Dubbed the Magnificent Seven stocks, Apple, Microsoft, Google parent
Showing posts with label Google. Show all posts
Showing posts with label Google. Show all posts
Friday, 26 April 2024
The Magnificent Seven stocks: Apple, Microsoft, Google parent Alphabet, Amazon, Nvidia, Meta Platforms and Tesla
Tuesday, 26 September 2023
Tuesday, 14 June 2022
Fundamentals of Alphabet Inc. Cl C GOOG (U.S.: Nasdaq)
INCOME STATEMENT
ANNUAL
Fiscal year is January-December. All values USD Millions.
2021
2020
2019
2018
2017 5-year trend
Sales/Revenue
257,488
182,350
161,402
136,958
111,024
Gross Income
146,549
97,618
89,506
77,409
65,441
Gross Profit Margin 56.91
Non-Operating Interest Income
1,499
1,865
2,427
1,878
1,312
Pretax Income
90,734
48,082
39,625
34,913
27,193
Pretax Margin 35.24%
Net Income
76,033
40,269
34,343
30,736
12,662
Net Margin 29.53%
EPS (Basic)
112.20
58.61
49.16
43.70
18.00
EBITDA
91,006
54,744
47,254
40,566
35,966
CASH FLOW STATEMENT
Operating Activities
Fiscal year is January-December. All values USD Millions.
2021
2020
2019
2018
2017 5-year trend
Net Income before Extraordinaries
76,033
40,269
34,343
30,736
12,662
Depreciation, Depletion & Amortization
12,441
13,697
11,781
9,035
6,915
Funds from Operations
93,175
63,297
53,701
43,063
27,845
Net Operating Cash Flow
91,652
65,124
54,520
47,971
37,091
Capital Expenditures
(24,640)
(22,281)
(23,548)
(25,139)
(13,184)
Repurchase of Common & Preferred Stk.
(50,274)
(31,149)
(18,396)
(9,075)
(4,846)
Free Cash Flow
67,012
42,843
30,972
22,832
23,907
Free Cash Flow Yield 3.41%
BALANCE SHEET
ANNUAL
Assets
Fiscal year is January-December. All values USD Millions.
2021
2020
2019
2018
2017 5-year trend
Cash & Short Term Investments
139,649
136,694
119,675
109,140
101,871
ST Debt & Current Portion LT Debt
2,302
2,794
1,199
-
-
Long-Term Debt
26,206
25,078
14,768
4,012
3,969
Total Current Assets
188,143
174,296
152,578
135,676
124,308
Total Current Liabilities
64,254
56,834
45,221
34,620
24,183
Current Ratio 2.93
Quick Ratio 2.91
Cash Ratio 2.17
Total Assets
359,268
319,616
275,909
232,792
197,295
Asset Turnover 0.76
Return On Average Assets 22.40%
Total Liabilities
107,633
97,072
74,467
55,164
44,793
Total Shareholders' Equity
251,635
222,544
201,442
177,628
152,502
Total Shareholders' Equity / Total Assets
70.04%
69.63%
73.01%
76.30%
77.30%
KEY STOCK DATA
P/E Ratio (TTM)
19.33(06/13/22)
EPS (TTM)
$110.56
Market Cap
$1.40 T (@ 06/13/22 $2,137.53USD / share)
Shares Outstanding
313.38 M
Public Float
273.83 M
Yield
GOOG is not currently paying a regular dividend.
Latest Dividend
N/A
Ex-Dividend Date
N/A
Average Growth Rates
Alphabet Inc. Cl C
Past Five Years
Ending 12/31/2021 (Fiscal Year)
Revenue
+26.38%
Income
+100.10%
Earnings Per Share
-
Capital Spending
+17.38%
Gross Margin
+62.77%
Cash Flow
+36.06%
Share price
2,130.43 USD-769.63 year to date
14 Jun, 9:41 am GMT-4
2,131.91 USD-318.71 past year
14 Jun, 9:41 am GMT-4
2,131.91 USD+1,171.58 past 5 years
14 Jun, 9:41 am GMT-4
2,131.91 USD+2,076.04 all time
14 Jun, 9:41 am GMT-4
Peak price US $2,997 (18.11.20210
Stock Price Target GOOG
| High | $4,533.34 |
| Median | $3,200.00 |
| Low | $2,650.00 |
| Average | $3,247.34 |
| Current Price | $2,137.53 |
Ratios & Margins Alphabet Inc. Cl C
All values updated annually at fiscal year end
Valuation
| P/E Ratio (TTM) 19.44 |
| P/E Ratio (including extraordinary items) 20.99 |
| Price to Sales Ratio 7.62 |
| Price to Book Ratio 7.62 |
| Price to Cash Flow Ratio 21.42 |
| Enterprise Value to EBITDA 15.74 |
| Enterprise Value to Sales 5.31 |
| Total Debt to Enterprise Value - |
| Total Debt to EBITDA 0.16 |
| EPS (recurring) 101.46 |
| EPS (basic) 113.88 |
| EPS (diluted) 112.20 |
Efficiency
| Revenue/Employee - |
| Income Per Employee - |
| Receivables Turnover - |
| Total Asset Turnover 0.76 |
Liquidity
| Current Ratio 2.93 |
| Quick Ratio 2.91 |
| Cash Ratio 2.17 |
Profitability
| Gross Margin +56.91 |
| Operating Margin +30.51 |
| Pretax Margin +35.24 |
| Net Margin +29.53 |
| Return on Assets 22.40 |
| Return on Equity 32.07 |
| Return on Total Capital 29.62 |
| Return on Invested Capital - |
Capital Structure
| Total Debt to Total Equity - |
| Total Debt to Total Capital - |
| Total Debt to Total Assets 7.94 |
| Interest Coverage - |
| Long-Term Debt to Equity - |
| Long-Term Debt to Total Capital - |
| Long-Term Debt to Assets 0.07 |
Sunday, 31 March 2013
Saturday, 7 July 2012
5 Companies You Can Buy Today
By Morgan Housel
July 6, 2012
July 6, 2012
There are many ways to value a company. Price to earnings. Price to cash flow. Liquidation value. Price per eyeballs on website. Price to a number I made up (this one never gets old). Price to CEO's ego divided by lobbying activity as a percentage of revenue (this one doesn't get used enough).
