ALPHABET INC-CL A (GOOGL) Stock Fundamental Analysis
NASDAQ:GOOGL - Nasdaq - US02079K3059 - Common Stock - Currency: USD
Overall GOOGL gets a fundamental rating of 8 out of 10. We evaluated GOOGL against 71 industry peers in the Interactive Media & Services industry. Both the health and profitability get an excellent rating, making GOOGL a very profitable company, without any liquidiy or solvency issues. GOOGL is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make GOOGL a good candidate 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.
Each year in the past 5 years GOOGL has been profitable.
GOOGL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GOOGL has a better Return On Assets (23.35%) than 95.77% of its industry peers.
Looking at the Return On Equity, with a value of 32.15%, GOOGL belongs to the top of the industry, outperforming 95.77% of the companies in the same industry.
The Return On Invested Capital of GOOGL (26.71%) is better than 97.18% of its industry peers.
GOOGL had an Average Return On Invested Capital over the past 3 years of 24.15%. This is significantly above the industry average of 12.03%.
The 3 year average ROIC (24.15%) for GOOGL is below the current ROIC(26.71%), indicating increased profibility in the last year.
| 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
GOOGL has a better Profit Margin (30.86%) than 94.37% of its industry peers.
GOOGL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 33.15%, GOOGL belongs to the top of the industry, outperforming 97.18% of the companies in the same industry.
In the last couple of years the Operating Margin of GOOGL has grown nicely.
GOOGL has a Gross Margin (58.59%) which is comparable to the rest of the industry.
GOOGL's Gross Margin has been stable in the last couple of years.
| 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
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.
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 12.39. This indicates that GOOGL is financially healthy and has little risk of bankruptcy at the moment.
GOOGL has a better Altman-Z score (12.39) than 88.73% of its industry peers.
GOOGL has a debt to FCF ratio of 0.19. This is a very positive value and a sign of high solvency as it would only need 0.19 years to pay back of all of its debts.
GOOGL's Debt to FCF ratio of 0.19 is amongst the best of the industry. GOOGL outperforms 80.28% of its industry peers.
GOOGL has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
GOOGL has a Debt to Equity ratio (0.04) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.19 | ||
| Altman-Z | 12.39 |
ROIC/WACC2.93
WACC9.12%
2.3 Liquidity
GOOGL has a Current Ratio of 1.77. 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 1.77, GOOGL is in line with its industry, outperforming 43.66% of the companies in the same industry.
A Quick Ratio of 1.77 indicates that GOOGL should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.77, GOOGL perfoms like the industry average, outperforming 43.66% 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 | 1.77 | ||
| Quick Ratio | 1.77 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.29% 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.
Looking at the last year, GOOGL shows a quite strong growth in Revenue. The Revenue has grown by 13.07% in the last year.
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)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 15.52% 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 10.34% on average per year.
EPS Next Y22.47%
EPS Next 2Y14.08%
EPS Next 3Y14.31%
EPS Next 5Y15.52%
Revenue Next Year10.4%
Revenue Next 2Y10.45%
Revenue Next 3Y10.44%
Revenue Next 5Y10.34%
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.
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 20.82, which indicates a rather expensive current valuation of GOOGL.
Based on the Price/Earnings ratio, GOOGL is valued a bit cheaper than 64.79% of the companies in the same industry.
When comparing the Price/Earnings ratio of GOOGL to the average of the S&P500 Index (26.53), we can say GOOGL is valued slightly cheaper.
The Price/Forward Earnings ratio is 16.75, which indicates a correct valuation of GOOGL.
Based on the Price/Forward Earnings ratio, GOOGL is valued a bit cheaper than 66.20% of the companies in the same industry.
GOOGL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.82 | ||
| Fwd PE | 16.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GOOGL is valued a bit cheaper than the industry average as 70.42% of the companies are valued more expensively.
GOOGL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.45 | ||
| EV/EBITDA | 14.62 |
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.
GOOGL has an outstanding profitability rating, which may justify a higher PE ratio.
GOOGL's earnings are expected to grow with 14.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.93
PEG (5Y)0.82
EPS Next 2Y14.08%
EPS Next 3Y14.31%
5. Dividend
5.1 Amount
With a yearly dividend of 0.48%, GOOGL is not a good candidate for dividend investing.
GOOGL's Dividend Yield is rather good when compared to the industry average which is at 2.98. GOOGL pays more dividend than 90.14% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, GOOGL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
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 8.83% of its income as dividend. This is a sustainable payout ratio.
DP8.83%
EPS Next 2Y14.08%
EPS Next 3Y14.31%
NASDAQ:GOOGL (6/10/2025, 3:18:10 PM)
175.53
-0.56 (-0.32%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners81.23%
Inst Owner Change-0.28%
Ins Owners0.08%
Ins Owner Change-0.73%
Market Cap2130.06B
Analysts81.56
Price Target205.37 (17%)
Short Float %1.28%
Short Ratio1.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
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)-0.43%
PT rev (3m)-6.49%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)-0.24%
EPS NY rev (1m)8.6%
EPS NY rev (3m)7.02%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.71%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.82 | ||
| Fwd PE | 16.75 | ||
| P/S | 5.92 | ||
| P/FCF | 28.45 | ||
| P/OCF | 16.06 | ||
| P/B | 6.17 | ||
| P/tB | 6.8 | ||
| EV/EBITDA | 14.62 |
EPS(TTM)8.43
EY4.8%
EPS(NY)10.48
Fwd EY5.97%
FCF(TTM)6.17
FCFY3.52%
OCF(TTM)10.93
OCFY6.23%
SpS29.64
BVpS28.45
TBVpS25.8
PEG (NY)0.93
PEG (5Y)0.82
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 | 12.39 |
F-Score7
WACC9.12%
ROIC/WACC2.93
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 5Y15.52%
Revenue 1Y (TTM)13.07%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%12.04%
Revenue Next Year10.4%
Revenue Next 2Y10.45%
Revenue Next 3Y10.44%
Revenue Next 5Y10.34%
EBIT growth 1Y25.93%
EBIT growth 3Y13.04%
EBIT growth 5Y25.91%
EBIT Next Year56.95%
EBIT Next 3Y26.18%
EBIT Next 5Y21.12%
FCF growth 1Y20.95%
FCF growth 3Y2.78%
FCF growth 5Y18.63%
OCF growth 1Y47.5%
OCF growth 3Y10.99%
OCF growth 5Y18.11%