GOLDMAN SACHS GROUP INC (GS) Stock Fundamental Analysis
NYSE:GS - New York Stock Exchange, Inc. - US38141G1040 - Common Stock - Currency: USD
Taking everything into account, GS scores 3 out of 10 in our fundamental rating. GS was compared to 230 industry peers in the Capital Markets industry. Both the profitability and financial health of GS have multiple concerns. GS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
GS had positive earnings in the past year.
In the past year GS has reported a negative cash flow from operations.
In the past 5 years GS has always been profitable.
In multiple years GS reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a Return On Assets value of 0.81%, GS is not doing good in the industry: 68.70% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 11.09%, GS is in the better half of the industry, outperforming 61.74% of the companies in the same industry.
GS's Return On Invested Capital of 1.08% is on the low side compared to the rest of the industry. GS is outperformed by 70.00% of its industry peers.
GS had an Average Return On Invested Capital over the past 3 years of 0.90%. This is significantly below the industry average of 7.27%.
The 3 year average ROIC (0.90%) for GS is below the current ROIC(1.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.81% | ||
| ROE | 11.09% | ||
| ROIC | 1.08% |
ROA(3y)0.68%
ROA(5y)0.85%
ROE(3y)9.01%
ROE(5y)11.11%
ROIC(3y)0.9%
ROIC(5y)1.18%
1.3 Margins
GS has a Profit Margin of 10.66%. This is comparable to the rest of the industry: GS outperforms 40.43% of its industry peers.
In the last couple of years the Profit Margin of GS has declined.
GS has a worse Operating Margin (14.56%) than 64.35% of its industry peers.
GS's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 36.88%, GS is not doing good in the industry: 67.39% of the companies in the same industry are doing better.
GS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.56% | ||
| PM (TTM) | 10.66% | ||
| GM | 36.88% |
OM growth 3Y-29.54%
OM growth 5Y-5.46%
PM growth 3Y-31.06%
PM growth 5Y-5.81%
GM growth 3Y-24.01%
GM growth 5Y-9.99%
2. Health
2.1 Basic Checks
The number of shares outstanding for GS has been reduced compared to 1 year ago.
Compared to 5 years ago, GS has less shares outstanding
Compared to 1 year ago, GS has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.25, we must say that GS is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.25, GS is doing worse than 78.70% of the companies in the same industry.
GS has a Debt/Equity ratio of 8.32. This is a high value indicating a heavy dependency on external financing.
GS's Debt to Equity ratio of 8.32 is on the low side compared to the rest of the industry. GS is outperformed by 87.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.32 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.25 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
GS has a Current Ratio of 0.29. This is a bad value and indicates that GS is not financially healthy enough and could expect problems in meeting its short term obligations.
GS's Current ratio of 0.29 is on the low side compared to the rest of the industry. GS is outperformed by 80.43% of its industry peers.
A Quick Ratio of 0.29 indicates that GS may have some problems paying its short term obligations.
GS's Quick ratio of 0.29 is on the low side compared to the rest of the industry. GS is outperformed by 80.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 68.25% over the past year.
The Earnings Per Share has been growing by 14.07% on average over the past years. This is quite good.
GS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.59%.
The Revenue has been growing by 18.23% on average over the past years. This is quite good.
EPS 1Y (TTM)68.25%
EPS 3Y-11.93%
EPS 5Y14.07%
EPS Q2Q%21.93%
Revenue 1Y (TTM)9.59%
Revenue growth 3Y24.97%
Revenue growth 5Y18.23%
Sales Q2Q%5.97%
3.2 Future
Based on estimates for the next years, GS will show a small growth in Earnings Per Share. The EPS will grow by 7.88% on average per year.
GS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.67% yearly.
EPS Next Y14.16%
EPS Next 2Y12.93%
EPS Next 3Y12.02%
EPS Next 5Y7.88%
Revenue Next Year6.56%
Revenue Next 2Y5.44%
Revenue Next 3Y4.45%
Revenue Next 5Y2.67%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.88, GS is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of GS is on the same level as its industry peers.
GS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.91.
A Price/Forward Earnings ratio of 11.57 indicates a reasonable valuation of GS.
GS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GS is cheaper than 61.30% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.85, GS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.88 | ||
| Fwd PE | 11.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GS indicates a somewhat cheap valuation: GS is cheaper than 77.83% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.34 |
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.
GS's earnings are expected to grow with 12.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.98
PEG (5Y)0.99
EPS Next 2Y12.93%
EPS Next 3Y12.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.95%, GS has a reasonable but not impressive dividend return.
GS's Dividend Yield is slightly below the industry average, which is at 8.11.
