ALPHABET INC-CL A (GOOGL) Stock Fundamental Analysis
USA - NASDAQ:GOOGL - US02079K3059 - Common Stock
254.72 USD
+2.69 (+1.07%)
255.34 USD
+0.62 (+0.24%)
Overall GOOGL gets a fundamental rating of 7 out of 10. We evaluated GOOGL against 69 industry peers in the Interactive Media & Services industry. GOOGL has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. GOOGL is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make GOOGL suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year GOOGL was profitable.
GOOGL had a positive operating cash flow in the past year.
GOOGL had positive earnings in each of the past 5 years.
In the past 5 years GOOGL always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 23.02%, GOOGL belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
Looking at the Return On Equity, with a value of 31.85%, GOOGL belongs to the top of the industry, outperforming 97.10% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 25.81%, GOOGL belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GOOGL is significantly above the industry average of 12.98%.
The last Return On Invested Capital (25.81%) for GOOGL 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
With an excellent Profit Margin value of 31.12%, GOOGL belongs to the best of the industry, outperforming 92.75% of the companies in the same industry.
GOOGL's Profit Margin has improved in the last couple of years.
GOOGL has a Operating Margin of 33.53%. This is amongst the best in the industry. GOOGL outperforms 97.10% of its industry peers.
In the last couple of years the Operating Margin of GOOGL has grown nicely.
GOOGL has a Gross Margin of 58.94%. This is comparable to the rest of the industry: GOOGL outperforms 50.72% of its industry peers.
In the last couple of years the Gross Margin of GOOGL 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
GOOGL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
GOOGL has less shares outstanding than it did 1 year ago.
GOOGL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for GOOGL has been reduced compared to a year ago.
2.2 Solvency
GOOGL has an Altman-Z score of 15.66. This indicates that GOOGL is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 15.66, GOOGL belongs to the top of the industry, outperforming 92.75% of the companies in the same industry.
GOOGL 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.
With an excellent Debt to FCF ratio value of 0.40, GOOGL belongs to the best of the industry, outperforming 81.16% of the companies in the same industry.
GOOGL has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.07, GOOGL perfoms like the industry average, outperforming 55.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | 15.66 |
ROIC/WACC2.75
WACC9.39%
2.3 Liquidity
GOOGL has a Current Ratio of 1.90. This is a normal value and indicates that GOOGL is financially healthy and should not expect problems in meeting its short term obligations.
GOOGL has a Current ratio of 1.90. This is comparable to the rest of the industry: GOOGL outperforms 50.72% of its industry peers.
GOOGL has a Quick Ratio of 1.90. This is a normal value and indicates that GOOGL is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of GOOGL (1.90) is comparable to the rest of the industry.
GOOGL 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 | 1.9 | ||
| Quick Ratio | 1.9 |
3. Growth
3.1 Past
GOOGL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.97%, which is quite impressive.
The Earnings Per Share has been growing by 25.25% on average over the past years. This is a very strong growth
Looking at the last year, GOOGL shows a quite strong growth in Revenue. The Revenue has grown by 13.13% in the last year.
Measured over the past years, GOOGL shows a quite strong growth in Revenue. The Revenue has been growing by 16.68% on average per year.
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
Based on estimates for the next years, GOOGL will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.07% on average per year.
GOOGL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.13% yearly.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
A Price/Earnings ratio of 28.78 indicates a quite expensive valuation of GOOGL.
Compared to the rest of the industry, the Price/Earnings ratio of GOOGL is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.38. GOOGL is around the same levels.
A Price/Forward Earnings ratio of 23.36 indicates a rather expensive valuation of GOOGL.
GOOGL's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.86. GOOGL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.78 | ||
| Fwd PE | 23.36 |
4.2 Price Multiples
60.87% of the companies in the same industry are more expensive than GOOGL, based on the Enterprise Value to EBITDA ratio.
GOOGL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.17 | ||
| EV/EBITDA | 20.43 |
4.3 Compensation for Growth
GOOGL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of GOOGL may justify a higher PE ratio.
GOOGL's earnings are expected to grow with 15.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.06
PEG (5Y)1.14
EPS Next 2Y16.38%
EPS Next 3Y15.36%
5. Dividend
5.1 Amount
With a yearly dividend of 0.35%, GOOGL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.89, GOOGL pays a better dividend. On top of this GOOGL pays more dividend than 89.86% of the companies listed in the same industry.
With a Dividend Yield of 0.35, GOOGL pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
5.2 History
GOOGL 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
GOOGL pays out 8.54% of its income as dividend. This is a sustainable payout ratio.
DP8.54%
EPS Next 2Y16.38%
EPS Next 3Y15.36%
254.72
+2.69 (+1.07%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners80.88%
Inst Owner Change-2.02%
Ins Owners0.05%
Ins Owner Change-0.88%
Market Cap3080.58B
Analysts81.47
Price Target234.68 (-7.87%)
Short Float %0.96%
Short Ratio1.49
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)6.22%
PT rev (3m)14.27%
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 | 28.78 | ||
| Fwd PE | 23.36 | ||
| P/S | 8.29 | ||
| P/FCF | 46.17 | ||
| P/OCF | 23.04 | ||
| P/B | 8.49 | ||
| P/tB | 9.32 | ||
| EV/EBITDA | 20.43 |
EPS(TTM)8.85
EY3.47%
EPS(NY)10.9
Fwd EY4.28%
FCF(TTM)5.52
FCFY2.17%
OCF(TTM)11.06
OCFY4.34%
SpS30.71
BVpS30.01
TBVpS27.33
PEG (NY)1.06
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 | 15.66 |
F-Score6
WACC9.39%
ROIC/WACC2.75
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%