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Alphabet Inc.

Rank #257Capital ReturnWatchlistCompare with other stocks

GOOGL · Nasdaq · Communication Services

Alphabet Inc. (GOOGL) — Rank #257 by gross profitability (GP/assets 0.26) · ROE 20.6% · Piotroski F-Score 6 / 9.

As-of 2026-10-30 · CIK 0001652044 · all metrics point-in-time as of the filing date.

About

Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America.

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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.

Industry
Internet Content & Information
Sector
Communication Services
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31
Website
abc.xyz

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$3.47T

P/E (annual)

—

P/S (annual)

8.6

P/B

5.4

P/OCF (annual)

21.1

Shareholder Yield

2.0%

Employees

204,757

Industry

Internet Content & Information

Exchange

Nasdaq

10/12

Flags passed

GOOGL fails 1 critical flag

Passes 10 of 12 quality flags, 1 caution

  • FAIL
    Operating margin declining

    Operating margin lower than prior year

  • CAUTION
    Disclosure regression

    A previously-disclosed line item is no longer reported — worth checking the filing for why

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Revenue not declining
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Deferred revenue growing · RPO outpacing revenue · Sequential beat (rev + EPS)

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.26
Return on equity
20.6%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.44
Current ratio
2.72×
Net cash
$273.77B

Cash Flow

2/3 pass
Positive FCF
PASS
Cash-backed earnings
WARN
Accruals healthy
PASS
SBC / revenue
6.2%

Growth

2/2 pass
Revenue growth
15.1%
Piotroski F-Score
6 / 9
Share dilution
-1.7%

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Does it make money well?

Warning: Operating margin declining · GP/assets 0.26

Gross profitability (GP / assets)

0.26

Primary signal (Novy-Marx).

11th of 15 SIC 7370 peers

Return on equity

20.6%

Gross margin

59.7%

10th of 15 SIC 7370 peers

Revenue growth (YoY)

15.1%

RPO growth (YoY)

160.5%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

12.5%

Revenue CAGR (5Y)

17.2%

Earnings CAGR (3Y)

30.1%

FCF CAGR (3Y)

6.9%

Cash Flow Health

Is the cash real?

No warning flags · FCF 45% below net income

Free cash flow

$73.27B

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

-44.6%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

6.2%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net cash $273.77B, F-Score 6/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.44

4th of 14 SIC 7370 peers (best = lowest)

Current ratio

2.72×

7th of 15 SIC 7370 peers

Quick ratio

2.47×

Net cash

$273.77B

Cash & equivalents minus total debt.

Piotroski F-Score

6 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

Dividend safety

Composite score

3.2 / 5

Good
Payout ratio
7.6%5/5 Strong
FCF coverage
7.29×5/5 Strong
Dividend growth streak
1 yr1/5 Weak
Balance-sheet health
D/E 0.44 · IC N/A2/5 Fair

Capital allocation quality

Composite score

2.7 / 5

Fair
Share count trend(net buybacks)
-1.7%3/5 Good
Buyback timing
N/AN/A
Dividend growth consistency
1 yr1/5 Weak
Net debt trajectory(deleveraging)
4.2%4/5 Strong

Lifecycle Phase History

20202025
Capital Return
Hypergrowth

Price History

GOOGL+147.9% · +19.9% CAGRSPY+82.9% · +12.8% CAGR

View full financial statements →

Source filings on SEC EDGAR: 10-K annual reports · 10-Q quarterly reports