WBAG:GS

Stock Analysis Report

Executive Summary

The Goldman Sachs Group, Inc. operates as an investment banking, securities, and investment management company worldwide.

Rewards

Trading at 7.3% below its fair value

Earnings are forecast to grow 3.26% per year

Pays a high and reliable dividend of 2.11%

Risk Analysis

No risks detected for GS from our risk checks.


Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

How has Goldman Sachs Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.6%

GS

1.1%

AT Capital Markets

0.1%

AT Market


1 Year Return

23.8%

GS

19.8%

AT Capital Markets

4.3%

AT Market

Return vs Industry: GS exceeded the Austrian Capital Markets industry which returned 19.3% over the past year.

Return vs Market: GS exceeded the Austrian Market which returned 5.1% over the past year.


Shareholder returns

GSIndustryMarket
7 Day-1.6%1.1%0.1%
30 Day-4.6%4.6%-0.3%
90 Day8.8%10.8%0.2%
1 Year26.4%23.8%24.7%19.8%8.1%4.3%
3 Yearn/a16.6%3.0%25.9%14.5%
5 Yearn/a9.8%-10.6%53.9%32.6%

Price Volatility Vs. Market

How volatile is Goldman Sachs Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Goldman Sachs Group undervalued compared to its fair value and its price relative to the market?

8.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GS (€219.05) is trading below our estimate of fair value (€236.26)

Significantly Below Fair Value: GS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GS is good value based on its PE Ratio (11.2x) compared to the Capital Markets industry average (22.7x).

PE vs Market: GS is good value based on its PE Ratio (11.2x) compared to the Austrian market (14.2x).


Price to Earnings Growth Ratio

PEG Ratio: GS is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: GS is good value based on its PB Ratio (1.1x) compared to the XE Capital Markets industry average (1.4x).


Next Steps

Future Growth

How is Goldman Sachs Group forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GS's forecast earnings growth (3.3% per year) is above the savings rate (-0.1%).

Earnings vs Market: GS's earnings (3.3% per year) are forecast to grow slower than the Austrian market (9.9% per year).

High Growth Earnings: GS's earnings are forecast to grow, but not significantly.

Revenue vs Market: GS's revenue (2.4% per year) is forecast to grow slower than the Austrian market (2.7% per year).

High Growth Revenue: GS's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GS's Return on Equity is forecast to be low in 3 years time (11.3%).


Next Steps

Past Performance

How has Goldman Sachs Group performed over the past 5 years?

3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GS has high quality earnings.

Growing Profit Margin: GS's current net profit margins (22.3%) are lower than last year (27.4%).


Past Earnings Growth Analysis

Earnings Trend: GS's earnings have grown by 3.3% per year over the past 5 years.

Accelerating Growth: GS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GS had negative earnings growth (-19.8%) over the past year, making it difficult to compare to the Capital Markets industry average (3.7%).


Return on Equity

High ROE: GS's Return on Equity (9.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Goldman Sachs Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: GS has a low level of unsold assets or inventory.

Debt Coverage by Assets: GS's debt is covered by short term assets (assets are 2.2x debt).


Financial Institutions Analysis

Asset Level: GS's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if GS has a sufficient allowance for bad loans.

Low Risk Liabilities: GS reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if GS has an acceptable proportion of non-loan assets held.

Low Risk Deposits: GS has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if GS has an appropriate level of bad loans.


Next Steps

Dividend

What is Goldman Sachs Group's current dividend yield, its reliability and sustainability?

2.14%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.6%markettop25%4.5%industryaverage3.1%forecastin3Years2.4%

Current dividend yield vs market & industry

Notable Dividend: GS's dividend (2.11%) is higher than the bottom 25% of dividend payers in the Austrian market (1.58%).

High Dividend: GS's dividend (2.11%) is low compared to the top 25% of dividend payers in the Austrian market (4.47%).


Stability and Growth of Payments

Stable Dividend: GS's dividends per share have been stable in the past 10 years.

Growing Dividend: GS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.5%), GS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GS's dividends in 3 years are forecast to be well covered by earnings (19.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

David Solomon (57yo)

1.3yrs

Tenure

US$20,662,835

Compensation

Mr. David Michael Solomon has been the Chief Executive Officer and Director of Goldman Sachs Group Inc. since October 1, 2018 and has been its Chairman since January 01, 2019. Mr. Solomon served as the Pre ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD20.66M) is above average for companies of similar size in the Austrian market ($USD3.59M).