GS's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
5.2 History
On average, the dividend of GS grows each year by 19.24%, which is quite nice.
GS has been paying a dividend for at least 10 years, so it has a reliable track record.
GS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)19.24%
Div Incr Years13
Div Non Decr Years14
5.3 Sustainability
GS pays out 33.25% of its income as dividend. This is a sustainable payout ratio.
The dividend of GS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP33.25%
EPS Next 2Y12.93%
EPS Next 3Y12.02%
598.23
+4.77 (+0.8%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners73.6%
Inst Owner Change0.85%
Ins Owners0.52%
Ins Owner Change0.95%
Market Cap185.92B
Analysts76
Price Target604.71 (1.08%)
Short Float %1.64%
Short Ratio1.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
Yearly Dividend14.19
Dividend Growth(5Y)19.24%
DP33.25%
Div Incr Years13
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)29.75%
Min EPS beat(2)18.43%
Max EPS beat(2)41.07%
EPS beat(4)4
Avg EPS beat(4)22.78%
Min EPS beat(4)0.29%
Max EPS beat(4)41.07%
EPS beat(8)6
Avg EPS beat(8)19.38%
EPS beat(12)9
Avg EPS beat(12)12.47%
EPS beat(16)12
Avg EPS beat(16)18.77%
Revenue beat(2)2
Avg Revenue beat(2)6.57%
Min Revenue beat(2)4.48%
Max Revenue beat(2)8.67%
Revenue beat(4)3
Avg Revenue beat(4)4.8%
Min Revenue beat(4)-0.77%
Max Revenue beat(4)8.67%
Revenue beat(8)6
Avg Revenue beat(8)14.23%
Revenue beat(12)10
Avg Revenue beat(12)25.84%
Revenue beat(16)14
Avg Revenue beat(16)26.81%
PT rev (1m)-8.17%
PT rev (3m)-6.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.4%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-3.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.43%
Revenue NY rev (1m)-0.95%
Revenue NY rev (3m)-3.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.88 | ||
| Fwd PE | 11.57 | ||
| P/S | 1.47 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.52 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | 16.34 |
EPS(TTM)43.09
EY7.2%
EPS(NY)51.71
Fwd EY8.64%
FCF(TTM)-49.24
FCFYN/A
OCF(TTM)-42.51
OCFYN/A
SpS408.16
BVpS392.54
TBVpS370.98
PEG (NY)0.98
PEG (5Y)0.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.81% | ||
| ROE | 11.09% | ||
| ROCE | 3.21% | ||
| ROIC | 1.08% | ||
| ROICexc | 1.25% | ||
| ROICexgc | 1.26% | ||
| OM | 14.56% | ||
| PM (TTM) | 10.66% | ||
| GM | 36.88% | ||
| FCFM | N/A |
ROA(3y)0.68%
ROA(5y)0.85%
ROE(3y)9.01%
ROE(5y)11.11%
ROIC(3y)0.9%
ROIC(5y)1.18%
ROICexc(3y)1.1%
ROICexc(5y)1.47%
ROICexgc(3y)1.11%
ROICexgc(5y)1.48%
ROCE(3y)2.51%
ROCE(5y)3.11%
ROICexcg growth 3Y-19.38%
ROICexcg growth 5Y-1.43%
ROICexc growth 3Y-19.4%
ROICexc growth 5Y-1.39%
OM growth 3Y-29.54%
OM growth 5Y-5.46%
PM growth 3Y-31.06%
PM growth 5Y-5.81%
GM growth 3Y-24.01%
GM growth 5Y-9.99%
F-Score5
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.32 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 48.68 | ||
| Cap/Depr | 87.42% | ||
| Cap/Sales | 1.65% | ||
| Interest Coverage | 0.25 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | -0.25 |
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)95.93%
Cap/Depr(5y)170.22%
Cap/Sales(3y)3.08%
Cap/Sales(5y)5.52%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)68.25%
EPS 3Y-11.93%
EPS 5Y14.07%
EPS Q2Q%21.93%
EPS Next Y14.16%
EPS Next 2Y12.93%
EPS Next 3Y12.02%
EPS Next 5Y7.88%
Revenue 1Y (TTM)9.59%
Revenue growth 3Y24.97%
Revenue growth 5Y18.23%
Sales Q2Q%5.97%
Revenue Next Year6.56%
Revenue Next 2Y5.44%
Revenue Next 3Y4.45%
Revenue Next 5Y2.67%
EBIT growth 1Y59.99%
EBIT growth 3Y-11.94%
EBIT growth 5Y11.78%
EBIT Next Year1.64%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-2.68%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-4.97%
OCF growth 3YN/A
OCF growth 5YN/A