GOLDMAN SACHS GROUP INC (GS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GS - US38141G1040 - Common Stock
929.72 USD
-2.14 (-0.23%)
929.35 USD
-0.37 (-0.04%)
Taking everything into account, GS scores 4 out of 10 in our fundamental rating. GS was compared to 237 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
- 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
- Looking at the Return On Assets, with a value of 0.88%, GS is doing worse than 70.04% of the companies in the same industry.
- The Return On Equity of GS (12.73%) is better than 71.31% of its industry peers.
- With a Return On Invested Capital value of 1.15%, GS is not doing good in the industry: 65.82% of the companies in the same industry are doing better.
- 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
- The Profit Margin of GS (12.45%) is comparable to the rest of the industry.
- GS's Profit Margin has declined in the last couple of years.
- GS has a Operating Margin (16.70%) which is in line with its industry peers.
- GS's Operating Margin has declined in the last couple of years.
- GS has a Gross Margin (40.13%) which is comparable to the rest of the industry.
- GS's Gross Margin has declined in the last couple of years.
| 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
- GS has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for GS has been reduced compared to 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.
- Looking at the Altman-Z score, with a value of -0.19, GS is doing worse than 79.75% of the companies in the same industry.
- GS has a debt to FCF ratio of 72.28. This is a negative value and a sign of low solvency as GS would need 72.28 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 72.28, GS perfoms like the industry average, outperforming 51.90% 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 has a worse Debt to Equity ratio (8.47) than 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.
- 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 80.59% of the companies in the same industry.
| 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.
- Measured over the past years, GS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.50% on average per year.
- Looking at the last year, GS shows a decrease in Revenue. The Revenue has decreased by -1.38% in the last 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
- The Earnings Per Share is expected to grow by 9.65% on average over the next years. This is quite good.
- Based on estimates for the next years, GS will show a small growth in Revenue. The Revenue will grow by 2.56% on average per year.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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
- Based on the Price/Earnings ratio of 18.13, the valuation of GS can be described as rather expensive.
- The rest of the industry has a similar Price/Earnings ratio as GS.
- The average S&P500 Price/Earnings ratio is at 28.87. GS is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 15.83, which indicates a correct valuation of GS.
- 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 25.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.13 | ||
| Fwd PE | 15.83 |
4.2 Price Multiples
- 70.89% of the companies in the same industry are more expensive than GS, based on the Enterprise Value to EBITDA ratio.
- 66.24% 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 | 17.68 | ||
| EV/EBITDA | 20.58 |
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
- GS has a Yearly Dividend Yield of 1.96%.
- GS's Dividend Yield is comparable with the industry average which is at 5.87.
- Compared to an average S&P500 Dividend Yield of 1.82, GS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
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
- 31.36% 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.
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 18.13 and the Price/Book (PB) ratio is 2.24.
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%.