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 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 not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, GOOG could be worth investigating further 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.
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 (23.35%) is better than 94.37% of its industry peers.
Looking at the Return On Equity, with a value of 32.15%, GOOG belongs to the top of the industry, outperforming 94.37% of the companies in the same industry.
GOOG has a better Return On Invested Capital (26.71%) than 95.77% of its industry peers.
GOOG had an Average Return On Invested Capital over the past 3 years of 24.15%. This is significantly above the industry average of 11.33%.
The last Return On Invested Capital (26.71%) for GOOG is above the 3 year average (24.15%), which is a sign of increasing profitability.
| 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
GOOG has a Profit Margin of 30.86%. This is amongst the best in the industry. GOOG outperforms 92.96% of its industry peers.
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.
In the last couple of years the Operating Margin of GOOG has grown nicely.
Looking at the Gross Margin, with a value of 58.59%, GOOG is in line with its industry, outperforming 43.66% of the companies in the same industry.
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 | 33.15% | ||
| 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
GOOG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
GOOG has an Altman-Z score of 11.79. This indicates that GOOG is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 11.79, GOOG belongs to the best of the industry, outperforming 94.37% of the companies in the same industry.
The Debt to FCF ratio of GOOG is 0.19, which is an excellent value as it means it would take GOOG, only 0.19 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.19, GOOG is in the better half of the industry, outperforming 74.65% of the companies in the same industry.
A Debt/Equity ratio of 0.04 indicates that GOOG is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.04, GOOG perfoms like the industry average, outperforming 59.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.19 | ||
| Altman-Z | 11.79 |
ROIC/WACC2.94
WACC9.1%
2.3 Liquidity
A Current Ratio of 1.77 indicates that GOOG should not have too much problems paying its short term obligations.
GOOG's Current ratio of 1.77 is in line compared to the rest of the industry. GOOG outperforms 47.89% of its industry peers.
GOOG has a Quick Ratio of 1.77. 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 (1.77) which is in line with 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 | 1.77 | ||
| 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
The Earnings Per Share is expected to grow by 15.11% 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 10.80% yearly.
EPS Next Y22.47%
EPS Next 2Y14.08%
EPS Next 3Y14.31%
EPS Next 5Y15.11%
Revenue Next Year10.38%
Revenue Next 2Y10.42%
Revenue Next 3Y10.48%
Revenue Next 5Y10.8%
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 19.61, GOOG is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of GOOG indicates a somewhat cheap valuation: GOOG is cheaper than 66.20% of the companies listed in the same industry.
GOOG is valuated rather cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.78, which indicates a correct valuation of GOOG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GOOG indicates a somewhat cheap valuation: GOOG is cheaper than 63.38% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of GOOG to the average of the S&P500 Index (22.43), we can say GOOG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.61 | ||
| Fwd PE | 15.78 |
4.2 Price Multiples
67.61% of the companies in the same industry are more expensive than GOOG, based on the Enterprise Value to EBITDA ratio.
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 | 26.79 | ||
| EV/EBITDA | 13.66 |
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.
The excellent profitability rating of GOOG may justify a higher PE ratio.
A more expensive valuation may be justified as GOOG's earnings are expected to grow with 14.31% in the coming years.
PEG (NY)0.87
PEG (5Y)0.78
EPS Next 2Y14.08%
EPS Next 3Y14.31%
5. Dividend
5.1 Amount
GOOG has a yearly dividend return of 0.49%, which is pretty low.
Compared to an average industry Dividend Yield of 3.09, GOOG pays a better dividend. On top of this GOOG pays more dividend than 91.55% 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 | 0.49% |
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 8.83% of its income as dividend. This is a sustainable payout ratio.
DP8.83%
EPS Next 2Y14.08%
EPS Next 3Y14.31%
165.32
-2.55 (-1.52%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners81.23%
Inst Owner Change-0.73%
Ins Owners0.08%
Ins Owner Change0%
Market Cap2006.16B
Analysts80.94
Price Target208.17 (25.92%)
Short Float %0.69%
Short Ratio1.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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)-5.58%
PT rev (3m)-5.11%
EPS NQ rev (1m)0.96%
EPS NQ rev (3m)-0.2%
EPS NY rev (1m)8.6%
EPS NY rev (3m)7.02%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)-0.69%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.61 | ||
| Fwd PE | 15.78 | ||
| P/S | 5.58 | ||
| P/FCF | 26.79 | ||
| P/OCF | 15.13 | ||
| P/B | 5.81 | ||
| P/tB | 6.41 | ||
| EV/EBITDA | 13.66 |
EPS(TTM)8.43
EY5.1%
EPS(NY)10.48
Fwd EY6.34%
FCF(TTM)6.17
FCFY3.73%
OCF(TTM)10.93
OCFY6.61%
SpS29.64
BVpS28.45
TBVpS25.8
PEG (NY)0.87
PEG (5Y)0.78
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 | 11.79 |
F-Score7
WACC9.1%
ROIC/WACC2.94
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 5Y15.11%
Revenue 1Y (TTM)13.07%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%12.04%
Revenue Next Year10.38%
Revenue Next 2Y10.42%
Revenue Next 3Y10.48%
Revenue Next 5Y10.8%
EBIT growth 1Y25.93%
EBIT growth 3Y13.04%
EBIT growth 5Y25.91%
EBIT Next Year56.38%
EBIT Next 3Y26.58%
EBIT Next 5Y21.42%
FCF growth 1Y20.95%
FCF growth 3Y2.78%
FCF growth 5Y18.63%
OCF growth 1Y47.5%
OCF growth 3Y10.99%
OCF growth 5Y18.11%