314.09 USD
-0.26 (-0.08%)
313.94 USD
-0.15 (-0.05%)
GOOGL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 70 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 not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make GOOGL a good candidate for growth and 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.
GOOGL had positive earnings in each of the past 5 years.
GOOGL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 23.16%, GOOGL belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
GOOGL's Return On Equity of 32.12% is amongst the best of the industry. GOOGL outperforms 97.14% of its industry peers.
With an excellent Return On Invested Capital value of 24.90%, GOOGL belongs to the best of the industry, outperforming 91.43% 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 14.04%.
The 3 year average ROIC (24.19%) for GOOGL is below the current ROIC(24.90%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.16% | ||
| ROE | 32.12% | ||
| ROIC | 24.9% |
ROA(3y)19%
ROA(5y)18.15%
ROE(3y)26.75%
ROE(5y)25.71%
ROIC(3y)24.19%
ROIC(5y)21.8%
1.3 Margins
GOOGL's Profit Margin of 32.23% is amongst the best of the industry. GOOGL outperforms 91.43% of its industry peers.
In the last couple of years the Profit Margin of GOOGL has grown nicely.
With an excellent Operating Margin value of 32.83%, GOOGL belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
GOOGL's Operating Margin has improved in the last couple of years.
GOOGL has a Gross Margin of 59.17%. This is comparable to the rest of the industry: GOOGL outperforms 50.00% of its industry peers.
GOOGL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.83% | ||
| PM (TTM) | 32.23% | ||
| GM | 59.17% |
OM growth 3Y2.22%
OM growth 5Y8.01%
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.
Compared to 1 year ago, GOOGL has less shares outstanding
Compared to 5 years ago, GOOGL has less shares outstanding
Compared to 1 year ago, GOOGL has an improved debt to assets ratio.
2.2 Solvency
GOOGL has an Altman-Z score of 17.65. This indicates that GOOGL is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 17.65, GOOGL belongs to the top of the industry, outperforming 95.71% of the companies in the same industry.
GOOGL has a debt to FCF ratio of 0.29. This is a very positive value and a sign of high solvency as it would only need 0.29 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.29, GOOGL belongs to the top of the industry, outperforming 84.29% of the companies in the same industry.
A Debt/Equity ratio of 0.06 indicates that GOOGL is not too dependend on debt financing.
GOOGL's Debt to Equity ratio of 0.06 is in line compared to the rest of the industry. GOOGL outperforms 55.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 17.65 |
ROIC/WACC2.37
WACC10.51%
2.3 Liquidity
A Current Ratio of 1.75 indicates that GOOGL should not have too much problems paying its short term obligations.
GOOGL has a Current ratio of 1.75. This is comparable to the rest of the industry: GOOGL outperforms 48.57% of its industry peers.
A Quick Ratio of 1.75 indicates that GOOGL should not have too much problems paying its short term obligations.
GOOGL has a Quick ratio of 1.75. This is comparable to the rest of the industry: GOOGL outperforms 48.57% of its industry peers.
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 | 1.75 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
GOOGL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.37%, which is quite impressive.
The Earnings Per Share has been growing by 25.25% on average over the past years. This is a very strong growth
GOOGL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.42%.
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)30.37%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%46.23%
Revenue 1Y (TTM)13.42%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%15.95%
3.2 Future
The Earnings Per Share is expected to grow by 17.13% 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 12.49% on average per year.
EPS Next Y35.33%
EPS Next 2Y19.34%
EPS Next 3Y17.89%
EPS Next 5Y17.13%
Revenue Next Year13.89%
Revenue Next 2Y13.63%
Revenue Next 3Y13.1%
Revenue Next 5Y12.49%
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
Based on the Price/Earnings ratio of 31.95, the valuation of GOOGL can be described as expensive.
GOOGL's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.59. GOOGL is valued slightly more expensive when compared to this.
GOOGL is valuated quite expensively with a Price/Forward Earnings ratio of 27.39.
The rest of the industry has a similar Price/Forward Earnings ratio as GOOGL.
GOOGL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.95 | ||
| Fwd PE | 27.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GOOGL is on the same level as its industry peers.
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 | 51.53 | ||
| EV/EBITDA | 24.96 |
4.3 Compensation for Growth
The 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 17.89% in the coming years.
PEG (NY)0.9
PEG (5Y)1.27
EPS Next 2Y19.34%
EPS Next 3Y17.89%
5. Dividend
5.1 Amount
GOOGL has a yearly dividend return of 0.28%, which is pretty low.
GOOGL's Dividend Yield is rather good when compared to the industry average which is at 0.48. GOOGL pays more dividend than 87.14% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, GOOGL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
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
8.01% of the earnings are spent on dividend by GOOGL. This is a low number and sustainable payout ratio.
