ALPHABET INC-CL A (GOOGL)
US02079K3059 - Common Stock
Taking everything into account, GOOGL scores 7 out of 10 in our fundamental rating. GOOGL was compared to 68 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 not priced too expensively while it is growing strongly. Keep and eye on this one! This makes GOOGL very considerable 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.
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.
1.2 Ratios
GOOGL has a better Return On Assets (20.23%) than 95.52% of its industry peers.
GOOGL's Return On Equity of 28.14% is amongst the best of the industry. GOOGL outperforms 94.03% of its industry peers.
With an excellent Return On Invested Capital value of 24.32%, GOOGL belongs to the best of the industry, outperforming 98.51% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GOOGL is significantly above the industry average of 10.06%.
The 3 year average ROIC (22.54%) for GOOGL is below the current ROIC(24.32%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.23% | ||
| ROE | 28.14% | ||
| ROIC | 24.32% |
ROA(3y)18.64%
ROA(5y)16.19%
ROE(3y)26.56%
ROE(5y)22.96%
ROIC(3y)22.54%
ROIC(5y)18.85%
1.3 Margins
GOOGL has a Profit Margin of 25.90%. This is amongst the best in the industry. GOOGL outperforms 92.54% of its industry peers.
In the last couple of years the Profit Margin of GOOGL has remained more or less at the same level.
With an excellent Operating Margin value of 29.68%, GOOGL belongs to the best of the industry, outperforming 97.01% of the companies in the same industry.
GOOGL's Operating Margin has improved in the last couple of years.
GOOGL has a Gross Margin (57.25%) 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 | 29.68% | ||
| PM (TTM) | 25.9% | ||
| GM | 57.25% |
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.
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 13.59 indicates that GOOGL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 13.59, GOOGL belongs to the top of the industry, outperforming 92.54% of the companies in the same industry.
The Debt to FCF ratio of GOOGL is 0.20, which is an excellent value as it means it would take GOOGL, only 0.20 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.20, GOOGL belongs to the top of the industry, outperforming 86.57% of the companies in the same industry.
A Debt/Equity ratio of 0.05 indicates that GOOGL is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.05, GOOGL perfoms like the industry average, outperforming 49.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.2 | ||
| Altman-Z | 13.59 |
ROIC/WACC2.68
WACC9.07%
2.3 Liquidity
A Current Ratio of 2.15 indicates that GOOGL has no problem at all paying its short term obligations.
GOOGL has a Current ratio (2.15) which is in line with its industry peers.
GOOGL has a Quick Ratio of 2.15. This indicates that GOOGL is financially healthy and has no problem in meeting its short term obligations.
GOOGL has a Quick ratio of 2.15. This is comparable to the rest of the industry: GOOGL outperforms 44.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.15 |
3. Growth
3.1 Past
GOOGL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.21%, which is quite impressive.
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 11.78% 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)45.21%
EPS 3Y25.49%
EPS 5Y19.55%
EPS growth Q2Q61.54%
Revenue 1Y (TTM)11.78%
Revenue growth 3Y18.98%
Revenue growth 5Y17.57%
Revenue growth Q2Q15.41%
3.2 Future
The Earnings Per Share is expected to grow by 19.96% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.62% on average over the next years. This is quite good.
EPS Next Y20.95%
EPS Next 2Y18.01%
EPS Next 3Y16.71%
EPS Next 5Y19.96%
Revenue Next Year11.93%
Revenue Next 2Y11.2%
Revenue Next 3Y10.44%
Revenue Next 5Y10.62%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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
Based on the Price/Earnings ratio of 26.46, the valuation of GOOGL can be described as expensive.
73.13% of the companies in the same industry are more expensive than GOOGL, based on the Price/Earnings ratio.
GOOGL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.91, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 21.36 indicates a rather expensive valuation of GOOGL.
GOOGL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GOOGL is cheaper than 67.16% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.51. GOOGL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.46 | ||
| Fwd PE | 21.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GOOGL indicates a somewhat cheap valuation: GOOGL is cheaper than 67.16% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GOOGL indicates a somewhat cheap valuation: GOOGL is cheaper than 68.66% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.85 | ||
| EV/EBITDA | 18.07 |
4.3 Compensation for Growth
GOOGL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of GOOGL may justify a higher PE ratio.
GOOGL's earnings are expected to grow with 16.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.26
PEG (5Y)1.35
EPS Next 2Y18.01%
EPS Next 3Y16.71%
5. Dividend
5.1 Amount
GOOGL has a yearly dividend return of 0.47%, which is pretty low.
Compared to an average industry Dividend Yield of 16.13, GOOGL pays a better dividend. On top of this GOOGL pays more dividend than 89.55% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, GOOGL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
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 2Y18.01%
EPS Next 3Y16.71%
ALPHABET INC-CL A
NASDAQ:GOOGL (5/15/2024, 4:47:51 PM)
After market: 172.24 -0.27 (-0.16%)172.51
+2.17 (+1.27%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2131.88B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.46 | ||
| Fwd PE | 21.36 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.26
PEG (5Y)1.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.23% | ||
| ROE | 28.14% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.68% | ||
| PM (TTM) | 25.9% | ||
| GM | 57.25% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.15 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)45.21%
EPS 3Y25.49%
EPS 5Y
EPS growth Q2Q
EPS Next Y20.95%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.78%
Revenue growth 3Y18.98%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y