ALPHABET INC-CL C (GOOG) Stock Fundamental Analysis
NASDAQ:GOOG - Nasdaq - US02079K1079 - Common Stock - Currency: USD
Overall GOOG gets a fundamental rating of 7 out of 10. We evaluated GOOG against 70 industry peers in the Interactive Media & Services industry. GOOG has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. GOOG is not overvalued while it is showing excellent growth. This is an interesting combination. This makes GOOG very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year GOOG was profitable.
In the past year GOOG had a positive cash flow from operations.
Each year in the past 5 years GOOG has been profitable.
Each year in the past 5 years GOOG had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GOOG (23.02%) is better than 94.29% of its industry peers.
The Return On Equity of GOOG (31.85%) is better than 94.29% of its industry peers.
GOOG has a better Return On Invested Capital (25.81%) than 94.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GOOG is significantly above the industry average of 11.83%.
The 3 year average ROIC (24.15%) for GOOG is below the current ROIC(25.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.02% | ||
| ROE | 31.85% | ||
| ROIC | 25.81% |
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 31.12% is amongst the best of the industry. GOOG outperforms 91.43% of its industry peers.
In the last couple of years the Profit Margin of GOOG has grown nicely.
The Operating Margin of GOOG (33.53%) is better than 95.71% of its industry peers.
GOOG's Operating Margin has improved in the last couple of years.
GOOG has a Gross Margin of 58.94%. This is comparable to the rest of the industry: GOOG outperforms 47.14% of its industry peers.
In the last couple of years the Gross Margin of GOOG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.53% | ||
| PM (TTM) | 31.12% | ||
| GM | 58.94% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GOOG is creating value.
Compared to 1 year ago, GOOG has less shares outstanding
Compared to 5 years ago, GOOG has less shares outstanding
GOOG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 13.15 indicates that GOOG is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 13.15, GOOG belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
The Debt to FCF ratio of GOOG is 0.40, which is an excellent value as it means it would take GOOG, only 0.40 years of fcf income to pay off all of its debts.
GOOG has a better Debt to FCF ratio (0.40) than 78.57% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that GOOG is not too dependend on debt financing.
GOOG's Debt to Equity ratio of 0.07 is in line compared to the rest of the industry. GOOG outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | 13.15 |
ROIC/WACC2.73
WACC9.45%
2.3 Liquidity
A Current Ratio of 1.90 indicates that GOOG should not have too much problems paying its short term obligations.
GOOG has a Current ratio of 1.90. This is comparable to the rest of the industry: GOOG outperforms 44.29% of its industry peers.
GOOG has a Quick Ratio of 1.90. This is a normal value and indicates that GOOG is financially healthy and should not expect problems in meeting its short term obligations.
GOOG has a Quick ratio (1.90) which is in line with its industry peers.
The current and quick ratio evaluation for GOOG 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.9 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.97% 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.
Looking at the last year, GOOG shows a quite strong growth in Revenue. The Revenue has grown by 13.13% 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)26.97%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%22.22%
Revenue 1Y (TTM)13.13%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%13.79%
3.2 Future
The Earnings Per Share is expected to grow by 15.78% on average over the next years. This is quite good.
GOOG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.45% yearly.
EPS Next Y22.82%
EPS Next 2Y14.2%
EPS Next 3Y13.87%
EPS Next 5Y15.78%
Revenue Next Year12%
Revenue Next 2Y11.51%
Revenue Next 3Y11.24%
Revenue Next 5Y10.45%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.15, GOOG is valued on the expensive side.
62.86% of the companies in the same industry are more expensive than GOOG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of GOOG to the average of the S&P500 Index (26.87), we can say GOOG is valued inline with the index average.
GOOG is valuated rather expensively with a Price/Forward Earnings ratio of 19.52.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GOOG is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of GOOG to the average of the S&P500 Index (35.34), we can say GOOG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.15 | ||
| Fwd PE | 19.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GOOG is valued a bit cheaper than 65.71% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GOOG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.14 | ||
| EV/EBITDA | 16.33 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 13.87% in the coming years.
PEG (NY)1.01
PEG (5Y)0.92
EPS Next 2Y14.2%
EPS Next 3Y13.87%
5. Dividend
5.1 Amount
With a yearly dividend of 0.43%, GOOG is not a good candidate for dividend investing.
