Alphabet Inc. (GOOGL) Stock Analysis

Analysis from 10-Q filed 2025-10-30. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 24.1%. FCF margin 11.9%. D/E 0.2x. Source: 10-Q filed 2025-10-30.

Metric	Value	Context
ROIC	24.1%	Above industry average
FCF Margin	11.9%	Healthy cash flow
Debt/Equity	0.2x	Conservative leverage

ROIC 24.1% — Top 10% of sector peers. FCF margin 11.9% — Top 50%.

Explore Alphabet Inc.: Earnings History | Filings

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 24.1% ROIC, Top 10% in Technology

ROIC TTM 24.1%, sector median 3.6%, Top 10%. DuPont: NOPAT margin 27.0% × asset turnover 0.7x. Gross margin 60.9%. Operating margin 33.1%. Source: 10-Q filed 2025-10-30.

Metric	GOOGL	Rating	Context
Return on Invested Capital (ROIC)	24.1%	Excellent	Above sector median of 3.6%
Return on Equity (ROE)	54.8%	Excellent	Efficient use of shareholder equity
Gross Margin	60.9%	Excellent	Strong pricing power
Operating Margin	33.1%	Excellent	Efficient operations

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Cash Flow: Alphabet Inc. generates $53.3B FCF at 11.9% margin, positive NaN/8 quarters

FCF TTM $53.3B. FCF margin 11.9%, Top 50%. OCF/Net income 0.8x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-30.

Metric	GOOGL	Rating	Context
Free Cash Flow Margin	11.9%	Good	Healthy cash generation
Free Cash Flow (TTM)	$53.3B	Good	Positive cash generation
OCF/Net Income	0.8x	Adequate	Potential accrual concerns
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 $142.3B. Source: 10-Q filed 2025-10-30.

Metric	GOOGL	Rating	Context
Debt to Equity	0.2x	Excellent	Conservative capital structure
Net Cash Position	$142.3B	Excellent	Net cash positive

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Valuation: Alphabet Inc. trades at 17.7x earnings

P/E 17.7x. EV/Sales 7.4x. FCF yield 1.2%. Source: 10-Q filed 2025-10-30.

Metric	GOOGL	Rating	Context
P/E Ratio	17.7x	Adequate	Reasonable valuation
EV/Sales	7.4x	Adequate	Growth premium priced in
FCF Yield	1.2%	Warning	Lower cash yield

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Capital Allocation: Alphabet Inc. returns 0.4% shareholder yield

Total shareholder yield 0.4% (buyback 0.4%). Capital returned $17.4B TTM. Source: 10-Q filed 2025-10-30.

Metric	GOOGL	Rating	Context
Total Shareholder Yield	0.4%	Adequate	Dividend + buyback yield combined
Buyback Yield	0.4%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$17.4B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	24.1%	Top 10%	6.7x above
Free Cash Flow Margin	11.9%	Top 50%	1.4x above
Gross Margin	60.9%	Top 50%	1.2x above
Operating Margin	33.1%	Top 5%	7.4x above
Return on Equity (ROE)	54.8%	Top 5%	10.8x above
P/E Ratio	17.7x	N/A	-

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Financial Scorecard

Metric	GOOGL	Rating	Sector Context
Return on Invested Capital (ROIC)	24.1%	Excellent	Top 10% of sector (median: 3.6%)
Free Cash Flow Margin	11.9%	Good	Top 50% of sector (median: 8.3%)
Gross Margin	60.9%	Excellent	Top 50% of sector (median: 51.0%)
Debt to Equity Ratio	15.6%	Excellent	Conservative capital structure
P/E Ratio (Price-to-Earnings)	17.7x	Adequate	Fair value
Free Cash Flow Yield	1.2%	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 24.1%. Sector median 3.6%. 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 11.9%, generating $53.3 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 17.7x, which is above the sector median of N/A. EV/Sales 7.4x. FCF yield 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 20.1% year-over-year. EPS +112.4% YoY. Source: 10-Q filed 2025-10-30.

Q: Is Alphabet Inc. buying back stock?

Alphabet Inc. (GOOGL) repurchased $17.4 billion of stock over the trailing twelve months. This represents a buyback yield of 0.4%. 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 24.1%, sector median 3.6% (Top 10%). FCF margin 11.9%, sector median 8.3% (Top 50%). Gross margin 60.9%, 9.9pp 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 -7.9% 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 Q2 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.