Alphabet(Google) Long Bullish
Technical Bullish
HHHL above 99
Trendomat BuySell pressure Bullish
Weekly average price above Monthly average price
145.32 is critical as Volume value is weak.
Incase volume would increase and abreak above 151
Alphabet will potentially walk to above 210
A break below 86 is bearish.
Return vs Industry: GOOGL underperformed the US Interactive Media and Services industry which returned 22.5% over the past year.
Return vs Market: GOOGL underperformed the US Market which returned 14.5% over the past year.
Stable Share Price: GOOGL is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: GOOGL's weekly volatility (4%) has been stable over the past year.
Price-To-Earnings vs Peers: GOOGL is good value based on its Price-To-Earnings Ratio (26.7x) compared to the peer average (51x).
Price-To-Earnings vs Industry: GOOGL is expensive based on its Price-To-Earnings Ratio (26.7x) compared to the US Interactive Media and Services industry average (19.9x)
What is the Fair Price of GOOGL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: GOOGL ($123.1) is trading below our estimate of fair value ($160.36)
Significantly Below Fair Value: GOOGL is trading below fair value by more than 20%.
Alphabet is forecasted to grow earnings and revenue by 13.1% and 9% per annum respectively. EPS is expected to grow by 14.6%. Return on equity is forecast to be 22.3% in 3 years.
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GOOGL's forecast earnings growth (13.1% per year) is above the savings rate (2.1%).
Earnings vs Market: GOOGL's earnings (13.1% per year) are forecast to grow slower than the US market (15.7% per year).
High Growth Earnings: GOOGL's earnings are forecast to grow, but not significantly.
Revenue vs Market: GOOGL's revenue (9% per year) is forecast to grow faster than the US market (7.5% per year).
High Growth Revenue: GOOGL's revenue (9% per year) is forecast to grow slower than 20% per year.
Future ROE: GOOGL's Return on Equity is forecast to be high in 3 years time (22.3%)
Earnings and Revenue History
Quality Earnings: GOOGL has high quality earnings.
Growing Profit Margin: GOOGL's current net profit margins (20.6%) are lower than last year (27.6%).
Earnings Trend: GOOGL's earnings have grown significantly by 25.9% per year over the past 5 years.
Accelerating Growth: GOOGL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: GOOGL had negative earnings growth (-21.4%) over the past year, making it difficult to compare to the Interactive Media and Services industry average (-16.9%).
High ROE: GOOGL's Return on Equity (22.5%) is considered high.
Financial Position Analysis
Short Term Liabilities: GOOGL's short term assets ($162.0B) exceed its short term liabilities ($68.9B).
Long Term Liabilities: GOOGL's short term assets ($162.0B) exceed its long term liabilities ($39.7B).
Debt to Equity History and Analysis
Debt Level: GOOGL has more cash than its total debt.
Reducing Debt: GOOGL's debt to equity ratio has increased from 3.3% to 4.5% over the past 5 years.
Debt Coverage: GOOGL's debt is well covered by operating cash flow (757.9%).
Interest Coverage: GOOGL earns more interest than it pays, so coverage of interest payments is not a concern.
CEO Compensation Analysis
Compensation vs Market: Sundar's total compensation ($USD225.99M) is above average for companies of similar size in the US market ($USD12.23M).
Compensation vs Earnings: Sundar's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
HHHL above 99
Trendomat BuySell pressure Bullish
Weekly average price above Monthly average price
145.32 is critical as Volume value is weak.
Incase volume would increase and abreak above 151
Alphabet will potentially walk to above 210
A break below 86 is bearish.
Return vs Industry: GOOGL underperformed the US Interactive Media and Services industry which returned 22.5% over the past year.
Return vs Market: GOOGL underperformed the US Market which returned 14.5% over the past year.
Stable Share Price: GOOGL is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: GOOGL's weekly volatility (4%) has been stable over the past year.
Price-To-Earnings vs Peers: GOOGL is good value based on its Price-To-Earnings Ratio (26.7x) compared to the peer average (51x).
Price-To-Earnings vs Industry: GOOGL is expensive based on its Price-To-Earnings Ratio (26.7x) compared to the US Interactive Media and Services industry average (19.9x)
What is the Fair Price of GOOGL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: GOOGL ($123.1) is trading below our estimate of fair value ($160.36)
Significantly Below Fair Value: GOOGL is trading below fair value by more than 20%.
Alphabet is forecasted to grow earnings and revenue by 13.1% and 9% per annum respectively. EPS is expected to grow by 14.6%. Return on equity is forecast to be 22.3% in 3 years.
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GOOGL's forecast earnings growth (13.1% per year) is above the savings rate (2.1%).
Earnings vs Market: GOOGL's earnings (13.1% per year) are forecast to grow slower than the US market (15.7% per year).
High Growth Earnings: GOOGL's earnings are forecast to grow, but not significantly.
Revenue vs Market: GOOGL's revenue (9% per year) is forecast to grow faster than the US market (7.5% per year).
High Growth Revenue: GOOGL's revenue (9% per year) is forecast to grow slower than 20% per year.
Future ROE: GOOGL's Return on Equity is forecast to be high in 3 years time (22.3%)
Earnings and Revenue History
Quality Earnings: GOOGL has high quality earnings.
Growing Profit Margin: GOOGL's current net profit margins (20.6%) are lower than last year (27.6%).
Earnings Trend: GOOGL's earnings have grown significantly by 25.9% per year over the past 5 years.
Accelerating Growth: GOOGL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: GOOGL had negative earnings growth (-21.4%) over the past year, making it difficult to compare to the Interactive Media and Services industry average (-16.9%).
High ROE: GOOGL's Return on Equity (22.5%) is considered high.
Financial Position Analysis
Short Term Liabilities: GOOGL's short term assets ($162.0B) exceed its short term liabilities ($68.9B).
Long Term Liabilities: GOOGL's short term assets ($162.0B) exceed its long term liabilities ($39.7B).
Debt to Equity History and Analysis
Debt Level: GOOGL has more cash than its total debt.
Reducing Debt: GOOGL's debt to equity ratio has increased from 3.3% to 4.5% over the past 5 years.
Debt Coverage: GOOGL's debt is well covered by operating cash flow (757.9%).
Interest Coverage: GOOGL earns more interest than it pays, so coverage of interest payments is not a concern.
CEO Compensation Analysis
Compensation vs Market: Sundar's total compensation ($USD225.99M) is above average for companies of similar size in the US market ($USD12.23M).
Compensation vs Earnings: Sundar's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Comment:
trade is open