The Goldman Sachs Group, Inc.
The Goldman Sachs Group, Inc. Fundamental Analysis
The Goldman Sachs Group, Inc. (GS-PJ) shows moderate financial fundamentals with a PE ratio of 16.75, profit margin of 13.73%, and ROE of 13.81%. The company generates $1094.5B in annual revenue with strong year-over-year growth of 12.78%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze GS-PJ's fundamental strength across five key dimensions:
Efficiency Score
WeakGS-PJ struggles to generate sufficient returns from assets.
Valuation Score
ModerateGS-PJ shows balanced valuation metrics.
Growth Score
ExcellentGS-PJ delivers strong and consistent growth momentum.
Financial Health Score
ModerateGS-PJ shows balanced financial health with some risks.
Profitability Score
WeakGS-PJ struggles to sustain strong margins.
Key Financial Metrics
Is GS-PJ Expensive or Cheap?
P/E Ratio
GS-PJ trades at 16.75 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, GS-PJ's PEG of 4.10 indicates potential overvaluation.
Price to Book
The market values The Goldman Sachs Group, Inc. at 2.30 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -8.09 times EBITDA. This is generally considered low.
How Well Does GS-PJ Make Money?
Net Profit Margin
For every $100 in sales, The Goldman Sachs Group, Inc. keeps $13.73 as profit after all expenses.
Operating Margin
Core operations generate 15.69 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.81 in profit for every $100 of shareholder equity.
ROA
The Goldman Sachs Group, Inc. generates $0.95 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Goldman Sachs Group, Inc. produces operating cash flow of $156.51B, showing steady but balanced cash generation.
Free Cash Flow
The Goldman Sachs Group, Inc. generates strong free cash flow of $137.97B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $50.43 in free cash annually.
FCF Yield
GS-PJ converts 5.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.75
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.30
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.23
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.95
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.21
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.009
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How GS-PJ Stacks Against Its Sector Peers
| Metric | GS-PJ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.75 | 18.86 | Better (Cheaper) |
| ROE | 13.81% | 847.00% | Weak |
| Net Margin | 13.73% | 4202.00% | Weak |
| Debt/Equity | 4.95 | 0.91 | Weak (High Leverage) |
| Current Ratio | 1.21 | 667.17 | Neutral |
| ROA | 0.95% | -21543.00% (disorted) | Weak |
GS-PJ outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Goldman Sachs Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
77.45%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
90.98%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-162.69%
Industry Style: Value, Dividend, Cyclical
Declining