A Holistic Look At Alphabet Inc. (NASDAQ:GOOG.L)
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Alphabet Inc. (NASDAQ:GOOG.L) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of GOOG.L, it is a company with great financial health as well as a a strong history of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Alphabet here.
Flawless balance sheet with proven track record
Over the past year, GOOG.L has grown its earnings by 68%, with its most recent figure exceeding its annual average over the past five years. Not only did GOOG.L outperformed its past performance, its growth also exceeded the Interactive Media and Services industry expansion, which generated a 59% earnings growth. This is an notable feat for the company. GOOG.L's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. GOOG.L seems to have put its debt to good use, generating operating cash levels of 11.89x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
Next Steps:
For Alphabet, I've compiled three fundamental factors you should look at:
Future Outlook: What are well-informed industry analysts predicting for GOOG.L’s future growth? Take a look at our free research report of analyst consensus for GOOG.L’s outlook.
Valuation: What is GOOG.L worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether GOOG.L is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GOOG.L? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
