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ALPHABET INC-CL A (GOOGL) Stock Fundamental Analysis

NASDAQ:GOOGL - Nasdaq - US02079K3059 - Common Stock - Currency: USD

176.23  -2.3 (-1.29%)

After market: 176.274 +0.04 (+0.02%)

Fundamental Rating

7

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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. GOOGL is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make GOOGL a good candidate for growth and quality investing.


Dividend Valuation Growth Profitability Health

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9

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.
GOOGL had positive earnings in each of the past 5 years.
GOOGL had a positive operating cash flow in each of the past 5 years.
GOOGL Yearly Net Income VS EBIT VS OCF VS FCFGOOGL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

1.2 Ratios

With an excellent Return On Assets value of 23.35%, GOOGL belongs to the best of the industry, outperforming 94.29% of the companies in the same industry.
With an excellent Return On Equity value of 32.15%, GOOGL belongs to the best of the industry, outperforming 94.29% of the companies in the same industry.
GOOGL has a better Return On Invested Capital (26.71%) than 95.71% of its industry peers.
GOOGL had an Average Return On Invested Capital over the past 3 years of 24.15%. This is significantly above the industry average of 12.03%.
The 3 year average ROIC (24.15%) for GOOGL is below the current ROIC(26.71%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 23.35%
ROE 32.15%
ROIC 26.71%
ROA(3y)19%
ROA(5y)18.15%
ROE(3y)26.75%
ROE(5y)25.71%
ROIC(3y)24.15%
ROIC(5y)21.77%
GOOGL Yearly ROA, ROE, ROICGOOGL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

The Profit Margin of GOOGL (30.86%) is better than 92.86% of its industry peers.
GOOGL's Profit Margin has improved in the last couple of years.
GOOGL has a better Operating Margin (33.15%) than 95.71% of its industry peers.
In the last couple of years the Operating Margin of GOOGL has grown nicely.
The Gross Margin of GOOGL (58.59%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of GOOGL has remained more or less at the same level.
Industry RankSector Rank
OM 33.15%
PM (TTM) 30.86%
GM 58.59%
OM growth 3Y2.06%
OM growth 5Y7.91%
PM growth 3Y-1.04%
PM growth 5Y6.16%
GM growth 3Y0.73%
GM growth 5Y0.93%
GOOGL Yearly Profit, Operating, Gross MarginsGOOGL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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8

2. Health

2.1 Basic Checks

GOOGL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, GOOGL has less shares outstanding
Compared to 5 years ago, GOOGL has less shares outstanding
Compared to 1 year ago, GOOGL has an improved debt to assets ratio.
GOOGL Yearly Shares OutstandingGOOGL Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B
GOOGL Yearly Total Debt VS Total AssetsGOOGL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100B 200B 300B 400B

2.2 Solvency

An Altman-Z score of 12.53 indicates that GOOGL is not in any danger for bankruptcy at the moment.
GOOGL's Altman-Z score of 12.53 is amongst the best of the industry. GOOGL outperforms 90.00% of its industry peers.
The Debt to FCF ratio of GOOGL is 0.19, which is an excellent value as it means it would take GOOGL, only 0.19 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GOOGL (0.19) is better than 78.57% of its industry peers.
GOOGL has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.04, GOOGL perfoms like the industry average, outperforming 54.29% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.04
Debt/FCF 0.19
Altman-Z 12.53
ROIC/WACC3
WACC8.9%
GOOGL Yearly LT Debt VS Equity VS FCFGOOGL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100B 200B 300B

2.3 Liquidity

GOOGL has a Current Ratio of 1.77. This is a normal value and indicates that GOOGL is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.77, GOOGL perfoms like the industry average, outperforming 41.43% of the companies in the same industry.
A Quick Ratio of 1.77 indicates that GOOGL should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.77, GOOGL perfoms like the industry average, outperforming 41.43% 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 RankSector Rank
Current Ratio 1.77
Quick Ratio 1.77
GOOGL Yearly Current Assets VS Current LiabilitesGOOGL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B

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7

3. Growth

3.1 Past

GOOGL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.29%, 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 13.07%.
The Revenue has been growing by 16.68% on average over the past years. This is quite good.
EPS 1Y (TTM)29.29%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%20.11%
Revenue 1Y (TTM)13.07%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%12.04%

3.2 Future

The Earnings Per Share is expected to grow by 15.78% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.45% on average over the next years. This is quite good.
EPS Next Y22.56%
EPS Next 2Y14.12%
EPS Next 3Y13.91%
EPS Next 5Y15.78%
Revenue Next Year10.4%
Revenue Next 2Y10.45%
Revenue Next 3Y10.44%
Revenue Next 5Y10.45%

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.
GOOGL Yearly Revenue VS EstimatesGOOGL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 200B 400B 600B
GOOGL Yearly EPS VS EstimatesGOOGL Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15 20

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5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 20.91, the valuation of GOOGL can be described as rather expensive.
62.86% of the companies in the same industry are more expensive than GOOGL, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of GOOGL to the average of the S&P500 Index (26.98), we can say GOOGL is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.81, GOOGL is valued correctly.
Based on the Price/Forward Earnings ratio, GOOGL is valued a bit cheaper than the industry average as 67.14% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.49, GOOGL is valued a bit cheaper.
Industry RankSector Rank
PE 20.91
Fwd PE 16.81
GOOGL Price Earnings VS Forward Price EarningsGOOGL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, GOOGL is valued a bit cheaper than the industry average as 68.57% of the companies are valued more expensively.
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 RankSector Rank
P/FCF 28.56
EV/EBITDA 14.84
GOOGL Per share dataGOOGL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

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 13.91% in the coming years.
PEG (NY)0.93
PEG (5Y)0.83
EPS Next 2Y14.12%
EPS Next 3Y13.91%