GOOG's Dividend Yield is rather good when compared to the industry average which is at 2.84. GOOG pays more dividend than 91.43% 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 2.39.
| 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 Years0
Div Non Decr Years0
5.3 Sustainability
8.54% of the earnings are spent on dividend by GOOG. This is a low number and sustainable payout ratio.
DP8.54%
EPS Next 2Y14.2%
EPS Next 3Y13.87%
204.91
+1.09 (+0.53%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners80.88%
Inst Owner Change3.37%
Ins Owners0.05%
Ins Owner Change0%
Market Cap2478.18B
Analysts81.47
Price Target221.74 (8.21%)
Short Float %0.58%
Short Ratio1.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
Yearly Dividend0.6
Dividend Growth(5Y)N/A
DP8.54%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.1%
Min EPS beat(2)2.67%
Max EPS beat(2)9.52%
EPS beat(4)3
Avg EPS beat(4)5.45%
Min EPS beat(4)-1.9%
Max EPS beat(4)11.53%
EPS beat(8)5
Avg EPS beat(8)5.77%
EPS beat(12)7
Avg EPS beat(12)2.18%
EPS beat(16)9
Avg EPS beat(16)2.23%
Revenue beat(2)0
Avg Revenue beat(2)-1.05%
Min Revenue beat(2)-1.7%
Max Revenue beat(2)-0.4%
Revenue beat(4)0
Avg Revenue beat(4)-1.45%
Min Revenue beat(4)-3.01%
Max Revenue beat(4)-0.4%
Revenue beat(8)0
Avg Revenue beat(8)-1.55%
Revenue beat(12)0
Avg Revenue beat(12)-1.93%
Revenue beat(16)1
Avg Revenue beat(16)-1.76%
PT rev (1m)7.35%
PT rev (3m)5.81%
EPS NQ rev (1m)4.15%
EPS NQ rev (3m)3.24%
EPS NY rev (1m)0%
EPS NY rev (3m)8.91%
Revenue NQ rev (1m)2.34%
Revenue NQ rev (3m)1.49%
Revenue NY rev (1m)1.36%
Revenue NY rev (3m)1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.15 | ||
| Fwd PE | 19.52 | ||
| P/S | 6.67 | ||
| P/FCF | 37.14 | ||
| P/OCF | 18.53 | ||
| P/B | 6.83 | ||
| P/tB | 7.5 | ||
| EV/EBITDA | 16.33 |
EPS(TTM)8.85
EY4.32%
EPS(NY)10.5
Fwd EY5.12%
FCF(TTM)5.52
FCFY2.69%
OCF(TTM)11.06
OCFY5.4%
SpS30.71
BVpS30.01
TBVpS27.33
PEG (NY)1.01
PEG (5Y)0.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.02% | ||
| ROE | 31.85% | ||
| ROCE | 30.02% | ||
| ROIC | 25.81% | ||
| ROICexc | 33.49% | ||
| ROICexgc | 37.26% | ||
| OM | 33.53% | ||
| PM (TTM) | 31.12% | ||
| GM | 58.94% | ||
| FCFM | 17.97% |
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-Score6
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.4 | ||
| Debt/EBITDA | 0.18 | ||
| Cap/Depr | 378.95% | ||
| Cap/Sales | 18.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.03% | ||
| Profit Quality | 57.74% | ||
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.9 | ||
| Altman-Z | 13.15 |
F-Score6
WACC9.45%
ROIC/WACC2.73
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)26.97%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%22.22%
EPS Next Y22.82%
EPS Next 2Y14.2%
EPS Next 3Y13.87%
EPS Next 5Y15.78%
Revenue 1Y (TTM)13.13%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%13.79%
Revenue Next Year12%
Revenue Next 2Y11.51%
Revenue Next 3Y11.24%
Revenue Next 5Y10.45%
EBIT growth 1Y23.29%
EBIT growth 3Y13.04%
EBIT growth 5Y25.91%
EBIT Next Year60.45%
EBIT Next 3Y28.65%
EBIT Next 5Y21.09%
FCF growth 1Y-6.14%
FCF growth 3Y2.78%
FCF growth 5Y18.63%
OCF growth 1Y34.87%
OCF growth 3Y10.99%
OCF growth 5Y18.11%