GOLDMAN SACHS GROUP INC (GS) Stock Fundamental Analysis
NYSE:GS - New York Stock Exchange, Inc. - US38141G1040 - Common Stock - Currency: USD
Taking everything into account, GS scores 3 out of 10 in our fundamental rating. GS was compared to 222 industry peers in the Capital Markets industry. Both the profitability and financial health of GS have multiple concerns. GS is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
GS had positive earnings in the past year.
GS had a negative operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 0.66%, GS is doing worse than 72.35% of the companies in the same industry.
The Return On Equity of GS (9.46%) is comparable to the rest of the industry.
GS has a worse Return On Invested Capital (0.92%) than 76.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.66% | ||
| ROE | 9.46% | ||
| ROIC | 0.92% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 9.32%, GS is doing worse than 63.13% of the companies in the same industry.
In the last couple of years the Profit Margin of GS has declined.
GS has a Operating Margin of 13.00%. This is in the lower half of the industry: GS underperforms 68.20% of its industry peers.
GS's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 36.28%, GS is not doing good in the industry: 70.51% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of GS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13% | ||
| PM (TTM) | 9.32% | ||
| GM | 36.28% |
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
GS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
Based on the Altman-Z score of -0.28, we must say that GS is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.28, GS is not doing good in the industry: 86.18% of the companies in the same industry are doing better.
GS has a Debt/Equity ratio of 8.51. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 8.51, GS is doing worse than 89.86% of the companies in the same industry.
| 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 80.18% of its industry peers.
GS has a Quick Ratio of 0.27. 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 Quick ratio (0.27) than 80.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 69.67% 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 14.07% on average per year.
Looking at the last year, GS shows a quite strong growth in Revenue. The Revenue has grown by 16.30% 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)69.67%
EPS 3Y-11.93%
EPS 5Y14.07%
EPS Q2Q%118.07%
Revenue 1Y (TTM)16.3%
Revenue growth 3Y24.97%
Revenue growth 5Y18.23%
Sales Q2Q%22.54%
3.2 Future
The Earnings Per Share is expected to grow by 10.62% 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 6.64% on average per year.
EPS Next Y8.28%
EPS Next 2Y10.45%
EPS Next 3Y9.13%
EPS Next 5Y10.62%
Revenue Next Year9.21%
Revenue Next 2Y7.13%
Revenue Next 3Y6.64%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 15.73, the valuation of GS can be described as correct.
GS's Price/Earnings is on the same level as the industry average.
GS is valuated rather cheaply when we compare the Price/Earnings ratio to 28.42, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.53, the valuation of GS can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as GS.
GS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.73 | ||
| Fwd PE | 14.53 |
4.2 Price Multiples
GS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GS is cheaper than 68.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.86 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.9
PEG (5Y)1.12
EPS Next 2Y10.45%
EPS Next 3Y9.13%
5. Dividend
5.1 Amount
GS has a Yearly Dividend Yield of 1.88%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 9.43, GS is paying slightly less dividend.
GS's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
5.2 History
On average, the dividend of GS grows each year by 21.17%, which is quite nice.
GS has been paying a dividend for at least 10 years, so it has a reliable track record.
GS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)21.17%
Div Incr Years13
Div Non Decr Years14
5.3 Sustainability
38.44% 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.
DP38.44%
EPS Next 2Y10.45%
EPS Next 3Y9.13%
GOLDMAN SACHS GROUP INC
NYSE:GS (1/28/2025, 8:04:00 PM)
After market: 637.073 -0.73 (-0.11%)637.8
+4.52 (+0.71%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners74.65%
Inst Owner Change-0.08%
Ins Owners0.53%
Ins Owner Change-0.58%
Market Cap200.21B
Analysts79.38
Price Target601.66 (-5.67%)
Short Float %1.46%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
Yearly Dividend12.73
Dividend Growth(5Y)21.17%
DP38.44%
Div Incr Years13
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.36%
Min EPS beat(2)0.29%
Max EPS beat(2)18.43%
EPS beat(4)4
Avg EPS beat(4)25.39%
Min EPS beat(4)0.29%
Max EPS beat(4)51.48%
EPS beat(8)5
Avg EPS beat(8)9.1%
EPS beat(12)8
Avg EPS beat(12)8.15%
EPS beat(16)12
Avg EPS beat(16)19.76%
Revenue beat(2)1
Avg Revenue beat(2)1.85%
Min Revenue beat(2)-0.77%
Max Revenue beat(2)4.48%
Revenue beat(4)3
Avg Revenue beat(4)3.07%
Min Revenue beat(4)-0.77%
Max Revenue beat(4)6.82%
Revenue beat(8)6
Avg Revenue beat(8)24.09%
Revenue beat(12)10
Avg Revenue beat(12)26.06%
Revenue beat(16)14
Avg Revenue beat(16)28.1%
PT rev (1m)3.85%
PT rev (3m)8.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.13%
EPS NY rev (1m)0%
EPS NY rev (3m)2.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)3.6%
Revenue NY rev (3m)5.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.73 | ||
| Fwd PE | 14.53 | ||
| P/S | 1.63 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.65 | ||
| P/tB | 1.75 | ||
| EV/EBITDA | 20.86 |
EPS(TTM)40.55
EY6.36%
EPS(NY)43.91
Fwd EY6.88%
FCF(TTM)-287.94
FCFYN/A
OCF(TTM)-281.4
OCFYN/A
SpS392.07
BVpS386.1
TBVpS364.33
PEG (NY)1.9
PEG (5Y)1.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.66% | ||
| ROE | 9.46% | ||
| ROCE | 2.69% | ||
| ROIC | 0.92% | ||
| ROICexc | 1.03% | ||
| ROICexgc | 1.04% | ||
| OM | 13% | ||
| PM (TTM) | 9.32% | ||
| GM | 36.28% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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 Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.51 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 55.2 | ||
| Cap/Depr | 76.7% | ||
| Cap/Sales | 1.67% | ||
| Interest Coverage | 0.23 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | -0.28 |
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)69.67%
EPS 3Y-11.93%
EPS 5Y14.07%
EPS Q2Q%118.07%
EPS Next Y8.28%
EPS Next 2Y10.45%
EPS Next 3Y9.13%
EPS Next 5Y10.62%
Revenue 1Y (TTM)16.3%
Revenue growth 3Y24.97%
Revenue growth 5Y18.23%
Sales Q2Q%22.54%
Revenue Next Year9.21%
Revenue Next 2Y7.13%
Revenue Next 3Y6.64%
Revenue Next 5YN/A
EBIT growth 1Y55.52%
EBIT growth 3Y-11.94%
EBIT growth 5Y11.78%
EBIT Next Year1.64%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-353.86%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-407.94%
OCF growth 3YN/A
OCF growth 5YN/A