328.14 USD
-2.4 (-0.73%)
Taking everything into account, GOOGL scores 7 out of 10 in our fundamental rating. GOOGL was compared to 70 industry peers in the Interactive Media & Services industry. GOOGL has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. GOOGL is not overvalued while it is showing excellent growth. This is an interesting combination. This makes GOOGL very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year GOOGL was profitable.
- 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
- Looking at the Return On Assets, with a value of 23.16%, GOOGL belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
- GOOGL has a better Return On Equity (32.12%) than 97.14% of its industry peers.
- GOOGL has a Return On Invested Capital of 24.90%. This is amongst the best in the industry. GOOGL outperforms 91.43% of its industry peers.
- GOOGL had an Average Return On Invested Capital over the past 3 years of 24.19%. This 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's Profit Margin of 32.23% is amongst the best of the industry. GOOGL outperforms 92.86% of its industry peers.
- In the last couple of years the Profit Margin of GOOGL has grown nicely.
- Looking at the Operating Margin, with a value of 32.83%, GOOGL belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
- In the last couple of years the Operating Margin of GOOGL has grown nicely.
- With a Gross Margin value of 59.17%, GOOGL perfoms like the industry average, outperforming 51.43% of the companies in the same industry.
- 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
- GOOGL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
- Compared to 1 year ago, GOOGL has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 18.44 indicates that GOOGL is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 18.44, GOOGL belongs to the best of the industry, outperforming 95.71% of the companies in the same industry.
- 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.
- 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 (0.06) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 18.44 |
ROIC/WACC2.8
WACC8.88%
2.3 Liquidity
- A Current Ratio of 1.75 indicates that GOOGL should not have too much problems paying its short term obligations.
- GOOGL's Current ratio of 1.75 is in line compared to the rest of the industry. GOOGL outperforms 50.00% of 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.
- GOOGL's Quick ratio of 1.75 is in line compared to the rest of the industry. GOOGL outperforms 50.00% of its industry peers.
- 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
- 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.
- The Earnings Per Share has been growing by 25.25% on average over the past years. This is a very strong growth
- 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
- The Earnings Per Share is expected to grow by 16.87% on average over the next years. This is quite good.
- Based on estimates for the next years, GOOGL will show a quite strong growth in Revenue. The Revenue will grow by 12.67% on average per year.
EPS Next Y35.39%
EPS Next 2Y19.53%
EPS Next 3Y18.08%
EPS Next 5Y16.87%
Revenue Next Year13.91%
Revenue Next 2Y13.74%
Revenue Next 3Y13.39%
Revenue Next 5Y12.67%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
- GOOGL is valuated quite expensively with a Price/Earnings ratio of 33.38.
- GOOGL's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of GOOGL to the average of the S&P500 Index (27.30), we can say GOOGL is valued slightly more expensively.
- The Price/Forward Earnings ratio is 28.53, which means the current valuation is very expensive for GOOGL.
- GOOGL's Price/Forward 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/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.38 | ||
| Fwd PE | 28.53 |
4.2 Price Multiples
- GOOGL's Enterprise Value to EBITDA ratio is in line with the industry average.
- GOOGL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.83 | ||
| EV/EBITDA | 26.3 |
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.
- A more expensive valuation may be justified as GOOGL's earnings are expected to grow with 18.08% in the coming years.
PEG (NY)0.94
PEG (5Y)1.32
EPS Next 2Y19.53%
EPS Next 3Y18.08%
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 0.52. GOOGL pays more dividend than 85.71% of the companies in the same industry.
- With a Dividend Yield of 0.25, GOOGL pays less dividend than the S&P500 average, which is at 1.82.
| 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 2Y19.53%
EPS Next 3Y18.08%
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 33.38 and the Price/Book (PB) ratio is 10.24.
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 35.39% in the next year.