Alphabet Inc. Class CFind Ratings Reports
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 ($mil)||46173.0||40499.0|
|Net Income ($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|
|Profitability||Q3 FY20||Q3 FY19|
|Gross Profit Margin||61.8||63.83|
|Return on Assets||11.93||12.4|
|Return on Equity||16.77||16.73|
|Debt||Q3 FY20||Q3 FY19|
|Share Data||Q3 FY20||Q3 FY19|
|Shares outstanding (mil)||677.72||690.91|
|Div / share||0.0||0.0|
|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.
|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.
|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.
|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.
|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.