Goldman Sachs Group Inc (GS.PD) stock analysis

P/E below its 5-year median

Goldman Sachs's P/E of 13.8 is below its own 5-year median of 15.4.

P/E below the industry

Goldman Sachs's P/E of 13.8 is below the Security Brokers, Dealers, and Flotation median of 16.0.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B below the industry

Goldman Sachs's price-to-book of 2.12 is below the Security Brokers, Dealers, and Flotation median of 2.97.

Trading below fair value

The share price of $894.55 is below our fair value estimate of $989.55.

Margin of safety under 20%

The price is 9.6% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 7.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 19.5% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 34.8% over the last twelve months, against a 5-year average of 12.7% a year.

Growing slower than the industry

Revenue grew 17.8% over the last twelve months; the Security Brokers, Dealers, and Flotation median is 20.3%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 17.0% over the last twelve months and averaged 12.8% over five years; we look for 15% on both.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

Goldman Sachs's return on equity of 17.0% is above the Security Brokers, Dealers, and Flotation median of 14.7%.

Earnings grew over 5 years

Net income grew 12.7% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 31.7% over the last twelve months, against a 5-year average of 27.0%.

Net margin above the industry

Goldman Sachs's net margin of 31.7% is above the Security Brokers, Dealers, and Flotation median of 13.4%.

No debt

Goldman Sachs has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Elevated bankruptcy risk

The Altman Z-score is 0.22; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Goldman Sachs paid dividends worth 2.0% of the share price over the last twelve months.

Yield below Treasuries

The 2.0% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 4.0% or more; Goldman Sachs yields 2.0%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 29.2% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.