ALPHABET INC - CDR (GOOG.CA) Stock Fundamental Analysis
TSX:GOOG - Toronto Stock Exchange - CA02080K1049 - Currency: CAD
Taking everything into account, GOOG scores 8 out of 10 in our fundamental rating. GOOG was compared to 11 industry peers in the Interactive Media & Services industry. GOOG gets an excellent profitability rating and is at the same time showing great financial health properties. GOOG is evaluated to be cheap and growing strongly. This does not happen too often! These ratings could make GOOG a good candidate for value and growth and quality investing.
1. Profitability
1.1 Basic Checks
GOOG had positive earnings in the past year.
GOOG had a positive operating cash flow in the past year.
Each year in the past 5 years GOOG has been profitable.
In the past 5 years GOOG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 22.24%, GOOG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Equity of GOOG (30.80%) is better than 100.00% of its industry peers.
GOOG has a Return On Invested Capital of 27.32%. This is amongst the best in the industry. GOOG outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GOOG is significantly above the industry average of 11.17%.
The 3 year average ROIC (24.15%) for GOOG is below the current ROIC(27.32%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.24% | ||
| ROE | 30.8% | ||
| ROIC | 27.32% |
ROA(3y)19%
ROA(5y)18.15%
ROE(3y)26.75%
ROE(5y)25.71%
ROIC(3y)24.15%
ROIC(5y)21.77%
1.3 Margins
GOOG has a Profit Margin of 28.60%. This is amongst the best in the industry. GOOG outperforms 100.00% of its industry peers.
GOOG's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 32.79%, GOOG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of GOOG has grown nicely.
Looking at the Gross Margin, with a value of 58.24%, GOOG belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
GOOG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.79% | ||
| PM (TTM) | 28.6% | ||
| GM | 58.24% |
OM growth 3Y2.06%
OM growth 5Y7.91%
PM growth 3Y-1.04%
PM growth 5Y6.16%
GM growth 3Y0.73%
GM growth 5Y0.93%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GOOG is creating value.
GOOG has less shares outstanding than it did 1 year ago.
The number of shares outstanding for GOOG has been reduced compared to 5 years ago.
GOOG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.82 indicates that GOOG is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.82, GOOG belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
GOOG has a debt to FCF ratio of 0.17. This is a very positive value and a sign of high solvency as it would only need 0.17 years to pay back of all of its debts.
GOOG's Debt to FCF ratio of 0.17 is amongst the best of the industry. GOOG outperforms 90.91% of its industry peers.
A Debt/Equity ratio of 0.03 indicates that GOOG is not too dependend on debt financing.
GOOG has a better Debt to Equity ratio (0.03) than 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.17 | ||
| Altman-Z | 3.82 |
ROIC/WACC3.09
WACC8.85%
2.3 Liquidity
A Current Ratio of 1.84 indicates that GOOG should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.84, GOOG belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
A Quick Ratio of 1.84 indicates that GOOG should not have too much problems paying its short term obligations.
GOOG has a better Quick ratio (1.84) than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 38.79% over the past year.
GOOG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.25% yearly.
The Revenue has grown by 13.87% in the past year. This is quite good.
Measured over the past years, GOOG shows a quite strong growth in Revenue. The Revenue has been growing by 16.68% on average per year.
EPS 1Y (TTM)38.79%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%31.1%
Revenue 1Y (TTM)13.87%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%11.77%
3.2 Future
Based on estimates for the next years, GOOG will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.13% on average per year.
The Revenue is expected to grow by 10.86% on average over the next years. This is quite good.
EPS Next Y14.44%
EPS Next 2Y14.59%
EPS Next 3Y14.36%
EPS Next 5Y16.13%
Revenue Next Year11.28%
Revenue Next 2Y11.12%
Revenue Next 3Y11.12%
Revenue Next 5Y10.86%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 2.62, which indicates a rather cheap valuation of GOOG.
100.00% of the companies in the same industry are more expensive than GOOG, based on the Price/Earnings ratio.
GOOG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.18.
Based on the Price/Forward Earnings ratio of 2.29, the valuation of GOOG can be described as very cheap.
100.00% of the companies in the same industry are more expensive than GOOG, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.34, GOOG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.62 | ||
| Fwd PE | 2.29 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than GOOG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GOOG is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.54 | ||
| EV/EBITDA | 0.79 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GOOG has an outstanding profitability rating, which may justify a higher PE ratio.
