Goldman Sachs Beats, Plans to Repurchase $8.7 Bln Worth of Stock

Goldman Sachs stock chart looks bullish after earnings and revenue beats.

Goldman Sachs beat on earnings and revenue. Goldman reported $5.02 earnings per share for the quarter, beating the estimate of $4.17. Revenue also beat coming in at $8.33 billion during the quarter versus the $7.59 billion estimate.

For the first time ever, Goldman Sachs disclosed its buyback target. Chief Financial Officer R. Martin Chavez said that Goldman Sachs Group expects to spend $8.7 billion repurchasing shares from investors.

The Goldman Sachs Group, Inc. is an investment banking, securities and investment management company that provides a range of financial services to corporations, financial institutions, governments and individuals. You can find out more about the company on their website here.

Goldman Sachs Stock Chart

Goldman Sachs stock chart looks bullish after earnings and revenue beats.

The rising large players volume and Twiggs Money Flow shows that the stock is being accumulated. The pocket pivot signals (blue dots) over the last few weeks are bullish. Prices have been consolidating lately. A pullback is taking place, which may presents a good opportunity for an entry. There is a very little resistance above the current price.

Goldman Sachs Review
2.8

Summary

Profitability

Goldman Sachs (GS) has a Profit Margin of 26.44%. This is better than the industry average of 11.34%. GS's Return On Assets of 0.94% is inline with the rest of the industry. The industry average Return On Assets is 0.83%. The Piotroski-F score of GS is 5. This is a neutral score and indicates average health and profitability for GS. GS's Return On Equity of 9.84% is worse than the rest of the industry. The industry average Return On Equity is 11.63%.

Valuation

With a Price/Earnings Ratio of 11.87, the valuation of GS can be described as very reasonable. Compared to an average industry Price/Earning Ratio of 14.12, GS is valued a bit cheaper than its industry peers. With a Forward Price/Earnings Ratio of 11.82, the valuation of GS can be described as very reasonable. When comparing the price book ratio of GS to the average industry price book ratio of 1.59, GS is cheap. GS's PEG Ratio, which compensates the Price/Earnings for growth, indicates a correct valuation of the company. When comparing the current price to the book value of GS, we can conclude it is valued correctly. It is trading at 1.07 times its book value.

Growth

The Earnings Per Share has grown by an impressive 74.38% over the past year. Looking at the last year, GS shows a quite strong growth in Revenue. Revenue has grown by 13.54% in the last year. GS shows a small growth in Earnings Per Share. Measured over the last 5 years, the EPS has been growing by 6.79% yearly. GS is expected to show a small growth in Earnings Per Share. In the coming 2 years, the EPS will grow by 9% yearly. GS shows a decrease in revenue. Measured over the last 5 years, revenue has been decreasing by -1.15% yearly. When comparing the growth rate of the last years to the growth rate of the upcoming 2 years, we see that the growth is decreasing.

Health

GS has a Piotroski-F score of 5. This indicates an average health and profitability for GS. A Current Ratio of 0.89 indicates that GS may have some problems paying its short term obligations. When comparing the Current Ratio of GS to the average industry Current Ratio of 1.40, GS is less able to pay its short term obligations than its industry peers. 84% of its industry peers have a better Current Ratio. GS has a Quick Ratio of 0.89. This is a bad value and indicates that GS is not financially healthy enough and could expect problems in meeting its short term obligations. Compared to an average industry Quick Ratio of 1.40, GS is worse placed to pay its short term obligations than its industry peers. 84% of its industry peers have a better Quick Ratio. Compared to an average industry Debt to Equity Ratio of 0.20, GS is requires more financing than its industry peers. 85% of its industry peers have a better Debt to Equity Ratio.

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Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.
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Author: Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.

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