Fundamental analysis · SEC EDGAR · TTM through 30/09/2026
GOOGL · Nasdaq · Technology
Fundamental quality
88
out of 100
Alphabet Inc. fits the profile of a quality compounder: it pairs high return on capital (ROE 34.8%) with wide margins (net margin 50%) and a business that keeps growing (17.9% a year). On fundamental quality it scores 88 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its financial strength (net debt 0.38× EBITDA). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.
Alphabet is Google's parent company. The vast majority of its revenue comes from advertising —Google Search and YouTube— complemented by its cloud (Google Cloud) and long-term bets like Waymo (self-driving).
EPS growth: 38.6% · Revenue growth: 17.9%
Net margin: 50% · ROE: 34.8% · ROIC: 17.2%
Net debt/EBITDA: 0.38x · FCF: 4.2%
Source: SEC EDGAR · TTM through 30/09/2026
The score combines growth, profitability and financial strength. Here its profitability weighs in its favor, while its financial strength drags it down the most.
Percentile against the other 99 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).
Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.
Key concepts
What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow
| Year | Revenue | Net income | Free cash flow | Net debt |
|---|---|---|---|---|
| 2020 | 182,527 | 40,269 | 42,843 | -10,147 |
| 2021 | 257,637 | 76,033 | 67,012 | -5,505 |
| 2022 | 282,836 | 59,972 | 60,010 | -6,567 |
| 2023 | 307,394 | 73,795 | 69,495 | -11,178 |
| 2024 | 350,018 | 100,118 | 72,764 | -11,584 |
| 2025 | 402,836 | 132,170 | 73,266 | 17,835 |
Between 2020 and 2025, revenue went from $182,527M to $402,836M (+121%) and net income went from $40,269M to $132,170M (+228%). Meanwhile, its margins have widened (from 22% to 33%).
Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.
Latest results
Figures for the nine months ended September 30, 2026, versus the nine months ended September 30, 2025 (SEC filings):
Compared with the previous close (June 30, 2026), this is what moved in its accounts:
Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.
$0.83
per share, yearly
7.6% of earnings
Payout
The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →
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Is Alphabet Inc. cheap or expensive?
That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).
Compute the valuation →Is Alphabet Inc. a good company to invest in?
In terms of business quality, Alphabet Inc. scores 88 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.
Is Alphabet Inc. a profitable company?
Very. Alphabet Inc. shows a net margin of 50% and an ROE of 34.8%, typical of a highly profitable business.
Does Alphabet Inc. have a lot of debt?
Not particularly. Its net debt is 0.38 times its EBITDA, a low level.
Is Alphabet Inc. growing?
Its revenue has grown 17.9% annualized in recent years and its earnings per share 38.6%, and without interruption since 2020.
Does Alphabet Inc. generate cash?
Yes. It converts about 4.2% of its revenue into free cash flow, and has done so positively year after year.
The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.
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Who's behind the methodology and model · how the score is computed
Data: see Alphabet Inc.'s filings on EDGAR
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