334.38 USD
-0.17 (-0.05%)
We assign a fundamental rating of 7 out of 10 to GOOGL. GOOGL was compared to 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes GOOGL very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
- GOOGL had positive earnings in the past year.
- GOOGL had a positive operating cash flow in the past year.
- Each year in the past 5 years GOOGL has been profitable.
- GOOGL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 23.16%, GOOGL belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 32.12%, GOOGL belongs to the top 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 91.43% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for GOOGL is significantly above the industry average of 13.70%.
- The last Return On Invested Capital (24.90%) for GOOGL 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
- GOOGL has a Profit Margin of 32.23%. This is amongst the best in the industry. GOOGL outperforms 92.86% 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.
- GOOGL's Operating Margin has improved in the last couple of years.
- GOOGL has a Gross Margin of 59.17%. This is comparable to the rest of the industry: GOOGL outperforms 51.43% of its industry peers.
- GOOGL'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 GOOGL is creating value.
- GOOGL has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for GOOGL has been reduced compared to 5 years ago.
- The debt/assets ratio for GOOGL has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 18.63 indicates that GOOGL is not in any danger for bankruptcy at the moment.
- GOOGL has a Altman-Z score of 18.63. This is amongst the best in the industry. GOOGL outperforms 95.71% of its industry peers.
- The Debt to FCF ratio of GOOGL is 0.29, which is an excellent value as it means it would take GOOGL, only 0.29 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.29, GOOGL belongs to the top of the industry, outperforming 84.29% of the companies in the same industry.
- A Debt/Equity ratio of 0.06 indicates that GOOGL is not too dependend on debt financing.
- GOOGL's Debt to Equity ratio of 0.06 is in line compared to the rest of the industry. GOOGL outperforms 55.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 18.63 |
ROIC/WACC2.82
WACC8.84%
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.
- GOOGL has a Current ratio (1.75) which is in line with its industry peers.
- 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.
- Looking at the Quick ratio, with a value of 1.75, GOOGL is in line with its industry, outperforming 50.00% of the companies in the same industry.
- The current and quick ratio evaluation for GOOGL 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
- The Earnings Per Share has grown by an impressive 30.37% over the past year.
- GOOGL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.25% yearly.
- The Revenue has grown by 13.42% in the past year. This is quite good.
- The Revenue has been growing by 16.68% on average over the past years. This is quite good.
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, GOOGL will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.87% on average per year.
- GOOGL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.67% yearly.
EPS Next Y35.48%
EPS Next 2Y19.79%
EPS Next 3Y18.39%
EPS Next 5Y16.87%
Revenue Next Year13.94%
Revenue Next 2Y13.85%
Revenue Next 3Y13.55%
Revenue Next 5Y12.67%
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 34.02, the valuation of GOOGL can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of GOOGL is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, GOOGL is valued at the same level.
- Based on the Price/Forward Earnings ratio of 28.95, the valuation of GOOGL can be described as expensive.
- GOOGL's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, GOOGL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.02 | ||
| Fwd PE | 28.95 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GOOGL is on the same level as its industry peers.
- 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 | 54.86 | ||
| EV/EBITDA | 26.63 |
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 18.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.96
PEG (5Y)1.35
EPS Next 2Y19.79%
EPS Next 3Y18.39%
5. Dividend
5.1 Amount
- GOOGL has a yearly dividend return of 0.25%, which is pretty low.
- GOOGL's Dividend Yield is rather good when compared to the industry average which is at 0.77. GOOGL pays more dividend than 85.71% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, GOOGL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
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 8.01% of its income as dividend. This is a sustainable payout ratio.
DP8.01%
EPS Next 2Y19.79%
EPS Next 3Y18.39%
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.
What is the valuation status for GOOGL stock?
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.
What are the PE and PB ratios of ALPHABET INC-CL A (GOOGL) stock?
The Price/Earnings (PE) ratio for ALPHABET INC-CL A (GOOGL) is 34.02 and the Price/Book (PB) ratio is 10.43.
What is the expected EPS growth for ALPHABET INC-CL A (GOOGL) stock?
The Earnings per Share (EPS) of ALPHABET INC-CL A (GOOGL) is expected to grow by 35.48% in the next year.