ALPHABET INC-CL A (GOOGL) Stock Fundamental Analysis
USA - NASDAQ:GOOGL - US02079K3059 - Common Stock
251.16 USD
-0.45 (-0.18%)
251.3 USD
+0.14 (+0.06%)
Taking everything into account, GOOGL scores 7 out of 10 in our fundamental rating. GOOGL was compared to 69 industry peers in the Interactive Media & Services industry. GOOGL gets an excellent profitability rating and is at the same time showing great financial health properties. GOOGL is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, GOOGL could be worth investigating further 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.
In the past 5 years GOOGL always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 23.02%, GOOGL belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
The Return On Equity of GOOGL (31.85%) is better than 97.10% of its industry peers.
Looking at the Return On Invested Capital, with a value of 25.81%, GOOGL belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
GOOGL had an Average Return On Invested Capital over the past 3 years of 24.15%. This is significantly above the industry average of 12.98%.
The 3 year average ROIC (24.15%) for GOOGL is below the current ROIC(25.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.02% | ||
| ROE | 31.85% | ||
| ROIC | 25.81% |
ROA(3y)19%
ROA(5y)18.15%
ROE(3y)26.75%
ROE(5y)25.71%
ROIC(3y)24.15%
ROIC(5y)21.77%
1.3 Margins
GOOGL has a better Profit Margin (31.12%) than 92.75% of its industry peers.
GOOGL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 33.53%, GOOGL belongs to the top of the industry, outperforming 97.10% of the companies in the same industry.
GOOGL's Operating Margin has improved in the last couple of years.
GOOGL has a Gross Margin of 58.94%. This is comparable to the rest of the industry: GOOGL outperforms 50.72% of its industry peers.
GOOGL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.53% | ||
| PM (TTM) | 31.12% | ||
| GM | 58.94% |
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GOOGL is creating value.
GOOGL has less shares outstanding than it did 1 year ago.
GOOGL has less shares outstanding than it did 5 years ago.
GOOGL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 15.61 indicates that GOOGL is not in any danger for bankruptcy at the moment.
The Altman-Z score of GOOGL (15.61) is better than 92.75% of its industry peers.
The Debt to FCF ratio of GOOGL is 0.40, which is an excellent value as it means it would take GOOGL, only 0.40 years of fcf income to pay off all of its debts.
GOOGL's Debt to FCF ratio of 0.40 is amongst the best of the industry. GOOGL outperforms 81.16% of its industry peers.
GOOGL has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
GOOGL has a Debt to Equity ratio (0.07) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | 15.61 |
ROIC/WACC2.77
WACC9.32%
2.3 Liquidity
A Current Ratio of 1.90 indicates that GOOGL should not have too much problems paying its short term obligations.
The Current ratio of GOOGL (1.90) is comparable to the rest of the industry.
GOOGL has a Quick Ratio of 1.90. 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 1.90. This is comparable to the rest of the industry: GOOGL outperforms 50.72% of its industry peers.
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 | 1.9 | ||
| Quick Ratio | 1.9 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.97% 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
Looking at the last year, GOOGL shows a quite strong growth in Revenue. The Revenue has grown by 13.13% in the last year.
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)26.97%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%22.22%
Revenue 1Y (TTM)13.13%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%13.79%
3.2 Future
The Earnings Per Share is expected to grow by 17.07% on average over the next years. This is quite good.
Based on estimates for the next years, GOOGL will show a quite strong growth in Revenue. The Revenue will grow by 11.13% on average per year.
EPS Next Y27.14%
EPS Next 2Y16.38%
EPS Next 3Y15.36%
EPS Next 5Y17.07%
Revenue Next Year12.68%
Revenue Next 2Y11.94%
Revenue Next 3Y11.51%
Revenue Next 5Y11.13%
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
A Price/Earnings ratio of 28.38 indicates a quite expensive valuation of GOOGL.
The rest of the industry has a similar Price/Earnings ratio as GOOGL.
GOOGL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 23.04, which indicates a rather expensive current valuation of GOOGL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GOOGL is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of GOOGL to the average of the S&P500 Index (22.71), we can say GOOGL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.38 | ||
| Fwd PE | 23.04 |
4.2 Price Multiples
GOOGL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GOOGL is cheaper than 62.32% of the companies in the same industry.
