GOLDMAN SACHS GROUP INC (GS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GS - US38141G1040 - Common Stock
955.47 USD
+7.03 (+0.74%)
955.97 USD
+0.5 (+0.05%)
We assign a fundamental rating of 4 out of 10 to GS. GS was compared to 235 industry peers in the Capital Markets industry. Both the profitability and financial health of GS have multiple concerns. GS has a decent growth rate and is not valued too expensively. GS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
GS had positive earnings in the past year.
GS had a positive operating cash flow in the past year.
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
The Return On Assets of GS (0.88%) is worse than 66.38% of its industry peers.
GS has a better Return On Equity (12.77%) than 71.49% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.13%, GS is doing worse than 65.53% 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 7.14%.
The last Return On Invested Capital (1.13%) for GS is above the 3 year average (0.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 12.77% | ||
| ROIC | 1.13% |
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
GS has a Profit Margin (12.45%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of GS has declined.
GS has a Operating Margin of 16.70%. This is comparable to the rest of the industry: GS outperforms 40.43% of its industry peers.
GS's Operating Margin has declined in the last couple of years.
GS's Gross Margin of 40.13% is in line compared to the rest of the industry. GS outperforms 42.13% 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-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
Compared to 5 years ago, GS has less shares outstanding
The debt/assets ratio for GS is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of GS is 72.29, which is on the high side as it means it would take GS, 72.29 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 72.29, GS is in line with its industry, outperforming 48.94% of the companies in the same industry.
A Debt/Equity ratio of 8.60 is on the high side and indicates that GS has dependencies on debt financing.
GS has a Debt to Equity ratio of 8.60. This is amonst the worse of the industry: GS underperforms 86.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.6 | ||
| Debt/FCF | 72.29 | ||
| Altman-Z | N/A |
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.
GS has a worse Current ratio (0.31) than 80.85% of its industry peers.
A Quick Ratio of 0.31 indicates that GS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.31, GS is doing worse than 80.85% 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 44.45%, which is quite impressive.
Measured over the past years, GS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.07% on average per year.
Looking at the last year, GS shows a small growth in Revenue. The Revenue has grown by 3.36% in the last year.
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)44.45%
EPS 3Y-11.93%
EPS 5Y14.07%
EPS Q2Q%45.83%
Revenue 1Y (TTM)3.36%
Revenue growth 3Y24.97%
Revenue growth 5Y18.23%
Sales Q2Q%19.57%
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 13.33% on average per year.
Based on estimates for the next years, GS will show a small growth in Revenue. The Revenue will grow by 4.85% on average per year.
EPS Next Y23.5%
EPS Next 2Y18.42%
EPS Next 3Y16.2%
EPS Next 5Y13.33%
Revenue Next Year13.42%
Revenue Next 2Y9.32%
Revenue Next 3Y7.63%
Revenue Next 5Y4.85%
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.
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
Based on the Price/Earnings ratio of 19.41, the valuation of GS can be described as rather expensive.
GS's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.17, GS is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.80, which indicates a correct valuation of GS.
GS's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of GS to the average of the S&P500 Index (23.79), we can say GS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.41 | ||
| Fwd PE | 16.8 |
4.2 Price Multiples
73.19% of the companies in the same industry are more expensive than GS, based on the Enterprise Value to EBITDA ratio.
62.98% 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 | 18.17 | ||
| EV/EBITDA | 19.89 |
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 16.20% in the coming years.
PEG (NY)0.83
PEG (5Y)1.38
EPS Next 2Y18.42%
EPS Next 3Y16.2%
5. Dividend
5.1 Amount
GS has a Yearly Dividend Yield of 6.83%, which is a nice return.
GS's Dividend Yield is comparable with the industry average which is at 6.39.
Compared to an average S&P500 Dividend Yield of 1.94, GS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.83% |
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.