Which one is best? They're all limited and reliant on assumptions. No single metric holds everything you need to know.
The metric I'm using today is no different. But it's perhaps the most encompassing, and least susceptible to hidden complexities of a company's financial statements. The more I think about it, the more I feel it's one of the most useful metrics out there.
What is it? Enterprise value over unlevered free cash flow.
- Enterprise value is market capitalization (share price times shares outstanding) plus total debt and minority interests, minus cash.
- Unlevered cash flow is free cash flow with interest paid on outstanding debt added back in.
The ratio of these two statistics provides a valuation metric that takes into consideration allproviders of capital -- both stockholders and bondholders.
But you invest in common stock, so why should you care about bondholders? Ask Lehman Brothers investors why. When a company earns money, it has to take care of bondholders before you, the common shareholder, get a dime. Focusing solely on profits and equity can be misleading.
Enterprise value provides a more encompassing view. By bringing debt capital into the situation, we see real earnings in relation to the company's entire capital structure. If you owned the entire business, this is the metric you'd naturally gravitate toward.
Using this metric, here are five companies I found that look attractive.
Company
|
Enterprise Value/Unlevered FCF
|
5-Year Average
|
CAPS Rating (out of 5)
|
|---|---|---|---|
| Google (Nasdaq: GOOG ) | 18.1 | 35.2 | **** |
| Johnson & Johnson(NYSE: JNJ ) | 19.8 | 21.9 | ***** |
| Procter & Gamble (NYSE:PG ) | 24.6 | 28.4 | ***** |
| UnitedHealth Group(NYSE: UNH ) | 6.9 | 10.2 | ***** |
| Colgate-Palmolive (NYSE:CL ) | 22.8 | 24.4 | ***** |
Source: S&P Capital IQ.
Let's say a few words about these companies.
Three years ago, Warren Buffett and Charlie Munger had some flattering words for Google. "Google has a huge new moat. In fact I've probably never seen such a wide moat." Munger said. "I don't know how to take it away from them," Buffett said. "Their moat is filled with sharks!" Munger added.
Here's a good example: After trying to make inroads in the online ad business, Microsoft just wrote down almost the entire value of its 2007 purchase of aQuantive. The Daily Beast summed it up well: "Microsoft's $6.2 Billion Writedown Shows It's Losing War With Google."
I still like Microsoft because it's good at what it does. But advertising and search isn't it. That's Google's turf. And today you can buy Google at literally the lowest price-to-cash-flow ratio ever. Take advantage of that while it lasts.
Johnson & Johnson is one of the best-performing stocks over the last several decades. But it's having a rough go of it lately. Recalls, management blunders, more recalls, competition from generics... and on and on. Yes, growth has slowed. Yes, it might stay slow for a while. But valuation more than compensates for that. The stock currently provides a 3.6% dividend yield, and trades for 12 times next year's earnings -- below the market average. It's a good company at a good price.
Procter & Gamble is a similar story. One of the world's greatest collections of brands has hit a slowdown. That's hit shareholder returns -- P&G shares haven't budged in two years. But most of the company's missteps appear to be tied to poor execution by management. My guess: Within a year or two the company will have a new CEO, and the market will come to appreciate its value anew.
Everything important you need to know about UnitedHealth Group comes down to the Affordable Care Act, also known as Obamacare. Most health insurance companies currently trade at depressed valuations, likely because the market hates uncertainty -- something that still exists even after the Supreme Court ruled Obamacare constitutional.
But what are the two most likely outcomes here? One is that Obamacare remains law, in which case insurers will face a raft of costly new rules, but also a flood of new customers essentially mandated to buy their product. The other is that Obamacare is repealed -- likely under a Romney administration -- in which case those costly new rules would go away. Neither outcome seems particularly bad for insurers.
Past performance is no guarantee of future returns, but I can't help but point out how successful Colgate-Palmolive has been over the last 30 years. The toothpaste and soap company has produced average returns of nearly 17% a year since 1980, compared with 11% for the broader market. That's the power of two forces: A strong brand, and simple products that aren't pushed to extinction by new technology. Combine that with a pretty reasonable valuation, and Colgate-Palmolive should be a great company to own for years to come.
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