ALPHABET INC-CL A (GOOGL) Stock Fundamental Analysis
USA - NASDAQ:GOOGL - US02079K3059 - Common Stock
259.92 USD
+6.84 (+2.7%)
260 USD
+0.08 (+0.03%)
Taking everything into account, GOOGL scores 7 out of 10 in our fundamental rating. GOOGL was compared to 70 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make GOOGL a good candidate 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
Looking at the Return On Assets, with a value of 23.02%, GOOGL belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
Looking at the Return On Equity, with a value of 31.85%, GOOGL belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
GOOGL has a Return On Invested Capital of 25.81%. This is amongst the best in the industry. GOOGL outperforms 94.29% 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 13.27%.
The last Return On Invested Capital (25.81%) for GOOGL is above the 3 year average (24.15%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 31.12%, GOOGL belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
In the last couple of years the Profit Margin of GOOGL has grown nicely.
Looking at the Operating Margin, with a value of 33.53%, GOOGL belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
GOOGL's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 58.94%, GOOGL perfoms like the industry average, outperforming 50.00% 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 | 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
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.
GOOGL has less shares outstanding than it did 5 years ago.
GOOGL has a better debt/assets ratio than last year.
2.2 Solvency
GOOGL has an Altman-Z score of 15.71. This indicates that GOOGL is financially healthy and has little risk of bankruptcy at the moment.
GOOGL's Altman-Z score of 15.71 is amongst the best of the industry. GOOGL outperforms 94.29% of its industry peers.
GOOGL has a debt to FCF ratio of 0.40. This is a very positive value and a sign of high solvency as it would only need 0.40 years to pay back of all of its debts.
GOOGL has a better Debt to FCF ratio (0.40) than 82.86% 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 | 15.71 |
ROIC/WACC2.52
WACC10.24%
2.3 Liquidity
GOOGL has a Current 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.
Looking at the Current ratio, with a value of 1.90, GOOGL is in line with its industry, outperforming 52.86% of the companies in the same industry.
A Quick Ratio of 1.90 indicates that GOOGL should not have too much problems paying its short term obligations.
GOOGL has a Quick ratio (1.90) which is in line with 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 | 1.9 | ||
| Quick Ratio | 1.9 |
3. Growth
3.1 Past
GOOGL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.97%, which is quite impressive.
GOOGL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.25% yearly.
GOOGL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.13%.
The Revenue has been growing by 16.68% on average over the past years. This is quite good.
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
GOOGL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.81% yearly.
The Revenue is expected to grow by 11.30% on average over the next years. This is quite good.
EPS Next Y27.24%
EPS Next 2Y16.54%
EPS Next 3Y15.45%
EPS Next 5Y17.81%
Revenue Next Year12.79%
Revenue Next 2Y12.18%
Revenue Next 3Y11.61%
Revenue Next 5Y11.3%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 29.37, which means the current valuation is very expensive for GOOGL.
Compared to the rest of the industry, the Price/Earnings ratio of GOOGL is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.91. GOOGL is around the same levels.
A Price/Forward Earnings ratio of 23.77 indicates a rather expensive valuation of GOOGL.
GOOGL's Price/Forward 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/Forward Earnings ratio to 22.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.37 | ||
| Fwd PE | 23.77 |
4.2 Price Multiples
GOOGL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GOOGL is cheaper than 61.43% of the companies in the same industry.
GOOGL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.11 | ||
| EV/EBITDA | 20.52 |
4.3 Compensation for Growth
The 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 15.45% in the coming years.
PEG (NY)1.08
PEG (5Y)1.16
EPS Next 2Y16.54%
EPS Next 3Y15.45%
5. Dividend
5.1 Amount
GOOGL has a yearly dividend return of 0.33%, which is pretty low.
GOOGL's Dividend Yield is rather good when compared to the industry average which is at 2.60. GOOGL pays more dividend than 88.57% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, GOOGL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
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 2Y16.54%
EPS Next 3Y15.45%
259.92
+6.84 (+2.7%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners81.14%
Inst Owner Change-0.03%
Ins Owners0.05%
Ins Owner Change-0.82%
Market Cap3143.47B
Revenue(TTM)371.40B
Net Income(TTM)115.57B
Analysts82.19
Price Target240.23 (-7.58%)
Short Float %1.16%
Short Ratio1.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
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)2.36%
PT rev (3m)16.05%
EPS NQ rev (1m)-1.58%
EPS NQ rev (3m)2.51%
EPS NY rev (1m)0.08%
EPS NY rev (3m)3.6%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)2.48%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.37 | ||
| Fwd PE | 23.77 | ||
| P/S | 8.46 | ||
| P/FCF | 47.11 | ||
| P/OCF | 23.51 | ||
| P/B | 8.66 | ||
| P/tB | 9.51 | ||
| EV/EBITDA | 20.52 |
EPS(TTM)8.85
EY3.4%
EPS(NY)10.93
Fwd EY4.21%
FCF(TTM)5.52
FCFY2.12%
OCF(TTM)11.06
OCFY4.25%
SpS30.71
BVpS30.01
TBVpS27.33
PEG (NY)1.08
PEG (5Y)1.16
Graham Number77.3
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%
ROICexgc growth 3Y-6.79%
ROICexgc 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 | 15.71 |
F-Score6
WACC10.24%
ROIC/WACC2.52
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 Y27.24%
EPS Next 2Y16.54%
EPS Next 3Y15.45%
EPS Next 5Y17.81%
Revenue 1Y (TTM)13.13%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%13.79%
Revenue Next Year12.79%
Revenue Next 2Y12.18%
Revenue Next 3Y11.61%
Revenue Next 5Y11.3%
EBIT growth 1Y23.29%
EBIT growth 3Y13.04%
EBIT growth 5Y25.91%
EBIT Next Year60.51%
EBIT Next 3Y28.69%
EBIT Next 5Y22.85%
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%
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 29.37 and the Price/Book (PB) ratio is 8.66.
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 8.54%.