ALPHABET INC-CL A (GOOGL) Stock Fundamental Analysis
USA - NASDAQ:GOOGL - US02079K3059 - Common Stock
299.66 USD
+10.21 (+3.53%)
300.64 USD
+0.98 (+0.33%)
Overall GOOGL gets a fundamental rating of 7 out of 10. We evaluated GOOGL against 70 industry peers in the Interactive Media & Services industry. GOOGL gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
In the past year GOOGL had a positive cash flow from operations.
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
The Return On Assets of GOOGL (23.16%) is better than 97.14% of its industry peers.
With an excellent Return On Equity value of 32.12%, GOOGL belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
GOOGL's Return On Invested Capital of 24.90% is amongst the best of the industry. GOOGL outperforms 92.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GOOGL is significantly above the industry average of 13.21%.
The 3 year average ROIC (24.19%) for GOOGL is below the current ROIC(24.90%), indicating increased profibility in the last year.
| 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
GOOGL has a Profit Margin of 32.23%. This is amongst the best in the industry. GOOGL outperforms 91.43% of its industry peers.
In the last couple of years the Profit Margin of GOOGL has grown nicely.
The Operating Margin of GOOGL (32.83%) is better than 97.14% of its industry peers.
In the last couple of years the Operating Margin of GOOGL has grown nicely.
GOOGL has a Gross Margin of 59.17%. This is comparable to the rest of the industry: GOOGL outperforms 50.00% 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 | 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 GOOGL 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.
Compared to 1 year ago, GOOGL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 16.48 indicates that GOOGL is not in any danger for bankruptcy at the moment.
GOOGL has a Altman-Z score of 16.48. This is amongst the best in the industry. GOOGL outperforms 97.14% of its industry peers.
GOOGL 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.
GOOGL's Debt to FCF ratio of 0.29 is amongst the best of the industry. GOOGL outperforms 84.29% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that GOOGL is not too dependend on debt financing.
GOOGL has a Debt to Equity ratio of 0.06. This is comparable to the rest of the industry: GOOGL outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 16.48 |
ROIC/WACC2.49
WACC10%
2.3 Liquidity
GOOGL has a Current Ratio of 1.75. This is a normal value and indicates that GOOGL is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.75, GOOGL perfoms like the industry average, outperforming 47.14% of the companies in the same industry.
GOOGL has a Quick Ratio of 1.75. 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 Quick ratio (1.75) which is in line with its industry peers.
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 | 1.75 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
GOOGL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.37%, which is quite impressive.
GOOGL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.25% yearly.
Looking at the last year, GOOGL shows a quite strong growth in Revenue. The Revenue has grown by 13.42% 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)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
GOOGL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.13% yearly.
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
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
The Price/Earnings ratio is 30.48, which means the current valuation is very expensive for GOOGL.
GOOGL's Price/Earnings is on the same level as the industry average.
GOOGL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 26.59, which means the current valuation is very expensive for GOOGL.
GOOGL's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.46. GOOGL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.48 | ||
| Fwd PE | 26.59 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GOOGL.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GOOGL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.27 | ||
| EV/EBITDA | 22.96 |
4.3 Compensation for Growth
GOOGL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GOOGL has an outstanding profitability rating, which may justify a higher PE ratio.
GOOGL's earnings are expected to grow with 17.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.93
PEG (5Y)1.21
EPS Next 2Y18.31%
EPS Next 3Y17.12%
5. Dividend
5.1 Amount
With a yearly dividend of 0.30%, GOOGL is not a good candidate for dividend investing.
GOOGL's Dividend Yield is rather good when compared to the industry average which is at 2.85. GOOGL pays more dividend than 87.14% of the companies in the same industry.
With a Dividend Yield of 0.30, GOOGL pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
5.2 History
GOOGL 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
GOOGL pays out 8.01% of its income as dividend. This is a sustainable payout ratio.
DP8.01%
EPS Next 2Y18.31%
EPS Next 3Y17.12%
299.66
+10.21 (+3.53%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners81.14%
Inst Owner Change1.71%
Ins Owners0.05%
Ins Owner Change-0.69%
Market Cap3.62T
Revenue(TTM)385.48B
Net Income(TTM)124.25B
Analysts82.43
Price Target263.13 (-12.19%)
Short Float %1.16%
Short Ratio2.07
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)16.04%
Min EPS beat(2)2.67%
Max EPS beat(2)29.41%
EPS beat(4)3
Avg EPS beat(4)9.93%
Min EPS beat(4)-1.9%
Max EPS beat(4)29.41%
EPS beat(8)5
Avg EPS beat(8)8.98%
EPS beat(12)8
Avg EPS beat(12)6.1%
EPS beat(16)9
Avg EPS beat(16)3.08%
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)9.54%
PT rev (3m)19.1%
EPS NQ rev (1m)2.49%
EPS NQ rev (3m)2.54%
EPS NY rev (1m)4.27%
EPS NY rev (3m)8.02%
Revenue NQ rev (1m)1.92%
Revenue NQ rev (3m)2.14%
Revenue NY rev (1m)0.83%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.48 | ||
| Fwd PE | 26.59 | ||
| P/S | 9.4 | ||
| P/FCF | 49.27 | ||
| P/OCF | 23.93 | ||
| P/B | 9.37 | ||
| P/tB | 10.25 | ||
| EV/EBITDA | 22.96 |
EPS(TTM)9.83
EY3.28%
EPS(NY)11.27
Fwd EY3.76%
FCF(TTM)6.08
FCFY2.03%
OCF(TTM)12.52
OCFY4.18%
SpS31.87
BVpS31.99
TBVpS29.24
PEG (NY)0.93
PEG (5Y)1.21
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 | 16.48 |
F-Score6
WACC10%
ROIC/WACC2.49
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 A / GOOGL FAQ
Can you provide the ChartMill fundamental rating for ALPHABET INC-CL A?
ChartMill assigns a fundamental rating of 7 / 10 to GOOGL.
Can you provide the valuation status for ALPHABET INC-CL A?
ChartMill assigns a valuation rating of 4 / 10 to ALPHABET INC-CL A (GOOGL). This can be considered as Fairly Valued.
How profitable is ALPHABET INC-CL A (GOOGL) stock?
ALPHABET INC-CL A (GOOGL) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for GOOGL stock?
The Price/Earnings (PE) ratio for ALPHABET INC-CL A (GOOGL) is 30.48 and the Price/Book (PB) ratio is 9.37.
Can you provide the dividend sustainability for GOOGL stock?
The dividend rating of ALPHABET INC-CL A (GOOGL) is 3 / 10 and the dividend payout ratio is 8.01%.