ALPHABET INC-CL C (GOOG) Stock Fundamental Analysis
USA - NASDAQ:GOOG - US02079K1079 - Common Stock
253.79 USD
+1.91 (+0.76%)
254.2 USD
+0.41 (+0.16%)
Overall GOOG gets a fundamental rating of 7 out of 10. We evaluated GOOG against 69 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! These ratings could make GOOG a good candidate 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
GOOG has a Return On Assets of 23.02%. This is amongst the best in the industry. GOOG outperforms 92.75% of its industry peers.
The Return On Equity of GOOG (31.85%) is better than 95.65% of its industry peers.
GOOG has a Return On Invested Capital of 25.81%. This is amongst the best in the industry. GOOG outperforms 92.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GOOG is significantly above the industry average of 13.27%.
The last Return On Invested Capital (25.81%) for GOOG is above the 3 year average (24.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.02% | ||
| ROE | 31.85% | ||
| ROIC | 25.81% |
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 has a better Profit Margin (31.12%) than 89.86% of its industry peers.
GOOG's Profit Margin has improved in the last couple of years.
The Operating Margin of GOOG (33.53%) is better than 95.65% of its industry peers.
In the last couple of years the Operating Margin of GOOG has grown nicely.
With a Gross Margin value of 58.94%, GOOG perfoms like the industry average, outperforming 47.83% 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 | 33.53% | ||
| PM (TTM) | 31.12% | ||
| GM | 58.94% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GOOG is creating value.
The number of shares outstanding for GOOG has been reduced compared to 1 year ago.
The number of shares outstanding for GOOG has been reduced compared to 5 years ago.
GOOG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 15.65 indicates that GOOG is not in any danger for bankruptcy at the moment.
The Altman-Z score of GOOG (15.65) is better than 95.65% of its industry peers.
GOOG has a debt to FCF ratio of 0.40. This is a very positive value and a sign of high solvency as it would only need 0.40 years to pay back of all of its debts.
GOOG's Debt to FCF ratio of 0.40 is fine compared to the rest of the industry. GOOG outperforms 79.71% of its industry peers.
GOOG has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
GOOG has a Debt to Equity ratio (0.07) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | 15.65 |
ROIC/WACC2.69
WACC9.59%
2.3 Liquidity
A Current Ratio of 1.90 indicates that GOOG should not have too much problems paying its short term obligations.
GOOG has a Current ratio (1.90) which is comparable to the rest of the industry.
GOOG has a Quick Ratio of 1.90. 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 (1.90) which is comparable to the rest of the 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 | 1.9 | ||
| Quick Ratio | 1.9 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.97% over the past year.
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 13.13% 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)26.97%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%22.22%
Revenue 1Y (TTM)13.13%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%13.79%
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 17.81% yearly.
GOOG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.30% yearly.
EPS Next Y27.24%
EPS Next 2Y16.54%
EPS Next 3Y15.45%
EPS Next 5Y17.81%
Revenue Next Year12.79%
Revenue Next 2Y12.18%
Revenue Next 3Y11.61%
Revenue Next 5Y11.3%
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
Based on the Price/Earnings ratio of 28.68, the valuation of GOOG can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of GOOG is on the same level as its industry peers.
When comparing the Price/Earnings ratio of GOOG to the average of the S&P500 Index (27.40), we can say GOOG is valued inline with the index average.
With a Price/Forward Earnings ratio of 23.21, GOOG is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GOOG is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.94. GOOG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.68 | ||
| Fwd PE | 23.21 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GOOG.
GOOG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46 | ||
| EV/EBITDA | 20.42 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of GOOG may justify a higher PE ratio.
GOOG's earnings are expected to grow with 15.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.05
PEG (5Y)1.14
EPS Next 2Y16.54%
EPS Next 3Y15.45%
5. Dividend
5.1 Amount
GOOG has a yearly dividend return of 0.35%, which is pretty low.
GOOG's Dividend Yield is rather good when compared to the industry average which is at 4.74. GOOG pays more dividend than 91.30% of the companies in the same industry.
