ALPHABET INC-CL C (GOOG) Stock Fundamental Analysis
USA - NASDAQ:GOOG - US02079K1079 - Common Stock
251.42 USD
-0.34 (-0.14%)
251.59 USD
+0.17 (+0.07%)
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 gets an excellent profitability rating and is at the same time showing great financial health properties. GOOG is not overvalued while it is showing excellent growth. This is an interesting 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.
In the past year GOOG had a positive cash flow from operations.
GOOG had positive earnings in each of the past 5 years.
In the past 5 years GOOG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 23.02%, GOOG belongs to the top of the industry, outperforming 94.20% of the companies in the same industry.
GOOG's Return On Equity of 31.85% is amongst the best of the industry. GOOG outperforms 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 94.20% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GOOG is significantly above the industry average of 12.98%.
The 3 year average ROIC (24.15%) for GOOG is below the current ROIC(25.81%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 31.12%, GOOG belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
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.
GOOG has a Gross Margin (58.94%) which is in line with its industry peers.
In the last couple of years the Gross Margin of GOOG has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
The debt/assets ratio for GOOG has been reduced compared to a year ago.
2.2 Solvency
GOOG has an Altman-Z score of 15.65. This indicates that GOOG is financially healthy and has little risk of bankruptcy at the moment.
GOOG has a Altman-Z score of 15.65. This is amongst the best in the industry. GOOG outperforms 94.20% of its industry peers.
The Debt to FCF ratio of GOOG is 0.40, which is an excellent value as it means it would take GOOG, only 0.40 years of fcf income to pay off all of its debts.
GOOG has a Debt to FCF ratio of 0.40. This is in the better half of the industry: GOOG outperforms 79.71% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that GOOG is not too dependend on debt financing.
GOOG has a Debt to Equity ratio of 0.07. This is comparable to the rest of the industry: GOOG outperforms 53.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | 15.65 |
ROIC/WACC2.77
WACC9.31%
2.3 Liquidity
A Current Ratio of 1.90 indicates that GOOG should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.90, GOOG is in line with its industry, outperforming 49.28% of the companies in the same industry.
A Quick Ratio of 1.90 indicates that GOOG should not have too much problems paying its short term obligations.
The Quick ratio of GOOG (1.90) 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.
GOOG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.13%.
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 17.07% yearly.
Based on estimates for the next years, GOOG will show a quite strong growth in Revenue. The Revenue will grow by 11.13% on average per year.
EPS Next Y27.14%
EPS Next 2Y16.38%
EPS Next 3Y15.36%
EPS Next 5Y17.07%
Revenue Next Year12.68%
Revenue Next 2Y11.94%
Revenue Next 3Y11.51%
Revenue Next 5Y11.13%
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.
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 28.41, the valuation of GOOG can be described as expensive.
GOOG's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.20. GOOG is around the same levels.
GOOG is valuated rather expensively with a Price/Forward Earnings ratio of 23.06.
GOOG's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.71. GOOG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.41 | ||
| Fwd PE | 23.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GOOG is valued a bit cheaper than the industry average as 60.87% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as GOOG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.57 | ||
| EV/EBITDA | 20.41 |
4.3 Compensation for Growth
GOOG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 15.36% in the coming years.
PEG (NY)1.05
PEG (5Y)1.13
EPS Next 2Y16.38%
EPS Next 3Y15.36%
5. Dividend
5.1 Amount
With a yearly dividend of 0.35%, GOOG is not a good candidate for dividend investing.
GOOG's Dividend Yield is rather good when compared to the industry average which is at 2.89. 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 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
8.54% of the earnings are spent on dividend by GOOG. This is a low number and sustainable payout ratio.
DP8.54%
EPS Next 2Y16.38%
EPS Next 3Y15.36%
251.42
-0.34 (-0.14%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners80.88%
Inst Owner Change0.12%
Ins Owners0.05%
Ins Owner Change0%
Market Cap3040.67B
Analysts81.47
Price Target235.08 (-6.5%)
Short Float %0.54%
Short Ratio1.3
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)6.02%
PT rev (3m)13.73%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)4.58%
EPS NY rev (1m)3.52%
EPS NY rev (3m)3.81%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)2.64%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)2.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.41 | ||
| Fwd PE | 23.06 | ||
| P/S | 8.19 | ||
| P/FCF | 45.57 | ||
| P/OCF | 22.74 | ||
| P/B | 8.38 | ||
| P/tB | 9.2 | ||
| EV/EBITDA | 20.41 |
EPS(TTM)8.85
EY3.52%
EPS(NY)10.9
Fwd EY4.34%
FCF(TTM)5.52
FCFY2.19%
OCF(TTM)11.06
OCFY4.4%
SpS30.71
BVpS30.01
TBVpS27.33
PEG (NY)1.05
PEG (5Y)1.13
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
WACC9.31%
ROIC/WACC2.77
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 Y27.14%
EPS Next 2Y16.38%
EPS Next 3Y15.36%
EPS Next 5Y17.07%
Revenue 1Y (TTM)13.13%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%13.79%
Revenue Next Year12.68%
Revenue Next 2Y11.94%
Revenue Next 3Y11.51%
Revenue Next 5Y11.13%
EBIT growth 1Y23.29%
EBIT growth 3Y13.04%
EBIT growth 5Y25.91%
EBIT Next Year60.45%
EBIT Next 3Y28.65%
EBIT Next 5Y22.53%
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%