)
We assign a fundamental rating of 7 out of 10 to GOOG. GOOG was compared to 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 growing strongly while it is still valued neutral. This is a good 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.
GOOG had a positive operating cash flow in the past year.
Each year in the past 5 years GOOG has been profitable.
In the past 5 years GOOG always reported a positive cash flow from operatings.
1.2 Ratios
GOOG has a better Return On Assets (23.16%) than 95.71% of its industry peers.
GOOG's Return On Equity of 32.12% is amongst the best of the industry. GOOG outperforms 95.71% of its industry peers.
GOOG's Return On Invested Capital of 24.90% is amongst the best of the industry. GOOG outperforms 91.43% of its industry peers.
GOOG had an Average Return On Invested Capital over the past 3 years of 24.19%. This is significantly above the industry average of 13.59%.
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.
With an excellent Operating Margin value of 32.83%, GOOG belongs to the best of the industry, outperforming 95.71% of the companies in the same industry.
GOOG's Operating Margin has improved in the last couple of years.
GOOG's Gross Margin of 59.17% is in line compared to the rest of the industry. GOOG outperforms 48.57% of its industry peers.
In the last couple of years the Gross Margin of GOOG has remained more or less at the same level.
| 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
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.
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 16.59 indicates that GOOG is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 16.59, GOOG belongs to the best of the industry, outperforming 95.71% of the companies in the same industry.
GOOG has a debt to FCF ratio of 0.29. This is a very positive value and a sign of high solvency as it would only need 0.29 years to pay back of all of its debts.
The Debt to FCF ratio of GOOG (0.29) is better than 81.43% of its industry peers.
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 55.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 16.59 |
ROIC/WACC2.5
WACC9.97%
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.
GOOG has a Current ratio (1.75) which is comparable to the rest of the industry.
A Quick Ratio of 1.75 indicates that GOOG should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.75, GOOG perfoms like the industry average, outperforming 45.71% 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 | 1.75 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.37% over the past year.
GOOG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.25% yearly.
GOOG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.42%.
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)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
GOOG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.13% yearly.
Based on estimates for the next years, GOOG will show a quite strong growth in Revenue. The Revenue will grow by 12.36% on average per year.
EPS Next Y32.67%
EPS Next 2Y18.31%
EPS Next 3Y17.12%
EPS Next 5Y17.13%
Revenue Next Year13.73%
Revenue Next 2Y13.22%
Revenue Next 3Y12.76%
Revenue Next 5Y12.36%
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.
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
GOOG is valuated quite expensively with a Price/Earnings ratio of 29.24.
GOOG's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.34, GOOG is valued at the same level.
A Price/Forward Earnings ratio of 25.51 indicates a quite expensive valuation of GOOG.
The rest of the industry has a similar Price/Forward Earnings ratio as GOOG.
GOOG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.24 | ||
| Fwd PE | 25.51 |
4.2 Price Multiples
GOOG's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as GOOG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.26 | ||
| EV/EBITDA | 23.15 |
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.
GOOG's earnings are expected to grow with 17.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.89
PEG (5Y)1.16
EPS Next 2Y18.31%
EPS Next 3Y17.12%
5. Dividend
5.1 Amount
With a yearly dividend of 0.29%, GOOG is not a good candidate for dividend investing.
GOOG's Dividend Yield is rather good when compared to the industry average which is at 2.75. GOOG pays more dividend than 88.57% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, GOOG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
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
8.01% of the earnings are spent on dividend by GOOG. This is a low number and sustainable payout ratio.
DP8.01%
EPS Next 2Y18.31%
EPS Next 3Y17.12%
287.43
-4.31 (-1.48%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners81.14%
Inst Owner Change-4.18%
Ins Owners0.05%
Ins Owner Change0%
Market Cap3.48T
Revenue(TTM)385.48B
Net Income(TTM)124.25B
Analysts82.43
Price Target264.08 (-8.12%)
Short Float %0.62%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
Yearly Dividend0.6
Dividend Growth(5Y)N/A
DP8.01%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)9.64%
PT rev (3m)26.8%
EPS NQ rev (1m)2.41%
EPS NQ rev (3m)2.77%
EPS NY rev (1m)4.27%
EPS NY rev (3m)8.02%
Revenue NQ rev (1m)2.02%
Revenue NQ rev (3m)2.12%
Revenue NY rev (1m)0.83%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.24 | ||
| Fwd PE | 25.51 | ||
| P/S | 9.02 | ||
| P/FCF | 47.26 | ||
| P/OCF | 22.96 | ||
| P/B | 8.99 | ||
| P/tB | 9.83 | ||
| EV/EBITDA | 23.15 |
EPS(TTM)9.83
EY3.42%
EPS(NY)11.27
Fwd EY3.92%
FCF(TTM)6.08
FCFY2.12%
OCF(TTM)12.52
OCFY4.36%
SpS31.87
BVpS31.99
TBVpS29.24
PEG (NY)0.89
PEG (5Y)1.16
Graham Number84.11
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 | 16.59 |
F-Score6
WACC9.97%
ROIC/WACC2.5
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 Y32.67%
EPS Next 2Y18.31%
EPS Next 3Y17.12%
EPS Next 5Y17.13%
Revenue 1Y (TTM)13.42%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%15.95%
Revenue Next Year13.73%
Revenue Next 2Y13.22%
Revenue Next 3Y12.76%
Revenue Next 5Y12.36%
EBIT growth 1Y16.37%
EBIT growth 3Y13.22%
EBIT growth 5Y26.03%
EBIT Next Year60.51%
EBIT Next 3Y28.69%
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
What is the fundamental rating for GOOG stock?
ChartMill assigns a fundamental rating of 7 / 10 to GOOG.
What is the valuation status for GOOG stock?
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 valuation of ALPHABET INC-CL C based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ALPHABET INC-CL C (GOOG) is 29.24 and the Price/Book (PB) ratio is 8.99.
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.