ALPHABET INC-CL C (GOOG) Stock Fundamental Analysis
USA - NASDAQ:GOOG - US02079K1079 - Common Stock
280.391 USD
+2.33 (+0.84%)
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 not overvalued while it is showing excellent growth. This is an interesting combination. 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.
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
With an excellent Return On Assets value of 23.16%, GOOG belongs to the best of the industry, outperforming 95.71% of the companies in the same industry.
With an excellent Return On Equity value of 32.12%, GOOG belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
With an excellent Return On Invested Capital value of 24.90%, GOOG belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GOOG is significantly above the industry average of 13.49%.
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 has a Profit Margin of 32.23%. This is amongst the best in 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.
In the last couple of years the Operating Margin of GOOG has grown nicely.
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.
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
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
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 15.93 indicates that GOOG is not in any danger for bankruptcy at the moment.
GOOG's Altman-Z score of 15.93 is amongst the best of the industry. GOOG outperforms 95.71% 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 81.43% 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.
The Debt to Equity ratio of GOOG (0.06) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 15.93 |
ROIC/WACC2.42
WACC10.29%
2.3 Liquidity
A Current Ratio of 1.75 indicates that GOOG should not have too much problems paying its short term obligations.
The Current ratio of GOOG (1.75) 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.
GOOG has a Quick ratio of 1.75. This is comparable to the rest of the industry: GOOG outperforms 45.71% 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 | 1.75 | ||
| 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.
Looking at the last year, GOOG shows a quite strong growth in Revenue. The Revenue has grown by 13.42% in the last year.
GOOG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.68% yearly.
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.
The Revenue is expected to grow by 12.36% on average over the next years. This is quite good.
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.
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 28.52.
The rest of the industry has a similar Price/Earnings ratio as GOOG.
GOOG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.03.
The Price/Forward Earnings ratio is 24.88, which indicates a rather expensive current valuation of GOOG.
GOOG's Price/Forward Earnings ratio is in line with the industry average.
GOOG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.52 | ||
| Fwd PE | 24.88 |
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 | 46.1 | ||
| EV/EBITDA | 22.01 |
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)0.87
PEG (5Y)1.13
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 2.72, GOOG pays a better dividend. On top of this GOOG pays more dividend than 87.14% of the companies listed in the same industry.
With a Dividend Yield of 0.30, GOOG pays less dividend than the S&P500 average, which is at 2.38.
| 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
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%
NASDAQ:GOOG (11/5/2025, 9:40:08 AM)
280.391
+2.33 (+0.84%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners81.14%
Inst Owner Change-4.22%
Ins Owners0.05%
Ins Owner Change0%
Market Cap3391.05B
Revenue(TTM)385.48B
Net Income(TTM)124.25B
Analysts82.43
Price Target264.08 (-5.82%)
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)15.79%
Min EPS beat(2)2.67%
Max EPS beat(2)28.91%
EPS beat(4)3
Avg EPS beat(4)9.8%
Min EPS beat(4)-1.9%
Max EPS beat(4)28.91%
EPS beat(8)5
Avg EPS beat(8)8.92%
EPS beat(12)8
Avg EPS beat(12)6.06%
EPS beat(16)9
Avg EPS beat(16)3.05%
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)12.34%
PT rev (3m)26.8%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)4.91%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)3.43%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)2.41%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)2.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.52 | ||
| Fwd PE | 24.88 | ||
| P/S | 8.8 | ||
| P/FCF | 46.1 | ||
| P/OCF | 22.39 | ||
| P/B | 8.77 | ||
| P/tB | 9.59 | ||
| EV/EBITDA | 22.01 |
EPS(TTM)9.83
EY3.51%
EPS(NY)11.27
Fwd EY4.02%
FCF(TTM)6.08
FCFY2.17%
OCF(TTM)12.52
OCFY4.47%
SpS31.87
BVpS31.99
TBVpS29.24
PEG (NY)0.87
PEG (5Y)1.13
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 | 15.93 |
F-Score6
WACC10.29%
ROIC/WACC2.42
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 28.52 and the Price/Book (PB) ratio is 8.77.
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.