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Exploring ALPHABET INC-CL A (NASDAQ:GOOGL)s quality characteristics.

By Mill Chart

Last update: Sep 20, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if ALPHABET INC-CL A (NASDAQ:GOOGL) is suited for quality investing. Investors should of couse do their own research, but we spotted ALPHABET INC-CL A showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of ALPHABET INC-CL A

  • ALPHABET INC-CL A has achieved substantial revenue growth over the past 5 years, with a 20.6% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • With a robust ROIC excluding cash and goodwill at 41.57%, ALPHABET INC-CL A showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • With a Debt/Free Cash Flow Ratio of 0.2, ALPHABET INC-CL A exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • ALPHABET INC-CL A demonstrates consistent Profit Quality over the past 5 years, with a strong 91.81%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • With a robust 5-year EBIT growth of 20.95%, ALPHABET INC-CL A showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • ALPHABET INC-CL A demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

What is the full fundamental picture of NASDAQ:GOOGL telling us.

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

GOOGL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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 not valued too expensively and it also shows a decent growth rate. These ratings could make GOOGL a good candidate for quality investing.

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.