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 228 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 has reported a negative cash flow from operations.
Each year in the past 5 years GS has been profitable.
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 0.81%, GS is doing worse than 71.37% of the companies in the same industry.
GS's Return On Equity of 11.09% is in line compared to the rest of the industry. GS outperforms 58.15% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.08%, GS is doing worse than 70.48% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GS is significantly below the industry average of 7.06%.
The 3 year average ROIC (0.90%) for GS is below the current ROIC(1.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.81% | ||
| ROE | 11.09% | ||
| ROIC | 1.08% |
ROA(3y)0.68%
ROA(5y)0.85%
ROE(3y)9.01%
ROE(5y)11.11%
ROIC(3y)0.9%
ROIC(5y)1.18%
1.3 Margins
With a Profit Margin value of 10.66%, GS is not doing good in the industry: 61.23% of the companies in the same industry are doing better.
GS's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 14.56%, GS is not doing good in the industry: 63.88% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of GS has declined.
GS has a Gross Margin of 36.88%. This is in the lower half of the industry: GS underperforms 66.52% of its industry peers.
In the last couple of years the Gross Margin of GS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.56% | ||
| PM (TTM) | 10.66% | ||
| GM | 36.88% |
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
Compared to 1 year ago, GS has less shares outstanding
GS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for GS is higher compared to a year ago.
2.2 Solvency
GS has an Altman-Z score of -0.26. This is a bad value and indicates that GS is not financially healthy and even has some risk of bankruptcy.
GS has a Altman-Z score of -0.26. This is in the lower half of the industry: GS underperforms 79.74% of its industry peers.
GS has a Debt/Equity ratio of 8.32. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 8.32, GS is doing worse than 87.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.32 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.26 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.29 indicates that GS may have some problems paying its short term obligations.
GS's Current ratio of 0.29 is on the low side compared to the rest of the industry. GS is outperformed by 81.06% of its industry peers.
A Quick Ratio of 0.29 indicates that GS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.29, GS is doing worse than 81.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
GS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 68.25%, 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 14.07% yearly.
The Revenue has grown by 9.59% in the past year. This is quite good.
GS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.23% yearly.
EPS 1Y (TTM)68.25%
EPS 3Y-11.93%
EPS 5Y14.07%
EPS Q2Q%21.93%
Revenue 1Y (TTM)9.59%
Revenue growth 3Y24.97%
Revenue growth 5Y18.23%
Sales Q2Q%5.97%
3.2 Future
The Earnings Per Share is expected to grow by 7.88% on average over the next years.
GS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.67% yearly.
EPS Next Y17.03%
EPS Next 2Y14.09%
EPS Next 3Y12.68%
EPS Next 5Y7.88%
Revenue Next Year7.58%
Revenue Next 2Y6.3%
Revenue Next 3Y5.13%
Revenue Next 5Y2.67%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
A Price/Earnings ratio of 11.82 indicates a reasonable valuation of GS.
Based on the Price/Earnings ratio, GS is valued a bit cheaper than 60.79% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. GS is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.65, the valuation of GS can be described as very reasonable.
Based on the Price/Forward Earnings ratio, GS is valued a bit cheaper than 65.20% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, GS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 9.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GS is valued a bit cheaper than the industry average as 77.97% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.09 |
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.
GS's earnings are expected to grow with 12.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.69
PEG (5Y)0.84
EPS Next 2Y14.09%
EPS Next 3Y12.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.40%, GS has a reasonable but not impressive dividend return.
GS's Dividend Yield is slightly below the industry average, which is at 8.65.
Compared to an average S&P500 Dividend Yield of 2.52, GS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
5.2 History
The dividend of GS is nicely growing with an annual growth rate of 19.24%!
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 33.25% of its income as dividend. This is a sustainable payout ratio.
