ALPHABET INC-CL C (NASDAQ:GOOG) – A Strong Growth Stock With Reasonable Valuation

ALPHABET INC-CL C (NASDAQ:GOOG) was identified as an affordable growth candidate by our stock screener. The company demonstrates strong growth potential while maintaining solid profitability and financial health, all at a valuation that appears reasonable compared to industry peers.

Growth Prospects

• Past Growth: Over the past year, GOOG reported a 37.58% increase in earnings per share (EPS) and a 13.07% rise in revenue. The company has maintained an average annual EPS growth of 25.25% and revenue growth of 16.68% in recent years.
• Future Expectations: Analysts project continued growth, with EPS expected to increase by 15.11% annually and revenue by 10.80%. While slightly slower than past performance, these figures remain strong.

Valuation Assessment

• P/E Ratio: At 18.44, GOOG’s price-to-earnings ratio is below the S&P 500 average (25.05) and more attractive than 70% of its industry peers.
• Forward P/E: The forward P/E of 15.93 suggests the stock is reasonably priced relative to future earnings expectations.
• Enterprise Value/EBITDA: The ratio indicates GOOG is cheaper than 70% of companies in its sector.

Profitability & Financial Health

• Profit Margins: GOOG boasts a profit margin of 30.86%, outperforming 92.86% of its competitors. Operating margins stand at 33.15%, among the best in the industry.
• Return on Capital: The company generates strong returns, with ROIC at 26.71% and ROE at 32.15%.
• Balance Sheet Strength: With minimal debt (Debt/Equity of 0.04) and a high Altman-Z score (11.87), GOOG faces no solvency concerns.

Our Affordable Growth screener lists more stocks with similar characteristics and is updated daily.
For a deeper look, review the full fundamental report on GOOG.

Disclaimer

This is not investing advice. Always conduct your own research before making investment decisions.