ALPHABET INC-CL A (NASDAQ:GOOGL) is showing decent growth, but is still valued reasonably.

Our stock screener has spotted ALPHABET INC-CL A (NASDAQ:GOOGL) as a growth stock which is not overvalued. GOOGL 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.

ChartMill's Evaluation of Growth

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. GOOGL has received a 7 out of 10:

• The Earnings Per Share has grown by an impressive 37.58% over the past year.
• Measured over the past years, GOOGL shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.25% on average per year.
• GOOGL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.07%.
• Measured over the past years, GOOGL shows a quite strong growth in Revenue. The Revenue has been growing by 16.68% on average per year.
• Based on estimates for the next years, GOOGL will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.11% on average per year.
• Based on estimates for the next years, GOOGL will show a quite strong growth in Revenue. The Revenue will grow by 10.80% on average per year.

Assessing Valuation Metrics for GOOGL

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. GOOGL has achieved a 5 out of 10:

• 71.43% of the companies in the same industry are more expensive than GOOGL, based on the Price/Earnings ratio.
• GOOGL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.21.
• Based on the Price/Forward Earnings ratio, GOOGL is valued a bit cheaper than 68.57% of the companies in the same industry.
• GOOGL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.44, which is the current average of the S&P500 Index.
• Based on the Enterprise Value to EBITDA ratio, GOOGL is valued a bit cheaper than 75.71% of the companies in the same industry.
• GOOGL has an outstanding profitability rating, which may justify a higher PE ratio.
• GOOGL's earnings are expected to grow with 13.23% in the coming years. This may justify a more expensive valuation.

A Closer Look at Health for GOOGL

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. GOOGL has earned a 8 out of 10:

• An Altman-Z score of 11.17 indicates that GOOGL is not in any danger for bankruptcy at the moment.
• GOOGL has a Altman-Z score of 11.17. This is amongst the best in the industry. GOOGL outperforms 91.43% of its industry peers.
• The Debt to FCF ratio of GOOGL is 0.19, which is an excellent value as it means it would take GOOGL, only 0.19 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of GOOGL (0.19) is better than 77.14% of its industry peers.
• GOOGL has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
• 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.

A Closer Look at Profitability for GOOGL

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. GOOGL was assigned a score of 9 for profitability:

• Looking at the Return On Assets, with a value of 23.35%, GOOGL belongs to the top of the industry, outperforming 95.71% of the companies in the same industry.
• GOOGL has a Return On Equity of 32.15%. This is amongst the best in the industry. GOOGL outperforms 95.71% of its industry peers.
• GOOGL has a better Return On Invested Capital (26.71%) than 98.57% of its industry peers.
• GOOGL had an Average Return On Invested Capital over the past 3 years of 24.15%. This is significantly above the industry average of 11.20%.
• The 3 year average ROIC (24.15%) for GOOGL is below the current ROIC(26.71%), indicating increased profibility in the last year.
• GOOGL has a better Profit Margin (30.86%) than 94.29% of its industry peers.
• In the last couple of years the Profit Margin of GOOGL has grown nicely.
• Looking at the Operating Margin, with a value of 33.15%, GOOGL belongs to the top of the industry, outperforming 98.57% of the companies in the same industry.
• GOOGL's Operating Margin has improved in the last couple of years.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of GOOGL

Keep in mind

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.