GOLDMAN SACHS GROUP INC (GS)
US38141G1040 - Common Stock
We assign a fundamental rating of 3 out of 10 to GS. GS was compared to 218 industry peers in the Capital Markets industry. GS has a bad profitability rating. Also its financial health evaluation is rather negative. GS has a decent growth rate and is not valued too expensively.
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.
GS had positive earnings in each of the past 5 years.
In multiple years GS reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.66%, GS is doing worse than 73.02% of the companies in the same industry.
GS has a Return On Equity (9.46%) which is in line with its industry peers.
GS has a worse Return On Invested Capital (0.95%) than 77.21% of its industry peers.
GS had an Average Return On Invested Capital over the past 3 years of 1.19%. This is significantly below the industry average of 6.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.66% | ||
| ROE | 9.46% | ||
| ROIC | 0.95% |
ROA(3y)0.89%
ROA(5y)0.85%
ROE(3y)11.73%
ROE(5y)10.65%
ROIC(3y)1.19%
ROIC(5y)1.21%
1.3 Margins
With a Profit Margin value of 9.32%, GS is not doing good in the industry: 64.19% of the companies in the same industry are doing better.
GS's Profit Margin has declined in the last couple of years.
GS has a worse Operating Margin (13.00%) than 67.91% of its industry peers.
GS's Operating Margin has declined in the last couple of years.
The Gross Margin of GS (36.28%) is worse than 70.70% of its industry peers.
GS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13% | ||
| PM (TTM) | 9.32% | ||
| GM | 36.28% |
OM growth 3Y-27.82%
OM growth 5Y-15.03%
PM growth 3Y-22.75%
PM growth 5Y-17.02%
GM growth 3Y-21.32%
GM growth 5Y-10.2%
2. Health
2.1 Basic Checks
Compared to 1 year ago, GS has less shares outstanding
Compared to 5 years ago, GS has less shares outstanding
GS has a worse debt/assets ratio than last year.
2.2 Solvency
GS has an Altman-Z score of -0.28. This is a bad value and indicates that GS is not financially healthy and even has some risk of bankruptcy.
GS has a worse Altman-Z score (-0.28) than 86.98% of its industry peers.
GS has a Debt/Equity ratio of 8.51. This is a high value indicating a heavy dependency on external financing.
GS's Debt to Equity ratio of 8.51 is on the low side compared to the rest of the industry. GS is outperformed by 89.77% 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.
GS has a Current ratio of 0.27. This is amonst the worse of the industry: GS underperforms 80.00% of its industry peers.
A Quick Ratio of 0.27 indicates that GS may have some problems paying its short term obligations.
GS's Quick ratio of 0.27 is on the low side compared to the rest of the industry. GS is outperformed by 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
GS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 56.76%, which is quite impressive.
Measured over the past years, GS shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.09% on average per year.
Looking at the last year, GS shows a very strong growth in Revenue. The Revenue has grown by 22.00%.
The Revenue has been growing by 15.31% on average over the past years. This is quite good.
EPS 1Y (TTM)56.76%
EPS 3Y-8.43%
EPS 5Y-1.09%
EPS Q2Q%53.56%
Revenue 1Y (TTM)22%
Revenue growth 3Y24.38%
Revenue growth 5Y15.31%
Sales Q2Q%7.46%
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 11.54% yearly.
Based on estimates for the next years, GS will show a small growth in Revenue. The Revenue will grow by 2.15% on average per year.
EPS Next Y58.29%
EPS Next 2Y34.77%
EPS Next 3Y26.65%
EPS Next 5Y11.54%
Revenue Next Year13.02%
Revenue Next 2Y9.07%
Revenue Next 3Y7.23%
Revenue Next 5Y2.15%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.49, GS is valued on the expensive side.
GS's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.96, GS is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.73, which indicates a correct valuation of GS.
GS's Price/Forward Earnings is on the same level as the industry average.
GS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.49 | ||
| Fwd PE | 13.73 |
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 70.23% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.23 |
4.3 Compensation for Growth
GS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as GS's earnings are expected to grow with 26.65% in the coming years.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y34.77%
EPS Next 3Y26.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.04%, GS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 9.01, GS is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.23, GS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
5.2 History
The dividend of GS is nicely growing with an annual growth rate of 21.17%!
GS has paid a dividend for at least 10 years, which is a reliable track record.
GS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)21.17%
Div Incr Years12
Div Non Decr Years13
5.3 Sustainability
38.44% of the earnings are spent on dividend by GS. This is a low number and sustainable payout ratio.
GS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP38.44%
EPS Next 2Y34.77%
EPS Next 3Y26.65%
GOLDMAN SACHS GROUP INC
NYSE:GS (11/21/2024, 8:04:00 PM)
After market: 596 -0.11 (-0.02%)596.11
+14.18 (+2.44%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap187.12B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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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)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.49 | ||
| Fwd PE | 13.73 | ||
| 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)0.3
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.66% | ||
| ROE | 9.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13% | ||
| PM (TTM) | 9.32% | ||
| GM | 36.28% | ||
| 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 Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.51 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 | ||
| 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)56.76%
EPS 3Y-8.43%
EPS 5Y
EPS Q2Q%
EPS Next Y58.29%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)22%
Revenue growth 3Y24.38%
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
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y