ALPHABET INC-CL A (GOOGL) Stock Fundamental Analysis
NASDAQ:GOOGL - US02079K3059 - Common Stock
212.91 USD
+1.27 (+0.6%)
212.74 USD
-0.17 (-0.08%)
We assign a fundamental rating of 7 out of 10 to GOOGL. GOOGL was compared to 69 industry peers in the Interactive Media & Services industry. GOOGL gets an excellent profitability rating and is at the same time showing great financial health properties. GOOGL is growing strongly while it is still valued neutral. This is a good combination! These ratings would make GOOGL suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
GOOGL had positive earnings in the past year.
GOOGL had a positive operating cash flow in the past year.
GOOGL had positive earnings in each of the past 5 years.
In the past 5 years GOOGL always reported a positive cash flow from operatings.
1.2 Ratios
GOOGL's Return On Assets of 23.02% is amongst the best of the industry. GOOGL outperforms 95.65% of its industry peers.
Looking at the Return On Equity, with a value of 31.85%, GOOGL belongs to the top of the industry, outperforming 97.10% of the companies in the same industry.
GOOGL has a Return On Invested Capital of 25.81%. This is amongst the best in the industry. GOOGL outperforms 95.65% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GOOGL is significantly above the industry average of 12.98%.
The 3 year average ROIC (24.15%) for GOOGL 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%, GOOGL belongs to the top of the industry, outperforming 92.75% of the companies in the same industry.
GOOGL's Profit Margin has improved in the last couple of years.
GOOGL has a better Operating Margin (33.53%) than 97.10% of its industry peers.
GOOGL's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 58.94%, GOOGL perfoms like the industry average, outperforming 50.72% of the companies in the same industry.
GOOGL'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 GOOGL is creating value.
GOOGL has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, GOOGL has less shares outstanding
GOOGL has a better debt/assets ratio than last year.
2.2 Solvency
GOOGL has an Altman-Z score of 13.62. This indicates that GOOGL is financially healthy and has little risk of bankruptcy at the moment.
GOOGL has a better Altman-Z score (13.62) than 92.75% of its industry peers.
GOOGL 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.
GOOGL has a better Debt to FCF ratio (0.40) than 81.16% of its industry peers.
GOOGL has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.07, GOOGL is in line with its industry, outperforming 55.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | 13.62 |
ROIC/WACC2.74
WACC9.42%
2.3 Liquidity
GOOGL has a Current Ratio of 1.90. This is a normal value and indicates that GOOGL is financially healthy and should not expect problems in meeting its short term obligations.
GOOGL has a Current ratio (1.90) which is comparable to the rest of the industry.
GOOGL has a Quick Ratio of 1.90. This is a normal value and indicates that GOOGL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.90, GOOGL is in line with its industry, outperforming 50.72% of the companies in the same industry.
GOOGL 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.
GOOGL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.25% yearly.
The Revenue has grown by 13.13% in the past year. This is quite good.
GOOGL 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 17.20% on average over the next years. This is quite good.
Based on estimates for the next years, GOOGL will show a quite strong growth in Revenue. The Revenue will grow by 11.12% on average per year.
EPS Next Y27.14%
EPS Next 2Y16.38%
EPS Next 3Y15.36%
EPS Next 5Y17.2%
Revenue Next Year12.61%
Revenue Next 2Y11.87%
Revenue Next 3Y11.49%
Revenue Next 5Y11.12%
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.
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
The Price/Earnings ratio is 24.06, which indicates a rather expensive current valuation of GOOGL.
Based on the Price/Earnings ratio, GOOGL is valued a bit cheaper than the industry average as 60.87% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of GOOGL to the average of the S&P500 Index (27.13), we can say GOOGL is valued inline with the index average.
GOOGL is valuated rather expensively with a Price/Forward Earnings ratio of 19.53.
GOOGL's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.76. GOOGL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.06 | ||
| Fwd PE | 19.53 |
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 66.67% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as GOOGL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.59 | ||
| EV/EBITDA | 17.11 |
4.3 Compensation for Growth
GOOGL'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 GOOGL may justify a higher PE ratio.
GOOGL's earnings are expected to grow with 15.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.89
PEG (5Y)0.95
EPS Next 2Y16.38%
EPS Next 3Y15.36%
5. Dividend
5.1 Amount
With a yearly dividend of 0.40%, GOOGL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.93, GOOGL pays a better dividend. On top of this GOOGL pays more dividend than 89.86% of the companies listed in the same industry.
With a Dividend Yield of 0.40, GOOGL pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
5.2 History
GOOGL 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
GOOGL pays out 8.54% of its income as dividend. This is a sustainable payout ratio.
DP8.54%
EPS Next 2Y16.38%
EPS Next 3Y15.36%
212.91
+1.27 (+0.6%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners80.88%
Inst Owner Change-2.02%
Ins Owners0.05%
Ins Owner Change-0.95%
Market Cap2574.93B
Analysts81.47
Price Target221.49 (4.03%)
Short Float %0.99%
Short Ratio1.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
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)7%
PT rev (3m)7.59%
EPS NQ rev (1m)-0.22%
EPS NQ rev (3m)3.11%
EPS NY rev (1m)3.52%
EPS NY rev (3m)3.81%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)1.47%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.06 | ||
| Fwd PE | 19.53 | ||
| P/S | 6.93 | ||
| P/FCF | 38.59 | ||
| P/OCF | 19.26 | ||
| P/B | 7.1 | ||
| P/tB | 7.79 | ||
| EV/EBITDA | 17.11 |
EPS(TTM)8.85
EY4.16%
EPS(NY)10.9
Fwd EY5.12%
FCF(TTM)5.52
FCFY2.59%
OCF(TTM)11.06
OCFY5.19%
SpS30.71
BVpS30.01
TBVpS27.33
PEG (NY)0.89
PEG (5Y)0.95
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 | 13.62 |
F-Score6
WACC9.42%
ROIC/WACC2.74
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 5Y17.2%
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 5Y11.12%
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%