ALPHABET INC-CL C (GOOG) Stock Fundamental Analysis
NASDAQ:GOOG - Nasdaq - US02079K1079 - Common Stock - Currency: USD
GOOG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 71 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make GOOG suitable for 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.
GOOG had positive earnings in each of the past 5 years.
Each year in the past 5 years GOOG had a positive operating cash flow.
1.2 Ratios
GOOG has a Return On Assets of 23.35%. This is amongst the best in the industry. GOOG outperforms 94.37% of its industry peers.
GOOG has a better Return On Equity (32.15%) than 94.37% of its industry peers.
Looking at the Return On Invested Capital, with a value of 26.71%, GOOG belongs to the top of the industry, outperforming 95.77% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GOOG is significantly above the industry average of 12.03%.
The 3 year average ROIC (24.15%) for GOOG is below the current ROIC(26.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.35% | ||
| ROE | 32.15% | ||
| ROIC | 26.71% |
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
With an excellent Profit Margin value of 30.86%, GOOG belongs to the best of the industry, outperforming 92.96% of the companies in the same industry.
In the last couple of years the Profit Margin of GOOG has grown nicely.
The Operating Margin of GOOG (33.15%) is better than 95.77% of its industry peers.
GOOG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 58.59%, GOOG is in line with its industry, outperforming 46.48% 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 | 33.15% | ||
| PM (TTM) | 30.86% | ||
| GM | 58.59% |
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.
GOOG has less shares outstanding than it did 1 year ago.
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
An Altman-Z score of 12.44 indicates that GOOG is not in any danger for bankruptcy at the moment.
GOOG has a Altman-Z score of 12.44. This is amongst the best in the industry. GOOG outperforms 90.14% of its industry peers.
GOOG has a debt to FCF ratio of 0.19. This is a very positive value and a sign of high solvency as it would only need 0.19 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 0.19, GOOG is doing good in the industry, outperforming 78.87% of the companies in the same industry.
A Debt/Equity ratio of 0.04 indicates that GOOG is not too dependend on debt financing.
GOOG has a Debt to Equity ratio (0.04) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.19 | ||
| Altman-Z | 12.44 |
ROIC/WACC2.96
WACC9.02%
2.3 Liquidity
A Current Ratio of 1.77 indicates that GOOG should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.77, GOOG is in line with its industry, outperforming 42.25% of the companies in the same industry.
A Quick Ratio of 1.77 indicates that GOOG should not have too much problems paying its short term obligations.
GOOG has a Quick ratio (1.77) 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 | 1.77 | ||
| Quick Ratio | 1.77 |
3. Growth
3.1 Past
GOOG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.29%, which is quite impressive.
GOOG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.25% yearly.
GOOG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.07%.
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)29.29%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%20.11%
Revenue 1Y (TTM)13.07%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%12.04%
3.2 Future
GOOG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.52% yearly.
The Revenue is expected to grow by 10.34% on average over the next years. This is quite good.
EPS Next Y22.47%
EPS Next 2Y14.08%
EPS Next 3Y14.31%
EPS Next 5Y15.52%
Revenue Next Year10.4%
Revenue Next 2Y10.45%
Revenue Next 3Y10.44%
Revenue Next 5Y10.34%
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.
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
With a Price/Earnings ratio of 20.86, GOOG is valued on the expensive side.
61.97% of the companies in the same industry are more expensive than GOOG, based on the Price/Earnings ratio.
GOOG is valuated rather cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.79, which indicates a correct valuation of GOOG.
63.38% 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 22.13, GOOG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.86 | ||
| Fwd PE | 16.79 |
4.2 Price Multiples
GOOG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GOOG is cheaper than 69.01% of the companies in the same industry.
GOOG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.5 | ||
| EV/EBITDA | 14.7 |
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 14.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.93
PEG (5Y)0.83
EPS Next 2Y14.08%
EPS Next 3Y14.31%
5. Dividend
5.1 Amount
With a yearly dividend of 0.48%, GOOG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.97, GOOG pays a better dividend. On top of this GOOG pays more dividend than 91.55% of the companies listed in the same industry.
