ALPHABET INC-CL A (GOOGL)
US02079K3059 - Common Stock
Taking everything into account, GOOGL scores 8 out of 10 in our fundamental rating. GOOGL was compared to 73 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! With these ratings, GOOGL could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
GOOGL had positive earnings in the past year.
In the past year GOOGL had a positive cash flow from operations.
In the past 5 years GOOGL has always been profitable.
Each year in the past 5 years GOOGL had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 21.91%, GOOGL belongs to the best of the industry, outperforming 98.61% of the companies in the same industry.
The Return On Equity of GOOGL (30.01%) is better than 98.61% of its industry peers.
GOOGL has a Return On Invested Capital of 26.84%. This is amongst the best in the industry. GOOGL outperforms 98.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GOOGL is significantly above the industry average of 10.97%.
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
The Profit Margin of GOOGL (27.74%) is better than 95.83% of its industry peers.
In the last couple of years the Profit Margin of GOOGL has remained more or less at the same level.
The Operating Margin of GOOGL (32.02%) is better than 98.61% of its industry peers.
In the last couple of years the Operating Margin of GOOGL has grown nicely.
GOOGL's Gross Margin of 57.96% is in line compared to the rest of the industry. GOOGL outperforms 48.61% of its industry peers.
GOOGL's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GOOGL is creating value.
The number of shares outstanding for GOOGL has been reduced compared to 1 year ago.
The number of shares outstanding for GOOGL has been reduced compared to 5 years ago.
GOOGL has a better debt/assets ratio than last year.
2.2 Solvency
GOOGL has an Altman-Z score of 14.52. This indicates that GOOGL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of GOOGL (14.52) is better than 93.06% of its industry peers.
The Debt to FCF ratio of GOOGL is 0.26, which is an excellent value as it means it would take GOOGL, only 0.26 years of fcf income to pay off all of its debts.
GOOGL has a better Debt to FCF ratio (0.26) than 81.94% of its industry peers.
A Debt/Equity ratio of 0.04 indicates that GOOGL is not too dependend on debt financing.
GOOGL's Debt to Equity ratio of 0.04 is in line compared to the rest of the industry. GOOGL outperforms 54.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.26 | ||
| Altman-Z | 14.52 |
ROIC/WACC2.92
WACC9.18%
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.
GOOGL has a Current ratio (1.95) which is comparable to the rest of the 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.
Looking at the Quick ratio, with a value of 1.95, GOOGL is in line with its industry, outperforming 48.61% 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 | 1.95 | ||
| Quick Ratio | 1.95 |
3. Growth
3.1 Past
GOOGL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 44.72%, which is quite impressive.
Measured over the past years, GOOGL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.55% on average per year.
The Revenue has grown by 14.38% in the past year. This is quite good.
The Revenue has been growing by 17.57% on average over the past years. This is quite good.
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
Based on estimates for the next years, GOOGL will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.52% on average per year.
The Revenue is expected to grow by 11.47% on average over the next years. This is quite good.
EPS Next Y42.23%
EPS Next 2Y26.23%
EPS Next 3Y22.15%
EPS Next 5Y19.52%
Revenue Next Year14.47%
Revenue Next 2Y13.1%
Revenue Next 3Y12.24%
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
Based on the Price/Earnings ratio of 25.39, the valuation of GOOGL can be described as expensive.
Based on the Price/Earnings ratio, GOOGL is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
GOOGL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 20.71, which indicates a rather expensive current valuation of GOOGL.
Based on the Price/Forward Earnings ratio, GOOGL is valued a bit cheaper than 65.28% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, GOOGL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.39 | ||
| Fwd PE | 20.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GOOGL is valued a bit cheaper than the industry average as 68.06% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GOOGL is valued a bit cheaper than 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.97 | ||
| EV/EBITDA | 17.75 |
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.
The excellent profitability rating of GOOGL may justify a higher PE ratio.
GOOGL's earnings are expected to grow with 22.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.6
PEG (5Y)1.3
EPS Next 2Y26.23%
EPS Next 3Y22.15%
5. Dividend
5.1 Amount
With a yearly dividend of 0.42%, GOOGL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.81, GOOGL pays a better dividend. On top of this GOOGL pays more dividend than 90.28% of the companies listed in the same industry.
With a Dividend Yield of 0.42, GOOGL pays less dividend than the S&P500 average, which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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
DPN/A
EPS Next 2Y26.23%
EPS Next 3Y22.15%
ALPHABET INC-CL A
NASDAQ:GOOGL (12/20/2024, 8:15:18 PM)
After market: 192.79 +1.38 (+0.72%)191.41
+2.9 (+1.54%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners37.27%
Inst Owner Change-0.55%
Ins Owners2.98%
Ins Owner Change-0.32%
Market Cap2343.05B
Analysts81.85
Price Target211.89 (10.7%)
Short Float %1.2%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)3.77%
PT rev (3m)1.88%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)4.89%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)4.61%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.39 | ||
| Fwd PE | 20.71 | ||
| P/S | 6.89 | ||
| P/FCF | 41.97 | ||
| P/OCF | 22.29 | ||
| P/B | 7.46 | ||
| P/tB | 8.3 | ||
| EV/EBITDA | 17.75 |
EPS(TTM)7.54
EY3.94%
EPS(NY)9.24
Fwd EY4.83%
FCF(TTM)4.56
FCFY2.38%
OCF(TTM)8.59
OCFY4.49%
SpS27.76
BVpS25.66
TBVpS23.05
PEG (NY)0.6
PEG (5Y)1.3
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 | 14.52 |
F-Score8
WACC9.18%
ROIC/WACC2.92
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 Y42.23%
EPS Next 2Y26.23%
EPS Next 3Y22.15%
EPS Next 5Y19.52%
Revenue 1Y (TTM)14.38%
Revenue growth 3Y18.98%
Revenue growth 5Y17.57%
Sales Q2Q%15.09%
Revenue Next Year14.47%
Revenue Next 2Y13.1%
Revenue Next 3Y12.24%
Revenue Next 5Y11.47%
EBIT growth 1Y33.53%
EBIT growth 3Y28.87%
EBIT growth 5Y22.04%
EBIT Next Year75.71%
EBIT Next 3Y31.68%
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%