ALPHABET INC-CL A (GOOGL) Stock Fundamental Analysis
USA - NASDAQ:GOOGL - US02079K3059 - Common Stock
284.75 USD
+0.44 (+0.15%)
284.92 USD
+0.17 (+0.06%)
Overall GOOGL gets a fundamental rating of 7 out of 10. We evaluated GOOGL 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make GOOGL suitable 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.
In the past 5 years GOOGL has always been profitable.
In the past 5 years GOOGL always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of GOOGL (23.16%) is better than 97.14% of its industry peers.
With an excellent Return On Equity value of 32.12%, GOOGL belongs to the best of the industry, outperforming 98.57% of the companies in the same industry.
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 13.49%.
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
The Profit Margin of GOOGL (32.23%) is better than 92.86% of its industry peers.
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.
The Gross Margin of GOOGL (59.17%) is comparable to the rest of the 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GOOGL 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.
2.2 Solvency
An Altman-Z score of 16.23 indicates that GOOGL is not in any danger for bankruptcy at the moment.
GOOGL has a Altman-Z score of 16.23. This is amongst the best in the industry. GOOGL outperforms 94.29% of its industry peers.
The Debt to FCF ratio of GOOGL is 0.29, which is an excellent value as it means it would take GOOGL, only 0.29 years of fcf income to pay off 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 82.86% 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 | 16.23 |
ROIC/WACC2.42
WACC10.28%
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.
GOOGL has a Current ratio (1.75) which is comparable to the rest of the industry.
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 (1.75) 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 | 1.75 | ||
| 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
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 17.13% on average per year.
GOOGL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.36% yearly.
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
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
With a Price/Earnings ratio of 28.97, GOOGL can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of GOOGL is on the same level as its industry peers.
GOOGL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.67.
A Price/Forward Earnings ratio of 25.27 indicates a quite expensive valuation of GOOGL.
GOOGL's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 31.86, GOOGL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.97 | ||
| Fwd PE | 25.27 |
4.2 Price Multiples
GOOGL's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 46.82 | ||
| EV/EBITDA | 22.53 |
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.
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 17.12% in the coming years.
PEG (NY)0.89
PEG (5Y)1.15
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.
Compared to an average industry Dividend Yield of 2.75, GOOGL pays a better dividend. On top of this GOOGL pays more dividend than 87.14% of the companies listed in the same industry.
With a Dividend Yield of 0.30, GOOGL pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
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
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%
284.75
+0.44 (+0.15%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners81.14%
Inst Owner Change-0.53%
Ins Owners0.05%
Ins Owner Change-0.69%
Market Cap3.44T
Revenue(TTM)385.48B
Net Income(TTM)124.25B
Analysts82.43
Price Target263.13 (-7.59%)
Short Float %1.01%
Short Ratio1.76
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)15.79%
Min EPS beat(2)2.67%
Max EPS beat(2)28.91%
EPS beat(4)3
Avg EPS beat(4)9.8%
Min EPS beat(4)-1.9%
Max EPS beat(4)28.91%
EPS beat(8)5
Avg EPS beat(8)8.92%
EPS beat(12)8
Avg EPS beat(12)6.06%
EPS beat(16)9
Avg EPS beat(16)3.05%
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)12.12%
PT rev (3m)27.11%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)0.68%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)3.43%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.97 | ||
| Fwd PE | 25.27 | ||
| P/S | 8.93 | ||
| P/FCF | 46.82 | ||
| P/OCF | 22.74 | ||
| P/B | 8.9 | ||
| P/tB | 9.74 | ||
| EV/EBITDA | 22.53 |
EPS(TTM)9.83
EY3.45%
EPS(NY)11.27
Fwd EY3.96%
FCF(TTM)6.08
FCFY2.14%
OCF(TTM)12.52
OCFY4.4%
SpS31.87
BVpS31.99
TBVpS29.24
PEG (NY)0.89
PEG (5Y)1.15
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 | 16.23 |
F-Score6
WACC10.28%
ROIC/WACC2.42
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 28.97 and the Price/Book (PB) ratio is 8.9.
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%.