ALPHABET INC-CL A (GOOGL) Stock Fundamental Analysis

NASDAQ:GOOGL • US02079K3059

311.76 USD
+4.38 (+1.42%)
At close: Feb 27, 2026
309.2 USD
-2.56 (-0.82%)
After Hours: 2/27/2026, 8:07:30 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

GOOGL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 69 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 valued quite expensive, but it does show an excellent growth. These ratings would make GOOGL suitable for growth and quality investing!


Dividend Valuation Growth Profitability Health

9

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.
  • Each year in the past 5 years GOOGL had a positive operating cash flow.
GOOGL Yearly Net Income VS EBIT VS OCF VS FCFGOOGL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B

1.2 Ratios

  • With an excellent Return On Assets value of 22.20%, GOOGL belongs to the best of the industry, outperforming 94.20% of the companies in the same industry.
  • The Return On Equity of GOOGL (31.83%) is better than 97.10% of its industry peers.
  • GOOGL's Return On Invested Capital of 23.24% is amongst the best of the industry. GOOGL outperforms 89.86% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for GOOGL is significantly above the industry average of 12.94%.
Industry RankSector Rank
ROA 22.2%
ROE 31.83%
ROIC 23.24%
ROA(3y)20.93%
ROA(5y)20.07%
ROE(3y)29.56%
ROE(5y)28.46%
ROIC(3y)24.04%
ROIC(5y)23.21%
GOOGL Yearly ROA, ROE, ROICGOOGL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • GOOGL has a Profit Margin of 32.81%. This is amongst the best in the industry. GOOGL outperforms 92.75% of its industry peers.
  • In the last couple of years the Profit Margin of GOOGL has grown nicely.
  • With an excellent Operating Margin value of 33.62%, GOOGL belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
  • In the last couple of years the Operating Margin of GOOGL has grown nicely.
  • GOOGL has a Gross Margin of 59.65%. This is comparable to the rest of the industry: GOOGL outperforms 52.17% of its industry peers.
  • GOOGL's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 33.62%
PM (TTM) 32.81%
GM 59.65%
OM growth 3Y6.58%
OM growth 5Y7.24%
PM growth 3Y15.66%
PM growth 5Y8.26%
GM growth 3Y2.51%
GM growth 5Y2.17%
GOOGL Yearly Profit, Operating, Gross MarginsGOOGL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

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.
  • Compared to 1 year ago, GOOGL has less shares outstanding
  • Compared to 5 years ago, GOOGL has less shares outstanding
  • Compared to 1 year ago, GOOGL has a worse debt to assets ratio.
GOOGL Yearly Shares OutstandingGOOGL Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B
GOOGL Yearly Total Debt VS Total AssetsGOOGL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100B 200B 300B 400B 500B

2.2 Solvency

  • GOOGL has an Altman-Z score of 14.79. This indicates that GOOGL is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 14.79, GOOGL belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
  • The Debt to FCF ratio of GOOGL is 0.64, which is an excellent value as it means it would take GOOGL, only 0.64 years of fcf income to pay off all of its debts.
  • With an excellent Debt to FCF ratio value of 0.64, 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 0.11. This is a healthy value indicating a solid balance between debt and equity.
  • GOOGL has a Debt to Equity ratio (0.11) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.11
Debt/FCF 0.64
Altman-Z 14.79
ROIC/WACC2.71
WACC8.58%
GOOGL Yearly LT Debt VS Equity VS FCFGOOGL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100B 200B 300B 400B

2.3 Liquidity

  • A Current Ratio of 2.01 indicates that GOOGL has no problem at all paying its short term obligations.
  • The Current ratio of GOOGL (2.01) is comparable to the rest of the industry.
  • GOOGL has a Quick Ratio of 2.01. This indicates that GOOGL is financially healthy and has no problem in meeting its short term obligations.
  • With a Quick ratio value of 2.01, GOOGL perfoms like the industry average, outperforming 55.07% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.01
Quick Ratio 2.01
GOOGL Yearly Current Assets VS Current LiabilitesGOOGL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B 200B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. Growth

3.1 Past

  • GOOGL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.43%, which is quite impressive.
  • The Earnings Per Share has been growing by 29.04% on average over the past years. This is a very strong growth
  • GOOGL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.09%.
  • The Revenue has been growing by 17.15% on average over the past years. This is quite good.
EPS 1Y (TTM)30.43%
EPS 3Y32.14%
EPS 5Y29.04%
EPS Q2Q%31.16%
Revenue 1Y (TTM)15.09%
Revenue growth 3Y12.51%
Revenue growth 5Y17.15%
Sales Q2Q%17.99%

