Alphabet Inc. Depository Shs Repr 1/20th Conv Pfd Registered Shs Fundamental Analysis (NASDAQ: GOOGN)
Alphabet Inc. Depository Shs Repr 1/20th Conv Pfd Registered Shs Fundamental Analysis (NASDAQ: GOOGN)
Alphabet Inc. Depository Shs Repr 1/20th Conv Pfd Registered Shs (NASDAQ: GOOGN) shows strong financial fundamentals with a PE ratio of 15.03, profit margin of 50.03%, and ROE of 42.62%. The company generates $7.4B in annual revenue with strong year-over-year growth of 15.09%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 80.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze GOOGN's fundamental strength across five key dimensions:
Efficiency Score
ExcellentGOOGN demonstrates superior asset utilization.
Valuation Score
ExcellentGOOGN trades at attractive valuation levels.
Growth Score
ExcellentGOOGN delivers strong and consistent growth momentum.
Financial Health Score
ExcellentGOOGN maintains a strong and stable balance sheet.
Profitability Score
ExcellentGOOGN achieves industry-leading margins.
Key Financial Metrics
Is GOOGN Expensive or Cheap?
P/E Ratio
GOOGN trades at 15.03 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, GOOGN's PEG of 0.17 indicates potential undervaluation.
Price to Book
The market values Alphabet Inc. Depository Shs Repr 1/20th Conv Pfd Registered Shs at 5.27 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.95 times EBITDA. This signals the market has high growth expectations.
How Well Does GOOGN Make Money?
Net Profit Margin
For every $100 in sales, Alphabet Inc. Depository Shs Repr 1/20th Conv Pfd Registered Shs keeps $50.03 as profit after all expenses.
Operating Margin
Core operations generate 33.32 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $42.62 in profit for every $100 of shareholder equity.
ROA
Alphabet Inc. Depository Shs Repr 1/20th Conv Pfd Registered Shs generates $23.49 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Alphabet Inc. Depository Shs Repr 1/20th Conv Pfd Registered Shs generates strong operating cash flow of $2.82B, reflecting robust business health.
Free Cash Flow
Alphabet Inc. Depository Shs Repr 1/20th Conv Pfd Registered Shs produces free cash flow of $310.16M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.61 in free cash annually.
FCF Yield
GOOGN converts 0.55% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.03
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.17
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.59
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.43
vs 25 benchmark
ROA
Return on assets percentage
0.23
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How GOOGN Stacks Against Its Sector Peers
| Metric | GOOGN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.03 | 18.71 | Better (Cheaper) |
| ROE | 42.62% | 905.00% | Weak |
| Net Margin | 50.03% | 1010.00% | Weak |
| Debt/Equity | 0.21 | -0.06 (disorted) | Distorted |
| Current Ratio | 2.79 | 1.82 | Strong Liquidity |
| ROA | 23.49% | 295.00% | Weak |
GOOGN outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Alphabet Inc. Depository Shs Repr 1/20th Conv Pfd Registered Shs's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
148.03%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
268.86%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
184.24%
Industry Style: Growth, Technology, Streaming
High Growth