GOLDMAN SACHS GROUP INC (GS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GS - US38141G1040 - Common Stock
931.86 USD
+12.98 (+1.41%)
931.52 USD
-0.34 (-0.04%)
We assign a fundamental rating of 4 out of 10 to GS. GS was compared to 237 industry peers in the Capital Markets industry. Both the profitability and financial health of GS have multiple concerns. GS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year GS was profitable.
- In the past year GS had a positive cash flow from operations.
- Each year in the past 5 years GS has been profitable.
- 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: 70.04% of the companies in the same industry are doing better.
- The Return On Equity of GS (12.73%) is better than 71.31% of its industry peers.
- The Return On Invested Capital of GS (1.15%) is worse than 65.82% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for GS is significantly below the industry average of 7.27%.
- The last Return On Invested Capital (1.15%) for GS is above the 3 year average (0.96%), which is a sign of increasing profitability.
| 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's Profit Margin of 12.45% is in line compared to the rest of the industry. GS outperforms 41.35% of its industry peers.
- GS's Profit Margin has declined in the last couple of years.
- GS has a Operating Margin of 16.70%. This is comparable to the rest of the industry: GS outperforms 40.08% of its industry peers.
- In the last couple of years the Operating Margin of GS has declined.
- GS has a Gross Margin of 40.13%. This is comparable to the rest of the industry: GS outperforms 41.77% 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.
- GS has less shares outstanding than it did 5 years ago.
- GS has a better debt/assets ratio than last year.
2.2 Solvency
- GS has an Altman-Z score of -0.19. 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 (-0.19) than 80.17% 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.
- Looking at the Debt to FCF ratio, with a value of 72.28, GS is in line with its industry, outperforming 51.90% of the companies in the same industry.
- GS has a Debt/Equity ratio of 8.47. This is a high value indicating a heavy dependency on external financing.
- GS has a Debt to Equity ratio of 8.47. This is amonst the worse of the industry: GS underperforms 87.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.47 | ||
| Debt/FCF | 72.28 | ||
| Altman-Z | -0.19 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 0.31 indicates that GS may have some problems paying its short term obligations.
- GS has a Current ratio of 0.31. This is amonst the worse of the industry: GS underperforms 80.59% of its industry peers.
- A Quick Ratio of 0.31 indicates that GS may have some problems paying its short term obligations.
- The Quick ratio of GS (0.31) is worse than 80.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.31 | ||
| Quick Ratio | 0.31 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 26.49% over the past year.
- GS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.50% yearly.
- GS shows a decrease in Revenue. In the last year, the revenue decreased by -1.38%.
- Measured over the past years, GS shows a quite strong growth in Revenue. The Revenue has been growing by 17.29% on average per year.
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
- The Earnings Per Share is expected to grow by 9.65% on average over the next years. This is quite good.
- The Revenue is expected to grow by 2.56% on average over the next years.
EPS Next Y14.5%
EPS Next 2Y13.25%
EPS Next 3Y12.07%
EPS Next 5Y9.65%
Revenue Next Year9.28%
Revenue Next 2Y7.01%
Revenue Next 3Y4.97%
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
- The Price/Earnings ratio is 18.17, which indicates a rather expensive current valuation of GS.
- GS's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.21. GS is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 15.87, GS is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of GS is on the same level as its industry peers.
- GS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.17 | ||
| Fwd PE | 15.87 |
4.2 Price Multiples
- 71.73% of the companies in the same industry are more expensive than GS, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, GS is valued a bit cheaper than the industry average as 66.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.72 | ||
| EV/EBITDA | 20.41 |
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)1.25
PEG (5Y)1.73
EPS Next 2Y13.25%
EPS Next 3Y12.07%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.96%, GS has a reasonable but not impressive dividend return.
- GS's Dividend Yield is comparable with the industry average which is at 5.87.
- Compared to an average S&P500 Dividend Yield of 1.81, GS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
- On average, the dividend of GS grows each year by 19.24%, which is quite nice.
- 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)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 18.17 and the Price/Book (PB) ratio is 2.25.
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%.