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 233 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.
Each year in the past 5 years GS has been profitable.
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
Looking at the Return On Assets, with a value of 0.80%, GS is doing worse than 67.52% of the companies in the same industry.
GS's Return On Equity of 11.43% is fine compared to the rest of the industry. GS outperforms 66.67% of its industry peers.
GS has a Return On Invested Capital of 1.02%. This is in the lower half of the industry: GS underperforms 71.37% 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 7.86%.
The 3 year average ROIC (0.90%) for GS is below the current ROIC(1.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 11.43% | ||
| ROIC | 1.02% |
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's Profit Margin of 11.23% is in line compared to the rest of the industry. GS outperforms 44.44% of its industry peers.
In the last couple of years the Profit Margin of GS has declined.
The Operating Margin of GS (14.89%) is worse than 64.96% of its industry peers.
GS's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 37.45%, GS is not doing good in the industry: 67.95% 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 | 14.89% | ||
| 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
A Debt/Equity ratio of 8.58 is on the high side and indicates that GS has dependencies on debt financing.
GS has a worse Debt to Equity ratio (8.58) than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.58 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
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 85.47% 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.
Looking at the Quick ratio, with a value of 0.29, GS is doing worse than 85.47% of the companies in the same industry.
| 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.
The Revenue has grown by 9.59% in the past year. This is quite good.
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
GS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.57% yearly.
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 Year6.68%
Revenue Next 2Y5.55%
Revenue Next 3Y4.75%
Revenue Next 5Y3.47%
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.
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 16.36, GS is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as GS.
Compared to an average S&P500 Price/Earnings ratio of 27.41, GS is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.61, which indicates a correct valuation of GS.
GS's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of GS to the average of the S&P500 Index (35.19), we can say GS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.36 | ||
| Fwd PE | 13.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GS is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.19 |
4.3 Compensation for Growth
The 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)1.18
PEG (5Y)1.16
EPS Next 2Y13.03%
EPS Next 3Y12.3%
5. Dividend
5.1 Amount
GS has a Yearly Dividend Yield of 1.69%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.77, GS is paying slightly less dividend.
GS's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
5.2 History
The dividend of GS is nicely growing with an annual growth rate of 19.24%!
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
31.66% of the earnings are spent on dividend by GS. This is a low number and 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%
704.95
-4.17 (-0.59%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners74.22%
Inst Owner Change0%
Ins Owners0.53%
Ins Owner Change1.06%
Market Cap216.31B
Analysts76
Price Target606.75 (-13.93%)
Short Float %1.86%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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)0.34%
PT rev (3m)-7.86%
EPS NQ rev (1m)-3.32%
EPS NQ rev (3m)-9.96%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-2.74%
Revenue NQ rev (1m)-0.81%
Revenue NQ rev (3m)-2.66%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)-0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.36 | ||
| Fwd PE | 13.61 | ||
| P/S | 1.71 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.74 | ||
| P/tB | 1.74 | ||
| EV/EBITDA | 18.19 |
EPS(TTM)43.09
EY6.11%
EPS(NY)51.81
Fwd EY7.35%
FCF(TTM)-79.84
FCFYN/A
OCF(TTM)-73.02
OCFYN/A
SpS411.43
BVpS404.12
TBVpS404.12
PEG (NY)1.18
PEG (5Y)1.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 11.43% | ||
| ROCE | 2.94% | ||
| ROIC | 1.02% | ||
| ROICexc | 1.16% | ||
| ROICexgc | 1.19% | ||
| 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 | 8.58 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 50.5 | ||
| Cap/Depr | 92.16% | ||
| Cap/Sales | 1.66% | ||
| Interest Coverage | 0.26 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | N/A |
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 Y13.83%
EPS Next 2Y13.03%
EPS Next 3Y12.3%
EPS Next 5Y5.57%
Revenue 1Y (TTM)9.59%
Revenue growth 3Y24.97%
Revenue growth 5Y18.23%
Sales Q2Q%5.97%
Revenue Next Year6.68%
Revenue Next 2Y5.55%
Revenue Next 3Y4.75%
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