ALPHABET INC-CL C (GOOG) Stock Fundamental Analysis
NASDAQ:GOOG - US02079K1079 - Common Stock
235.17 USD
+2.51 (+1.08%)
235 USD
-0.17 (-0.07%)
GOOG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 69 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 growing strongly while it is still valued neutral. This is a good combination! This makes GOOG very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
GOOG had positive earnings in the past year.
In the past year GOOG had a positive cash flow from operations.
Each year in the past 5 years GOOG has been profitable.
GOOG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 23.02%, GOOG belongs to the best of the industry, outperforming 94.20% of the companies in the same industry.
GOOG has a better Return On Equity (31.85%) than 95.65% of its industry peers.
GOOG's Return On Invested Capital of 25.81% is amongst the best of the industry. GOOG outperforms 94.20% 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 12.98%.
The last Return On Invested Capital (25.81%) for GOOG is above the 3 year average (24.15%), which is a sign of increasing profitability.
| 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 91.30% of its industry peers.
In the last couple of years the Profit Margin of GOOG has grown nicely.
With an excellent Operating Margin value of 33.53%, GOOG belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
GOOG's Operating Margin has improved in the last couple of years.
GOOG has a Gross Margin (58.94%) which is in line with its industry peers.
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
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
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 14.78 indicates that GOOG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 14.78, GOOG belongs to the top of the industry, outperforming 94.20% 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's Debt to FCF ratio of 0.40 is fine compared to the rest of the industry. GOOG outperforms 79.71% of its industry peers.
GOOG has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of GOOG (0.07) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | 14.78 |
ROIC/WACC2.8
WACC9.21%
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.
GOOG has a Current ratio of 1.90. This is comparable to the rest of the industry: GOOG outperforms 49.28% of its industry peers.
A Quick Ratio of 1.90 indicates that GOOG should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.90, GOOG is in line with its industry, outperforming 49.28% of the companies in the same industry.
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.
The Earnings Per Share has been growing by 25.25% on average over the past years. This is a very strong growth
GOOG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.13%.
GOOG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.68% yearly.
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 17.07% on average over the next years. This is quite good.
Based on estimates for the next years, GOOG will show a quite strong growth in Revenue. The Revenue will grow by 11.13% on average per year.
EPS Next Y27.14%
EPS Next 2Y16.38%
EPS Next 3Y15.36%
EPS Next 5Y17.07%
Revenue Next Year12.61%
Revenue Next 2Y11.87%
Revenue Next 3Y11.49%
Revenue Next 5Y11.13%
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
With a Price/Earnings ratio of 26.57, GOOG can be considered very expensive at the moment.
GOOG's Price/Earnings ratio is in line with the industry average.
GOOG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.06.
With a Price/Forward Earnings ratio of 21.57, GOOG is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as GOOG.
The average S&P500 Price/Forward Earnings ratio is at 22.69. GOOG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.57 | ||
| Fwd PE | 21.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GOOG indicates a somewhat cheap valuation: GOOG is cheaper than 63.77% of the companies listed in the same industry.
GOOG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.62 | ||
| EV/EBITDA | 19 |
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 15.36% in the coming years.
PEG (NY)0.98
PEG (5Y)1.05
EPS Next 2Y16.38%
EPS Next 3Y15.36%
5. Dividend
5.1 Amount
With a yearly dividend of 0.36%, GOOG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.60, GOOG pays a better dividend. On top of this GOOG pays more dividend than 91.30% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, GOOG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.36% |
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 2Y16.38%
EPS Next 3Y15.36%
235.17
+2.51 (+1.08%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners80.88%
Inst Owner Change0.12%
Ins Owners0.05%
Ins Owner Change0%
Market Cap2844.15B
Analysts81.47
Price Target222.46 (-5.4%)
Short Float %0.69%
Short Ratio1.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.36% |
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)6.82%
PT rev (3m)7.63%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)3.11%
EPS NY rev (1m)3.52%
EPS NY rev (3m)3.81%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)1.47%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)2.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.57 | ||
| Fwd PE | 21.57 | ||
| P/S | 7.66 | ||
| P/FCF | 42.62 | ||
| P/OCF | 21.27 | ||
| P/B | 7.84 | ||
| P/tB | 8.6 | ||
| EV/EBITDA | 19 |
EPS(TTM)8.85
EY3.76%
EPS(NY)10.9
Fwd EY4.64%
FCF(TTM)5.52
FCFY2.35%
OCF(TTM)11.06
OCFY4.7%
SpS30.71
BVpS30.01
TBVpS27.33
PEG (NY)0.98
PEG (5Y)1.05
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 | 14.78 |
F-Score6
WACC9.21%
ROIC/WACC2.8
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 Y27.14%
EPS Next 2Y16.38%
EPS Next 3Y15.36%
EPS Next 5Y17.07%
Revenue 1Y (TTM)13.13%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%13.79%
Revenue Next Year12.61%
Revenue Next 2Y11.87%
Revenue Next 3Y11.49%
Revenue Next 5Y11.13%
EBIT growth 1Y23.29%
EBIT growth 3Y13.04%
EBIT growth 5Y25.91%
EBIT Next Year60.45%
EBIT Next 3Y28.65%
EBIT Next 5Y22.53%
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%