GS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.25%
EPS Next 2Y14.09%
EPS Next 3Y12.68%
509.49
+10.44 (+2.09%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners73.6%
Inst Owner Change-0.01%
Ins Owners0.52%
Ins Owner Change-0.65%
Market Cap158.34B
Analysts77.33
Price Target658.5 (29.25%)
Short Float %1.56%
Short Ratio1.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
Yearly Dividend14.19
Dividend Growth(5Y)19.24%
DP33.25%
Div Incr Years13
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)29.75%
Min EPS beat(2)18.43%
Max EPS beat(2)41.07%
EPS beat(4)4
Avg EPS beat(4)22.78%
Min EPS beat(4)0.29%
Max EPS beat(4)41.07%
EPS beat(8)6
Avg EPS beat(8)19.38%
EPS beat(12)9
Avg EPS beat(12)12.47%
EPS beat(16)12
Avg EPS beat(16)18.77%
Revenue beat(2)2
Avg Revenue beat(2)6.57%
Min Revenue beat(2)4.48%
Max Revenue beat(2)8.67%
Revenue beat(4)3
Avg Revenue beat(4)4.8%
Min Revenue beat(4)-0.77%
Max Revenue beat(4)8.67%
Revenue beat(8)6
Avg Revenue beat(8)14.23%
Revenue beat(12)10
Avg Revenue beat(12)25.84%
Revenue beat(16)14
Avg Revenue beat(16)26.81%
PT rev (1m)-0.91%
PT rev (3m)9.45%
EPS NQ rev (1m)-0.63%
EPS NQ rev (3m)3.47%
EPS NY rev (1m)0.73%
EPS NY rev (3m)8.09%
Revenue NQ rev (1m)-1.28%
Revenue NQ rev (3m)2.67%
Revenue NY rev (1m)-2.07%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 9.65 | ||
| P/S | 1.25 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.3 | ||
| P/tB | 1.37 | ||
| EV/EBITDA | 15.09 |
EPS(TTM)43.09
EY8.46%
EPS(NY)52.78
Fwd EY10.36%
FCF(TTM)-49.24
FCFYN/A
OCF(TTM)-42.51
OCFYN/A
SpS408.16
BVpS392.54
TBVpS370.98
PEG (NY)0.69
PEG (5Y)0.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.81% | ||
| ROE | 11.09% | ||
| ROCE | 3.21% | ||
| ROIC | 1.08% | ||
| ROICexc | 1.25% | ||
| ROICexgc | 1.26% | ||
| OM | 14.56% | ||
| PM (TTM) | 10.66% | ||
| GM | 36.88% | ||
| FCFM | N/A |
ROA(3y)0.68%
ROA(5y)0.85%
ROE(3y)9.01%
ROE(5y)11.11%
ROIC(3y)0.9%
ROIC(5y)1.18%
ROICexc(3y)1.1%
ROICexc(5y)1.47%
ROICexgc(3y)1.11%
ROICexgc(5y)1.48%
ROCE(3y)2.51%
ROCE(5y)3.11%
ROICexcg growth 3Y-19.38%
ROICexcg growth 5Y-1.43%
ROICexc growth 3Y-19.4%
ROICexc growth 5Y-1.39%
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 Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.32 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 48.68 | ||
| Cap/Depr | 87.42% | ||
| Cap/Sales | 1.65% | ||
| Interest Coverage | 0.25 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | -0.26 |
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)95.93%
Cap/Depr(5y)170.22%
Cap/Sales(3y)3.08%
Cap/Sales(5y)5.52%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)68.25%
EPS 3Y-11.93%
EPS 5Y14.07%
EPS Q2Q%21.93%
EPS Next Y17.03%
EPS Next 2Y14.09%
EPS Next 3Y12.68%
EPS Next 5Y7.88%
Revenue 1Y (TTM)9.59%
Revenue growth 3Y24.97%
Revenue growth 5Y18.23%
Sales Q2Q%5.97%
Revenue Next Year7.58%
Revenue Next 2Y6.3%
Revenue Next 3Y5.13%
Revenue Next 5Y2.67%
EBIT growth 1Y59.99%
EBIT growth 3Y-11.94%
EBIT growth 5Y11.78%
EBIT Next Year1.64%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-2.68%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-4.97%
OCF growth 3YN/A
OCF growth 5YN/A