ALPHABET INC-CL A (GOOGL) Stock Fundamental Analysis
NASDAQ:GOOGL - Nasdaq - US02079K3059 - Common Stock
GOOGL gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 72 industry peers in the Interactive Media & Services industry. GOOGL scores excellent points on both the profitability and health parts. This is a solid base for a good stock. GOOGL is growing strongly while it is still valued neutral. This is a good 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
Looking at the Return On Assets, with a value of 21.91%, GOOGL belongs to the top of the industry, outperforming 98.51% of the companies in the same industry.
Looking at the Return On Equity, with a value of 30.01%, GOOGL belongs to the top of the industry, outperforming 98.51% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 26.84%, GOOGL belongs to the top of the industry, outperforming 97.01% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GOOGL is significantly above the industry average of 12.59%.
The last Return On Invested Capital (26.84%) for GOOGL is above the 3 year average (22.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.91% | ||
| ROE | 30.01% | ||
| ROIC | 26.84% |
ROA(3y)18.64%
ROA(5y)16.19%
ROE(3y)26.56%
ROE(5y)22.96%
ROIC(3y)22.84%
ROIC(5y)19.1%
1.3 Margins
GOOGL's Profit Margin of 27.74% is amongst the best of the industry. GOOGL outperforms 95.52% of its industry peers.
In the last couple of years the Profit Margin of GOOGL has remained more or less at the same level.
GOOGL's Operating Margin of 32.02% is amongst the best of the industry. GOOGL outperforms 98.51% of its industry peers.
GOOGL's Operating Margin has improved in the last couple of years.
GOOGL has a Gross Margin (57.96%) which is comparable to the rest of the industry.
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 | 32.02% | ||
| PM (TTM) | 27.74% | ||
| GM | 57.96% |
OM growth 3Y8.32%
OM growth 5Y3.8%
PM growth 3Y2.86%
PM growth 5Y1.34%
GM growth 3Y2.05%
GM growth 5Y0.16%
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.
The number of shares outstanding for GOOGL has been reduced compared to 1 year ago.
Compared to 5 years ago, GOOGL has less shares outstanding
The debt/assets ratio for GOOGL has been reduced compared to a year ago.
2.2 Solvency
GOOGL has an Altman-Z score of 15.00. This indicates that GOOGL is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 15.00, GOOGL belongs to the best of the industry, outperforming 91.04% of the companies in the same industry.
GOOGL has a debt to FCF ratio of 0.26. This is a very positive value and a sign of high solvency as it would only need 0.26 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.26, GOOGL belongs to the best of the industry, outperforming 82.09% of the companies in the same industry.
GOOGL has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.04, GOOGL perfoms like the industry average, outperforming 58.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.26 | ||
| Altman-Z | 15 |
ROIC/WACC2.91
WACC9.22%
2.3 Liquidity
GOOGL has a Current Ratio of 1.95. 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 1.95, GOOGL perfoms like the industry average, outperforming 52.24% of the companies in the same industry.
GOOGL has a Quick Ratio of 1.95. 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 Quick ratio value of 1.95, GOOGL perfoms like the industry average, outperforming 52.24% of the companies in the same 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 | 1.95 | ||
| Quick Ratio | 1.95 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 44.72% over the past year.
GOOGL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.55% yearly.
Looking at the last year, GOOGL shows a quite strong growth in Revenue. The Revenue has grown by 14.38% in the last year.
GOOGL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.57% yearly.
EPS 1Y (TTM)44.72%
EPS 3Y25.49%
EPS 5Y19.55%
EPS Q2Q%36.77%
Revenue 1Y (TTM)14.38%
Revenue growth 3Y18.98%
Revenue growth 5Y17.57%
Sales Q2Q%15.09%
3.2 Future
The Earnings Per Share is expected to grow by 19.52% on average over the next years. This is quite good.
GOOGL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.47% yearly.
EPS Next Y42.19%
EPS Next 2Y26.17%
EPS Next 3Y22.12%
EPS Next 5Y19.52%
Revenue Next Year14.5%
Revenue Next 2Y13.1%
Revenue Next 3Y12.28%
Revenue Next 5Y11.47%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 25.99, which means the current valuation is very expensive for GOOGL.
GOOGL's Price/Earnings ratio is a bit cheaper when compared to the industry. GOOGL is cheaper than 67.16% of the companies in the same industry.
GOOGL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.94, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 21.23, the valuation of GOOGL can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GOOGL indicates a somewhat cheap valuation: GOOGL is cheaper than 62.69% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.11, GOOGL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.99 | ||
| Fwd PE | 21.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GOOGL is valued a bit cheaper than the industry average as 65.67% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as GOOGL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.98 | ||
| EV/EBITDA | 18.5 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as GOOGL's earnings are expected to grow with 22.12% in the coming years.
PEG (NY)0.62
PEG (5Y)1.33
EPS Next 2Y26.17%
EPS Next 3Y22.12%
5. Dividend
5.1 Amount
With a yearly dividend of 0.41%, 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 89.55% of the companies listed in the same industry.
