ALPHABET INC-CL C (GOOG) Stock Fundamental Analysis
NASDAQ:GOOG - Nasdaq - US02079K1079 - Common Stock - Currency: USD
Overall GOOG gets a fundamental rating of 8 out of 10. We evaluated GOOG against 71 industry peers in the Interactive Media & Services industry. GOOG has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. GOOG is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, GOOG could be worth investigating further 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.
Each year in the past 5 years GOOG has been profitable.
GOOG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 21.91%, GOOG belongs to the top of the industry, outperforming 96.97% of the companies in the same industry.
GOOG's Return On Equity of 30.01% is amongst the best of the industry. GOOG outperforms 96.97% of its industry peers.
GOOG has a Return On Invested Capital of 26.84%. This is amongst the best in the industry. GOOG outperforms 95.45% 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 3 year average ROIC (22.84%) for GOOG is below the current ROIC(26.84%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 27.74%, GOOG belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
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 96.97% 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 48.48% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GOOG is creating value.
Compared to 1 year ago, GOOG has less shares outstanding
GOOG has less shares outstanding than it did 5 years ago.
GOOG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 14.86 indicates that GOOG is not in any danger for bankruptcy at the moment.
GOOG's Altman-Z score of 14.86 is amongst the best of the industry. GOOG outperforms 92.42% of its industry peers.
GOOG has a debt to FCF ratio of 0.26. This is a very positive value and a sign of high solvency as it would only need 0.26 years to pay back of all of its debts.
The Debt to FCF ratio of GOOG (0.26) is better than 80.30% of its industry peers.
A Debt/Equity ratio of 0.04 indicates that GOOG is not too dependend on debt financing.
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 | 14.86 |
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.
The Current ratio of GOOG (1.95) is comparable to the rest of the industry.
A Quick Ratio of 1.95 indicates that GOOG should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.95, GOOG is in line with its industry, outperforming 50.00% of the companies in the same 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 | 1.95 | ||
| Quick Ratio | 1.95 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 44.72% over the past year.
Measured over the past years, GOOG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.55% on average per year.
Looking at the last year, GOOG shows a quite strong growth in Revenue. The Revenue has grown by 14.38% in the last year.
Measured over the past years, GOOG shows a quite strong growth in Revenue. The Revenue has been growing by 17.57% on average per year.
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
Based on estimates for the next years, GOOG will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.52% on average per year.
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 Year14.49%
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
Based on the Price/Earnings ratio of 26.11, the valuation of GOOG can be described as expensive.
Based on the Price/Earnings ratio, GOOG is valued a bit cheaper than 65.15% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.39. GOOG is around the same levels.
A Price/Forward Earnings ratio of 21.33 indicates a rather expensive valuation of GOOG.
GOOG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GOOG is cheaper than 60.61% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GOOG to the average of the S&P500 Index (24.37), we can say GOOG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.11 | ||
| Fwd PE | 21.33 |
4.2 Price Multiples
63.64% 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 | 43.18 | ||
| EV/EBITDA | 18.28 |
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)1.34
EPS Next 2Y26.17%
EPS Next 3Y22.12%
5. Dividend
5.1 Amount
GOOG has a yearly dividend return of 0.40%, which is pretty low.
GOOG's Dividend Yield is rather good when compared to the industry average which is at 2.89. GOOG pays more dividend than 90.91% of the companies 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 (1/28/2025, 3:13:10 PM)
196.905
+3.13 (+1.62%)
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 Cap2410.31B
Analysts81.82
Price Target213.89 (8.63%)
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 | 26.11 | ||
| Fwd PE | 21.33 | ||
| P/S | 7.09 | ||
| P/FCF | 43.18 | ||
| P/OCF | 22.93 | ||
| P/B | 7.67 | ||
| P/tB | 8.54 | ||
| EV/EBITDA | 18.28 |
EPS(TTM)7.54
EY3.83%
EPS(NY)9.23
Fwd EY4.69%
FCF(TTM)4.56
FCFY2.32%
OCF(TTM)8.59
OCFY4.36%
SpS27.76
BVpS25.66
TBVpS23.05
PEG (NY)0.62
PEG (5Y)1.34
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 | 14.86 |
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%