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3

5. Dividend

5.1 Amount

With a yearly dividend of 0.47%, 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 3.05. GOOGL pays more dividend than 91.43% of the companies in the same industry.
With a Dividend Yield of 0.47, GOOGL pays less dividend than the S&P500 average, which is at 2.42.
Industry RankSector Rank
Dividend Yield 0.47%

5.2 History

GOOGL does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
GOOGL Yearly Dividends per shareGOOGL Yearly Dividends per shareYearly Dividends per share 2024 2025 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

8.83% of the earnings are spent on dividend by GOOGL. This is a low number and sustainable payout ratio.
DP8.83%
EPS Next 2Y14.12%
EPS Next 3Y13.91%
GOOGL Yearly Income VS Free CF VS DividendGOOGL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B
GOOGL Dividend Payout.GOOGL Dividend Payout, showing the Payout Ratio.GOOGL Dividend Payout.PayoutRetained Earnings

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ALPHABET INC-CL A

NASDAQ:GOOGL (6/30/2025, 4:32:58 PM)

After market: 176.274 +0.04 (+0.02%)

176.23

-2.3 (-1.29%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)04-24 2025-04-24/amc
Earnings (Next)07-21 2025-07-21/amc
Inst Owners80.92%
Inst Owner Change-0.28%
Ins Owners0.05%
Ins Owner Change-0.73%
Market Cap2138.55B
Analysts81.56
Price Target205.78 (16.77%)
Short Float %1.14%
Short Ratio1.61
Dividend
Industry RankSector Rank
Dividend Yield 0.47%
Yearly Dividend0.6
Dividend Growth(5Y)N/A
DP8.83%
Div Incr Years0
Div Non Decr Years0
Ex-Date06-09 2025-06-09 (0.21)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.81%
Min EPS beat(2)-1.9%
Max EPS beat(2)9.52%
EPS beat(4)2
Avg EPS beat(4)4.66%
Min EPS beat(4)-1.9%
Max EPS beat(4)11.53%
EPS beat(8)5
Avg EPS beat(8)5.99%
EPS beat(12)6
Avg EPS beat(12)1.28%
EPS beat(16)9
Avg EPS beat(16)4.36%
Revenue beat(2)0
Avg Revenue beat(2)-2.35%
Min Revenue beat(2)-3.01%
Max Revenue beat(2)-1.7%
Revenue beat(4)0
Avg Revenue beat(4)-1.92%
Min Revenue beat(4)-3.01%
Max Revenue beat(4)-0.7%
Revenue beat(8)0
Avg Revenue beat(8)-1.56%
Revenue beat(12)0
Avg Revenue beat(12)-2.16%
Revenue beat(16)2
Avg Revenue beat(16)-1.3%
PT rev (1m)-0.04%
PT rev (3m)-6.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.26%
EPS NY rev (1m)0.07%
EPS NY rev (3m)7.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.8%
Valuation
Industry RankSector Rank
PE 20.91
Fwd PE 16.81
P/S 5.95
P/FCF 28.56
P/OCF 16.13
P/B 6.19
P/tB 6.83
EV/EBITDA 14.84
EPS(TTM)8.43
EY4.78%
EPS(NY)10.48
Fwd EY5.95%
FCF(TTM)6.17
FCFY3.5%
OCF(TTM)10.93
OCFY6.2%
SpS29.64
BVpS28.45
TBVpS25.8
PEG (NY)0.93
PEG (5Y)0.83
Profitability
Industry RankSector Rank
ROA 23.35%
ROE 32.15%
ROCE 31.07%
ROIC 26.71%
ROICexc 35.54%
ROICexgc 40%
OM 33.15%
PM (TTM) 30.86%
GM 58.59%
FCFM 20.82%
ROA(3y)19%
ROA(5y)18.15%
ROE(3y)26.75%
ROE(5y)25.71%
ROIC(3y)24.15%
ROIC(5y)21.77%
ROICexc(3y)36.09%
ROICexc(5y)35.99%
ROICexgc(3y)42.14%
ROICexgc(5y)42.46%
ROCE(3y)28.1%
ROCE(5y)25.33%
ROICexcg growth 3Y-6.79%
ROICexcg growth 5Y3.67%
ROICexc growth 3Y-5.45%
ROICexc growth 5Y5.76%
OM growth 3Y2.06%
OM growth 5Y7.91%
PM growth 3Y-1.04%
PM growth 5Y6.16%
GM growth 3Y0.73%
GM growth 5Y0.93%
F-Score7
Asset Turnover0.76
Health
Industry RankSector Rank
Debt/Equity 0.04
Debt/FCF 0.19
Debt/EBITDA 0.09
Cap/Depr 352.27%
Cap/Sales 16.05%
Interest Coverage 250
Cash Conversion 97.77%
Profit Quality 67.46%
Current Ratio 1.77
Quick Ratio 1.77
Altman-Z 12.53
F-Score7
WACC8.9%
ROIC/WACC3
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)29.29%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%20.11%
EPS Next Y22.56%
EPS Next 2Y14.12%
EPS Next 3Y13.91%
EPS Next 5Y15.78%
Revenue 1Y (TTM)13.07%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%12.04%
Revenue Next Year10.4%
Revenue Next 2Y10.45%
Revenue Next 3Y10.44%
Revenue Next 5Y10.45%
EBIT growth 1Y25.93%
EBIT growth 3Y13.04%
EBIT growth 5Y25.91%
EBIT Next Year56.95%
EBIT Next 3Y26.18%
EBIT Next 5Y21.09%
FCF growth 1Y20.95%
FCF growth 3Y2.78%
FCF growth 5Y18.63%
OCF growth 1Y47.5%
OCF growth 3Y10.99%
OCF growth 5Y18.11%