335.97 USD
+4.11 (+1.24%)
337.058 USD
+1.09 (+0.32%)
GOOGL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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 valued quite expensively, but it does show have an excellent growth rating. These ratings would make GOOGL suitable 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.
Each year in the past 5 years GOOGL has been profitable.
Each year in the past 5 years GOOGL had a positive operating cash flow.
1.2 Ratios
GOOGL's Return On Assets of 23.16% is amongst the best of the industry. GOOGL outperforms 97.14% of its industry peers.
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.
The Return On Invested Capital of GOOGL (24.90%) is better than 91.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GOOGL 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
GOOGL has a better Profit Margin (32.23%) than 92.86% of its industry peers.
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.
GOOGL has less shares outstanding than it did 1 year ago.
The number of shares outstanding for GOOGL has been reduced compared to 5 years ago.
GOOGL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 18.50 indicates that GOOGL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 18.50, GOOGL belongs to the top of the industry, outperforming 95.71% of the companies in the same industry.
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 has a better Debt to FCF ratio (0.29) than 84.29% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that GOOGL is not too dependend on debt financing.
The Debt to Equity ratio of GOOGL (0.06) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 18.5 |
ROIC/WACC2.83
WACC8.81%
2.3 Liquidity
A Current Ratio of 1.75 indicates that GOOGL should not have too much problems paying its short term obligations.
The Current ratio of GOOGL (1.75) is comparable to the rest of the industry.
A Quick Ratio of 1.75 indicates that GOOGL should not have too much problems paying its short term obligations.
The Quick ratio of GOOGL (1.75) is comparable to the rest of the 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.
GOOGL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.42%.
The Revenue has been growing by 16.68% on average over the past years. This is quite good.
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
Based on estimates for the next years, GOOGL will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.87% on average per year.
The Revenue is expected to grow by 12.67% on average over the next years. This is quite good.
EPS Next Y35.39%
EPS Next 2Y19.53%
EPS Next 3Y18.08%
EPS Next 5Y16.87%
Revenue Next Year13.9%
Revenue Next 2Y13.65%
Revenue Next 3Y13.17%
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.
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 34.18, GOOGL can be considered very expensive at the moment.
GOOGL's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.30. GOOGL is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 29.21, which means the current valuation is very expensive for GOOGL.
GOOGL's Price/Forward Earnings is on the same level as the industry average.
GOOGL is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.18 | ||
| Fwd PE | 29.21 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GOOGL.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GOOGL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.12 | ||
| EV/EBITDA | 26.41 |
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.
GOOGL's earnings are expected to grow with 18.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.97
PEG (5Y)1.35
EPS Next 2Y19.53%
EPS Next 3Y18.08%
5. Dividend
5.1 Amount
GOOGL has a yearly dividend return of 0.26%, which is pretty low.
Compared to an average industry Dividend Yield of 0.49, GOOGL pays a better dividend. On top of this GOOGL pays more dividend than 87.14% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, GOOGL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
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%
335.97
+4.11 (+1.24%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners81.24%
Inst Owner Change-0.02%
Ins Owners0.05%
Ins Owner Change-0.61%
Market Cap4.05T
Revenue(TTM)385.48B
Net Income(TTM)124.25B
Analysts82.57
Price Target321.71 (-4.24%)
Short Float %1.42%
Short Ratio2.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
Yearly Dividend0.6
Dividend Growth(5Y)N/A
DP8.01%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.04%
Min EPS beat(2)2.67%
Max EPS beat(2)29.41%
EPS beat(4)3
Avg EPS beat(4)9.93%
Min EPS beat(4)-1.9%
Max EPS beat(4)29.41%
EPS beat(8)5
Avg EPS beat(8)8.98%
EPS beat(12)8
Avg EPS beat(12)6.1%
EPS beat(16)9
Avg EPS beat(16)3.08%
Revenue beat(2)0
Avg Revenue beat(2)-0.46%
Min Revenue beat(2)-0.53%
Max Revenue beat(2)-0.4%
Revenue beat(4)0
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-3.01%
Max Revenue beat(4)-0.4%
Revenue beat(8)0
Avg Revenue beat(8)-1.37%
Revenue beat(12)0
Avg Revenue beat(12)-1.56%
Revenue beat(16)1
Avg Revenue beat(16)-1.78%
PT rev (1m)1.47%
PT rev (3m)33.92%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)2.9%
EPS NY rev (1m)0.04%
EPS NY rev (3m)6.4%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)2.21%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.18 | ||
| Fwd PE | 29.21 | ||
| P/S | 10.52 | ||
| P/FCF | 55.12 | ||
| P/OCF | 26.77 | ||
| P/B | 10.48 | ||
| P/tB | 11.47 | ||
| EV/EBITDA | 26.41 |
EPS(TTM)9.83
EY2.93%
EPS(NY)11.5
Fwd EY3.42%
FCF(TTM)6.1
FCFY1.81%
OCF(TTM)12.55
OCFY3.74%
SpS31.94
BVpS32.06
TBVpS29.3
PEG (NY)0.97
PEG (5Y)1.35
Graham Number84.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.16% | ||
| ROE | 32.12% | ||
| ROCE | 28.96% | ||
| ROIC | 24.9% | ||
| ROICexc | 32.14% | ||
| ROICexgc | 35.65% | ||
| OM | 32.83% | ||
| PM (TTM) | 32.23% | ||
| GM | 59.17% | ||
| FCFM | 19.08% |
ROA(3y)19%
ROA(5y)18.15%
ROE(3y)26.75%
ROE(5y)25.71%
ROIC(3y)24.19%
ROIC(5y)21.8%
ROICexc(3y)36.15%
ROICexc(5y)36.02%
ROICexgc(3y)42.2%
ROICexgc(5y)42.5%
ROCE(3y)28.15%
ROCE(5y)25.36%
ROICexgc growth 3Y-6.64%
ROICexgc growth 5Y3.77%
ROICexc growth 3Y-5.3%
ROICexc growth 5Y5.86%
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%
F-Score6
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.29 | ||
| Debt/EBITDA | 0.15 | ||
| Cap/Depr | 403.46% | ||
| Cap/Sales | 20.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.82% | ||
| Profit Quality | 59.2% | ||
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.75 | ||
| Altman-Z | 18.5 |
F-Score6
WACC8.81%
ROIC/WACC2.83
Cap/Depr(3y)270.25%
Cap/Depr(5y)234.3%
Cap/Sales(3y)12.21%
Cap/Sales(5y)11.68%
Profit Quality(3y)88.97%
Profit Quality(5y)92.29%
High Growth Momentum
Growth
EPS 1Y (TTM)30.37%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%46.23%
EPS Next Y35.39%
EPS Next 2Y19.53%
EPS Next 3Y18.08%
EPS Next 5Y16.87%
Revenue 1Y (TTM)13.42%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%15.95%
Revenue Next Year13.9%
Revenue Next 2Y13.65%
Revenue Next 3Y13.17%
Revenue Next 5Y12.67%
EBIT growth 1Y16.37%
EBIT growth 3Y13.22%
EBIT growth 5Y26.03%
EBIT Next Year59.97%
EBIT Next 3Y31.67%
EBIT Next 5Y25.13%
FCF growth 1Y-5.24%
FCF growth 3Y2.78%
FCF growth 5Y18.63%
OCF growth 1Y42.26%
OCF growth 3Y10.99%
OCF growth 5Y18.11%
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 3 / 10 to ALPHABET INC-CL A (GOOGL). This can be considered as Overvalued.
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 35.39% in the next year.