NASDAQ:GOOG is showing good growth, while it is not too expensive.

Our stock screener has spotted ALPHABET INC-CL C (NASDAQ:GOOG) as a growth stock which is not overvalued. NASDAQ:GOOG is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

What does the Growth looks like for NASDAQ:GOOG

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:GOOG has received a 7 out of 10:

• GOOG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.44%, which is quite impressive.
• The Earnings Per Share has been growing by 19.55% on average over the past years. This is quite good.
• The Revenue has grown by 8.68% in the past year. This is quite good.
• GOOG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.57% yearly.
• GOOG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.77% yearly.
• GOOG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.46% yearly.

Assessing Valuation for NASDAQ:GOOG

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:GOOG scores a 5 out of 10:

• GOOG's Price/Earnings ratio is a bit cheaper when compared to the industry. GOOG is cheaper than 70.77% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of GOOG indicates a somewhat cheap valuation: GOOG is cheaper than 67.69% of the companies listed in the same industry.
• GOOG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GOOG is cheaper than 66.15% of the companies in the same industry.
• GOOG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GOOG is cheaper than 66.15% of the companies in the same industry.
• The excellent profitability rating of GOOG may justify a higher PE ratio.
• GOOG's earnings are expected to grow with 16.58% in the coming years. This may justify a more expensive valuation.

Evaluating Health: NASDAQ:GOOG

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:GOOG, the assigned 8 for health provides valuable insights:

• An Altman-Z score of 11.67 indicates that GOOG is not in any danger for bankruptcy at the moment.
• The Altman-Z score of GOOG (11.67) is better than 96.92% of its industry peers.
• GOOG has a debt to FCF ratio of 0.20. This is a very positive value and a sign of high solvency as it would only need 0.20 years to pay back of all of its debts.
• GOOG has a better Debt to FCF ratio (0.20) than 86.15% of its industry peers.
• A Debt/Equity ratio of 0.05 indicates that GOOG is not too dependend on debt financing.
• GOOG has a Current Ratio of 2.10. This indicates that GOOG is financially healthy and has no problem in meeting its short term obligations.
• A Quick Ratio of 2.10 indicates that GOOG has no problem at all paying its short term obligations.

Assessing Profitability for NASDAQ:GOOG

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:GOOG scores a 9 out of 10:

• GOOG has a Return On Assets of 18.34%. This is amongst the best in the industry. GOOG outperforms 95.38% of its industry peers.
• GOOG has a better Return On Equity (26.04%) than 95.38% of its industry peers.
• The Return On Invested Capital of GOOG (23.42%) is better than 96.92% of its industry peers.
• GOOG had an Average Return On Invested Capital over the past 3 years of 22.54%. This is significantly above the industry average of 10.45%.
• The 3 year average ROIC (22.54%) for GOOG is below the current ROIC(23.42%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 24.01%, GOOG belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
• GOOG has a Operating Margin of 28.70%. This is amongst the best in the industry. GOOG outperforms 96.92% of its industry peers.
• In the last couple of years the Operating Margin of GOOG has grown nicely.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Check the latest full fundamental report of GOOG for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.