With a Dividend Yield of 0.41, GOOGL pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
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
DPN/A
EPS Next 2Y26.17%
EPS Next 3Y22.12%
ALPHABET INC-CL A
NASDAQ:GOOGL (1/17/2025, 8:04:32 PM)
After market: 196.04 +0.04 (+0.02%)196
+3.09 (+1.6%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners81.14%
Inst Owner Change-0.44%
Ins Owners0.07%
Ins Owner Change-0.28%
Market Cap2399.24B
Analysts81.82
Price Target212.17 (8.25%)
Short Float %1.12%
Short Ratio2.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.51%
Min EPS beat(2)-0.52%
Max EPS beat(2)11.53%
EPS beat(4)2
Avg EPS beat(4)8.03%
Min EPS beat(4)-0.52%
Max EPS beat(4)21.13%
EPS beat(8)5
Avg EPS beat(8)4.19%
EPS beat(12)6
Avg EPS beat(12)0.8%
EPS beat(16)10
Avg EPS beat(16)9.98%
Revenue beat(2)0
Avg Revenue beat(2)-1.49%
Min Revenue beat(2)-2.28%
Max Revenue beat(2)-0.7%
Revenue beat(4)0
Avg Revenue beat(4)-1.32%
Min Revenue beat(4)-2.28%
Max Revenue beat(4)-0.51%
Revenue beat(8)0
Avg Revenue beat(8)-1.63%
Revenue beat(12)1
Avg Revenue beat(12)-1.91%
Revenue beat(16)4
Avg Revenue beat(16)-0.52%
PT rev (1m)0.13%
PT rev (3m)3.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.89%
EPS NY rev (1m)0%
EPS NY rev (3m)4.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.99 | ||
| Fwd PE | 21.23 | ||
| P/S | 7.06 | ||
| P/FCF | 42.98 | ||
| P/OCF | 22.83 | ||
| P/B | 7.64 | ||
| P/tB | 8.5 | ||
| EV/EBITDA | 18.5 |
EPS(TTM)7.54
EY3.85%
EPS(NY)9.23
Fwd EY4.71%
FCF(TTM)4.56
FCFY2.33%
OCF(TTM)8.59
OCFY4.38%
SpS27.76
BVpS25.66
TBVpS23.05
PEG (NY)0.62
PEG (5Y)1.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.91% | ||
| ROE | 30.01% | ||
| ROCE | 31.14% | ||
| ROIC | 26.84% | ||
| ROICexc | 36.61% | ||
| ROICexgc | 41.82% | ||
| OM | 32.02% | ||
| PM (TTM) | 27.74% | ||
| GM | 57.96% | ||
| FCFM | 16.43% |
ROA(3y)18.64%
ROA(5y)16.19%
ROE(3y)26.56%
ROE(5y)22.96%
ROIC(3y)22.84%
ROIC(5y)19.1%
ROICexc(3y)38.45%
ROICexc(5y)34.29%
ROICexgc(3y)45.54%
ROICexgc(5y)41.2%
ROCE(3y)26.5%
ROCE(5y)22.15%
ROICexcg growth 3Y7.06%
ROICexcg growth 5Y0.67%
ROICexc growth 3Y8.78%
ROICexc growth 5Y2.82%
OM growth 3Y8.32%
OM growth 5Y3.8%
PM growth 3Y2.86%
PM growth 5Y1.34%
GM growth 3Y2.05%
GM growth 5Y0.16%
F-Score8
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.26 | ||
| Debt/EBITDA | 0.1 | ||
| Cap/Depr | 388.97% | ||
| Cap/Sales | 14.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.52% | ||
| Profit Quality | 59.22% | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.95 | ||
| Altman-Z | 15 |
F-Score8
WACC9.22%
ROIC/WACC2.91
Cap/Depr(3y)221.9%
Cap/Depr(5y)205.65%
Cap/Sales(3y)10.4%
Cap/Sales(5y)11.59%
Profit Quality(3y)94.12%
Profit Quality(5y)95.79%
High Growth Momentum
Growth
EPS 1Y (TTM)44.72%
EPS 3Y25.49%
EPS 5Y19.55%
EPS Q2Q%36.77%
EPS Next Y42.19%
EPS Next 2Y26.17%
EPS Next 3Y22.12%
EPS Next 5Y19.52%
Revenue 1Y (TTM)14.38%
Revenue growth 3Y18.98%
Revenue growth 5Y17.57%
Sales Q2Q%15.09%
Revenue Next Year14.5%
Revenue Next 2Y13.1%
Revenue Next 3Y12.28%
Revenue Next 5Y11.47%
EBIT growth 1Y33.53%
EBIT growth 3Y28.87%
EBIT growth 5Y22.04%
EBIT Next Year75.68%
EBIT Next 3Y31.82%
EBIT Next 5Y24.13%
FCF growth 1Y-10.74%
FCF growth 3Y17.5%
FCF growth 5Y24.93%
OCF growth 1Y13.24%
OCF growth 3Y16.04%
OCF growth 5Y16.23%