With a Dividend Yield of 0.48, GOOG pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
5.2 History
GOOG is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
8.83% of the earnings are spent on dividend by GOOG. This is a low number and sustainable payout ratio.
DP8.83%
EPS Next 2Y14.08%
EPS Next 3Y14.31%
175.88
-1.09 (-0.62%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners81.23%
Inst Owner Change-0.78%
Ins Owners0.08%
Ins Owner Change0%
Market Cap2134.30B
Analysts81.56
Price Target206.69 (17.52%)
Short Float %0.63%
Short Ratio1.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Yearly Dividend0.6
Dividend Growth(5Y)N/A
DP8.83%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.81%
Min EPS beat(2)-1.9%
Max EPS beat(2)9.52%
EPS beat(4)2
Avg EPS beat(4)4.66%
Min EPS beat(4)-1.9%
Max EPS beat(4)11.53%
EPS beat(8)5
Avg EPS beat(8)5.99%
EPS beat(12)6
Avg EPS beat(12)1.28%
EPS beat(16)9
Avg EPS beat(16)4.36%
Revenue beat(2)0
Avg Revenue beat(2)-2.35%
Min Revenue beat(2)-3.01%
Max Revenue beat(2)-1.7%
Revenue beat(4)0
Avg Revenue beat(4)-1.92%
Min Revenue beat(4)-3.01%
Max Revenue beat(4)-0.7%
Revenue beat(8)0
Avg Revenue beat(8)-1.56%
Revenue beat(12)0
Avg Revenue beat(12)-2.16%
Revenue beat(16)2
Avg Revenue beat(16)-1.3%
PT rev (1m)-1.37%
PT rev (3m)-5.78%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)-0.24%
EPS NY rev (1m)8.6%
EPS NY rev (3m)7.02%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.71%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.86 | ||
| Fwd PE | 16.79 | ||
| P/S | 5.93 | ||
| P/FCF | 28.5 | ||
| P/OCF | 16.1 | ||
| P/B | 6.18 | ||
| P/tB | 6.82 | ||
| EV/EBITDA | 14.7 |
EPS(TTM)8.43
EY4.79%
EPS(NY)10.48
Fwd EY5.96%
FCF(TTM)6.17
FCFY3.51%
OCF(TTM)10.93
OCFY6.21%
SpS29.64
BVpS28.45
TBVpS25.8
PEG (NY)0.93
PEG (5Y)0.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.35% | ||
| ROE | 32.15% | ||
| ROCE | 31.07% | ||
| ROIC | 26.71% | ||
| ROICexc | 35.54% | ||
| ROICexgc | 40% | ||
| OM | 33.15% | ||
| PM (TTM) | 30.86% | ||
| GM | 58.59% | ||
| FCFM | 20.82% |
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-Score7
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.19 | ||
| Debt/EBITDA | 0.09 | ||
| Cap/Depr | 352.27% | ||
| Cap/Sales | 16.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.77% | ||
| Profit Quality | 67.46% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.77 | ||
| Altman-Z | 12.44 |
F-Score7
WACC9.02%
ROIC/WACC2.96
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)29.29%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%20.11%
EPS Next Y22.47%
EPS Next 2Y14.08%
EPS Next 3Y14.31%
EPS Next 5Y15.52%
Revenue 1Y (TTM)13.07%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%12.04%
Revenue Next Year10.4%
Revenue Next 2Y10.45%
Revenue Next 3Y10.44%
Revenue Next 5Y10.34%
EBIT growth 1Y25.93%
EBIT growth 3Y13.04%
EBIT growth 5Y25.91%
EBIT Next Year56.95%
EBIT Next 3Y26.18%
EBIT Next 5Y21.12%
FCF growth 1Y20.95%
FCF growth 3Y2.78%
FCF growth 5Y18.63%
OCF growth 1Y47.5%
OCF growth 3Y10.99%
OCF growth 5Y18.11%