NasdaqGS:GOOG.L

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Alphabet Inc. provides online advertising services in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. More Details


Snowflake Analysis

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Alphabet's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GOOG.L is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: GOOG.L's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

1.4%

GOOG.L

2.0%

US Interactive Media and Services

2.8%

US Market


1 Year Return

34.4%

GOOG.L

36.8%

US Interactive Media and Services

19.7%

US Market

Return vs Industry: GOOG.L underperformed the US Interactive Media and Services industry which returned 37.6% over the past year.

Return vs Market: GOOG.L exceeded the US Market which returned 20.4% over the past year.


Shareholder returns

GOOG.LIndustryMarket
7 Day1.4%2.0%2.8%
30 Day11.4%6.6%8.0%
90 Day8.3%4.6%6.8%
1 Year34.4%34.4%36.8%36.8%22.4%19.7%
3 Year70.1%70.1%57.2%57.1%47.3%37.5%
5 Year126.8%126.8%121.3%120.8%93.6%72.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Alphabet undervalued compared to its fair value and its price relative to the market?

4.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GOOG.L ($1763.9) is trading below our estimate of fair value ($1842.37)

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


Price To Earnings Ratio

PE vs Industry: GOOG.L is poor value based on its PE Ratio (33.8x) compared to the US Interactive Media and Services industry average (29.2x).

PE vs Market: GOOG.L is poor value based on its PE Ratio (33.8x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: GOOG.L is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: GOOG.L is overvalued based on its PB Ratio (5.6x) compared to the US Interactive Media and Services industry average (3x).


Next Steps

Future Growth

How is Alphabet forecast to perform in the next 1 to 3 years based on estimates from 36 analysts?

13.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GOOG.L's forecast earnings growth (13.8% per year) is above the savings rate (2.2%).

Earnings vs Market: GOOG.L's earnings (13.8% per year) are forecast to grow slower than the US market (22.1% per year).

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

Revenue vs Market: GOOG.L's revenue (14.6% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: GOOG.L's revenue (14.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GOOG.L's Return on Equity is forecast to be low in 3 years time (18.1%).


Next Steps

Past Performance

How has Alphabet performed over the past 5 years?

18.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GOOG.L has high quality earnings.

Growing Profit Margin: GOOG.L's current net profit margins (20.8%) are lower than last year (21%).


Past Earnings Growth Analysis

Earnings Trend: GOOG.L's earnings have grown by 18.1% per year over the past 5 years.

Accelerating Growth: GOOG.L's earnings growth over the past year (9.4%) is below its 5-year average (18.1% per year).

Earnings vs Industry: GOOG.L earnings growth over the past year (9.4%) exceeded the Interactive Media and Services industry 5%.


Return on Equity

High ROE: GOOG.L's Return on Equity (16.8%) is considered low.


Next Steps

Financial Health

How is Alphabet's financial position?


Financial Position Analysis

Short Term Liabilities: GOOG.L's short term assets ($164.4B) exceed its short term liabilities ($48.2B).

Long Term Liabilities: GOOG.L's short term assets ($164.4B) exceed its long term liabilities ($38.1B).


Debt to Equity History and Analysis

Debt Level: GOOG.L's debt to equity ratio (6.5%) is considered satisfactory.

Reducing Debt: GOOG.L's debt to equity ratio has reduced from 6.9% to 6.5% over the past 5 years.

Debt Coverage: GOOG.L's debt is well covered by operating cash flow (411.3%).

Interest Coverage: GOOG.L earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Alphabet current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GOOG.L's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GOOG.L's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GOOG.L's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GOOG.L's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GOOG.L's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Sundar Pichai (47 yo)

0.92

Tenure

US$280,621,552

Compensation

Mr. Sundar Pichai is Chief Executive Officer at Alphabet Inc. since December, 2019. Mr. Pichai has been the Chief Executive Officer of Google Inc., since October 02, 2015. Mr. Pichai leads the product mana...


