338 USD
-0.25 (-0.07%)
At close: Jan 30, 2026
337.8 USD
-0.2 (-0.06%)
After Hours: 1/30/2026, 8:00:01 PM
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. GOOGL scores excellent points on both the profitability and health parts. This is a solid base for a good stock. GOOGL is growing strongly while it is still valued neutral. This is a good combination! This makes GOOGL very considerable 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.
- Each year in the past 5 years GOOGL has been profitable.
- GOOGL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- GOOGL has a Return On Assets of 23.16%. This is amongst the best in the industry. GOOGL outperforms 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.
- GOOGL had an Average Return On Invested Capital over the past 3 years of 24.19%. This is significantly above the industry average of 13.53%.
- 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
- The Profit Margin of GOOGL (32.23%) is better than 92.86% of its industry peers.
- In the last couple of years the Profit Margin of GOOGL has grown nicely.
- GOOGL has a Operating Margin of 32.83%. This is amongst the best in the industry. GOOGL outperforms 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.
- 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
- 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
- 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
- GOOGL has an Altman-Z score of 18.81. This indicates that GOOGL is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 18.81, GOOGL belongs to the best of the industry, outperforming 95.71% of the companies in the same industry.
- 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.
- Looking at the Debt to FCF ratio, with a value of 0.29, GOOGL belongs to the top of the industry, outperforming 84.29% of the companies in the same industry.
- A Debt/Equity ratio of 0.06 indicates that GOOGL is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.06, GOOGL is in line with its industry, outperforming 55.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 18.81 |
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.
- 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.
- GOOGL has a Quick ratio of 1.75. This is comparable to the rest of the industry: GOOGL outperforms 50.00% 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.
- GOOGL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.25% yearly.
- The Revenue has grown by 13.42% in the past year. This is quite good.
- 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 Y35.48%
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.
- 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
- The Price/Earnings ratio is 34.38, which means the current valuation is very expensive for GOOGL.
- The rest of the industry has a similar Price/Earnings ratio as GOOGL.
- The average S&P500 Price/Earnings ratio is at 28.30. GOOGL is valued slightly more expensive when compared to this.
- With a Price/Forward Earnings ratio of 29.26, GOOGL can be considered very expensive at the moment.
- GOOGL's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. GOOGL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.38 | ||
| Fwd PE | 29.26 |
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 | 55.45 | ||
| EV/EBITDA | 26.94 |
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 18.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.97
PEG (5Y)1.36
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.
- Compared to an average industry Dividend Yield of 0.77, GOOGL pays a better dividend. On top of this GOOGL pays more dividend than 85.71% of the companies listed 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
- 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 34.38 and the Price/Book (PB) ratio is 10.54.
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.