ALPHABET INC-CL C (GOOG) Stock Fundamental Analysis
USA - NASDAQ:GOOG - US02079K1079 - Common Stock
253.79 USD
+1.91 (+0.76%)
254.46 USD
+0.67 (+0.26%)
GOOG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals 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 priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make GOOG suitable 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.
GOOG had positive earnings in each of the past 5 years.
In the past 5 years GOOG always reported a positive cash flow from operatings.
1.2 Ratios
GOOG has a better Return On Assets (23.02%) than 92.86% of its industry peers.
Looking at the Return On Equity, with a value of 31.85%, GOOG belongs to the top of the industry, outperforming 95.71% of the companies in the same industry.
With an excellent Return On Invested Capital value of 25.81%, GOOG belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
GOOG had an Average Return On Invested Capital over the past 3 years of 24.15%. This is significantly above the industry average of 13.27%.
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
Looking at the Profit Margin, with a value of 31.12%, GOOG belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
GOOG's Profit Margin has improved in the last couple of years.
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 (58.94%) which is comparable to the rest of the industry.
GOOG's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GOOG is creating value.
Compared to 1 year ago, GOOG has less shares outstanding
GOOG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for GOOG has been reduced compared to a year ago.
2.2 Solvency
GOOG has an Altman-Z score of 15.75. This indicates that GOOG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of GOOG (15.75) is better than 95.71% of its industry peers.
GOOG has a debt to FCF ratio of 0.40. This is a very positive value and a sign of high solvency as it would only need 0.40 years to pay back of all of its debts.
GOOG's Debt to FCF ratio of 0.40 is amongst the best of the industry. GOOG outperforms 81.43% 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 54.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | 15.75 |
ROIC/WACC2.68
WACC9.62%
2.3 Liquidity
GOOG has a Current 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.
The Current ratio of GOOG (1.90) is comparable to the rest of the industry.
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's Quick ratio of 1.90 is in line compared to the rest of the industry. GOOG outperforms 51.43% of its industry peers.
GOOG does not score too well on the current and quick ratio evaluation. However, as it has 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.
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 13.13% in the last year.
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)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 17.81% on average over the next years. This is quite good.
The Revenue is expected to grow by 11.30% on average over the next years. This is quite good.
EPS Next Y27.24%
EPS Next 2Y16.54%
EPS Next 3Y15.45%
EPS Next 5Y17.81%
Revenue Next Year12.79%
Revenue Next 2Y12.18%
Revenue Next 3Y11.61%
Revenue Next 5Y11.3%
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.
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
Based on the Price/Earnings ratio of 28.68, the valuation of GOOG can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of GOOG is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.40. GOOG is around the same levels.
GOOG is valuated rather expensively with a Price/Forward Earnings ratio of 23.21.
The rest of the industry has a similar Price/Forward Earnings ratio as GOOG.
GOOG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.68 | ||
| Fwd PE | 23.21 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GOOG is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as GOOG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46 | ||
| EV/EBITDA | 20.58 |
4.3 Compensation for Growth
GOOG's 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 15.45% in the coming years.
PEG (NY)1.05
PEG (5Y)1.14
EPS Next 2Y16.54%
EPS Next 3Y15.45%
5. Dividend
5.1 Amount
GOOG has a yearly dividend return of 0.33%, which is pretty low.
Compared to an average industry Dividend Yield of 4.49, GOOG pays a better dividend. On top of this GOOG pays more dividend than 91.43% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, GOOG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
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
GOOG pays out 8.54% of its income as dividend. This is a sustainable payout ratio.
DP8.54%
EPS Next 2Y16.54%
EPS Next 3Y15.45%
253.79
+1.91 (+0.76%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners81.14%
Inst Owner Change-3.98%
Ins Owners0.05%
Ins Owner Change0%
Market Cap3069.34B
Analysts82.19
Price Target240.85 (-5.1%)
Short Float %0.68%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
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)2.45%
PT rev (3m)16.6%
EPS NQ rev (1m)-1.58%
EPS NQ rev (3m)2.51%
EPS NY rev (1m)0.08%
EPS NY rev (3m)3.6%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)2.48%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.68 | ||
| Fwd PE | 23.21 | ||
| P/S | 8.26 | ||
| P/FCF | 46 | ||
| P/OCF | 22.96 | ||
| P/B | 8.46 | ||
| P/tB | 9.28 | ||
| EV/EBITDA | 20.58 |
EPS(TTM)8.85
EY3.49%
EPS(NY)10.93
Fwd EY4.31%
FCF(TTM)5.52
FCFY2.17%
OCF(TTM)11.06
OCFY4.36%
SpS30.71
BVpS30.01
TBVpS27.33
PEG (NY)1.05
PEG (5Y)1.14
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 | 15.75 |
F-Score6
WACC9.62%
ROIC/WACC2.68
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 Y27.24%
EPS Next 2Y16.54%
EPS Next 3Y15.45%
EPS Next 5Y17.81%
Revenue 1Y (TTM)13.13%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%13.79%
Revenue Next Year12.79%
Revenue Next 2Y12.18%
Revenue Next 3Y11.61%
Revenue Next 5Y11.3%
EBIT growth 1Y23.29%
EBIT growth 3Y13.04%
EBIT growth 5Y25.91%
EBIT Next Year60.51%
EBIT Next 3Y28.69%
EBIT Next 5Y22.85%
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%