ALPHABET INC-CL C (GOOG) Stock Fundamental Analysis
NASDAQ:GOOG - Nasdaq - US02079K1079 - Common Stock - Currency: USD
GOOG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 70 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 priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make GOOG a good candidate 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.
Each year in the past 5 years GOOG had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GOOG (23.35%) is better than 94.29% of its industry peers.
GOOG's Return On Equity of 32.15% is amongst the best of the industry. GOOG outperforms 94.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 26.71%, GOOG belongs to the top of the industry, outperforming 95.71% of the companies in the same industry.
GOOG had an Average Return On Invested Capital over the past 3 years of 24.15%. This is significantly above the industry average of 12.03%.
The 3 year average ROIC (24.15%) for GOOG is below the current ROIC(26.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.35% | ||
| ROE | 32.15% | ||
| ROIC | 26.71% |
ROA(3y)19%
ROA(5y)18.15%
ROE(3y)26.75%
ROE(5y)25.71%
ROIC(3y)24.15%
ROIC(5y)21.77%
1.3 Margins
GOOG's Profit Margin of 30.86% is amongst the best of the industry. GOOG outperforms 92.86% of its industry peers.
In the last couple of years the Profit Margin of GOOG has grown nicely.
Looking at the Operating Margin, with a value of 33.15%, GOOG belongs to the top 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.
Looking at the Gross Margin, with a value of 58.59%, GOOG is in line with its industry, outperforming 45.71% 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 | 33.15% | ||
| PM (TTM) | 30.86% | ||
| GM | 58.59% |
OM growth 3Y2.06%
OM growth 5Y7.91%
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.
Compared to 1 year ago, GOOG has less shares outstanding
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 12.54 indicates that GOOG is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 12.54, GOOG belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
The Debt to FCF ratio of GOOG is 0.19, which is an excellent value as it means it would take GOOG, only 0.19 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 0.19, GOOG is doing good in the industry, outperforming 78.57% of the companies in the same industry.
A Debt/Equity ratio of 0.04 indicates that GOOG is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.04, GOOG perfoms like the industry average, outperforming 54.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.19 | ||
| Altman-Z | 12.54 |
ROIC/WACC2.86
WACC9.35%
2.3 Liquidity
GOOG has a Current Ratio of 1.77. This is a normal value and indicates that GOOG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of GOOG (1.77) is comparable to the rest of the industry.
GOOG has a Quick Ratio of 1.77. 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 of 1.77. This is comparable to the rest of the industry: GOOG outperforms 41.43% of 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 | 1.77 | ||
| Quick Ratio | 1.77 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.29% 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.
The Revenue has grown by 13.07% 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)29.29%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%20.11%
Revenue 1Y (TTM)13.07%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%12.04%
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 15.78% yearly.
The Revenue is expected to grow by 10.45% on average over the next years. This is quite good.
EPS Next Y22.56%
EPS Next 2Y14.12%
EPS Next 3Y13.91%
EPS Next 5Y15.78%
Revenue Next Year10.4%
Revenue Next 2Y10.45%
Revenue Next 3Y10.44%
Revenue Next 5Y10.45%
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.
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
The Price/Earnings ratio is 21.51, which indicates a rather expensive current valuation of GOOG.
Based on the Price/Earnings ratio, GOOG is valued a bit cheaper than the industry average as 61.43% of the companies are valued more expensively.
GOOG is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.30, which indicates a rather expensive current valuation of GOOG.
Based on the Price/Forward Earnings ratio, GOOG is valued a bit cheaper than the industry average as 67.14% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of GOOG to the average of the S&P500 Index (21.76), we can say GOOG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.51 | ||
| Fwd PE | 17.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GOOG is valued a bit cheaper than the industry average as 68.57% of the companies are valued more expensively.
GOOG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.38 | ||
| EV/EBITDA | 14.86 |
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.
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 13.91% in the coming years.
PEG (NY)0.95
PEG (5Y)0.85
EPS Next 2Y14.12%
EPS Next 3Y13.91%
5. Dividend
5.1 Amount
GOOG has a yearly dividend return of 0.45%, which is pretty low.
GOOG's Dividend Yield is rather good when compared to the industry average which is at 3.00. GOOG pays more dividend than 91.43% of the companies in the same industry.
With a Dividend Yield of 0.45, GOOG pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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 8.83% of its income as dividend. This is a sustainable payout ratio.
