ALPHABET INC-CL A (GOOGL) Stock Fundamental Analysis
USA - NASDAQ:GOOGL - US02079K3059 - Common Stock
246.65 USD
-3.78 (-1.51%)
GOOGL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 69 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 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.
Each year in the past 5 years GOOGL had a positive operating cash flow.
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.
With an excellent Return On Equity value of 31.85%, GOOGL belongs to the best of the industry, outperforming 97.10% of the companies in the same industry.
With an excellent Return On Invested Capital value of 25.81%, GOOGL belongs to the best of the industry, outperforming 95.65% 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 12.68%.
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
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.
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 97.10% 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 in line with its industry peers.
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
GOOGL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
An Altman-Z score of 15.58 indicates that GOOGL is not in any danger for bankruptcy at the moment.
GOOGL's Altman-Z score of 15.58 is amongst the best of the industry. GOOGL outperforms 92.75% of its industry peers.
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.
The Debt to FCF ratio of GOOGL (0.40) is better 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.
GOOGL has a Debt to Equity ratio (0.07) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | 15.58 |
ROIC/WACC2.63
WACC9.83%
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 52.17% of the companies in the same industry.
A Quick Ratio of 1.90 indicates that GOOGL should not have too much problems paying its short term obligations.
GOOGL has a Quick ratio (1.90) which is in line with its industry peers.
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.
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.
Measured over the past years, GOOGL shows a quite strong growth in Revenue. The Revenue has been growing by 16.68% on average per year.
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 17.81% on average over the next years. This is quite good.
GOOGL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.30% yearly.
EPS Next Y27.24%
EPS Next 2Y16.54%
EPS Next 3Y15.45%
EPS Next 5Y17.81%
Revenue Next Year12.79%
Revenue Next 2Y12.18%
Revenue Next 3Y11.61%
Revenue Next 5Y11.3%
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.
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
GOOGL is valuated quite expensively with a Price/Earnings ratio of 27.87.
GOOGL's Price/Earnings is on the same level as the industry average.
GOOGL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.90.
Based on the Price/Forward Earnings ratio of 22.56, the valuation of GOOGL can be described as rather expensive.
GOOGL's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.36. GOOGL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.87 | ||
| Fwd PE | 22.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GOOGL is valued a bit cheaper than the industry average as 60.87% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as GOOGL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.7 | ||
| EV/EBITDA | 20.3 |
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.
A more expensive valuation may be justified as GOOGL's earnings are expected to grow with 15.45% in the coming years.
PEG (NY)1.02
PEG (5Y)1.1
EPS Next 2Y16.54%
EPS Next 3Y15.45%
5. Dividend
5.1 Amount
GOOGL has a yearly dividend return of 0.34%, which is pretty low.
GOOGL's Dividend Yield is rather good when compared to the industry average which is at 2.75. GOOGL pays more dividend than 89.86% of the companies in the same industry.
With a Dividend Yield of 0.34, GOOGL pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.34% |
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
8.54% of the earnings are spent on dividend by GOOGL. This is a low number and sustainable payout ratio.
DP8.54%
EPS Next 2Y16.54%
EPS Next 3Y15.45%
NASDAQ:GOOGL (10/7/2025, 3:05:10 PM)
246.65
-3.78 (-1.51%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners81.14%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner Change-0.82%
Market Cap2982.99B
Analysts82.19
Price Target240.23 (-2.6%)
Short Float %1.16%
Short Ratio1.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.34% |
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)8.46%
PT rev (3m)16.74%
EPS NQ rev (1m)-0.44%
EPS NQ rev (3m)3.89%
EPS NY rev (1m)0.08%
EPS NY rev (3m)3.82%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)2.61%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)2.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.87 | ||
| Fwd PE | 22.56 | ||
| P/S | 8.03 | ||
| P/FCF | 44.7 | ||
| P/OCF | 22.31 | ||
| P/B | 8.22 | ||
| P/tB | 9.02 | ||
| EV/EBITDA | 20.3 |
EPS(TTM)8.85
EY3.59%
EPS(NY)10.93
Fwd EY4.43%
FCF(TTM)5.52
FCFY2.24%
OCF(TTM)11.06
OCFY4.48%
SpS30.71
BVpS30.01
TBVpS27.33
PEG (NY)1.02
PEG (5Y)1.1
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 | 15.58 |
F-Score6
WACC9.83%
ROIC/WACC2.63
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 Y27.24%
EPS Next 2Y16.54%
EPS Next 3Y15.45%
EPS Next 5Y17.81%
Revenue 1Y (TTM)13.13%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%13.79%
Revenue Next Year12.79%
Revenue Next 2Y12.18%
Revenue Next 3Y11.61%
Revenue Next 5Y11.3%
EBIT growth 1Y23.29%
EBIT growth 3Y13.04%
EBIT growth 5Y25.91%
EBIT Next Year60.51%
EBIT Next 3Y28.69%
EBIT Next 5Y22.85%
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%