| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 0/6 |
| Past Performance | 5/6 |
| Financial Health | 2/6 |
| Dividends | 5/6 |
GS Overview
The Goldman Sachs Group, Inc., a financial institution, provides range of financial services for corporations, financial institutions, governments, and individuals worldwide.
Goldman Sachs Group Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$391.86 |
| 52 Week High | US$185.52 |
| 52 Week Low | US$420.76 |
| Beta | 1.5 |
| 1 Month Change | -4.09% |
| 3 Month Change | 6.26% |
| 1 Year Change | 100.84% |
| 3 Year Change | 72.07% |
| 5 Year Change | 146.53% |
| Change since IPO | 456.82% |
Recent News & Updates
Goldman Sachs And Its Recent 60% Dividend Hike
I last wrote about Goldman Sachs in early June 2021. The thesis was that it was overvalued by about 35% based on its then-current fundamentals and by about 20%. Since my last writing, there was little change in its price but a few things have changed in the fundamentals. This article, therefore, provides an updated assessment of its valuation, and the conclusion is the margin of safety is much improved now and GS is about fairly valued based on its forward financials.
Goldman Sachs Group (NYSE:GS) Has Announced That It Will Be Increasing Its Dividend To US$2.00
The board of The Goldman Sachs Group, Inc. ( NYSE:GS ) has announced that it will be increasing its dividend on the...
Shareholder Returns
| GS | US Capital Markets | US Market | |
|---|---|---|---|
| 7D | -1.2% | -0.6% | -0.5% |
| 1Y | 100.8% | 68.1% | 37.5% |
Return vs Industry: GS exceeded the US Capital Markets industry which returned 65.2% over the past year.
Return vs Market: GS exceeded the US Market which returned 36.2% over the past year.
Price Volatility
| GS volatility | |
|---|---|
| GS Beta | 1.5 |
| Industry Beta | 1.19 |
| Market Beta | 1 |
Stable Share Price: GS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: GS's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1869 | 40,800 | David Solomon | https://www.goldmansachs.com |
The Goldman Sachs Group, Inc., a financial institution, provides range of financial services for corporations, financial institutions, governments, and individuals worldwide. It operates through four segments: Investment Banking, Global Markets, Asset Management, and Consumer & Wealth Management. The company’s Investment Banking segment provides financial advisory services, including strategic advisory assignments related to mergers and acquisitions, divestitures, corporate defense activities, restructurings, and spin-offs; and middle-market lending, relationship lending, and acquisition financing, as well as transaction banking services.
Goldman Sachs Group Fundamentals Summary
| GS fundamental statistics | |
|---|---|
| Market Cap | US$124.07b |
| Earnings (TTM) | US$19.63b |
| Revenue (TTM) | US$55.21b |
6.4x
P/E Ratio2.3x
P/S RatioIs GS overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| GS income statement (TTM) | |
|---|---|
| Revenue | US$55.21b |
| Cost of Revenue | US$5.91b |
| Gross Profit | US$49.30b |
| Expenses | US$29.67b |
| Earnings | US$19.63b |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Oct 15, 2021
| Earnings per share (EPS) | 55.32 |
| Gross Margin | 89.30% |
| Net Profit Margin | 35.56% |
| Debt/Equity Ratio | 547.6% |
How did GS perform over the long term?
See historical performance and comparisonDividends
2.0%
Current Dividend Yield9%
Payout RatioValuation
Is Goldman Sachs Group undervalued compared to its fair value and its price relative to the market?
8.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GS ($391.86) is trading below our estimate of fair value ($428.63)
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 (6.4x) compared to the US Capital Markets industry average (14.8x).
PE vs Market: GS is good value based on its PE Ratio (6.4x) compared to the US market (17.7x).
Price to Earnings Growth Ratio
PEG Ratio: GS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: GS is good value based on its PB Ratio (1.4x) compared to the US Capital Markets industry average (61.3x).
Future Growth
How is Goldman Sachs Group forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
-18.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GS's earnings are forecast to decline over the next 3 years (-18.5% per year).
Earnings vs Market: GS's earnings are forecast to decline over the next 3 years (-18.5% per year).
High Growth Earnings: GS's earnings are forecast to decline over the next 3 years.
Revenue vs Market: GS's revenue is expected to decline over the next 3 years (-10.1% per year).
High Growth Revenue: GS's revenue is forecast to decline over the next 3 years (-10.1% 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 (12.1%).
Past Performance
How has Goldman Sachs Group performed over the past 5 years?
16.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GS has high quality earnings.
Growing Profit Margin: GS's current net profit margins (35.6%) are higher than last year (12.9%).
Past Earnings Growth Analysis
Earnings Trend: GS's earnings have grown by 16.5% per year over the past 5 years.
Accelerating Growth: GS's earnings growth over the past year (308.6%) exceeds its 5-year average (16.5% per year).
Earnings vs Industry: GS earnings growth over the past year (308.6%) exceeded the Capital Markets industry 77.4%.
Return on Equity
High ROE: GS's Return on Equity (19.5%) is considered low.
Financial Health
How is Goldman Sachs Group's financial position?
Financial Position Analysis
Short Term Liabilities: GS's short term assets ($1,268.5B) exceed its short term liabilities ($765.6B).
Long Term Liabilities: GS's short term assets ($1,268.5B) exceed its long term liabilities ($518.8B).
Debt to Equity History and Analysis
Debt Level: GS's debt to equity ratio (547.6%) is considered high.
Reducing Debt: GS's debt to equity ratio has increased from 443.3% to 547.6% over the past 5 years.
Debt Coverage: GS's debt is not well covered by operating cash flow (11.7%).
Interest Coverage: Insufficient data to determine if GS's interest payments on its debt are well covered by EBIT.
Balance Sheet
Dividend
What is Goldman Sachs Group current dividend yield, its reliability and sustainability?
2.04%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GS's dividend (2.04%) is higher than the bottom 25% of dividend payers in the US market (1.35%).
High Dividend: GS's dividend (2.04%) is low compared to the top 25% of dividend payers in the US market (3.63%).
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 (9%), GS's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: GS's dividends in 3 years are forecast to be well covered by earnings (22.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.9yrs
Average management tenure
CEO
David Solomon (59 yo)
2.92yrs
Tenure
US$23,940,657
Compensation
Mr. David Michael Solomon has been the Chief Executive Officer and Director of Goldman Sachs Group Inc. since October 1, 2018 and has been its Chairman since January 01, 2019. Mr. Solomon served as the Pre...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($USD23.94M) is above average for companies of similar size in the US market ($USD11.36M).
Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: GS's management team is considered experienced (2.9 years average tenure).
Board Members
Experienced Board: GS's board of directors are considered experienced (7.2 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 employee growth, exchange listings and data sources
Key Information
- Name: The Goldman Sachs Group, Inc.
- Ticker: GS
- Exchange: NYSE
- Founded: 1869
- Industry: Investment Banking and Brokerage
- Sector: Diversified Financials
- Market Cap: US$124.073b
- Shares outstanding: 321.87m
- Website: https://www.goldmansachs.com
Number of Employees
Location
- The Goldman Sachs Group, Inc.
- 200 West Street
- 29th Floor
- New York
- New York
- 10282
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/23 22:58 |
| End of Day Share Price | 2021/09/23 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.