DP8.01%
EPS Next 2Y19.34%
EPS Next 3Y17.89%
314.09
-0.26 (-0.08%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners81.23%
Inst Owner Change1.67%
Ins Owners0.05%
Ins Owner Change-0.61%
Market Cap3.79T
Revenue(TTM)385.48B
Net Income(TTM)124.25B
Analysts82.74
Price TargetN/A
Short Float %1.37%
Short Ratio2.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
Yearly Dividend0.6
Dividend Growth(5Y)N/A
DP8.01%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.04%
Min EPS beat(2)2.67%
Max EPS beat(2)29.41%
EPS beat(4)3
Avg EPS beat(4)9.93%
Min EPS beat(4)-1.9%
Max EPS beat(4)29.41%
EPS beat(8)5
Avg EPS beat(8)8.98%
EPS beat(12)8
Avg EPS beat(12)6.1%
EPS beat(16)9
Avg EPS beat(16)3.08%
Revenue beat(2)0
Avg Revenue beat(2)-0.46%
Min Revenue beat(2)-0.53%
Max Revenue beat(2)-0.4%
Revenue beat(4)0
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-3.01%
Max Revenue beat(4)-0.4%
Revenue beat(8)0
Avg Revenue beat(8)-1.37%
Revenue beat(12)0
Avg Revenue beat(12)-1.56%
Revenue beat(16)1
Avg Revenue beat(16)-1.78%
PT rev (1m)20.49%
PT rev (3m)35.1%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)2.99%
EPS NY rev (1m)2.01%
EPS NY rev (3m)6.44%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)2.29%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.95 | ||
| Fwd PE | 27.39 | ||
| P/S | 9.83 | ||
| P/FCF | 51.53 | ||
| P/OCF | 25.03 | ||
| P/B | 9.8 | ||
| P/tB | 10.72 | ||
| EV/EBITDA | 24.96 |
EPS(TTM)9.83
EY3.13%
EPS(NY)11.47
Fwd EY3.65%
FCF(TTM)6.1
FCFY1.94%
OCF(TTM)12.55
OCFY4%
SpS31.94
BVpS32.06
TBVpS29.3
PEG (NY)0.9
PEG (5Y)1.27
Graham Number84.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.16% | ||
| ROE | 32.12% | ||
| ROCE | 28.96% | ||
| ROIC | 24.9% | ||
| ROICexc | 32.14% | ||
| ROICexgc | 35.65% | ||
| OM | 32.83% | ||
| PM (TTM) | 32.23% | ||
| GM | 59.17% | ||
| FCFM | 19.08% |
ROA(3y)19%
ROA(5y)18.15%
ROE(3y)26.75%
ROE(5y)25.71%
ROIC(3y)24.19%
ROIC(5y)21.8%
ROICexc(3y)36.15%
ROICexc(5y)36.02%
ROICexgc(3y)42.2%
ROICexgc(5y)42.5%
ROCE(3y)28.15%
ROCE(5y)25.36%
ROICexgc growth 3Y-6.64%
ROICexgc growth 5Y3.77%
ROICexc growth 3Y-5.3%
ROICexc growth 5Y5.86%
OM growth 3Y2.22%
OM growth 5Y8.01%
PM growth 3Y-1.04%
PM growth 5Y6.16%
GM growth 3Y0.73%
GM growth 5Y0.93%
F-Score6
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.29 | ||
| Debt/EBITDA | 0.15 | ||
| Cap/Depr | 403.46% | ||
| Cap/Sales | 20.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.82% | ||
| Profit Quality | 59.2% | ||
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.75 | ||
| Altman-Z | 17.65 |
F-Score6
WACC10.51%
ROIC/WACC2.37
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)30.37%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%46.23%
EPS Next Y35.33%
EPS Next 2Y19.34%
EPS Next 3Y17.89%
EPS Next 5Y17.13%
Revenue 1Y (TTM)13.42%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%15.95%
Revenue Next Year13.89%
Revenue Next 2Y13.63%
Revenue Next 3Y13.1%
Revenue Next 5Y12.49%
EBIT growth 1Y16.37%
EBIT growth 3Y13.22%
EBIT growth 5Y26.03%
EBIT Next Year60.28%
EBIT Next 3Y31.57%
EBIT Next 5Y24.81%
FCF growth 1Y-5.24%
FCF growth 3Y2.78%
FCF growth 5Y18.63%
OCF growth 1Y42.26%
OCF growth 3Y10.99%
OCF growth 5Y18.11%
ALPHABET INC-CL A / GOOGL FAQ
Can you provide the ChartMill fundamental rating for ALPHABET INC-CL A?
ChartMill assigns a fundamental rating of 7 / 10 to GOOGL.
Can you provide the valuation status for ALPHABET INC-CL A?
ChartMill assigns a valuation rating of 4 / 10 to ALPHABET INC-CL A (GOOGL). This can be considered as Fairly Valued.
How profitable is ALPHABET INC-CL A (GOOGL) stock?
ALPHABET INC-CL A (GOOGL) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for GOOGL stock?
The Price/Earnings (PE) ratio for ALPHABET INC-CL A (GOOGL) is 31.95 and the Price/Book (PB) ratio is 9.8.
Can you provide the dividend sustainability for GOOGL stock?
The dividend rating of ALPHABET INC-CL A (GOOGL) is 3 / 10 and the dividend payout ratio is 8.01%.