ALPHABET INC-CL A (GOOGL)
US02079K3059 - Common Stock
Overall GOOGL gets a fundamental rating of 7 out of 10. We evaluated GOOGL against 68 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 valued too expensively and it also shows a decent growth rate. This makes GOOGL very considerable for 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 18.34%, GOOGL belongs to the best of the industry, outperforming 95.52% of the companies in the same industry.
Looking at the Return On Equity, with a value of 26.04%, GOOGL belongs to the top of the industry, outperforming 95.52% of the companies in the same industry.
With an excellent Return On Invested Capital value of 23.42%, GOOGL belongs to the best of the industry, outperforming 98.51% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GOOGL is significantly above the industry average of 9.61%.
The last Return On Invested Capital (23.42%) for GOOGL is above the 3 year average (22.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.34% | ||
| ROE | 26.04% | ||
| ROIC | 23.42% |
ROA(3y)18.64%
ROA(5y)16.19%
ROE(3y)26.56%
ROE(5y)22.96%
ROIC(3y)22.54%
ROIC(5y)18.85%
1.3 Margins
Looking at the Profit Margin, with a value of 24.01%, GOOGL belongs to the top of the industry, outperforming 92.54% of the companies in the same industry.
GOOGL's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 28.70%, GOOGL belongs to the best of the industry, outperforming 97.01% of the companies in the same industry.
In the last couple of years the Operating Margin of GOOGL has grown nicely.
Looking at the Gross Margin, with a value of 56.94%, GOOGL is in line with its industry, outperforming 43.28% 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 | 28.7% | ||
| PM (TTM) | 24.01% | ||
| GM | 56.94% |
OM growth 3Y8.32%
OM growth 5Y3.8%
PM growth 3Y2.86%
PM growth 5Y1.34%
GM growth 3Y2.05%
GM growth 5Y0.16%
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
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 12.41. This indicates that GOOGL is financially healthy and has little risk of bankruptcy at the moment.
GOOGL has a better Altman-Z score (12.41) than 94.03% of its industry peers.
The Debt to FCF ratio of GOOGL is 0.20, which is an excellent value as it means it would take GOOGL, only 0.20 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GOOGL (0.20) is better than 86.57% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that GOOGL is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.05, GOOGL is in line with its industry, outperforming 49.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.2 | ||
| Altman-Z | 12.41 |
ROIC/WACC2.54
WACC9.21%
2.3 Liquidity
A Current Ratio of 2.10 indicates that GOOGL has no problem at all paying its short term obligations.
GOOGL has a Current ratio (2.10) which is comparable to the rest of the industry.
A Quick Ratio of 2.10 indicates that GOOGL has no problem at all paying its short term obligations.
The Quick ratio of GOOGL (2.10) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 2.1 |
3. Growth
3.1 Past
GOOGL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.44%, which is quite impressive.
Measured over the past years, GOOGL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.55% on average per year.
GOOGL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.68%.
The Revenue has been growing by 17.57% on average over the past years. This is quite good.
EPS 1Y (TTM)27.44%
EPS 3Y25.49%
EPS 5Y19.55%
EPS growth Q2Q56.19%
Revenue 1Y (TTM)8.68%
Revenue growth 3Y18.98%
Revenue growth 5Y17.57%
Revenue growth Q2Q13.49%
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 17.77% yearly.
Based on estimates for the next years, GOOGL will show a quite strong growth in Revenue. The Revenue will grow by 9.92% on average per year.
EPS Next Y20.95%
EPS Next 2Y18.01%
EPS Next 3Y16.71%
EPS Next 5Y17.77%
Revenue Next Year11.93%
Revenue Next 2Y11.2%
Revenue Next 3Y10.44%
Revenue Next 5Y9.92%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.44, GOOGL can be considered very expensive at the moment.
Based on the Price/Earnings ratio, GOOGL is valued a bit cheaper than the industry average as 70.15% of the companies are valued more expensively.
GOOGL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.25, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 22.68, the valuation of GOOGL can be described as rather expensive.
70.15% of the companies in the same industry are more expensive than GOOGL, based on the Price/Forward Earnings ratio.
GOOGL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.44 | ||
| Fwd PE | 22.68 |
4.2 Price Multiples
70.15% of the companies in the same industry are more expensive than GOOGL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GOOGL is valued a bit cheaper than 68.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.47 | ||
| EV/EBITDA | 17.8 |
4.3 Compensation for Growth
GOOGL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 16.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.31
PEG (5Y)1.4
EPS Next 2Y18.01%
EPS Next 3Y16.71%
5. Dividend
5.1 Amount
No dividends for GOOGL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ALPHABET INC-CL A
NASDAQ:GOOGL (4/24/2024, 9:03:55 PM)
After market: 154.6 -4.53 (-2.85%)159.13
+0.87 (+0.55%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1978.46B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.44 | ||
| Fwd PE | 22.68 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.31
PEG (5Y)1.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.34% | ||
| ROE | 26.04% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.7% | ||
| PM (TTM) | 24.01% | ||
| GM | 56.94% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.1 | ||
| Quick Ratio | 2.1 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)27.44%
EPS 3Y25.49%
EPS 5Y
EPS growth Q2Q
EPS Next Y20.95%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.68%
Revenue growth 3Y18.98%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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