NYSE: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 33.5% below its fair value

Earnings grew by 58.3% over the past year

Pays a high and reliable dividend of 2.23%

Risk Analysis

Earnings are forecast to decline by an average of -1% per year for the next 3 years



Snowflake Analysis

Undervalued with solid track record and pays a dividend.


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

1.5%

GS

0.8%

US Capital Markets

0.03%

US Market


1 Year Return

25.0%

GS

20.1%

US Capital Markets

18.6%

US Market

Return vs Industry: GS exceeded the US Capital Markets industry which returned 20.1% over the past year.

Return vs Market: GS exceeded the US Market which returned 18.6% over the past year.


Shareholder returns

GSIndustryMarket
7 Day1.5%0.8%0.03%
30 Day0.6%4.8%1.7%
90 Day8.4%7.7%5.7%
1 Year27.6%25.0%22.4%20.1%21.1%18.6%
3 Year-2.7%-7.1%39.5%31.6%45.6%36.2%
5 Year28.2%19.0%84.0%66.9%71.1%52.3%

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

Valuation

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

33.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GS ($224.61) is trading below our estimate of fair value ($337.9)

Significantly Below Fair Value: GS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GS is good value based on its PE Ratio (10x) compared to the Capital Markets industry average (33.2x).

PE vs Market: GS is good value based on its PE Ratio (10x) compared to the US market (18.5x).


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 (1x) compared to the US Capital Markets industry average (6.3x).


Next Steps

Future Growth

How is Goldman Sachs Group forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

-1.0%

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 (-1% per year).

Earnings vs Market: GS's earnings are forecast to decline over the next 3 years (-1% per year).

High Growth Earnings: GS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: GS's revenue (1.3% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: GS's revenue (1.3% 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 (10.5%).


Next Steps

Past Performance

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

1.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GS has high quality earnings.

Growing Profit Margin: GS's current net profit margins (25.2%) are higher than last year (14.9%).


Past Earnings Growth Analysis

Earnings Trend: GS's earnings have grown by 1.5% per year over the past 5 years.

Accelerating Growth: GS's earnings growth over the past year (58.3%) exceeds its 5-year average (1.5% per year).

Earnings vs Industry: GS earnings growth over the past year (58.3%) exceeded the Capital Markets industry 20.6%.


Return on Equity

High ROE: GS's Return on Equity (9.7%) 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 2.1x 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?

2.23%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years2.3%

Current dividend yield vs market & industry

Notable Dividend: GS's dividend (2.23%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: GS's dividend (2.23%) is low compared to the top 25% of dividend payers in the US market (3.7%).


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 (16.4%), 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 (22% payout ratio).


Next Steps

Management

What is the CEO of Goldman Sachs Group's salary, the management and board of directors tenure and is there insider trading?

1.1yrs

Average management tenure


CEO

David Solomon (57yo)

1.2yrs

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 ($USD20.66M) is above average for companies of similar size in the US market ($USD11.01M).

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


Management Age and Tenure

1.1yrs

Average Tenure

57yo

Average Age

Experienced Management: GS's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Age and Tenure

5.8yrs

Average Tenure

62.5yo

Average Age

Experienced Board: GS's board of directors are considered experienced (5.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$671,44619 Jul 19
Dane Holmes
EntityIndividual
Shares3,165
Max PriceUS$212.85
SellUS$295,28422 Feb 19
Dane Holmes
EntityIndividual
Shares1,489
Max PriceUS$198.31

Ownership Breakdown

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


Management Team

  • Marty Chavez (55yo)

    Co-Head of Securities Division

    • Tenure: 1.1yrs
    • Compensation: US$18.07m
  • David Solomon (57yo)

    Chairman & CEO

    • Tenure: 1.2yrs
    • Compensation: US$20.66m
  • Lloyd Blankfein (64yo)

    Senior Chairman

    • Tenure: 0.9yrs
    • Compensation: US$33.39m
  • John Waldron (49yo)

    President & COO

    • Tenure: 1.2yrs
    • Compensation: US$21.58m
  • J. Gardner

    Director

    • Tenure: 0yrs
  • Richard Gnodde (58yo)

    Chief Executive Officer of Goldman Sachs International

    • Tenure: 0yrs
    • Compensation: US$18.06m
  • Chris French (63yo)

    MD, Head & Chairman of European Investment Banking

    • Tenure: 0yrs
  • Stephen Scherr (54yo)

    Executive VP & CFO

    • Tenure: 1.1yrs
    • Compensation: US$29.52m
  • Tim O'Neill

    Co-Head of the Consumer & Investment Management Division

    • Tenure: 0yrs
    • Compensation: US$16.94m
  • F. De Mallmann

    Chair of Investment Banking

    • Tenure: 2.6yrs

Board Members

  • Martha Burns (61yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: US$620.17k
  • Lakshmi Mittal (69yo)

    Independent Director

    • Tenure: 11.5yrs
    • Compensation: US$575.22k
  • David Viniar (64yo)

    Director

    • Tenure: 6.9yrs
    • Compensation: US$595.18k
  • Robert Zoellick (65yo)

    Chairman of International Advisors

    • Tenure: 0yrs
  • David Solomon (57yo)

    Chairman & CEO

    • Tenure: 1.2yrs
    • Compensation: US$20.66m
  • Bayo Ogunlesi (65yo)

    Independent Lead Director

    • Tenure: 5.4yrs
    • Compensation: US$620.32k
  • Peter Oppenheimer (56yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$620.32k
  • Sonjoy Chatterjee (51yo)

    Chairman & Co-CEO of Goldman Sachs (India) Securities Pvt Ltd

    • Tenure: 8.8yrs
  • Mark Winkelman (73yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$620.22k
  • Ken Hitchner (58yo)

    Chairman & CEO of Asia Pacific Ex-Japan

    • Tenure: 2.3yrs

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: NYSE
  • Founded: 1869
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: US$75.151b
  • 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
GSSWX (SIX Swiss Exchange)YesCommon StockCHCHFMay 1999
GSNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 1999
GOSDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1999
GSWBAG (Wiener Boerse AG)YesCommon StockATEURMay 1999
0R3GLSE (London Stock Exchange)YesCommon StockGBUSDMay 1999
GOSXTRA (XETRA Trading Platform)YesCommon StockDEEURMay 1999
GS-UETLX (Eurotlx)YesCommon StockITEURMay 1999
GSBVC (Bolsa de Valores de Colombia)YesCommon StockCOCOPMay 1999
GS *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMay 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)PERP JR SB -P BDDEUSDOct 2017
GSBASE (Buenos Aires Stock Exchange)CEDEARS (EACH 13 REP 1 COM USD1.00)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, In ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 23:39
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.