With a Dividend Yield of 0.35, GOOG pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
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
8.54% of the earnings are spent on dividend by GOOG. This is a low number and sustainable payout ratio.
DP8.54%
EPS Next 2Y16.54%
EPS Next 3Y15.45%
253.79
+1.91 (+0.76%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners81.14%
Inst Owner Change0.14%
Ins Owners0.05%
Ins Owner Change0%
Market Cap3069.34B
Analysts82.19
Price Target240.85 (-5.1%)
Short Float %0.68%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
Yearly Dividend0.6
Dividend Growth(5Y)N/A
DP8.54%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.1%
Min EPS beat(2)2.67%
Max EPS beat(2)9.52%
EPS beat(4)3
Avg EPS beat(4)5.45%
Min EPS beat(4)-1.9%
Max EPS beat(4)11.53%
EPS beat(8)5
Avg EPS beat(8)5.77%
EPS beat(12)7
Avg EPS beat(12)2.18%
EPS beat(16)9
Avg EPS beat(16)2.23%
Revenue beat(2)0
Avg Revenue beat(2)-1.05%
Min Revenue beat(2)-1.7%
Max Revenue beat(2)-0.4%
Revenue beat(4)0
Avg Revenue beat(4)-1.45%
Min Revenue beat(4)-3.01%
Max Revenue beat(4)-0.4%
Revenue beat(8)0
Avg Revenue beat(8)-1.55%
Revenue beat(12)0
Avg Revenue beat(12)-1.93%
Revenue beat(16)1
Avg Revenue beat(16)-1.76%
PT rev (1m)8.27%
PT rev (3m)16.6%
EPS NQ rev (1m)-0.56%
EPS NQ rev (3m)3.89%
EPS NY rev (1m)0.08%
EPS NY rev (3m)3.82%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)2.61%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)2.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.68 | ||
| Fwd PE | 23.21 | ||
| P/S | 8.26 | ||
| P/FCF | 46 | ||
| P/OCF | 22.96 | ||
| P/B | 8.46 | ||
| P/tB | 9.28 | ||
| EV/EBITDA | 20.42 |
EPS(TTM)8.85
EY3.49%
EPS(NY)10.93
Fwd EY4.31%
FCF(TTM)5.52
FCFY2.17%
OCF(TTM)11.06
OCFY4.36%
SpS30.71
BVpS30.01
TBVpS27.33
PEG (NY)1.05
PEG (5Y)1.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.02% | ||
| ROE | 31.85% | ||
| ROCE | 30.02% | ||
| ROIC | 25.81% | ||
| ROICexc | 33.49% | ||
| ROICexgc | 37.26% | ||
| OM | 33.53% | ||
| PM (TTM) | 31.12% | ||
| GM | 58.94% | ||
| FCFM | 17.97% |
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-Score6
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.4 | ||
| Debt/EBITDA | 0.18 | ||
| Cap/Depr | 378.95% | ||
| Cap/Sales | 18.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.03% | ||
| Profit Quality | 57.74% | ||
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.9 | ||
| Altman-Z | 15.65 |
F-Score6
WACC9.59%
ROIC/WACC2.69
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)26.97%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%22.22%
EPS Next Y27.24%
EPS Next 2Y16.54%
EPS Next 3Y15.45%
EPS Next 5Y17.81%
Revenue 1Y (TTM)13.13%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%13.79%
Revenue Next Year12.79%
Revenue Next 2Y12.18%
Revenue Next 3Y11.61%
Revenue Next 5Y11.3%
EBIT growth 1Y23.29%
EBIT growth 3Y13.04%
EBIT growth 5Y25.91%
EBIT Next Year60.51%
EBIT Next 3Y28.69%
EBIT Next 5Y22.85%
FCF growth 1Y-6.14%
FCF growth 3Y2.78%
FCF growth 5Y18.63%
OCF growth 1Y34.87%
OCF growth 3Y10.99%
OCF growth 5Y18.11%