327.93 USD
-2.61 (-0.79%)
327.5 USD
-0.43 (-0.13%)
Taking everything into account, GOOGL scores 7 out of 10 in our fundamental rating. GOOGL was compared to 70 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 priced too expensively while it is growing strongly. Keep and eye on this one! This makes GOOGL very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year GOOGL was profitable.
- In the past year GOOGL had a positive cash flow from operations.
- In the past 5 years GOOGL has always been profitable.
- GOOGL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- GOOGL has a better Return On Assets (23.16%) than 97.14% of its industry peers.
- With an excellent Return On Equity value of 32.12%, GOOGL belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 24.90%, GOOGL belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
- GOOGL had an Average Return On Invested Capital over the past 3 years of 24.19%. This is significantly above the industry average of 13.70%.
- The last Return On Invested Capital (24.90%) for GOOGL is above the 3 year average (24.19%), which is a sign of increasing profitability.
| 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
- Looking at the Profit Margin, with a value of 32.23%, GOOGL belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
- GOOGL's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 32.83%, GOOGL belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
- In the last couple of years the Operating Margin of GOOGL has grown nicely.
- GOOGL has a Gross Margin (59.17%) which is in line with its industry peers.
- 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 | 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.
- GOOGL has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, GOOGL has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 18.44 indicates that GOOGL is not in any danger for bankruptcy at the moment.
- GOOGL has a better Altman-Z score (18.44) than 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.
- GOOGL's Debt to FCF ratio of 0.29 is amongst the best of the industry. GOOGL outperforms 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.
- GOOGL's Debt to Equity ratio of 0.06 is in line compared to the rest of the industry. GOOGL outperforms 55.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 18.44 |
ROIC/WACC2.8
WACC8.88%
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 has a Current ratio of 1.75. This is comparable 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.
- With a Quick ratio value of 1.75, GOOGL perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- GOOGL does not score too well on the current and quick ratio evaluation. However, as it has 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
- GOOGL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.37%, which is quite impressive.
- Measured over the past years, GOOGL shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.25% on average per year.
- The Revenue has grown by 13.42% 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 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.
- GOOGL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.67% yearly.
EPS Next Y35.39%
EPS Next 2Y19.53%
EPS Next 3Y18.08%
EPS Next 5Y16.87%
Revenue Next Year13.91%
Revenue Next 2Y13.74%
Revenue Next 3Y13.39%
Revenue Next 5Y12.67%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 33.36, GOOGL can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of GOOGL is on the same level as its industry peers.
- GOOGL's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 28.51 indicates a quite expensive valuation of GOOGL.
- GOOGL's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. GOOGL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.36 | ||
| Fwd PE | 28.51 |
4.2 Price Multiples
- GOOGL's Enterprise Value to EBITDA is on the same level as the industry average.
- GOOGL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.8 | ||
| EV/EBITDA | 26.3 |
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.
- The excellent profitability rating of GOOGL may justify a higher PE ratio.
- A more expensive valuation may be justified as GOOGL's earnings are expected to grow with 18.08% in the coming years.
PEG (NY)0.94
PEG (5Y)1.32
EPS Next 2Y19.53%
EPS Next 3Y18.08%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.25%, GOOGL is not a good candidate for dividend investing.
- GOOGL's Dividend Yield is rather good when compared to the industry average which is at 0.52. GOOGL pays more dividend than 85.71% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, GOOGL's dividend is way lower than the S&P500 average.
| 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
- GOOGL pays out 8.01% of its income as dividend. This is a sustainable payout ratio.
DP8.01%
EPS Next 2Y19.53%
EPS Next 3Y18.08%
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 33.36 and the Price/Book (PB) ratio is 10.23.
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 35.39% in the next year.