ALPHABET INC-CL A (GOOGL) Stock Fundamental Analysis
NASDAQ:GOOGL - Nasdaq - US02079K3059 - Common Stock - Currency: USD
Taking everything into account, GOOGL scores 7 out of 10 in our fundamental rating. GOOGL was compared to 70 industry peers in the Interactive Media & Services industry. GOOGL has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. GOOGL is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, GOOGL could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year GOOGL was profitable.
In the past year GOOGL had a positive cash flow from operations.
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 has a Return On Assets of 23.02%. This is amongst the best in the industry. GOOGL outperforms 95.71% of its industry peers.
GOOGL's Return On Equity of 31.85% is amongst the best of the industry. GOOGL outperforms 95.71% of its industry peers.
With an excellent Return On Invested Capital value of 25.81%, GOOGL belongs to the best of the industry, outperforming 95.71% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GOOGL is significantly above the industry average of 12.13%.
The last Return On Invested Capital (25.81%) for GOOGL 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
GOOGL has a Profit Margin of 31.12%. This is amongst the best in the industry. GOOGL outperforms 92.86% of its industry peers.
In the last couple of years the Profit Margin of GOOGL has grown nicely.
GOOGL's Operating Margin of 33.53% is amongst the best of the industry. GOOGL outperforms 97.14% of its industry peers.
In the last couple of years the Operating Margin of GOOGL has grown nicely.
GOOGL has a Gross Margin (58.94%) which is comparable to the rest of the industry.
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 | 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
The debt/assets ratio for GOOGL has been reduced compared to a year ago.
2.2 Solvency
GOOGL has an Altman-Z score of 13.02. This indicates that GOOGL is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 13.02, GOOGL belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
The Debt to FCF ratio of GOOGL is 0.40, which is an excellent value as it means it would take GOOGL, only 0.40 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.40, GOOGL is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
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 51.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | 13.02 |
ROIC/WACC2.74
WACC9.43%
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.
Looking at the Current ratio, with a value of 1.90, GOOGL is in line with its industry, outperforming 45.71% of the companies in the same 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.
GOOGL has a Quick ratio (1.90) which is comparable to the rest of the industry.
The current and quick ratio evaluation for GOOGL 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
GOOGL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.97%, which is quite impressive.
Measured over the past years, GOOGL shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.25% on average per year.
Looking at the last year, GOOGL shows a quite strong growth in Revenue. The Revenue has grown by 13.13% in the last year.
The Revenue has been growing by 16.68% on average over the past years. This is quite good.
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
GOOGL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.78% yearly.
GOOGL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.45% yearly.
EPS Next Y22.82%
EPS Next 2Y14.2%
EPS Next 3Y13.87%
EPS Next 5Y15.78%
Revenue Next Year12%
Revenue Next 2Y11.51%
Revenue Next 3Y11.24%
Revenue Next 5Y10.45%
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
A Price/Earnings ratio of 22.72 indicates a rather expensive valuation of GOOGL.
61.43% of the companies in the same industry are more expensive than GOOGL, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.51. GOOGL is around the same levels.
GOOGL is valuated rather expensively with a Price/Forward Earnings ratio of 19.15.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GOOGL is on the same level as its industry peers.
GOOGL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.72 | ||
| Fwd PE | 19.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GOOGL is valued a bit cheaper than 67.14% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GOOGL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.44 | ||
| EV/EBITDA | 16.13 |
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.
A more expensive valuation may be justified as GOOGL's earnings are expected to grow with 13.87% in the coming years.
PEG (NY)1
PEG (5Y)0.9
EPS Next 2Y14.2%
EPS Next 3Y13.87%
5. Dividend
5.1 Amount
With a yearly dividend of 0.43%, GOOGL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.88, GOOGL pays a better dividend. On top of this GOOGL pays more dividend than 90.00% of the companies listed in the same industry.
With a Dividend Yield of 0.43, GOOGL pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
5.2 History
GOOGL 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
8.54% of the earnings are spent on dividend by GOOGL. This is a low number and sustainable payout ratio.
DP8.54%
EPS Next 2Y14.2%
EPS Next 3Y13.87%
NASDAQ:GOOGL (8/11/2025, 3:45:07 PM)
201.07
-0.35 (-0.17%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners80.88%
Inst Owner Change-1%
Ins Owners0.05%
Ins Owner Change-0.95%
Market Cap2431.74B
Analysts81.47
Price Target220.94 (9.88%)
Short Float %1%
Short Ratio1.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
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)7.37%
PT rev (3m)7.32%
EPS NQ rev (1m)4.15%
EPS NQ rev (3m)3.24%
EPS NY rev (1m)0%
EPS NY rev (3m)8.91%
Revenue NQ rev (1m)2.34%
Revenue NQ rev (3m)1.49%
Revenue NY rev (1m)1.36%
Revenue NY rev (3m)1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.72 | ||
| Fwd PE | 19.15 | ||
| P/S | 6.55 | ||
| P/FCF | 36.44 | ||
| P/OCF | 18.19 | ||
| P/B | 6.7 | ||
| P/tB | 7.36 | ||
| EV/EBITDA | 16.13 |
EPS(TTM)8.85
EY4.4%
EPS(NY)10.5
Fwd EY5.22%
FCF(TTM)5.52
FCFY2.74%
OCF(TTM)11.06
OCFY5.5%
SpS30.71
BVpS30.01
TBVpS27.33
PEG (NY)1
PEG (5Y)0.9
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 | 13.02 |
F-Score6
WACC9.43%
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 Y22.82%
EPS Next 2Y14.2%
EPS Next 3Y13.87%
EPS Next 5Y15.78%
Revenue 1Y (TTM)13.13%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%13.79%
Revenue Next Year12%
Revenue Next 2Y11.51%
Revenue Next 3Y11.24%
Revenue Next 5Y10.45%
EBIT growth 1Y23.29%
EBIT growth 3Y13.04%
EBIT growth 5Y25.91%
EBIT Next Year60.45%
EBIT Next 3Y28.65%
EBIT Next 5Y21.09%
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%