Company Analysis
Alphabet Inc
GOOGL • Media
AI Summary
Alphabet Inc. demonstrates strong earnings growth, with a 48.5% increase in EPS, supported by its leading position across search, advertising, cloud services, and emerging healthcare initiatives. The company’s high return on equity at 39% underscores its efficient capital deployment. Currently trading near its fair value at a P/E of 27.5, Alphabet offers a growth-oriented investment opportunity with solid long-term fundamentals.
GoodStock Company Score
Score Breakdown
GoodStock Estimated Valuation
Valuation Range vs. Current Price
GoodStock Price Momentum
Momentum Indicators
GOOGL Stock Price
GoodStockClassification
| Theme | Quality | Momentum | Value |
|---|---|---|---|
| Best in Class | + | + | + |
| Quality at a Price | + | + | - |
| Contrarian | + | - | + |
| Yesterday's News | + | - | - |
| Restructuring | - | + | + |
| Momentum Trap | - | + | - |
| Value Trap | - | - | + |
| Worst in Class | - | - | - |
These investments represent top-performing assets in their respective sectors, demonstrating consistent growth, strong management, and a competitive edge. Investors choose them for stability and reliability, expecting continued outperformance compared to peers.
Earnings History
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Financial Ratios
AI Financial Ratios Summary
The company's strong Earnings Per Share (EPS) of 13.11 coupled with a healthy P/E ratio of 27.48 suggests investors are willing to pay a premium for its earnings, indicating confidence in future growth. Its high Return on Equity (38.98%) reflects efficient use of shareholder capital, while a low Debt-to-Equity ratio (0.12) and a robust Interest Coverage Ratio (16.2) demonstrate solid financial stability and low leverage risk. Together, these ratios indicate a financially sound company with the potential for stock appreciation, as its profitability and stability create a favorable environment for sustained growth and investor confidence.
- $13.1
- 27.48
- 38.98%
- 0.12%
- 16.2
- $2.07 M
- 2.01%
- $4400 B
Operational Ratios
AI Operational Ratios Summary
The company's high operating margin of 32.69% and gross margin of 60.37% suggest strong operational efficiency and effective cost management, enabling the firm to generate substantial profit from its core activities. Coupled with a robust net profit margin of 37.92% and a solid return on assets of 27.41%, these ratios indicate efficient utilization of resources and promising profitability, which support ongoing growth and potential for value creation. Additionally, the positive free cash flow CAGR of 11.33% and significant CAPEX growth at 32.63% demonstrate a focus on reinvestment and expansion, further enhancing the company's long-term growth prospects.
- 32.69%
- 60.37%
- 37.92%
- 27.41%
- $0.84
- 0.23%
- 11.33%
- 32.63%
Valuation Ratios
AI Valuation Ratios Summary
The company's high Price to SAP 500 ratio of 85.8 suggests that it is trading at a premium relative to its sales, while the low PEG ratio of 0.57 indicates that the stock's price growth prospects may be undervalued compared to earnings growth. Additionally, the positive cash per share and solid book value per share support a healthy financial position, implying the stock may be undervalued and potentially attractive for investment, especially if growth expectations materialize.
- $409
- $162
- $12
- 85.8%
- 0.57
- $68.3
- $34.4
- 10.5