GOLDMAN SACHS GROUP INC (GS) Stock Fundamental Analysis
NYSE:GS - New York Stock Exchange, Inc. - US38141G1040 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to GS. GS was compared to 237 industry peers in the Capital Markets industry. Both the profitability and financial health of GS have multiple concerns. GS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year GS was profitable.
In the past year GS has reported a negative cash flow from operations.
GS had positive earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: GS reported negative operating cash flow in multiple years.
1.2 Ratios
GS's Return On Assets of 0.80% is on the low side compared to the rest of the industry. GS is outperformed by 67.51% of its industry peers.
With a decent Return On Equity value of 11.41%, GS is doing good in the industry, outperforming 66.67% of the companies in the same industry.
GS's Return On Invested Capital of 1.05% is on the low side compared to the rest of the industry. GS is outperformed by 70.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GS is significantly below the industry average of 7.89%.
The last Return On Invested Capital (1.05%) for GS is above the 3 year average (0.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 11.41% | ||
| ROIC | 1.05% |
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
The Profit Margin of GS (11.23%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of GS has declined.
GS's Operating Margin of 14.89% is on the low side compared to the rest of the industry. GS is outperformed by 64.56% of its industry peers.
GS's Operating Margin has declined in the last couple of years.
GS has a worse Gross Margin (37.45%) than 67.51% of its industry peers.
In the last couple of years the Gross Margin of GS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.89% | ||
| PM (TTM) | 11.23% | ||
| GM | 37.45% |
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
GS has less shares outstanding than it did 1 year ago.
GS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, GS has a worse debt to assets ratio.
2.2 Solvency
GS has an Altman-Z score of -0.23. This is a bad value and indicates that GS is not financially healthy and even has some risk of bankruptcy.
GS has a worse Altman-Z score (-0.23) than 77.64% of its industry peers.
GS has a Debt/Equity ratio of 8.44. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of GS (8.44) is worse than 88.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.23 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
GS has a Current Ratio of 0.30. 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 0.30 is on the low side compared to the rest of the industry. GS is outperformed by 85.23% of its industry peers.
A Quick Ratio of 0.30 indicates that GS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.30, GS is doing worse than 85.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.3 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 45.68% over the past year.
The Earnings Per Share has been growing by 14.07% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.42% in the past year.
Measured over the past years, GS shows a quite strong growth in Revenue. The Revenue has been growing by 18.23% on average per year.
EPS 1Y (TTM)45.68%
EPS 3Y-11.93%
EPS 5Y14.07%
EPS Q2Q%26.57%
Revenue 1Y (TTM)5.42%
Revenue growth 3Y24.97%
Revenue growth 5Y18.23%
Sales Q2Q%14.55%
3.2 Future
The Earnings Per Share is expected to grow by 5.57% on average over the next years.
GS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.47% yearly.
EPS Next Y13.83%
EPS Next 2Y13.03%
EPS Next 3Y12.3%
EPS Next 5Y5.57%
Revenue Next Year9.53%
Revenue Next 2Y7.16%
Revenue Next 3Y6.13%
Revenue Next 5Y3.47%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
GS is valuated correctly with a Price/Earnings ratio of 15.90.
The rest of the industry has a similar Price/Earnings ratio as GS.
GS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.24.
Based on the Price/Forward Earnings ratio of 13.93, the valuation of GS can be described as correct.
GS's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.42, GS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.9 | ||
| Fwd PE | 13.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GS is valued a bit cheaper than 74.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.54 |
4.3 Compensation for Growth
GS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GS's earnings are expected to grow with 12.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.15
PEG (5Y)1.13
EPS Next 2Y13.03%
EPS Next 3Y12.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.21%, GS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 8.25, GS is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.40, GS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
5.2 History
On average, the dividend of GS grows each year by 19.24%, which is quite nice.
GS has paid a dividend for at least 10 years, which is 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 31.66% of its income as dividend. This is a sustainable payout ratio.
GS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.66%
EPS Next 2Y13.03%
EPS Next 3Y12.3%
NYSE:GS (8/5/2025, 2:02:59 PM)
721.705
-4.32 (-0.6%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners74.22%
Inst Owner Change9.15%
Ins Owners0.53%
Ins Owner Change0.71%
Market Cap221.45B
Analysts76
Price Target693.62 (-3.89%)
Short Float %2.01%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
Yearly Dividend14.19
Dividend Growth(5Y)19.24%
DP31.66%
Div Incr Years13
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.04%
Min EPS beat(2)11%
Max EPS beat(2)41.07%
EPS beat(4)4
Avg EPS beat(4)17.7%
Min EPS beat(4)0.29%
Max EPS beat(4)41.07%
EPS beat(8)6
Avg EPS beat(8)18.46%
EPS beat(12)9
Avg EPS beat(12)11.92%
EPS beat(16)12
Avg EPS beat(16)14.67%
Revenue beat(2)1
Avg Revenue beat(2)3.71%
Min Revenue beat(2)-1.25%
Max Revenue beat(2)8.67%
Revenue beat(4)2
Avg Revenue beat(4)2.78%
Min Revenue beat(4)-1.25%
Max Revenue beat(4)8.67%
Revenue beat(8)5
Avg Revenue beat(8)2.48%
Revenue beat(12)9
Avg Revenue beat(12)24.27%
Revenue beat(16)13
Avg Revenue beat(16)23.71%
PT rev (1m)14.32%
PT rev (3m)13.75%
EPS NQ rev (1m)-0.49%
EPS NQ rev (3m)-2.58%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)-0.42%
Revenue NQ rev (1m)0.76%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)2.67%
Revenue NY rev (3m)2.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.9 | ||
| Fwd PE | 13.93 | ||
| P/S | 1.75 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.78 | ||
| P/tB | 1.88 | ||
| EV/EBITDA | 19.54 |
EPS(TTM)45.38
EY6.29%
EPS(NY)51.81
Fwd EY7.18%
FCF(TTM)-79.84
FCFYN/A
OCF(TTM)-73.02
OCFYN/A
SpS411.43
BVpS405.1
TBVpS383.13
PEG (NY)1.15
PEG (5Y)1.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 11.41% | ||
| ROCE | 3% | ||
| ROIC | 1.05% | ||
| ROICexc | 1.19% | ||
| ROICexgc | 1.2% | ||
| OM | 14.89% | ||
| PM (TTM) | 11.23% | ||
| GM | 37.45% | ||
| 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 Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.44 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 49.76 | ||
| Cap/Depr | 92.16% | ||
| Cap/Sales | 1.66% | ||
| Interest Coverage | 0.26 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.3 | ||
| Quick Ratio | 0.3 | ||
| Altman-Z | -0.23 |
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)45.68%
EPS 3Y-11.93%
EPS 5Y14.07%
EPS Q2Q%26.57%
EPS Next Y13.83%
EPS Next 2Y13.03%
EPS Next 3Y12.3%
EPS Next 5Y5.57%
Revenue 1Y (TTM)5.42%
Revenue growth 3Y24.97%
Revenue growth 5Y18.23%
Sales Q2Q%14.55%
Revenue Next Year9.53%
Revenue Next 2Y7.16%
Revenue Next 3Y6.13%
Revenue Next 5Y3.47%
EBIT growth 1Y48.68%
EBIT growth 3Y-11.94%
EBIT growth 5Y11.78%
EBIT Next Year1.64%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-171.52%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-159.51%
OCF growth 3YN/A
OCF growth 5YN/A