GOLDMAN SACHS GROUP INC (GS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GS - US38141G1040 - Common Stock
954.65 USD
+1.64 (+0.17%)
955 USD
+0.35 (+0.04%)
We assign a fundamental rating of 4 out of 10 to GS. GS was compared to 238 industry peers in the Capital Markets industry. Both the profitability and financial health of GS have multiple concerns. GS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- GS had positive earnings in the past year.
- In the past year GS had a positive cash flow from operations.
- GS had positive earnings in each of the past 5 years.
- The reported operating cash flow has been mixed in the past 5 years: GS reported negative operating cash flow in multiple years.
1.2 Ratios
- With a Return On Assets value of 0.88%, GS is not doing good in the industry: 69.75% of the companies in the same industry are doing better.
- GS has a Return On Equity of 12.73%. This is in the better half of the industry: GS outperforms 71.43% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 1.15%, GS is doing worse than 65.55% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for GS is significantly below the industry average of 7.27%.
- The 3 year average ROIC (0.96%) for GS is below the current ROIC(1.15%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 12.73% | ||
| ROIC | 1.15% |
ROA(3y)0.73%
ROA(5y)0.88%
ROE(3y)10.3%
ROE(5y)11.86%
ROIC(3y)0.96%
ROIC(5y)1.13%
1.3 Margins
- GS has a Profit Margin of 12.45%. This is comparable to the rest of the industry: GS outperforms 41.60% of its industry peers.
- GS's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 16.70%, GS is in line with its industry, outperforming 40.34% of the companies in the same industry.
- GS's Operating Margin has declined in the last couple of years.
- GS has a Gross Margin of 40.13%. This is comparable to the rest of the industry: GS outperforms 42.02% of its industry peers.
- In the last couple of years the Gross Margin of GS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.7% | ||
| PM (TTM) | 12.45% | ||
| GM | 40.13% |
OM growth 3Y-3.81%
OM growth 5Y-8.77%
PM growth 3Y-5.96%
PM growth 5Y-3.81%
GM growth 3Y-13.08%
GM growth 5Y-12.14%
2. Health
2.1 Basic Checks
- The number of shares outstanding for GS has been reduced compared to 1 year ago.
- The number of shares outstanding for GS has been reduced compared to 5 years ago.
- Compared to 1 year ago, GS has an improved debt to assets ratio.
2.2 Solvency
- GS has an Altman-Z score of -0.18. This is a bad value and indicates that GS is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of GS (-0.18) is worse than 80.25% of its industry peers.
- The Debt to FCF ratio of GS is 72.28, which is on the high side as it means it would take GS, 72.28 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 72.28, GS perfoms like the industry average, outperforming 51.68% of the companies in the same industry.
- A Debt/Equity ratio of 8.47 is on the high side and indicates that GS has dependencies on debt financing.
- GS's Debt to Equity ratio of 8.47 is on the low side compared to the rest of the industry. GS is outperformed by 87.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.47 | ||
| Debt/FCF | 72.28 | ||
| Altman-Z | -0.18 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- GS has a Current Ratio of 0.31. This is a bad value and indicates that GS is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.31, GS is not doing good in the industry: 80.67% of the companies in the same industry are doing better.
- GS has a Quick Ratio of 0.31. This is a bad value and indicates that GS is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.31, GS is doing worse than 80.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.31 | ||
| Quick Ratio | 0.31 |
3. Growth
3.1 Past
- GS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.49%, which is quite impressive.
- GS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.50% yearly.
- The Revenue has decreased by -1.38% in the past year.
- GS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.29% yearly.
EPS 1Y (TTM)26.49%
EPS 3Y19.49%
EPS 5Y10.5%
EPS Q2Q%17.24%
Revenue 1Y (TTM)-1.38%
Revenue growth 3Y22.11%
Revenue growth 5Y17.29%
Sales Q2Q%-2.99%
3.2 Future
- Based on estimates for the next years, GS will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.65% on average per year.
- GS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.56% yearly.
EPS Next Y14.5%
EPS Next 2Y13.25%
EPS Next 3Y12.07%
EPS Next 5Y9.65%
Revenue Next Year7%
Revenue Next 2Y5.81%
Revenue Next 3Y3.01%
Revenue Next 5Y2.56%
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
- GS is valuated rather expensively with a Price/Earnings ratio of 18.61.
- GS's Price/Earnings is on the same level as the industry average.
- GS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.32.
- With a Price/Forward Earnings ratio of 16.26, GS is valued correctly.
- GS's Price/Forward Earnings ratio is in line with the industry average.
- GS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.61 | ||
| Fwd PE | 16.26 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GS is valued a bit cheaper than the industry average as 72.27% of the companies are valued more expensively.
- 65.55% of the companies in the same industry are more expensive than GS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.16 | ||
| EV/EBITDA | 20.87 |
4.3 Compensation for Growth
- GS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- A more expensive valuation may be justified as GS's earnings are expected to grow with 12.07% in the coming years.
PEG (NY)1.28
PEG (5Y)1.77
EPS Next 2Y13.25%
EPS Next 3Y12.07%
5. Dividend
5.1 Amount
- GS has a Yearly Dividend Yield of 1.89%. Purely for dividend investing, there may be better candidates out there.
- GS's Dividend Yield is comparable with the industry average which is at 6.10.
- GS's Dividend Yield is comparable with the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
5.2 History
- The dividend of GS is nicely growing with an annual growth rate of 19.24%!
- GS has been paying a dividend for at least 10 years, so it has a reliable track record.
- GS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)19.24%
Div Incr Years13
Div Non Decr Years14
5.3 Sustainability
- GS pays out 31.36% of its income as dividend. This is a sustainable payout ratio.
- The dividend of GS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.36%
EPS Next 2Y13.25%
EPS Next 3Y12.07%
GOLDMAN SACHS GROUP INC / GS FAQ
Can you provide the ChartMill fundamental rating for GOLDMAN SACHS GROUP INC?
ChartMill assigns a fundamental rating of 4 / 10 to GS.
Can you provide the valuation status for GOLDMAN SACHS GROUP INC?
ChartMill assigns a valuation rating of 4 / 10 to GOLDMAN SACHS GROUP INC (GS). This can be considered as Fairly Valued.
How profitable is GOLDMAN SACHS GROUP INC (GS) stock?
GOLDMAN SACHS GROUP INC (GS) has a profitability rating of 3 / 10.
What is the valuation of GOLDMAN SACHS GROUP INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for GOLDMAN SACHS GROUP INC (GS) is 18.61 and the Price/Book (PB) ratio is 2.3.
Is the dividend of GOLDMAN SACHS GROUP INC sustainable?
The dividend rating of GOLDMAN SACHS GROUP INC (GS) is 6 / 10 and the dividend payout ratio is 31.36%.