GOLDMAN SACHS GROUP INC (GS) Stock Fundamental Analysis
NYSE:GS - New York Stock Exchange, Inc. - US38141G1040 - Common Stock - Currency: USD
GS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 225 industry peers in the Capital Markets industry. GS has a bad profitability rating. Also its financial health evaluation is rather negative. GS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year GS was profitable.
In the past year GS has reported a negative cash flow from operations.
In the past 5 years GS has always been profitable.
In multiple years GS reported negative operating cash flow during the last 5 years.
1.2 Ratios
GS has a Return On Assets of 0.66%. This is in the lower half of the industry: GS underperforms 71.69% of its industry peers.
With a Return On Equity value of 9.46%, GS perfoms like the industry average, outperforming 52.97% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 0.92%, GS is doing worse than 72.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.66% | ||
| ROE | 9.46% | ||
| ROIC | 0.92% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
GS has a Profit Margin of 9.32%. This is in the lower half of the industry: GS underperforms 62.10% of its industry peers.
GS's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 13.00%, GS is not doing good in the industry: 67.58% of the companies in the same industry are doing better.
GS's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 36.28%, GS is not doing good in the industry: 69.86% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of GS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13% | ||
| PM (TTM) | 9.32% | ||
| GM | 36.28% |
OM growth 3Y-29.54%
OM growth 5Y-5.46%
PM growth 3Y-31.06%
PM growth 5Y-5.81%
GM growth 3Y-24.01%
GM growth 5Y-9.99%
2. Health
2.1 Basic Checks
There is no outstanding debt for GS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
Based on the Altman-Z score of -0.28, we must say that GS is in the distress zone and has some risk of bankruptcy.
GS's Altman-Z score of -0.28 is on the low side compared to the rest of the industry. GS is outperformed by 81.74% of its industry peers.
A Debt/Equity ratio of 8.51 is on the high side and indicates that GS has dependencies on debt financing.
GS has a worse Debt to Equity ratio (8.51) than 89.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.28 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.27 indicates that GS may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.27, GS is doing worse than 83.56% of the companies in the same industry.
A Quick Ratio of 0.27 indicates that GS may have some problems paying its short term obligations.
GS has a worse Quick ratio (0.27) than 83.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 69.67% over the past year.
Measured over the past years, GS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.07% on average per year.
Looking at the last year, GS shows a quite strong growth in Revenue. The Revenue has grown by 16.30% in the last year.
Measured over the past years, GS shows a quite strong growth in Revenue. The Revenue has been growing by 18.23% on average per year.
EPS 1Y (TTM)69.67%
EPS 3Y-11.93%
EPS 5Y14.07%
EPS Q2Q%118.07%
Revenue 1Y (TTM)16.3%
Revenue growth 3Y24.97%
Revenue growth 5Y18.23%
Sales Q2Q%22.54%
3.2 Future
GS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.33% yearly.
GS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.27% yearly.
EPS Next Y16.19%
EPS Next 2Y13.89%
EPS Next 3Y11.58%
EPS Next 5Y12.33%
Revenue Next Year8.94%
Revenue Next 2Y6.86%
Revenue Next 3Y5.27%
Revenue Next 5YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.93, which indicates a correct valuation of GS.
GS's Price/Earnings is on the same level as the industry average.
GS is valuated rather cheaply when we compare the Price/Earnings ratio to 29.75, which is the current average of the S&P500 Index.
GS is valuated correctly with a Price/Forward Earnings ratio of 12.85.
GS's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of GS to the average of the S&P500 Index (22.44), we can say GS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.93 | ||
| Fwd PE | 12.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GS indicates a somewhat cheap valuation: GS is cheaper than 71.69% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.39 |
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.
PEG (NY)0.92
PEG (5Y)1.06
EPS Next 2Y13.89%
EPS Next 3Y11.58%
5. Dividend
5.1 Amount
GS has a Yearly Dividend Yield of 1.97%. Purely for dividend investing, there may be better candidates out there.
GS's Dividend Yield is slightly below the industry average, which is at 8.69.
