Fundamental analysis · SEC EDGAR · TTM through 30/06/2026
GOOGL · Nasdaq · Technology
Fundamental quality
93
out of 100
Alphabet Inc. fits the profile of a quality compounder: it pairs high return on capital (ROE 38.1%) with wide margins (net margin 54.8%) and a business that keeps growing (17.6% a year). On fundamental quality it scores 93 out of 100, profiling it as a company with solid fundamentals. 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: 41.8% · Revenue growth: 17.6%
Net margin: 54.8% · ROE: 38.1% · ROIC: 17.6%
Net debt/EBITDA: 0.26x · FCF: 11.9%
Source: SEC EDGAR · TTM through 30/06/2026
The score combines growth, profitability and financial strength, and here its pillars hold up evenly.
Percentile against the other 101 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 half-year ended June 30, 2026, versus the half-year ended June 30, 2025 (SEC filings):
Compared with the previous close (March 31, 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 93 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 54.8% and an ROE of 38.1%, typical of a highly profitable business.
Does Alphabet Inc. have a lot of debt?
Not particularly. Its net debt is 0.26 times its EBITDA, a low level.
Is Alphabet Inc. growing?
Its revenue has grown 17.6% annualized in recent years and its earnings per share 41.8%, and without interruption since 2020.
Does Alphabet Inc. generate cash?
Yes. It converts about 11.9% 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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