Compensation vs Earnings: David's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Solomon
Chairman & CEO1.3yrsUS$20.66m0.051% $39.4m
John Waldron
President & COO1.3yrsUS$21.58m0.031% $24.2m
Stephen Scherr
Executive VP & CFO1.3yrsUS$29.52m0.033% $25.8m
Lloyd Blankfein
Senior Chairman1.1yrsUS$33.39m0.66% $508.8m
Timothy O'Neill
Co-Head of the Consumer & Investment Management Division0yrsUS$16.94m0.046% $35.5m
Richard Gnodde
Chief Executive Officer of Goldman Sachs International0yrsUS$18.06m0.040% $31.1m
J. Gardner
Director0yrsno datano data
Christopher French
MD, Head & Chairman of European Investment Banking0yrsno datano data
F. De Mallmann
Chair of Investment Banking2.8yrsno datano data
Atte Lahtiranta
Partner & Chief Technology Officer0.4yrsno datano data

1.3yrs

Average Tenure

57.5yo

Average Age

Experienced Management: GS's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
David Solomon
Chairman & CEO1.3yrsUS$20.66m0.051% $39.4m
Sonjoy Chatterjee
Chairman & Co-CEO of Goldman Sachs (India) Securities Pvt Ltd8.9yrsno datano data
Kenneth Hitchner
Chairman & CEO of Asia Pacific Ex-Japan2.4yrsno datano data
Martha Burns
Independent Director8.3yrsUS$620.17kno data
Lakshmi Mittal
Independent Director11.7yrsUS$575.22k0.0042% $3.3m
David Viniar
Director7.1yrsUS$595.18k0.25% $194.0m
Robert Zoellick
Chairman of International Advisors0yrsno datano data
Adebayo Ogunlesi
Independent Lead Director5.6yrsUS$620.32k0.00056% $434.6k
Peter Oppenheimer
Independent Director5.9yrsUS$620.32k0.00056% $434.6k
Marius Winkelman
Independent Director5.2yrsUS$620.22k0.025% $19.7m

5.9yrs

Average Tenure

62.5yo

Average Age

Experienced Board: GS's board of directors are considered experienced (5.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Goldman Sachs Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Goldman Sachs Group, Inc.
  • Ticker: GS
  • Exchange: WBAG
  • Founded: 1869
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: US$83.947b
  • Listing Market Cap: US$77.601b
  • Shares outstanding: 354.09m
  • Website: https://www.goldmansachs.com

Number of Employees


Location

  • The Goldman Sachs Group, Inc.
  • 200 West Street
  • New York
  • New York
  • 10282
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GSNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 1999
GS *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMay 1999
GOSDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1999
GOSXTRA (XETRA Trading Platform)YesCommon StockDEEURMay 1999
GSSWX (SIX Swiss Exchange)YesCommon StockCHCHFMay 1999
GSBVC (Bolsa de Valores de Colombia)YesCommon StockCOCOPMay 1999
GS-UETLX (Eurotlx)YesCommon StockITEURMay 1999
0R3GLSE (London Stock Exchange)YesCommon StockGBUSDMay 1999
GSWBAG (Wiener Boerse AG)YesCommon StockATEURMay 1999
GS.PRANYSE (New York Stock Exchange)PFD A 1/1000USUSDApr 2005
GS.PRDNYSE (New York Stock Exchange)SHS D 1/1000USUSDMay 2006
GSGI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR REPR 1/10 COM STK NPVBRBRLDec 2011
GS.PRJNYSE (New York Stock Exchange)DEP 1/1000 PFD JUSUSDApr 2013
GS.PRKNYSE (New York Stock Exchange)DEP 1/1000 SER KUSUSDApr 2014
GS.PRNNYSE (New York Stock Exchange)DEP 1/1000 SER NUSUSDFeb 2016
GOSIDB (Deutsche Boerse AG)5%-FRN SUB PERP USD 'P'DEUSDOct 2017
GSBASE (Buenos Aires Stock Exchange)CEDEAR EACH 13 R 1 COM(USD)ARARSApr 2019

Biography

The Goldman Sachs Group, Inc. operates as an investment banking, securities, and investment management company worldwide. It operates in four segments: Investment Banking, Institutional Client Services, Investing & Lending, and Investment Management. The Investment Banking segment provides financial advisory services, including strategic advisory assignments related to mergers and acquisitions, divestitures, corporate defense activities, restructurings, spin-offs, and risk management; and underwriting services, such as debt and equity underwriting of public offerings and private placements of various securities and other financial instruments, as well as derivative transactions with public and private sector clients. The Institutional Client Services segment is involved in client execution activities related to making markets in cash and derivative instruments for interest rate products, credit products, mortgages, currencies, commodities, and equities; and provision of securities services comprising financing, securities lending, and other brokerage services, as well as the marketing and clearing of client transactions on various stock, options, and futures exchanges. The Investing & Lending segment invests in and originates longer-term loans; and makes investments in debt securities and loans, public and private equity securities, and infrastructure and real estate entities, as well as provides unsecured and secured loans through its digital platforms. The Investment Management segment offers investment management services; and wealth advisory services consisting of portfolio management, financial planning and counseling, and brokerage and other transaction services. The company serves corporations, financial institutions, governments, and individuals. The Goldman Sachs Group, Inc. was founded in 1869 and is headquartered in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 23:09
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.