ALPHABET INC-CL A (GOOGL)
US02079K3059 - Common Stock
We assign a fundamental rating of 7 out of 10 to GOOGL. GOOGL was compared to 68 industry peers in the Interactive Media & Services industry. GOOGL scores excellent points on both the profitability and health parts. This is a solid base for a good stock. GOOGL has a correct valuation and a medium growth rate. These ratings would make GOOGL suitable for quality investing!
1. Profitability
1.1 Basic Checks
GOOGL had positive earnings in the past year.
In the past year GOOGL had a positive cash flow from operations.
In the past 5 years GOOGL has always been profitable.
Each year in the past 5 years GOOGL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GOOGL (18.34%) is better than 95.52% of its industry peers.
The Return On Equity of GOOGL (26.04%) is better than 95.52% of its industry peers.
GOOGL's Return On Invested Capital of 23.42% is amongst the best of the industry. GOOGL outperforms 98.51% of its industry peers.
GOOGL had an Average Return On Invested Capital over the past 3 years of 22.54%. This is significantly above the industry average of 9.61%.
The 3 year average ROIC (22.54%) for GOOGL is below the current ROIC(23.42%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.34% | ||
| ROE | 26.04% | ||
| ROIC | 23.42% |
ROA(3y)18.64%
ROA(5y)16.19%
ROE(3y)26.56%
ROE(5y)22.96%
ROIC(3y)22.54%
ROIC(5y)18.85%
1.3 Margins
With an excellent Profit Margin value of 24.01%, GOOGL belongs to the best of the industry, outperforming 92.54% of the companies in the same industry.
In the last couple of years the Profit Margin of GOOGL has remained more or less at the same level.
GOOGL's Operating Margin of 28.70% is amongst the best of the industry. GOOGL outperforms 97.01% of its industry peers.
GOOGL's Operating Margin has improved in the last couple of years.
GOOGL has a Gross Margin of 56.94%. This is comparable to the rest of the industry: GOOGL outperforms 43.28% of its industry peers.
In the last couple of years the Gross Margin of GOOGL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.7% | ||
| PM (TTM) | 24.01% | ||
| GM | 56.94% |
OM growth 3Y8.32%
OM growth 5Y3.8%
PM growth 3Y2.86%
PM growth 5Y1.34%
GM growth 3Y2.05%
GM growth 5Y0.16%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GOOGL is creating value.
The number of shares outstanding for GOOGL has been reduced compared to 1 year ago.
The number of shares outstanding for GOOGL has been reduced compared to 5 years ago.
Compared to 1 year ago, GOOGL has an improved debt to assets ratio.
2.2 Solvency
GOOGL has an Altman-Z score of 12.27. This indicates that GOOGL is financially healthy and has little risk of bankruptcy at the moment.
GOOGL has a Altman-Z score of 12.27. This is amongst the best in the industry. GOOGL outperforms 94.03% of its industry peers.
The Debt to FCF ratio of GOOGL is 0.20, which is an excellent value as it means it would take GOOGL, only 0.20 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.20, GOOGL belongs to the best of the industry, outperforming 86.57% of the companies in the same industry.
GOOGL has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.05, GOOGL is in line with its industry, outperforming 49.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.2 | ||
| Altman-Z | 12.27 |
ROIC/WACC2.53
WACC9.25%
2.3 Liquidity
A Current Ratio of 2.10 indicates that GOOGL has no problem at all paying its short term obligations.
GOOGL has a Current ratio of 2.10. This is comparable to the rest of the industry: GOOGL outperforms 43.28% of its industry peers.
GOOGL has a Quick Ratio of 2.10. This indicates that GOOGL is financially healthy and has no problem in meeting its short term obligations.
GOOGL has a Quick ratio of 2.10. This is comparable to the rest of the industry: GOOGL outperforms 43.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 2.1 |
3. Growth
3.1 Past
GOOGL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.44%, which is quite impressive.
The Earnings Per Share has been growing by 19.55% on average over the past years. This is quite good.
GOOGL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.68%.
The Revenue has been growing by 17.57% on average over the past years. This is quite good.
EPS 1Y (TTM)27.44%
EPS 3Y25.49%
EPS 5Y19.55%
EPS growth Q2Q56.19%
Revenue 1Y (TTM)8.68%
Revenue growth 3Y18.98%
Revenue growth 5Y17.57%
Revenue growth Q2Q13.49%
3.2 Future
Based on estimates for the next years, GOOGL will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.77% on average per year.
GOOGL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.92% yearly.
EPS Next Y20.95%
EPS Next 2Y18.01%
EPS Next 3Y16.71%
EPS Next 5Y17.77%
Revenue Next Year11.93%
Revenue Next 2Y11.2%
Revenue Next 3Y10.44%
Revenue Next 5Y9.92%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 26.90, which means the current valuation is very expensive for GOOGL.
71.64% of the companies in the same industry are more expensive than GOOGL, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.20, GOOGL is valued at the same level.
The Price/Forward Earnings ratio is 22.24, which indicates a rather expensive current valuation of GOOGL.
GOOGL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GOOGL is cheaper than 68.66% of the companies in the same industry.
GOOGL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.9 | ||
| Fwd PE | 22.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GOOGL indicates a somewhat cheap valuation: GOOGL is cheaper than 68.66% of the companies listed in the same industry.
GOOGL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GOOGL is cheaper than 67.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.91 | ||
| EV/EBITDA | 17.52 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of GOOGL may justify a higher PE ratio.
GOOGL's earnings are expected to grow with 16.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.28
PEG (5Y)1.38
EPS Next 2Y18.01%
EPS Next 3Y16.71%
5. Dividend
5.1 Amount
No dividends for GOOGL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ALPHABET INC-CL A
NASDAQ:GOOGL (4/25/2024, 7:00:01 PM)
Premarket: 173.54 +17.54 (+11.24%)156
-3.13 (-1.97%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1939.55B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.9 | ||
| Fwd PE | 22.24 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
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FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.28
PEG (5Y)1.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.34% | ||
| ROE | 26.04% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.7% | ||
| PM (TTM) | 24.01% | ||
| GM | 56.94% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.1 | ||
| Quick Ratio | 2.1 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)27.44%
EPS 3Y25.49%
EPS 5Y
EPS growth Q2Q
EPS Next Y20.95%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.68%
Revenue growth 3Y18.98%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
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EBIT Next 5Y
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