ALPHABET INC-CL C (GOOG) Stock Fundamental Analysis
USA - NASDAQ:GOOG - US02079K1079 - Common Stock
276.98 USD
-2.14 (-0.77%)
288.252 USD
+11.27 (+4.07%)
Taking everything into account, GOOG scores 7 out of 10 in our fundamental rating. 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! 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.
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.
Looking at the Return On Equity, with a value of 32.12%, GOOG belongs to the top of the industry, outperforming 95.71% of the companies in the same industry.
GOOG's Return On Invested Capital of 24.90% is amongst the best of the industry. GOOG outperforms 91.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GOOG is significantly above the industry average of 13.26%.
The 3 year average ROIC (24.19%) for GOOG is below the current ROIC(24.90%), indicating increased profibility in the last year.
| 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 90.00% of its industry peers.
GOOG's Profit Margin has improved in the last couple of years.
GOOG has a Operating Margin of 32.83%. This is amongst the best in the industry. GOOG outperforms 95.71% of its industry peers.
GOOG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 59.17%, GOOG is in line with its industry, outperforming 48.57% 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 | 32.83% | ||
| 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
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
GOOG has an Altman-Z score of 15.87. This indicates that GOOG is financially healthy and has little risk of bankruptcy at the moment.
GOOG has a better Altman-Z score (15.87) than 97.14% of its industry peers.
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.
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.
GOOG has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
GOOG has a Debt to Equity ratio (0.06) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 15.87 |
ROIC/WACC2.51
WACC9.92%
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.
Looking at the Current ratio, with a value of 1.75, GOOG is in line with its industry, outperforming 45.71% of the companies in the same industry.
GOOG has a Quick 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 Quick ratio (1.75) 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 | 1.75 | ||
| 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.
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.
The Revenue has grown by 13.42% in the past year. This is quite good.
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.
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
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
A Price/Earnings ratio of 28.18 indicates a quite expensive valuation of GOOG.
GOOG's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.89, GOOG is valued at the same level.
The Price/Forward Earnings ratio is 24.58, which indicates a rather expensive current 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 34.59. GOOG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.18 | ||
| Fwd PE | 24.58 |
4.2 Price Multiples
GOOG's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GOOG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.54 | ||
| EV/EBITDA | 21.92 |
4.3 Compensation for Growth
GOOG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GOOG has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as GOOG's earnings are expected to grow with 17.12% in the coming years.
PEG (NY)0.86
PEG (5Y)1.12
EPS Next 2Y18.31%
EPS Next 3Y17.12%
5. Dividend
5.1 Amount
GOOG has a yearly dividend return of 0.30%, which is pretty low.
Compared to an average industry Dividend Yield of 2.80, GOOG pays a better dividend. On top of this GOOG pays more dividend than 88.57% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, GOOG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
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 2Y18.31%
EPS Next 3Y17.12%
276.98
-2.14 (-0.77%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners81.14%
Inst Owner Change-3.7%
Ins Owners0.05%
Ins Owner Change0%
Market Cap3.35T
Revenue(TTM)385.48B
Net Income(TTM)124.25B
Analysts82.43
Price Target263.95 (-4.7%)
Short Float %0.62%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
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)9.59%
PT rev (3m)19.04%
EPS NQ rev (1m)2.49%
EPS NQ rev (3m)2.77%
EPS NY rev (1m)4.27%
EPS NY rev (3m)8.02%
Revenue NQ rev (1m)1.92%
Revenue NQ rev (3m)2.1%
Revenue NY rev (1m)0.83%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.18 | ||
| Fwd PE | 24.58 | ||
| P/S | 8.69 | ||
| P/FCF | 45.54 | ||
| P/OCF | 22.12 | ||
| P/B | 8.66 | ||
| P/tB | 9.47 | ||
| EV/EBITDA | 21.92 |
EPS(TTM)9.83
EY3.55%
EPS(NY)11.27
Fwd EY4.07%
FCF(TTM)6.08
FCFY2.2%
OCF(TTM)12.52
OCFY4.52%
SpS31.87
BVpS31.99
TBVpS29.24
PEG (NY)0.86
PEG (5Y)1.12
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 | 15.87 |
F-Score6
WACC9.92%
ROIC/WACC2.51
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 28.18 and the Price/Book (PB) ratio is 8.66.
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.