ALPHABET INC-CL A (GOOGL)
US02079K3059 - Common Stock
We assign a fundamental rating of 7 out of 10 to GOOGL. GOOGL was compared to 68 industry peers in the Interactive Media & Services industry. Both the health and profitability get an excellent rating, making GOOGL a very profitable company, without any liquidiy or solvency issues. GOOGL is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, GOOGL could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year GOOGL was profitable.
GOOGL had a positive operating cash flow in the past year.
In the past 5 years GOOGL has always been profitable.
Each year in the past 5 years GOOGL had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 20.23%, GOOGL belongs to the top of the industry, outperforming 95.52% of the companies in the same industry.
GOOGL has a better Return On Equity (28.14%) than 94.03% of its industry peers.
Looking at the Return On Invested Capital, with a value of 24.32%, GOOGL belongs to the top of the industry, outperforming 98.51% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GOOGL is significantly above the industry average of 9.85%.
The 3 year average ROIC (22.54%) for GOOGL is below the current ROIC(24.32%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.23% | ||
| ROE | 28.14% | ||
| ROIC | 24.32% |
ROA(3y)18.64%
ROA(5y)16.19%
ROE(3y)26.56%
ROE(5y)22.96%
ROIC(3y)22.54%
ROIC(5y)18.85%
1.3 Margins
GOOGL's Profit Margin of 25.90% is amongst the best of the industry. GOOGL outperforms 92.54% of its industry peers.
In the last couple of years the Profit Margin of GOOGL has remained more or less at the same level.
The Operating Margin of GOOGL (29.68%) is better than 97.01% of its industry peers.
In the last couple of years the Operating Margin of GOOGL has grown nicely.
Looking at the Gross Margin, with a value of 57.25%, GOOGL is in line with its industry, outperforming 43.28% of the companies in the same industry.
In the last couple of years the Gross Margin of GOOGL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.68% | ||
| PM (TTM) | 25.9% | ||
| GM | 57.25% |
OM growth 3Y8.32%
OM growth 5Y3.8%
PM growth 3Y2.86%
PM growth 5Y1.34%
GM growth 3Y2.05%
GM growth 5Y0.16%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GOOGL is creating value.
The number of shares outstanding for GOOGL has been reduced compared to 1 year ago.
Compared to 5 years ago, GOOGL has less shares outstanding
GOOGL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 13.71 indicates that GOOGL is not in any danger for bankruptcy at the moment.
GOOGL has a Altman-Z score of 13.71. This is amongst the best in the industry. GOOGL outperforms 94.03% of its industry peers.
GOOGL has a debt to FCF ratio of 0.20. This is a very positive value and a sign of high solvency as it would only need 0.20 years to pay back of all of its debts.
GOOGL has a Debt to FCF ratio of 0.20. This is amongst the best in the industry. GOOGL outperforms 85.07% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that GOOGL is not too dependend on debt financing.
GOOGL has a Debt to Equity ratio of 0.05. This is comparable to the rest of the industry: GOOGL outperforms 46.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.2 | ||
| Altman-Z | 13.71 |
ROIC/WACC2.62
WACC9.29%
2.3 Liquidity
GOOGL has a Current Ratio of 2.15. This indicates that GOOGL is financially healthy and has no problem in meeting its short term obligations.
GOOGL has a Current ratio (2.15) which is in line with its industry peers.
GOOGL has a Quick Ratio of 2.15. This indicates that GOOGL is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of GOOGL (2.15) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 45.21% over the past year.
The Earnings Per Share has been growing by 19.55% on average over the past years. This is quite good.
The Revenue has grown by 11.78% in the past year. This is quite good.
GOOGL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.57% yearly.
EPS 1Y (TTM)45.21%
EPS 3Y25.49%
EPS 5Y19.55%
EPS Q2Q%61.54%
Revenue 1Y (TTM)11.78%
Revenue growth 3Y18.98%
Revenue growth 5Y17.57%
Sales Q2Q%15.41%
3.2 Future
The Earnings Per Share is expected to grow by 19.96% on average over the next years. This is quite good.
Based on estimates for the next years, GOOGL will show a quite strong growth in Revenue. The Revenue will grow by 10.62% on average per year.
EPS Next Y34.22%
EPS Next 2Y23.38%
EPS Next 3Y20.85%
EPS Next 5Y19.96%
Revenue Next Year13.32%
Revenue Next 2Y12.13%
Revenue Next 3Y11.38%
Revenue Next 5Y10.62%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
GOOGL is valuated quite expensively with a Price/Earnings ratio of 26.46.
Based on the Price/Earnings ratio, GOOGL is valued a bit cheaper than the industry average as 71.64% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.05. GOOGL is around the same levels.
With a Price/Forward Earnings ratio of 19.54, GOOGL is valued on the expensive side.
GOOGL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GOOGL is cheaper than 68.66% of the companies in the same industry.
GOOGL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.07, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.46 | ||
| Fwd PE | 19.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GOOGL is valued a bit cheaper than the industry average as 65.67% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GOOGL indicates a somewhat cheap valuation: GOOGL is cheaper than 67.16% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.85 | ||
| EV/EBITDA | 18.28 |
4.3 Compensation for Growth
GOOGL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GOOGL has an outstanding profitability rating, which may justify a higher PE ratio.
GOOGL's earnings are expected to grow with 20.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.77
PEG (5Y)1.35
EPS Next 2Y23.38%
EPS Next 3Y20.85%
5. Dividend
5.1 Amount
GOOGL has a yearly dividend return of 0.46%, which is pretty low.
GOOGL's Dividend Yield is rather good when compared to the industry average which is at 15.13. GOOGL pays more dividend than 89.55% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, GOOGL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
5.2 History
GOOGL is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y23.38%
EPS Next 3Y20.85%
ALPHABET INC-CL A
NASDAQ:GOOGL (5/31/2024, 7:00:00 PM)
After market: 172.38 -0.12 (-0.07%)172.5
+0.39 (+0.23%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2131.76B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.46 | ||
| Fwd PE | 19.54 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.77
PEG (5Y)1.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.23% | ||
| ROE | 28.14% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.68% | ||
| PM (TTM) | 25.9% | ||
| GM | 57.25% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.15 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)45.21%
EPS 3Y25.49%
EPS 5Y
EPS Q2Q%
EPS Next Y34.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.78%
Revenue growth 3Y18.98%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y