GOLDMAN SACHS GROUP INC (GS) Stock Fundamental Analysis
NYSE:GS - New York Stock Exchange, Inc. - US38141G1040 - Common Stock - Currency: USD
GS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 230 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
GS had positive earnings in the past year.
In the past year GS has reported a negative cash flow from operations.
GS had positive earnings in each of the past 5 years.
In multiple years GS reported negative operating cash flow during the last 5 years.
1.2 Ratios
GS has a Return On Assets of 0.81%. This is in the lower half of the industry: GS underperforms 70.87% of its industry peers.
GS has a Return On Equity (11.09%) which is in line with its industry peers.
The Return On Invested Capital of GS (1.08%) is worse than 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 7.10%.
The last Return On Invested Capital (1.08%) for GS is above the 3 year average (0.90%), which is a sign of increasing profitability.
| 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 in the lower half of the industry: GS underperforms 60.87% of its industry peers.
GS's Profit Margin has declined in the last couple of years.
GS has a Operating Margin of 14.56%. This is in the lower half of the industry: GS underperforms 63.91% of its industry peers.
In the last couple of years the Operating Margin of GS has declined.
Looking at the Gross Margin, with a value of 36.88%, GS is doing worse than 66.96% of the companies in the same industry.
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.
The number of shares outstanding for GS has been reduced compared to 5 years ago.
The debt/assets ratio for GS is higher compared to a year ago.
2.2 Solvency
GS has an Altman-Z score of -0.25. This is a bad value and indicates that GS is not financially healthy and even 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.
With a Debt to Equity ratio value of 8.32, GS is not doing good in the industry: 87.83% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.32 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.25 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.29 indicates that GS may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.29, GS is doing worse than 81.30% of the companies in the same industry.
A Quick Ratio of 0.29 indicates that GS may have some problems paying its short term obligations.
GS has a Quick ratio of 0.29. This is amonst the worse of the industry: GS underperforms 81.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
GS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 68.25%, which is quite impressive.
Measured over the past years, GS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.07% on average per year.
The Revenue has grown by 9.59% in the past year. This is quite good.
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)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
The Earnings Per Share is expected to grow by 7.88% on average over the next years.
Based on estimates for the next years, GS will show a small growth in Revenue. The Revenue will grow by 2.67% on average per year.
EPS Next Y14.31%
EPS Next 2Y13.14%
EPS Next 3Y12.56%
EPS Next 5Y7.88%
Revenue Next Year6.51%
Revenue Next 2Y5.48%
Revenue Next 3Y4.53%
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
The Price/Earnings ratio is 13.11, which indicates a correct valuation of GS.
The rest of the industry has a similar Price/Earnings ratio as GS.
Compared to an average S&P500 Price/Earnings ratio of 27.75, GS is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.88, the valuation of GS can be described as reasonable.
Based on the Price/Forward Earnings ratio, GS is valued a bit cheaper than 63.04% of the companies in the same industry.
GS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.11 | ||
| Fwd PE | 10.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GS is valued a bit cheaper than the industry average as 78.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.75 |
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.
A more expensive valuation may be justified as GS's earnings are expected to grow with 12.56% in the coming years.
PEG (NY)0.92
PEG (5Y)0.93
EPS Next 2Y13.14%
EPS Next 3Y12.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.20%, GS has a reasonable but not impressive dividend return.
GS's Dividend Yield is slightly below the industry average, which is at 8.35.
GS's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
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 their dividend for at least 10 years, which is a reliable track record.
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 2Y13.14%
EPS Next 3Y12.56%
NYSE:GS (5/2/2025, 2:54:05 PM)
564.89
+11.06 (+2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners73.6%
Inst Owner Change3.26%
Ins Owners0.52%
Ins Owner Change-0.57%
Market Cap175.56B
Analysts77.33
Price Target609.78 (7.95%)
Short Float %1.38%
Short Ratio1.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
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)-8.24%
PT rev (3m)1.35%
EPS NQ rev (1m)-1.71%
EPS NQ rev (3m)3.47%
EPS NY rev (1m)-2.33%
EPS NY rev (3m)5.57%
Revenue NQ rev (1m)-0.95%
Revenue NQ rev (3m)2.67%
Revenue NY rev (1m)-3.05%
Revenue NY rev (3m)-2.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.11 | ||
| Fwd PE | 10.88 | ||
| P/S | 1.38 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.44 | ||
| P/tB | 1.52 | ||
| EV/EBITDA | 15.75 |
EPS(TTM)43.09
EY7.63%
EPS(NY)51.91
Fwd EY9.19%
FCF(TTM)-49.24
FCFYN/A
OCF(TTM)-42.51
OCFYN/A
SpS408.16
BVpS392.54
TBVpS370.98
PEG (NY)0.92
PEG (5Y)0.93
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 Y14.31%
EPS Next 2Y13.14%
EPS Next 3Y12.56%
EPS Next 5Y7.88%
Revenue 1Y (TTM)9.59%
Revenue growth 3Y24.97%
Revenue growth 5Y18.23%
Sales Q2Q%5.97%
Revenue Next Year6.51%
Revenue Next 2Y5.48%
Revenue Next 3Y4.53%
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