ALPHABET INC - CDR (GOOG.CA) Stock Fundamental Analysis
Canada - TSX:GOOG - CA02080K1049
41.05 CAD
+10.11 (+32.68%)
We assign a fundamental rating of 8 out of 10 to GOOG. GOOG was compared to 11 industry peers in the Interactive Media & Services industry. Both the health and profitability get an excellent rating, making GOOG a very profitable company, without any liquidiy or solvency issues. An interesting combination arises when we look at growth and value: GOOG is growing strongly while it also seems undervalued. These ratings could make GOOG a good candidate for value and growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year GOOG was profitable.
GOOG had a positive operating cash flow in the past year.
In the past 5 years GOOG has always been profitable.
Each year in the past 5 years GOOG had a positive operating cash flow.
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 better Return On Invested Capital (27.32%) than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GOOG is significantly above the industry average of 9.59%.
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's Profit Margin of 28.60% is amongst the best of the industry. GOOG outperforms 100.00% of its industry peers.
GOOG's Profit Margin has improved in the last couple of years.
GOOG has a Operating Margin of 32.79%. This is amongst the best in the industry. GOOG outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of GOOG has grown nicely.
The Gross Margin of GOOG (58.24%) is better than 81.82% of its industry peers.
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
GOOG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for GOOG has been reduced compared to 1 year ago.
GOOG has less shares outstanding than it did 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.
The Altman-Z score of GOOG (3.82) is better than 90.91% of its industry peers.
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.
The Debt to FCF ratio of GOOG (0.17) is better than 90.91% of its industry peers.
GOOG has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
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
GOOG has a Current Ratio of 1.84. This is a normal value and indicates that GOOG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of GOOG (1.84) is better than 81.82% of its industry peers.
GOOG has a Quick Ratio of 1.84. This is a normal value and indicates that GOOG is financially healthy and should not expect problems in meeting its short term obligations.
GOOG's Quick ratio of 1.84 is amongst the best of the industry. GOOG outperforms 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.
The Earnings Per Share has been growing by 25.25% on average over the past years. This is a very strong growth
Looking at the last year, GOOG shows a quite strong growth in Revenue. The Revenue has grown by 13.87% in the last year.
The Revenue has been growing by 16.68% on average over the past years. This is quite good.
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.
GOOG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.86% yearly.
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
Based on the Price/Earnings ratio of 3.59, the valuation of GOOG can be described as very cheap.
Based on the Price/Earnings ratio, GOOG is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.27, GOOG is valued rather cheaply.
With a Price/Forward Earnings ratio of 3.14, the valuation of GOOG can be described as very cheap.
Based on the Price/Forward Earnings ratio, GOOG is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.77. GOOG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.59 | ||
| Fwd PE | 3.14 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GOOG indicates a rather cheap valuation: GOOG is cheaper than 100.00% of the companies listed in the same industry.
GOOG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GOOG is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.85 | ||
| EV/EBITDA | 0.79 |
4.3 Compensation for Growth
GOOG's 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.
A more expensive valuation may be justified as GOOG's earnings are expected to grow with 14.36% in the coming years.
PEG (NY)0.25
PEG (5Y)0.14
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.
GOOG's Dividend Yield is rather good when compared to the industry average which is at 9.11. GOOG pays more dividend than 100.00% of the companies in the same industry.
With a Dividend Yield of 0.43, GOOG pays less dividend than the S&P500 average, which is at 2.38.
| 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
GOOG pays out 7.35% of its income as dividend. This is a sustainable payout ratio.
DP7.35%
EPS Next 2Y14.59%
EPS Next 3Y14.36%
TSX:GOOG (9/15/2025, 7:00:00 PM)
41.05
+10.11 (+32.68%)
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 Cap501.14B
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 | 3.59 | ||
| Fwd PE | 3.14 | ||
| P/S | 1.01 | ||
| P/FCF | 4.85 | ||
| P/OCF | 2.82 | ||
| P/B | 1.09 | ||
| P/tB | 1.2 | ||
| EV/EBITDA | 0.79 |
EPS(TTM)11.43
EY27.84%
EPS(NY)13.08
Fwd EY31.86%
FCF(TTM)8.46
FCFY20.61%
OCF(TTM)14.57
OCFY35.49%
SpS40.7
BVpS37.8
TBVpS34.09
PEG (NY)0.25
PEG (5Y)0.14
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%