Alphabet Inc. Class C
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ALPHABET INC's gross profit margin for the third quarter of its fiscal year 2020 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. ALPHABET INC is extremely liquid. Currently, the Quick Ratio is 3.28 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 9.20% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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Income Statement | Q3 FY20 | Q3 FY19 |
---|---|---|
Net Sales ($mil) | 46173.0 | 40499.0 |
EBITDA ($mil) | 14691.0 | 12651.0 |
EBIT ($mil) | 11213.0 | 9731.0 |
Net Income ($mil) | 11247.0 | 7068.0 |
Balance Sheet | Q3 FY20 | Q3 FY19 |
---|---|---|
Cash & Equiv. ($mil) | 132596.0 | 121177.0 |
Total Assets ($mil) | 299243.0 | 263044.0 |
Total Debt ($mil) | 27542.0 | 14873.0 |
Equity ($mil) | 212920.0 | 194969.0 |
Profitability | Q3 FY20 | Q3 FY19 |
---|---|---|
Gross Profit Margin | 61.8 | 63.83 |
EBITDA Margin | 31.81 | 31.23 |
Operating Margin | 24.28 | 24.03 |
Sales Turnover | 0.57 | 0.59 |
Return on Assets | 11.93 | 12.4 |
Return on Equity | 16.77 | 16.73 |
Debt | Q3 FY20 | Q3 FY19 |
---|---|---|
Current Ratio | 3.41 | 3.78 |
Debt/Capital | 0.11 | 0.07 |
Interest Expense | 101.0 | 69.0 |
Interest Coverage | 111.02 | 141.03 |
Share Data | Q3 FY20 | Q3 FY19 |
---|---|---|
Shares outstanding (mil) | 677.72 | 690.91 |
Div / share | 0.0 | 0.0 |
EPS | 16.4 | 10.12 |
Book value / share | 314.17 | 282.19 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1692501.0 | 1741601.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 54.67 for the Data Processing, Hosting, and Related Services subsector and a discount compared to the S&P 500 average of 38.33. For additional comparison, its price-to-book ratio of 5.69 indicates a significant premium versus the S&P 500 average of 4.11 and a discount versus the subsector average of 6.64. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. Upon assessment of these and other key valuation criteria, ALPHABET INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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GOOG 34.54 | Peers 34.43 | GOOG 21.33 | Peers 23.19 | |||||||||||||||||||||
Average. An average P/E ratio can signify an subsector neutral price for a stock and an average growth expectation. GOOG is trading at a valuation on par with its peers. |
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. GOOG is trading at a valuation on par to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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GOOG 14.47 | Peers 28.86 | GOOG 0.31 | Peers 0.38 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. GOOG is trading at a significant discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. GOOG trades at a discount to its peers. |
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Price/Book |
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Earnings Growth |
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GOOG 5.69 | Peers 6.64 | GOOG 11.05 | Peers 32.87 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. GOOG is trading at a discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, GOOG is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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GOOG 7.05 | Peers 8.55 | GOOG 10.73 | Peers 14.57 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. GOOG is trading at a discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. GOOG significantly trails its peers on the basis of sales growth. |
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