336.01 USD
+1.46 (+0.44%)
341.2 USD
+5.19 (+1.54%)
We assign a fundamental rating of 7 out of 10 to GOOGL. GOOGL was compared to 70 industry peers in the Interactive Media & Services industry. GOOGL has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. GOOGL is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make GOOGL suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
- GOOGL had positive earnings in the past year.
- GOOGL had a positive operating cash flow in the past year.
- In the past 5 years GOOGL has always been profitable.
- In the past 5 years GOOGL always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 23.16%, GOOGL belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
- GOOGL has a Return On Equity of 32.12%. This is amongst the best in the industry. GOOGL outperforms 97.14% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 24.90%, GOOGL belongs to the top of the industry, outperforming 91.43% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for GOOGL is significantly above the industry average of 13.70%.
- The 3 year average ROIC (24.19%) for GOOGL is below the current ROIC(24.90%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.16% | ||
| ROE | 32.12% | ||
| ROIC | 24.9% |
ROA(3y)19%
ROA(5y)18.15%
ROE(3y)26.75%
ROE(5y)25.71%
ROIC(3y)24.19%
ROIC(5y)21.8%
1.3 Margins
- GOOGL's Profit Margin of 32.23% is amongst the best of the industry. GOOGL outperforms 92.86% of its industry peers.
- In the last couple of years the Profit Margin of GOOGL has grown nicely.
- The Operating Margin of GOOGL (32.83%) is better than 97.14% of its industry peers.
- In the last couple of years the Operating Margin of GOOGL has grown nicely.
- With a Gross Margin value of 59.17%, GOOGL perfoms like the industry average, outperforming 51.43% of the companies in the same industry.
- GOOGL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.83% | ||
| PM (TTM) | 32.23% | ||
| GM | 59.17% |
OM growth 3Y2.22%
OM growth 5Y8.01%
PM growth 3Y-1.04%
PM growth 5Y6.16%
GM growth 3Y0.73%
GM growth 5Y0.93%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GOOGL is creating value.
- The number of shares outstanding for GOOGL has been reduced compared to 1 year ago.
- The number of shares outstanding for GOOGL has been reduced compared to 5 years ago.
- The debt/assets ratio for GOOGL has been reduced compared to a year ago.
2.2 Solvency
- GOOGL has an Altman-Z score of 18.70. This indicates that GOOGL is financially healthy and has little risk of bankruptcy at the moment.
- GOOGL has a Altman-Z score of 18.70. This is amongst the best in the industry. GOOGL outperforms 95.71% of its industry peers.
- The Debt to FCF ratio of GOOGL is 0.29, which is an excellent value as it means it would take GOOGL, only 0.29 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of GOOGL (0.29) is better than 84.29% of its industry peers.
- GOOGL has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
- With a Debt to Equity ratio value of 0.06, GOOGL perfoms like the industry average, outperforming 55.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 18.7 |
ROIC/WACC2.81
WACC8.86%
2.3 Liquidity
- GOOGL has a Current Ratio of 1.75. This is a normal value and indicates that GOOGL is financially healthy and should not expect problems in meeting its short term obligations.
- GOOGL's Current ratio of 1.75 is in line compared to the rest of the industry. GOOGL outperforms 50.00% of its industry peers.
- A Quick Ratio of 1.75 indicates that GOOGL should not have too much problems paying its short term obligations.
- GOOGL has a Quick ratio (1.75) which is in line with its industry peers.
- The current and quick ratio evaluation for GOOGL is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 30.37% over the past year.
- The Earnings Per Share has been growing by 25.25% on average over the past years. This is a very strong growth
- GOOGL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.42%.
- GOOGL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.68% yearly.
EPS 1Y (TTM)30.37%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%46.23%
Revenue 1Y (TTM)13.42%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%15.95%
3.2 Future
- The Earnings Per Share is expected to grow by 16.87% 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 12.67% on average per year.
EPS Next Y35.48%
EPS Next 2Y19.79%
EPS Next 3Y18.39%
EPS Next 5Y16.87%
Revenue Next Year13.94%
Revenue Next 2Y13.85%
Revenue Next 3Y13.55%
Revenue Next 5Y12.67%
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 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 34.18.
- GOOGL's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 28.60. GOOGL is around the same levels.
- With a Price/Forward Earnings ratio of 29.09, GOOGL can be considered very expensive at the moment.
- GOOGL's Price/Forward Earnings is on the same level as the industry average.
- GOOGL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.18 | ||
| Fwd PE | 29.09 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as GOOGL.
- The rest of the industry has a similar Price/Free Cash Flow ratio as GOOGL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.13 | ||
| EV/EBITDA | 26.76 |
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.
- GOOGL has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as GOOGL's earnings are expected to grow with 18.39% in the coming years.
PEG (NY)0.96
PEG (5Y)1.35
EPS Next 2Y19.79%
EPS Next 3Y18.39%
5. Dividend
5.1 Amount
- GOOGL has a yearly dividend return of 0.25%, which is pretty low.
- GOOGL's Dividend Yield is rather good when compared to the industry average which is at 0.77. GOOGL pays more dividend than 85.71% of the companies in the same industry.
- With a Dividend Yield of 0.25, GOOGL pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
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
- 8.01% of the earnings are spent on dividend by GOOGL. This is a low number and sustainable payout ratio.
DP8.01%
EPS Next 2Y19.79%
EPS Next 3Y18.39%
ALPHABET INC-CL A / GOOGL FAQ
Can you provide the ChartMill fundamental rating for ALPHABET INC-CL A?
ChartMill assigns a fundamental rating of 7 / 10 to GOOGL.
What is the valuation status for GOOGL stock?
ChartMill assigns a valuation rating of 4 / 10 to ALPHABET INC-CL A (GOOGL). This can be considered as Fairly Valued.
How profitable is ALPHABET INC-CL A (GOOGL) stock?
ALPHABET INC-CL A (GOOGL) has a profitability rating of 9 / 10.
What are the PE and PB ratios of ALPHABET INC-CL A (GOOGL) stock?
The Price/Earnings (PE) ratio for ALPHABET INC-CL A (GOOGL) is 34.18 and the Price/Book (PB) ratio is 10.48.
What is the expected EPS growth for ALPHABET INC-CL A (GOOGL) stock?
The Earnings per Share (EPS) of ALPHABET INC-CL A (GOOGL) is expected to grow by 35.48% in the next year.