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 16.10% yearly.
  • Based on estimates for the next years, GOOGL will show a quite strong growth in Revenue. The Revenue will grow by 13.39% on average per year.
EPS Next Y10.01%
EPS Next 2Y13.1%
EPS Next 3Y12.56%
EPS Next 5Y16.1%
Revenue Next Year17.78%
Revenue Next 2Y16.37%
Revenue Next 3Y15.57%
Revenue Next 5Y13.39%

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.
GOOGL Yearly Revenue VS EstimatesGOOGL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 200B 400B 600B 800B
GOOGL Yearly EPS VS EstimatesGOOGL Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 10 20 30

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3

4. Valuation

4.1 Price/Earnings Ratio

  • GOOGL is valuated quite expensively with a Price/Earnings ratio of 29.69.
  • GOOGL's Price/Earnings ratio is in line with the industry average.
  • GOOGL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.10, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 26.99, the valuation of GOOGL can be described as expensive.
  • GOOGL's Price/Forward Earnings is on the same level as the industry average.
  • GOOGL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.06.
Industry RankSector Rank
PE 29.69
Fwd PE 26.99
GOOGL Price Earnings VS Forward Price EarningsGOOGL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • GOOGL's Enterprise Value to EBITDA is on the same level as the industry average.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as GOOGL.
Industry RankSector Rank
P/FCF 51.47
EV/EBITDA 22.62
GOOGL Per share dataGOOGL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GOOGL does not grow enough to justify the current Price/Earnings ratio.
  • The excellent profitability rating of GOOGL may justify a higher PE ratio.
  • A more expensive valuation may be justified as GOOGL's earnings are expected to grow with 12.56% in the coming years.
PEG (NY)2.97
PEG (5Y)1.02
EPS Next 2Y13.1%
EPS Next 3Y12.56%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. Dividend

5.1 Amount

  • GOOGL has a yearly dividend return of 0.27%, which is pretty low.
  • GOOGL's Dividend Yield is rather good when compared to the industry average which is at 0.93. GOOGL pays more dividend than 86.96% of the companies in the same industry.
  • With a Dividend Yield of 0.27, GOOGL pays less dividend than the S&P500 average, which is at 1.80.
Industry RankSector Rank
Dividend Yield 0.27%

5.2 History

  • GOOGL has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
GOOGL Yearly Dividends per shareGOOGL Yearly Dividends per shareYearly Dividends per share 2024 2025 2026 0.2 0.4 0.6 0.8

5.3 Sustainability

  • GOOGL pays out 7.60% of its income as dividend. This is a sustainable payout ratio.
DP7.6%
EPS Next 2Y13.1%
EPS Next 3Y12.56%
GOOGL Yearly Income VS Free CF VS DividendGOOGL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B
GOOGL Dividend Payout.GOOGL Dividend Payout, showing the Payout Ratio.GOOGL Dividend Payout.PayoutRetained Earnings

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ALPHABET INC-CL A

NASDAQ:GOOGL (2/27/2026, 8:07:30 PM)

After market: 309.2 -2.56 (-0.82%)