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 | 45.52 | ||
| EV/EBITDA | 20.36 |
4.3 Compensation for Growth
GOOGL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 15.36% in the coming years.
PEG (NY)1.05
PEG (5Y)1.12
EPS Next 2Y16.38%
EPS Next 3Y15.36%
5. Dividend
5.1 Amount
With a yearly dividend of 0.35%, GOOGL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.89, GOOGL pays a better dividend. On top of this GOOGL pays more dividend than 89.86% of the companies listed in the same industry.
With a Dividend Yield of 0.35, GOOGL pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
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
8.54% of the earnings are spent on dividend by GOOGL. This is a low number and sustainable payout ratio.
DP8.54%
EPS Next 2Y16.38%
EPS Next 3Y15.36%
251.16
-0.45 (-0.18%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners80.88%
Inst Owner Change-2.02%
Ins Owners0.05%
Ins Owner Change-0.88%
Market Cap3037.53B
Analysts81.47
Price Target234.68 (-6.56%)
Short Float %0.96%
Short Ratio1.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
Yearly Dividend0.6
Dividend Growth(5Y)N/A
DP8.54%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.1%
Min EPS beat(2)2.67%
Max EPS beat(2)9.52%
EPS beat(4)3
Avg EPS beat(4)5.45%
Min EPS beat(4)-1.9%
Max EPS beat(4)11.53%
EPS beat(8)5
Avg EPS beat(8)5.77%
EPS beat(12)7
Avg EPS beat(12)2.18%
EPS beat(16)9
Avg EPS beat(16)2.23%
Revenue beat(2)0
Avg Revenue beat(2)-1.05%
Min Revenue beat(2)-1.7%
Max Revenue beat(2)-0.4%
Revenue beat(4)0
Avg Revenue beat(4)-1.45%
Min Revenue beat(4)-3.01%
Max Revenue beat(4)-0.4%
Revenue beat(8)0
Avg Revenue beat(8)-1.55%
Revenue beat(12)0
Avg Revenue beat(12)-1.93%
Revenue beat(16)1
Avg Revenue beat(16)-1.76%
PT rev (1m)6.22%
PT rev (3m)14.27%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)4.58%
EPS NY rev (1m)3.52%
EPS NY rev (3m)3.81%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)2.64%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)2.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.38 | ||
| Fwd PE | 23.04 | ||
| P/S | 8.18 | ||
| P/FCF | 45.52 | ||
| P/OCF | 22.72 | ||
| P/B | 8.37 | ||
| P/tB | 9.19 | ||
| EV/EBITDA | 20.36 |
EPS(TTM)8.85
EY3.52%
EPS(NY)10.9
Fwd EY4.34%
FCF(TTM)5.52
FCFY2.2%
OCF(TTM)11.06
OCFY4.4%
SpS30.71
BVpS30.01
TBVpS27.33
PEG (NY)1.05
PEG (5Y)1.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.02% | ||
| ROE | 31.85% | ||
| ROCE | 30.02% | ||
| ROIC | 25.81% | ||
| ROICexc | 33.49% | ||
| ROICexgc | 37.26% | ||
| OM | 33.53% | ||
| PM (TTM) | 31.12% | ||
| GM | 58.94% | ||
| FCFM | 17.97% |
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-Score6
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.4 | ||
| Debt/EBITDA | 0.18 | ||
| Cap/Depr | 378.95% | ||
| Cap/Sales | 18.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.03% | ||
| Profit Quality | 57.74% | ||
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.9 | ||
| Altman-Z | 15.61 |
F-Score6
WACC9.32%
ROIC/WACC2.77
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)26.97%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%22.22%
EPS Next Y27.14%
EPS Next 2Y16.38%
EPS Next 3Y15.36%
EPS Next 5Y17.07%
Revenue 1Y (TTM)13.13%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%13.79%
Revenue Next Year12.68%
Revenue Next 2Y11.94%
Revenue Next 3Y11.51%
Revenue Next 5Y11.13%
EBIT growth 1Y23.29%
EBIT growth 3Y13.04%
EBIT growth 5Y25.91%
EBIT Next Year60.45%
EBIT Next 3Y28.65%
EBIT Next 5Y22.53%
FCF growth 1Y-6.14%
FCF growth 3Y2.78%
FCF growth 5Y18.63%
OCF growth 1Y34.87%
OCF growth 3Y10.99%
OCF growth 5Y18.11%