GS's Dividend Yield is comparable with the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
5.2 History
On average, the dividend of GS grows each year by 21.17%, which is quite nice.
GS has paid a dividend for at least 10 years, which is a reliable track record.
GS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)21.17%
Div Incr Years13
Div Non Decr Years14
5.3 Sustainability
38.44% of the earnings are spent on dividend by GS. This is a low number and sustainable payout ratio.
The dividend of GS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP38.44%
EPS Next 2Y13.89%
EPS Next 3Y11.58%
605.26
-17.03 (-2.74%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners73.6%
Inst Owner Change-3.04%
Ins Owners0.52%
Ins Owner Change-0.65%
Market Cap190.00B
Analysts79.33
Price Target659.99 (9.04%)
Short Float %1.53%
Short Ratio1.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
Yearly Dividend12.73
Dividend Growth(5Y)21.17%
DP38.44%
Div Incr Years13
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.36%
Min EPS beat(2)0.29%
Max EPS beat(2)18.43%
EPS beat(4)4
Avg EPS beat(4)25.39%
Min EPS beat(4)0.29%
Max EPS beat(4)51.48%
EPS beat(8)5
Avg EPS beat(8)9.1%
EPS beat(12)8
Avg EPS beat(12)8.15%
EPS beat(16)12
Avg EPS beat(16)19.76%
Revenue beat(2)1
Avg Revenue beat(2)1.85%
Min Revenue beat(2)-0.77%
Max Revenue beat(2)4.48%
Revenue beat(4)3
Avg Revenue beat(4)3.07%
Min Revenue beat(4)-0.77%
Max Revenue beat(4)6.82%
Revenue beat(8)6
Avg Revenue beat(8)24.09%
Revenue beat(12)10
Avg Revenue beat(12)26.06%
Revenue beat(16)14
Avg Revenue beat(16)28.1%
PT rev (1m)1.54%
PT rev (3m)15.49%
EPS NQ rev (1m)2.24%
EPS NQ rev (3m)2.24%
EPS NY rev (1m)-1.36%
EPS NY rev (3m)8.01%
Revenue NQ rev (1m)2.64%
Revenue NQ rev (3m)2.64%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)3.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.93 | ||
| Fwd PE | 12.85 | ||
| P/S | 1.54 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.57 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 20.39 |
EPS(TTM)40.55
EY6.7%
EPS(NY)47.12
Fwd EY7.78%
FCF(TTM)-287.94
FCFYN/A
OCF(TTM)-281.4
OCFYN/A
SpS392.07
BVpS386.1
TBVpS364.33
PEG (NY)0.92
PEG (5Y)1.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.66% | ||
| ROE | 9.46% | ||
| ROCE | 2.69% | ||
| ROIC | 0.92% | ||
| ROICexc | 1.03% | ||
| ROICexgc | 1.04% | ||
| OM | 13% | ||
| PM (TTM) | 9.32% | ||
| GM | 36.28% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-29.54%
OM growth 5Y-5.46%
PM growth 3Y-31.06%
PM growth 5Y-5.81%
GM growth 3Y-24.01%
GM growth 5Y-9.99%
F-Score5
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.51 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 55.2 | ||
| Cap/Depr | 76.7% | ||
| Cap/Sales | 1.67% | ||
| Interest Coverage | 0.23 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | -0.28 |
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)69.67%
EPS 3Y-11.93%
EPS 5Y14.07%
EPS Q2Q%118.07%
EPS Next Y16.19%
EPS Next 2Y13.89%
EPS Next 3Y11.58%
EPS Next 5Y12.33%
Revenue 1Y (TTM)16.3%
Revenue growth 3Y24.97%
Revenue growth 5Y18.23%
Sales Q2Q%22.54%
Revenue Next Year8.94%
Revenue Next 2Y6.86%
Revenue Next 3Y5.27%
Revenue Next 5YN/A
EBIT growth 1Y55.52%
EBIT growth 3Y-11.94%
EBIT growth 5Y11.78%
EBIT Next Year1.64%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-353.86%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-407.94%
OCF growth 3YN/A
OCF growth 5YN/A