ALPHABET INC-CL A (GOOGL) Stock Fundamental Analysis
USA - NASDAQ:GOOGL - US02079K3059 - Common Stock
292.29 USD
-0.52 (-0.18%)
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. 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.
In the past year GOOGL had a positive cash flow from operations.
GOOGL had positive earnings in each of the past 5 years.
In the past 5 years GOOGL always reported a positive cash flow from operatings.
1.2 Ratios
GOOGL has a better Return On Assets (23.16%) than 97.14% of its industry peers.
GOOGL has a better Return On Equity (32.12%) than 97.14% of its industry peers.
GOOGL's Return On Invested Capital of 24.90% is amongst the best of the industry. GOOGL outperforms 92.86% 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 13.23%.
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
With an excellent Profit Margin value of 32.23%, GOOGL belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
GOOGL's Profit Margin has improved in the last couple of years.
The Operating Margin of GOOGL (32.83%) is better than 97.14% of its industry peers.
GOOGL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 59.17%, GOOGL is in line with its industry, outperforming 50.00% 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.
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 16.64 indicates that GOOGL is not in any danger for bankruptcy at the moment.
GOOGL has a better Altman-Z score (16.64) than 97.14% of its industry peers.
GOOGL has a debt to FCF ratio of 0.29. This is a very positive value and a sign of high solvency as it would only need 0.29 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.29, GOOGL belongs to the best of the industry, outperforming 84.29% of the companies in the same industry.
GOOGL has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
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 | 16.64 |
ROIC/WACC2.48
WACC10.04%
2.3 Liquidity
A Current Ratio of 1.75 indicates that GOOGL should not have too much problems paying its short term obligations.
GOOGL has a Current ratio (1.75) which is in line with its industry peers.
GOOGL has a Quick 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 Quick ratio of 1.75. This is comparable to the rest of the industry: GOOGL outperforms 47.14% of 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%.
Measured over the past years, GOOGL shows a quite strong growth in Revenue. The Revenue has been growing by 16.68% on average per year.
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 17.13% on average per year.
Based on estimates for the next years, GOOGL will show a quite strong growth in Revenue. The Revenue will grow by 12.36% on average per year.
EPS Next Y32.67%
EPS Next 2Y18.31%
EPS Next 3Y17.12%
EPS Next 5Y17.13%
Revenue Next Year13.73%
Revenue Next 2Y13.22%
Revenue Next 3Y12.76%
Revenue Next 5Y12.36%
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
The Price/Earnings ratio is 29.73, which means the current valuation is very expensive for GOOGL.
GOOGL's Price/Earnings is on the same level as the industry average.
GOOGL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.47, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 25.94, the valuation of GOOGL can be described as expensive.
GOOGL's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of GOOGL to the average of the S&P500 Index (35.42), we can say GOOGL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.73 | ||
| Fwd PE | 25.94 |
4.2 Price Multiples
GOOGL's Enterprise Value to EBITDA ratio is in line with the industry average.
GOOGL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.06 | ||
| EV/EBITDA | 23.24 |
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 17.12% in the coming years.
PEG (NY)0.91
PEG (5Y)1.18
EPS Next 2Y18.31%
EPS Next 3Y17.12%
5. Dividend
5.1 Amount
With a yearly dividend of 0.30%, 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 2.83. GOOGL pays more dividend than 87.14% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, GOOGL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
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
5.3 Sustainability
GOOGL pays out 8.01% of its income as dividend. This is a sustainable payout ratio.
DP8.01%
EPS Next 2Y18.31%
EPS Next 3Y17.12%
NASDAQ:GOOGL (11/20/2025, 2:48:09 PM)
292.29
-0.52 (-0.18%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners81.14%
Inst Owner Change1.71%
Ins Owners0.05%
Ins Owner Change-0.69%
Market Cap3.53T
Revenue(TTM)385.48B
Net Income(TTM)124.25B
Analysts82.43
Price Target263.13 (-9.98%)
Short Float %1.16%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
Yearly Dividend0.6
Dividend Growth(5Y)N/A
DP8.01%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)9.54%
PT rev (3m)19.1%
EPS NQ rev (1m)2.49%
EPS NQ rev (3m)2.54%
EPS NY rev (1m)4.27%
EPS NY rev (3m)8.02%
Revenue NQ rev (1m)1.92%
Revenue NQ rev (3m)2.14%
Revenue NY rev (1m)0.83%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.73 | ||
| Fwd PE | 25.94 | ||
| P/S | 9.17 | ||
| P/FCF | 48.06 | ||
| P/OCF | 23.34 | ||
| P/B | 9.14 | ||
| P/tB | 10 | ||
| EV/EBITDA | 23.24 |
EPS(TTM)9.83
EY3.36%
EPS(NY)11.27
Fwd EY3.85%
FCF(TTM)6.08
FCFY2.08%
OCF(TTM)12.52
OCFY4.28%
SpS31.87
BVpS31.99
TBVpS29.24
PEG (NY)0.91
PEG (5Y)1.18
Graham Number84.11
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 | 16.64 |
F-Score6
WACC10.04%
ROIC/WACC2.48
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 Y32.67%
EPS Next 2Y18.31%
EPS Next 3Y17.12%
EPS Next 5Y17.13%
Revenue 1Y (TTM)13.42%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%15.95%
Revenue Next Year13.73%
Revenue Next 2Y13.22%
Revenue Next 3Y12.76%
Revenue Next 5Y12.36%
EBIT growth 1Y16.37%
EBIT growth 3Y13.22%
EBIT growth 5Y26.03%
EBIT Next Year60.51%
EBIT Next 3Y28.69%
EBIT Next 5Y24.81%
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.
Can you provide the valuation status for ALPHABET INC-CL A?
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.
Can you provide the PE and PB ratios for GOOGL stock?
The Price/Earnings (PE) ratio for ALPHABET INC-CL A (GOOGL) is 29.73 and the Price/Book (PB) ratio is 9.14.
Can you provide the dividend sustainability for GOOGL stock?
The dividend rating of ALPHABET INC-CL A (GOOGL) is 3 / 10 and the dividend payout ratio is 8.01%.