DP8.83%
EPS Next 2Y14.12%
EPS Next 3Y13.91%
181.31
+2.61 (+1.46%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners80.92%
Inst Owner Change0.04%
Ins Owners0.05%
Ins Owner Change0%
Market Cap2200.20B
Analysts81.59
Price Target206.56 (13.93%)
Short Float %0.57%
Short Ratio1.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
Yearly Dividend0.6
Dividend Growth(5Y)N/A
DP8.83%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.81%
Min EPS beat(2)-1.9%
Max EPS beat(2)9.52%
EPS beat(4)2
Avg EPS beat(4)4.66%
Min EPS beat(4)-1.9%
Max EPS beat(4)11.53%
EPS beat(8)5
Avg EPS beat(8)5.99%
EPS beat(12)6
Avg EPS beat(12)1.28%
EPS beat(16)9
Avg EPS beat(16)4.36%
Revenue beat(2)0
Avg Revenue beat(2)-2.35%
Min Revenue beat(2)-3.01%
Max Revenue beat(2)-1.7%
Revenue beat(4)0
Avg Revenue beat(4)-1.92%
Min Revenue beat(4)-3.01%
Max Revenue beat(4)-0.7%
Revenue beat(8)0
Avg Revenue beat(8)-1.56%
Revenue beat(12)0
Avg Revenue beat(12)-2.16%
Revenue beat(16)2
Avg Revenue beat(16)-1.3%
PT rev (1m)-0.77%
PT rev (3m)-6.31%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-0.17%
EPS NY rev (1m)0.07%
EPS NY rev (3m)7.44%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.51 | ||
| Fwd PE | 17.3 | ||
| P/S | 6.12 | ||
| P/FCF | 29.38 | ||
| P/OCF | 16.59 | ||
| P/B | 6.37 | ||
| P/tB | 7.03 | ||
| EV/EBITDA | 14.86 |
EPS(TTM)8.43
EY4.65%
EPS(NY)10.48
Fwd EY5.78%
FCF(TTM)6.17
FCFY3.4%
OCF(TTM)10.93
OCFY6.03%
SpS29.64
BVpS28.45
TBVpS25.8
PEG (NY)0.95
PEG (5Y)0.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.35% | ||
| ROE | 32.15% | ||
| ROCE | 31.07% | ||
| ROIC | 26.71% | ||
| ROICexc | 35.54% | ||
| ROICexgc | 40% | ||
| OM | 33.15% | ||
| PM (TTM) | 30.86% | ||
| GM | 58.59% | ||
| FCFM | 20.82% |
ROA(3y)19%
ROA(5y)18.15%
ROE(3y)26.75%
ROE(5y)25.71%
ROIC(3y)24.15%
ROIC(5y)21.77%
ROICexc(3y)36.09%
ROICexc(5y)35.99%
ROICexgc(3y)42.14%
ROICexgc(5y)42.46%
ROCE(3y)28.1%
ROCE(5y)25.33%
ROICexcg growth 3Y-6.79%
ROICexcg growth 5Y3.67%
ROICexc growth 3Y-5.45%
ROICexc growth 5Y5.76%
OM growth 3Y2.06%
OM growth 5Y7.91%
PM growth 3Y-1.04%
PM growth 5Y6.16%
GM growth 3Y0.73%
GM growth 5Y0.93%
F-Score7
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.19 | ||
| Debt/EBITDA | 0.09 | ||
| Cap/Depr | 352.27% | ||
| Cap/Sales | 16.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.77% | ||
| Profit Quality | 67.46% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.77 | ||
| Altman-Z | 12.54 |
F-Score7
WACC9.35%
ROIC/WACC2.86
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)29.29%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%20.11%
EPS Next Y22.56%
EPS Next 2Y14.12%
EPS Next 3Y13.91%
EPS Next 5Y15.78%
Revenue 1Y (TTM)13.07%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%12.04%
Revenue Next Year10.4%
Revenue Next 2Y10.45%
Revenue Next 3Y10.44%
Revenue Next 5Y10.45%
EBIT growth 1Y25.93%
EBIT growth 3Y13.04%
EBIT growth 5Y25.91%
EBIT Next Year56.95%
EBIT Next 3Y26.18%
EBIT Next 5Y21.09%
FCF growth 1Y20.95%
FCF growth 3Y2.78%
FCF growth 5Y18.63%
OCF growth 1Y47.5%
OCF growth 3Y10.99%
OCF growth 5Y18.11%