GOOG's earnings are expected to grow with 14.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)0.1
EPS Next 2Y14.59%
EPS Next 3Y14.36%
5. Dividend
5.1 Amount
GOOG has a yearly dividend return of 0.43%, which is pretty low.
Compared to an average industry Dividend Yield of 8.89, GOOG pays a better dividend. On top of this GOOG pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, GOOG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
5.2 History
GOOG does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
7.35% of the earnings are spent on dividend by GOOG. This is a low number and sustainable payout ratio.
DP7.35%
EPS Next 2Y14.59%
EPS Next 3Y14.36%
TSX:GOOG (7/15/2025, 7:00:00 PM)
29.98
-0.96 (-3.1%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners81.23%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap366.00B
Analysts81.52
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
Yearly Dividend0.6
Dividend Growth(5Y)N/A
DP7.35%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.81%
Min EPS beat(2)-1.9%
Max EPS beat(2)11.53%
EPS beat(4)2
Avg EPS beat(4)7.56%
Min EPS beat(4)-1.9%
Max EPS beat(4)21.13%
EPS beat(8)5
Avg EPS beat(8)5.61%
EPS beat(12)5
Avg EPS beat(12)-0.11%
EPS beat(16)9
Avg EPS beat(16)7.6%
Revenue beat(2)0
Avg Revenue beat(2)-1.85%
Min Revenue beat(2)-3.01%
Max Revenue beat(2)-0.7%
Revenue beat(4)0
Avg Revenue beat(4)-1.62%
Min Revenue beat(4)-3.01%
Max Revenue beat(4)-0.51%
Revenue beat(8)0
Avg Revenue beat(8)-1.57%
Revenue beat(12)0
Avg Revenue beat(12)-2.27%
Revenue beat(16)3
Avg Revenue beat(16)-0.95%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.62 | ||
| Fwd PE | 2.29 | ||
| P/S | 0.74 | ||
| P/FCF | 3.54 | ||
| P/OCF | 2.06 | ||
| P/B | 0.79 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | 0.79 |
EPS(TTM)11.43
EY38.13%
EPS(NY)13.08
Fwd EY43.62%
FCF(TTM)8.46
FCFY28.22%
OCF(TTM)14.57
OCFY48.6%
SpS40.7
BVpS37.8
TBVpS34.09
PEG (NY)0.18
PEG (5Y)0.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.24% | ||
| ROE | 30.8% | ||
| ROCE | 31.78% | ||
| ROIC | 27.32% | ||
| ROICexc | 37.16% | ||
| ROICexgc | 42.23% | ||
| OM | 32.79% | ||
| PM (TTM) | 28.6% | ||
| GM | 58.24% | ||
| FCFM | 20.79% |
ROA(3y)19%
ROA(5y)18.15%
ROE(3y)26.75%
ROE(5y)25.71%
ROIC(3y)24.15%
ROIC(5y)21.77%
ROICexc(3y)36.09%
ROICexc(5y)35.99%
ROICexgc(3y)42.14%
ROICexgc(5y)42.46%
ROCE(3y)28.1%
ROCE(5y)25.33%
ROICexcg growth 3Y-6.79%
ROICexcg growth 5Y3.67%
ROICexc growth 3Y-5.45%
ROICexc growth 5Y5.76%
OM growth 3Y2.06%
OM growth 5Y7.91%
PM growth 3Y-1.04%
PM growth 5Y6.16%
GM growth 3Y0.73%
GM growth 5Y0.93%
F-Score8
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.17 | ||
| Debt/EBITDA | 0.08 | ||
| Cap/Depr | 343.12% | ||
| Cap/Sales | 15.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.32% | ||
| Profit Quality | 72.68% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.84 | ||
| Altman-Z | 3.82 |
F-Score8
WACC8.85%
ROIC/WACC3.09
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)38.79%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%31.1%
EPS Next Y14.44%
EPS Next 2Y14.59%
EPS Next 3Y14.36%
EPS Next 5Y16.13%
Revenue 1Y (TTM)13.87%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%11.77%
Revenue Next Year11.28%
Revenue Next 2Y11.12%
Revenue Next 3Y11.12%
Revenue Next 5Y10.86%
EBIT growth 1Y30.1%
EBIT growth 3Y13.04%
EBIT growth 5Y25.91%
EBIT Next Year57.49%
EBIT Next 3Y27.12%
EBIT Next 5Y20.96%
FCF growth 1Y4.7%
FCF growth 3Y2.78%
FCF growth 5Y18.63%
OCF growth 1Y23.15%
OCF growth 3Y10.99%
OCF growth 5Y18.11%