Alphabet Inc. (GOOGL) Stock Analysis

Analysis from 10-Q filed 2025-10-30. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 26.4%. FCF margin 15.2%. D/E 0.2x. Source: 10-Q filed 2025-10-30.

Metric	Value	Context
ROIC	26.4%	Above industry average
FCF Margin	15.2%	Strong cash generation
Debt/Equity	0.2x	Conservative leverage

ROIC 26.4% — Top 25% of sector peers. FCF margin 15.2% — Top 50%.

Explore Alphabet Inc.: Earnings History | Filings | ROIC Analysis

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for GOOGL: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: Alphabet Inc. earns 26.4% ROIC, Top 25% in Technology

ROIC TTM 26.4%, sector median 5.0%, Top 25%. DuPont: NOPAT margin 26.9% × asset turnover 0.8x. Gross margin 60.4%. Operating margin 32.7%. Source: 10-Q filed 2025-10-30.

Metric	GOOGL	Rating	Context
Return on Invested Capital (ROIC)	26.4%	Excellent	Above sector median of 5.0%
Return on Equity (ROE)	40.6%	Excellent	Efficient use of shareholder equity
Gross Margin	60.4%	Excellent	Strong pricing power
Operating Margin	32.7%	Excellent	Efficient operations

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Cash Flow: Alphabet Inc. generates $64.4B FCF at 15.2% margin, positive NaN/8 quarters

FCF TTM $64.4B. FCF margin 15.2%, Top 50%. OCF/Net income 1.1x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-30.

Metric	GOOGL	Rating	Context
Free Cash Flow Margin	15.2%	Good	Excellent cash conversion
Free Cash Flow (TTM)	$64.4B	Good	Positive cash generation
OCF/Net Income	1.1x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: Alphabet Inc. at 0.2x leverage

Debt/Equity 0.2x. Net cash $47.3B. Source: 10-Q filed 2025-10-30.

Metric	GOOGL	Rating	Context
Debt to Equity	0.2x	Excellent	Conservative capital structure
Net Cash Position	$47.3B	Excellent	Net cash positive

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Valuation: Alphabet Inc. trades at 21.7x earnings

P/E 21.7x. EV/Sales 8.1x. FCF yield 1.9%. Dividend yield 0.3%. Source: 10-Q filed 2025-10-30.

Metric	GOOGL	Rating	Context
P/E Ratio	21.7x	Adequate	Premium valuation
EV/Sales	8.1x	Adequate	Growth premium priced in
FCF Yield	1.9%	Warning	Lower cash yield
Dividend Yield	0.3%	Adequate	Growth focus over income

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Capital Allocation: Alphabet Inc. returns 1.2% shareholder yield

Total shareholder yield 1.2% (div 0.3% + buyback 0.9%). Capital returned $40.8B TTM. Source: 10-Q filed 2025-10-30.

Metric	GOOGL	Rating	Context
Total Shareholder Yield	1.2%	Adequate	Dividend + buyback yield combined
Buyback Yield	0.9%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$40.8B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	26.4%	Top 25%	5.3x above
Free Cash Flow Margin	15.2%	Top 50%	1.8x above
Gross Margin	60.4%	Top 50%	1.2x above
Operating Margin	32.7%	Top 10%	6.7x above
Return on Equity (ROE)	40.6%	Top 10%	8.3x above
P/E Ratio	21.7x	N/A	-

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Financial Scorecard

Metric	GOOGL	Rating	Sector Context
Return on Invested Capital (ROIC)	26.4%	Excellent	Top 25% of sector (median: 5.0%)
Free Cash Flow Margin	15.2%	Good	Top 50% of sector (median: 8.6%)
Gross Margin	60.4%	Excellent	Top 50% of sector (median: 51.6%)
Debt to Equity Ratio	16.6%	Excellent	Conservative capital structure
P/E Ratio (Price-to-Earnings)	21.7x	Adequate	Fair value
Free Cash Flow Yield	1.9%	Warning	Growth-focused valuation

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Frequently Asked Questions

Q: What is Alphabet Inc.'s Return on Invested Capital (ROIC)?

Alphabet Inc. (GOOGL) has a trailing twelve-month Return on Invested Capital (ROIC) of 26.4%. Sector median 5.0%. Source: 10-Q filed 2025-10-30.

Q: What is Alphabet Inc.'s Free Cash Flow Margin?

Alphabet Inc. (GOOGL) has a free cash flow margin of 15.2%, generating $64.4 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-30.

Q: What is Alphabet Inc.'s P/E ratio and how does it compare to peers?

Alphabet Inc. (GOOGL) trades at a P/E ratio of 21.7x, which is above the sector median of N/A. EV/Sales 8.1x. FCF yield 1.9%. Source: 10-Q filed 2025-10-30.

Q: Does Alphabet Inc. pay a dividend?

Alphabet Inc. (GOOGL) currently pays a dividend yield of 0.3%. Total shareholder yield (dividend + buybacks) 1.2%. Source: 10-Q filed 2025-10-30.

Q: What is Alphabet Inc.'s revenue and earnings growth?

Alphabet Inc. (GOOGL) grew revenue by 17.5% year-over-year. EPS +46.4% YoY. Source: 10-Q filed 2025-10-30.

Q: Is Alphabet Inc. buying back stock?

Alphabet Inc. (GOOGL) repurchased $30.6 billion of stock over the trailing twelve months. This represents a buyback yield of 0.9%. Source: 10-Q filed 2025-10-30.

Q: How does Alphabet Inc. compare to competitors in Technology?

Compared to other companies in Technology, Alphabet Inc. (GOOGL) shows: ROIC 26.4%, sector median 5.0% (Top 25%). FCF margin 15.2%, sector median 8.6% (Top 50%). Gross margin 60.4%, 8.8pp above sector median. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.

Q: What warning signs should I watch for with Alphabet Inc.?

Quantitative warning flags for Alphabet Inc. (GOOGL): 1) ROIC declining -4.9% over 8 quarters. Source: 10-Q filed 2025-10-30.

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Data Source: Data sourced from 10-Q filed 2025-10-30. TTM metrics as of Q1 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.