About Alphabet Inc.
Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment provides products and services, including ads, Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. It is also involved in the sale of apps and in-app purchases and digital content in Google Play and YouTube; and devices, as well as the provision of YouTube consumer subscription services, such as YouTube TV, YouTube Music and Premium, NFL Sunday Ticket, and Google One. The Google Cloud segment offers consumption-based fees and subscriptions for AI solutions, including AI infrastructure, Vertex AI platform, and Gemini enterprise. It also provides cybersecurity, and data and analytics services; Google Workspace that include cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet; and other enterprise services. The Other Bets segment sells transportation and internet services. Alphabet Inc. was incorporated in 1998 and is headquartered in Mountain View, California.
Alphabet Inc. (GOOG) is a Communication Services company in the Internet Content & Information industry with a market capitalisation of $4.1T. The stock trades at 16.83x trailing earnings and yields 0.26%.
- Sector
- Communication Services
- Industry
- Internet Content & Information
- Market cap
- $4.1T
- P/E ratio
- 16.83
- Forward P/E
- 22.55
- EPS (TTM)
- $19.93
- Revenue (TTM)
- $445.9B
- Free cash flow
- $22.7B
- Profit margin
- 54.8%
- Dividend yield
- 0.26%
- Beta
- 1.23
- Shares outstanding
- 5.5B
Financial health: Strong9.5/10
10 strengths, 0 concerns. No red flags against these benchmarks.
- Debt to equity: 0.12 (Strong, benchmark < 0.5) — Debt of 0.12x equity is conservative against the 0.5x benchmark. It has deteriorated over the last 4 years.
- Net debt vs cash flow: 0.2y (Strong, benchmark < 4 years) — Net debt of $17.8B is 0.2x annual free cash flow — under a year of cash flow to repay.
- Current ratio: 2.01 (Strong, benchmark > 1.5) — Short-term assets cover 2.01x short-term liabilities, against Graham's 1.5x floor. It has deteriorated over the last 4 years.
- Return on equity: 48.7% (Strong, benchmark > 15%) — Earns 48.7% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 60.9% (Strong, benchmark > 40%) — Keeps 60.9% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 54.8% (Strong, benchmark > 10%) — Turns 54.8% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $73.3B (Strong, benchmark positive) — Generated $73.3B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 24.2% (Strong, benchmark > 10%) — Revenue changed 24.2% year on year, comfortably past the > 10% mark.
- Earnings growth: 294.0% (Strong, benchmark > 10%) — Earnings changed 294.0% year on year, comfortably past the > 10% mark.
- PEG ratio: 1.21 (Watch, benchmark < 1) — At 1.21, the price looks fair relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 4.3% (Strong, benchmark < 60%) — Pays out 4.3% of earnings as dividends, leaving room to keep paying.