GS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.36%
EPS Next 2Y18.42%
EPS Next 3Y16.2%
955.47
+7.03 (+0.74%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners74.56%
Inst Owner Change0.01%
Ins Owners0.52%
Ins Owner Change-0.76%
Market Cap286.57B
Revenue(TTM)127.21B
Net Income(TTM)15.84B
Analysts73.13
Price Target825.6 (-13.59%)
Short Float %2.38%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.83% |
Yearly Dividend14.19
Dividend Growth(5Y)19.24%
DP31.36%
Div Incr Years13
Div Non Decr Years14
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.66%
Min EPS beat(2)8.14%
Max EPS beat(2)11.18%
EPS beat(4)4
Avg EPS beat(4)17.85%
Min EPS beat(4)8.14%
Max EPS beat(4)41.07%
EPS beat(8)8
Avg EPS beat(8)21.62%
EPS beat(12)9
Avg EPS beat(12)12.01%
EPS beat(16)12
Avg EPS beat(16)10.57%
Revenue beat(2)2
Avg Revenue beat(2)4.86%
Min Revenue beat(2)4.58%
Max Revenue beat(2)5.15%
Revenue beat(4)3
Avg Revenue beat(4)4.29%
Min Revenue beat(4)-1.25%
Max Revenue beat(4)8.67%
Revenue beat(8)6
Avg Revenue beat(8)3.68%
Revenue beat(12)9
Avg Revenue beat(12)17.49%
Revenue beat(16)13
Avg Revenue beat(16)20.62%
PT rev (1m)2.2%
PT rev (3m)12.16%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)3.83%
EPS NY rev (1m)0.08%
EPS NY rev (3m)4.64%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)4.89%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)3.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.41 | ||
| Fwd PE | 16.8 | ||
| P/S | 2.25 | ||
| P/FCF | 18.17 | ||
| P/OCF | 16.02 | ||
| P/B | 2.31 | ||
| P/tB | 2.31 | ||
| EV/EBITDA | 19.89 |
EPS(TTM)49.23
EY5.15%
EPS(NY)56.87
Fwd EY5.95%
FCF(TTM)52.58
FCFY5.5%
OCF(TTM)59.64
OCFY6.24%
SpS424.14
BVpS413.43
TBVpS413.43
PEG (NY)0.83
PEG (5Y)1.38
Graham Number676.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 12.77% | ||
| ROCE | 3.09% | ||
| ROIC | 1.13% | ||
| ROICexc | 1.27% | ||
| ROICexgc | 1.31% | ||
| OM | 16.7% | ||
| PM (TTM) | 12.45% | ||
| GM | 40.13% | ||
| FCFM | 12.4% |
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%
ROICexgc growth 3Y-19.38%
ROICexgc 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-Score7
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.6 | ||
| Debt/FCF | 72.29 | ||
| Debt/EBITDA | 45.6 | ||
| Cap/Depr | 98.42% | ||
| Cap/Sales | 1.67% | ||
| Interest Coverage | 0.31 | ||
| Cash Conversion | 76.45% | ||
| Profit Quality | 99.56% | ||
| Current Ratio | 0.31 | ||
| Quick Ratio | 0.31 | ||
| Altman-Z | N/A |
F-Score7
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)44.45%
EPS 3Y-11.93%
EPS 5Y14.07%
EPS Q2Q%45.83%
EPS Next Y23.5%
EPS Next 2Y18.42%
EPS Next 3Y16.2%
EPS Next 5Y13.33%
Revenue 1Y (TTM)3.36%
Revenue growth 3Y24.97%
Revenue growth 5Y18.23%
Sales Q2Q%19.57%
Revenue Next Year13.42%
Revenue Next 2Y9.32%
Revenue Next 3Y7.63%
Revenue Next 5Y4.85%
EBIT growth 1Y32.76%
EBIT growth 3Y-11.94%
EBIT growth 5Y11.78%
EBIT Next Year1.64%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y179.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y202.86%
OCF growth 3YN/A
OCF growth 5YN/A
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 5 / 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 19.41 and the Price/Book (PB) ratio is 2.31.
Is the dividend of GOLDMAN SACHS GROUP INC sustainable?
The dividend rating of GOLDMAN SACHS GROUP INC (GS) is 8 / 10 and the dividend payout ratio is 31.36%.