CEO Compensation Analysis

Compensation vs Market: Sundar's total compensation ($USD280.62M) is above average for companies of similar size in the US market ($USD10.82M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Sundar Pichai
CEO & Director0.92yrUS$280.62m0.019%
$ 227.4m
Lawrence Page
Co-Founder & Director22.17yrsUS$1.002.95%
$ 35.3b
Sergey Brin
Co-Founder & Director22.17yrsUS$1.005.68%
$ 67.9b
Ruth Porat
Senior VP & CFO5.08yrsUS$664.05k0.011%
$ 126.7m
Eric Schmidt
Technical Advisor2.83yrsUS$3.41m1.19%
$ 14.3b
Amie O'Toole
Chief Accounting Officer & VP2.58yrsno data0.00019%
$ 2.3m
Ellen West
Vice President of Investor Relationsno datano datano data
Ivy Ross
Head of Project Aura and Vice Presidentno datano datano data
Astro Teller
Head of Google Xno datano datano data
Gulshan Verma
SVP & Head of Client and Agency - Hotstar2.08yrsno datano data
Susan Wojcicki
Chief Executive Officer of YouTube6.75yrsno datano data
James Campbell
VP & Corporate Controller4.75yrsno datano data

4.8yrs

Average Tenure

49yo

Average Age

Experienced Management: GOOG.L's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sundar Pichai
CEO & Director0.92yrUS$280.62m0.019%
$ 227.4m
Lawrence Page
Co-Founder & Director22.17yrsUS$1.002.95%
$ 35.3b
Sergey Brin
Co-Founder & Director22.17yrsUS$1.005.68%
$ 67.9b
L. Doerr
Independent Director21.5yrsUS$428.30k0.29%
$ 3.4b
Ann Mather
Independent Director15yrsUS$453.30k0.00042%
$ 5.0m
Alan Mulally
Independent Director6.33yrsUS$428.30k0.00050%
$ 6.0m
Kavitark Shriram
Independent Director22.08yrsUS$428.30k0.043%
$ 513.9m
John Hennessy
Chairman & Lead Independent Director2.83yrsUS$604.71k0.00061%
$ 7.3m
Robin Washington
Independent Director1.58yrsUS$1.05m0.000040%
$ 478.3k
Frances Arnold
Independent Director0.92yrno datano data
Roger Ferguson
Independent Director4.42yrsUS$428.30k0.00027%
$ 3.2m

6.3yrs

Average Tenure

63yo

Average Age

Experienced Board: GOOG.L's board of directors are considered experienced (6.3 years average tenure).


Ownership

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


Insider Trading Volume

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


Ownership Breakdown

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


Top Shareholders

Company Information

Alphabet Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alphabet Inc.
  • Ticker: GOOG.L
  • Exchange: NasdaqGS
  • Founded: 1998
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: US$1.196t
  • Shares outstanding: 676.43m
  • Website: https://www.abc.xyz

Number of Employees


Location

  • Alphabet Inc.
  • 1600 Amphitheatre Parkway
  • Mountain View
  • California
  • 94043
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GOOG.LNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDAug 2004
ABEADB (Deutsche Boerse AG)YesClass A Common StockDEEURAug 2004
GOOGL *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNAug 2004
GOOGLSWX (SIX Swiss Exchange)YesClass A Common StockCHCHFAug 2004
ABEAXTRA (XETRA Trading Platform)YesClass A Common StockDEEURAug 2004
GOOGLBVC (Bolsa de Valores de Colombia)YesClass A Common StockCOCOPAug 2004
GOOGLSNSE (Santiago Stock Exchange)YesClass A Common StockCLUSDAug 2004
GOOGLETLX (Eurotlx)YesClass A Common StockITEURAug 2004
GOOAWBAG (Wiener Boerse AG)YesClass A Common StockATEURAug 2004
0RIHLSE (London Stock Exchange)YesClass A Common StockGBUSDAug 2004
GOOGLBASE (Buenos Aires Stock Exchange)CEDEAR EA REP 1/29 COM(USD)ARARSJan 2014
GOOGNasdaqGS (Nasdaq Global Select)Class C Capital StockUSUSDMar 2014
ABECDB (Deutsche Boerse AG)Class C Capital StockDEEURMar 2014
GOOG *BMV (Bolsa Mexicana de Valores)Class C Capital StockMXMXNMar 2014
ABECXTRA (XETRA Trading Platform)Class C Capital StockDEEURMar 2014
GOOGSNSE (Santiago Stock Exchange)Class C Capital StockCLUSDMar 2014
GOOCWBAG (Wiener Boerse AG)Class C Capital StockATEURMar 2014
GOOGBIT (Borsa Italiana)Class C Capital StockITEURMar 2014
0HD6LSE (London Stock Exchange)Class C Capital StockGBUSDMar 2014
GOOGBVL (Bolsa de Valores de Lima)Class C Capital StockPEUSDMar 2014
GOGL34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 150 REP 1 COMBRBRLMay 2016
GOGL35BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 150 REP 1 COMBRBRLMay 2016

Biography

Alphabet Inc. provides online advertising services in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It offers performance and brand advertising services. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 01:03
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
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.