ALPHABET INC-CL A (GOOGL)
US02079K3059 - Common Stock
Overall GOOGL gets a fundamental rating of 8 out of 10. We evaluated GOOGL against 72 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 priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make GOOGL a good candidate 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.
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
Looking at the Return On Assets, with a value of 21.91%, GOOGL belongs to the top of the industry, outperforming 98.59% of the companies in the same industry.
GOOGL's Return On Equity of 30.01% is amongst the best of the industry. GOOGL outperforms 98.59% of its industry peers.
Looking at the Return On Invested Capital, with a value of 26.84%, GOOGL belongs to the top of the industry, outperforming 98.59% 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 11.22%.
The 3 year average ROIC (22.84%) for GOOGL is below the current ROIC(26.84%), indicating increased profibility in the last year.
| 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 has a Profit Margin of 27.74%. This is amongst the best in the industry. GOOGL outperforms 95.77% 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 has a better Operating Margin (32.02%) than 98.59% 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.
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
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.
GOOGL has less shares outstanding than it did 5 years ago.
GOOGL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 13.51 indicates that GOOGL is not in any danger for bankruptcy at the moment.
GOOGL has a better Altman-Z score (13.51) than 92.96% of its industry peers.
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.
GOOGL's Debt to FCF ratio of 0.26 is amongst the best of the industry. GOOGL outperforms 81.69% of its industry peers.
A Debt/Equity ratio of 0.04 indicates that GOOGL is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.04, GOOGL perfoms like the industry average, outperforming 50.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.26 | ||
| Altman-Z | 13.51 |
ROIC/WACC2.97
WACC9.04%
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.
A Quick Ratio of 1.95 indicates that GOOGL should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.95, GOOGL perfoms like the industry average, outperforming 46.48% 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
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.
GOOGL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.55% yearly.
The Revenue has grown by 14.38% in the past year. This is quite good.
Measured over the past years, GOOGL shows a quite strong growth in Revenue. The Revenue has been growing by 17.57% on average per year.
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
GOOGL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.96% yearly.
GOOGL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.62% yearly.
EPS Next Y42.24%
EPS Next 2Y26.16%
EPS Next 3Y22.06%
EPS Next 5Y19.96%
Revenue Next Year14.46%
Revenue Next 2Y13.07%
Revenue Next 3Y12.21%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.24, which indicates a rather expensive current valuation of GOOGL.
Compared to the rest of the industry, the Price/Earnings ratio of GOOGL indicates a somewhat cheap valuation: GOOGL is cheaper than 70.42% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.53. GOOGL is around the same levels.
GOOGL is valuated rather expensively with a Price/Forward Earnings ratio of 18.98.
Based on the Price/Forward Earnings ratio, GOOGL is valued a bit cheaper than the industry average as 66.20% of the companies are valued more expensively.
GOOGL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.24 | ||
| Fwd PE | 18.98 |
4.2 Price Multiples
GOOGL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GOOGL is cheaper than 69.01% of the companies in the same industry.
61.97% of the companies in the same industry are more expensive than GOOGL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.43 | ||
| EV/EBITDA | 16.13 |
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.
GOOGL's earnings are expected to grow with 22.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.55
PEG (5Y)1.19
EPS Next 2Y26.16%
EPS Next 3Y22.06%
5. Dividend
5.1 Amount
GOOGL has a yearly dividend return of 0.46%, which is pretty low.
Compared to an average industry Dividend Yield of 2.78, GOOGL pays a better dividend. On top of this GOOGL pays more dividend than 91.55% of the companies listed in the same industry.
With a Dividend Yield of 0.46, GOOGL pays less dividend than the S&P500 average, which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
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 2Y26.16%
EPS Next 3Y22.06%
ALPHABET INC-CL A
NASDAQ:GOOGL (11/18/2024, 3:35:07 PM)
175.245
+2.75 (+1.6%)
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 Cap2145.17B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
Dividend Growth(5Y)
DP
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.24 | ||
| Fwd PE | 18.98 | ||
| 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)0.55
PEG (5Y)1.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.91% | ||
| ROE | 30.01% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 32.02% | ||
| PM (TTM) | 27.74% | ||
| GM | 57.96% | ||
| 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 Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.95 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)44.72%
EPS 3Y25.49%
EPS 5Y
EPS Q2Q%
EPS Next Y42.24%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.38%
Revenue growth 3Y18.98%
Revenue growth 5Y
Sales 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
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FCF growth 3Y
FCF growth 5Y
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