311.76

+4.38 (+1.42%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)02-04
Earnings (Next)04-22
Inst Owners81.24%
Inst Owner Change-0.54%
Ins Owners0.05%
Ins Owner Change-0.42%
Market Cap3.77T
Revenue(TTM)402.84B
Net Income(TTM)132.17B
Analysts82.61
Price Target366.94 (17.7%)
Short Float %1.31%
Short Ratio2.21
Dividend
Industry RankSector Rank
Dividend Yield 0.27%
Yearly Dividend0.83
Dividend Growth(5Y)N/A
DP7.6%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-09
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.81%
Min EPS beat(2)4.2%
Max EPS beat(2)29.41%
EPS beat(4)4
Avg EPS beat(4)11.45%
Min EPS beat(4)2.67%
Max EPS beat(4)29.41%
EPS beat(8)6
Avg EPS beat(8)9.51%
EPS beat(12)9
Avg EPS beat(12)7.56%
EPS beat(16)9
Avg EPS beat(16)2.78%
Revenue beat(2)0
Avg Revenue beat(2)-0.68%
Min Revenue beat(2)-0.83%
Max Revenue beat(2)-0.53%
Revenue beat(4)0
Avg Revenue beat(4)-0.86%
Min Revenue beat(4)-1.7%
Max Revenue beat(4)-0.4%
Revenue beat(8)0
Avg Revenue beat(8)-1.24%
Revenue beat(12)0
Avg Revenue beat(12)-1.33%
Revenue beat(16)0
Avg Revenue beat(16)-1.92%
PT rev (1m)2.92%
PT rev (3m)9.17%
EPS NQ rev (1m)2.59%
EPS NQ rev (3m)3.25%
EPS NY rev (1m)0%
EPS NY rev (3m)2.51%
Revenue NQ rev (1m)2.93%
Revenue NQ rev (3m)3.43%
Revenue NY rev (1m)3.9%
Revenue NY rev (3m)5.05%
Valuation
Industry RankSector Rank
PE 29.69
Fwd PE 26.99
P/S 9.36
P/FCF 51.47
P/OCF 22.9
P/B 9.08
P/tB 9.88
EV/EBITDA 22.62
EPS(TTM)10.5
EY3.37%
EPS(NY)11.55
Fwd EY3.71%
FCF(TTM)6.06
FCFY1.94%
OCF(TTM)13.62
OCFY4.37%
SpS33.3
BVpS34.33
TBVpS31.57
PEG (NY)2.97
PEG (5Y)1.02
Graham Number90.06
Profitability
Industry RankSector Rank
ROA 22.2%
ROE 31.83%
ROCE 27.5%
ROIC 23.24%
ROICexc 31.3%
ROICexgc 34.44%
OM 33.62%
PM (TTM) 32.81%
GM 59.65%
FCFM 18.19%
ROA(3y)20.93%
ROA(5y)20.07%
ROE(3y)29.56%
ROE(5y)28.46%
ROIC(3y)24.04%
ROIC(5y)23.21%
ROICexc(3y)33.92%
ROICexc(5y)35.86%
ROICexgc(3y)38.49%
ROICexgc(5y)41.62%
ROCE(3y)28.45%
ROCE(5y)27.46%
ROICexgc growth 3Y-7.78%
ROICexgc growth 5Y-0.51%
ROICexc growth 3Y-4.94%
ROICexc growth 5Y1.54%
OM growth 3Y6.58%
OM growth 5Y7.24%
PM growth 3Y15.66%
PM growth 5Y8.26%
GM growth 3Y2.51%
GM growth 5Y2.17%
F-Score6
Asset Turnover0.68
Health
Industry RankSector Rank
Debt/Equity 0.11
Debt/FCF 0.64
Debt/EBITDA 0.3
Cap/Depr 432.66%
Cap/Sales 22.7%
Interest Coverage 250
Cash Conversion 105.2%
Profit Quality 55.43%
Current Ratio 2.01
Quick Ratio 2.01
Altman-Z 14.79
F-Score6
WACC8.58%
ROIC/WACC2.71
Cap/Depr(3y)348.58%
Cap/Depr(5y)288.3%
Cap/Sales(3y)16.07%
Cap/Sales(5y)13.78%
Profit Quality(3y)74.09%
Profit Quality(5y)82.1%
High Growth Momentum
Growth
EPS 1Y (TTM)30.43%
EPS 3Y32.14%
EPS 5Y29.04%
EPS Q2Q%31.16%
EPS Next Y10.01%
EPS Next 2Y13.1%
EPS Next 3Y12.56%
EPS Next 5Y16.1%
Revenue 1Y (TTM)15.09%
Revenue growth 3Y12.51%
Revenue growth 5Y17.15%
Sales Q2Q%17.99%
Revenue Next Year17.78%
Revenue Next 2Y16.37%
Revenue Next 3Y15.57%
Revenue Next 5Y13.39%
EBIT growth 1Y18.07%
EBIT growth 3Y19.91%
EBIT growth 5Y25.64%
EBIT Next Year63.43%
EBIT Next 3Y29.73%
EBIT Next 5Y25.97%
FCF growth 1Y0.69%
FCF growth 3Y6.88%
FCF growth 5Y11.33%
OCF growth 1Y31.46%
OCF growth 3Y21.65%
OCF growth 5Y20.39%

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 3 / 10 to ALPHABET INC-CL A (GOOGL). This can be considered as Overvalued.


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 29.69 and the Price/Book (PB) ratio is 9.08.


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 10.01% in the next year.