Shares of Large-cap finance company Goldman Sachs moved 3.8% this evening, and are now trading at $300.83 per share. The average analyst target price for the stock is $358.75.
The Goldman Sachs Group, Inc., a financial institution, provides a range of financial services for corporations, financial institutions, governments, and individuals worldwide. The company currently returns an annual dividend yield of 3.5% and has moved -11.0% over the last year.
Based on its trailing earning per share of 20.73, Goldman Sachs has a trailing 12 month Price to Earnings (P/E) ratio of 14.5 GS has a forward P/E ratio of 9.2 based on its earnings guidance of $None.
The company has a price to earnings growth (PEG) ratio of 1.52. A number between 0 and 1 could mean that the market is undervaluing Goldman Sachs's estimated growth potential
The Company May Be Profitable, but Its Balance Sheet Is Highly Leveraged
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $36,616 | $36,546 | $44,560 | $59,339 | $47,365 | $52,735 |
| Interest Income (MM) | $15,912 | $17,376 | $8,938 | $6,470 | $21,346 | $45,153 |
| Operating Margins | 34.0% | 28.0% | 28.0% | 46.0% | 28.0% | 21.0% |
| Net Margins | 28.0% | 23.0% | 21.0% | 36.0% | 24.0% | 17.0% |
| Net Income (MM) | $10,459 | $8,466 | $9,459 | $21,635 | $11,261 | $8,845 |
| Depreciation & Amort. (MM) | $1,328 | $1,704 | $1,902 | $2,015 | $2,455 | $3,957 |
| Earnings Per Share | $25.27 | $21.03 | $24.74 | $59.45 | $30.06 | $23.44 |
| EPS Growth | n/a | -16.78% | 17.64% | 140.3% | -49.44% | -22.02% |
| Diluted Shares (MM) | 390 | 376 | 360 | 356 | 358 | 340 |
| Free Cash Flow (MM) | $8,582 | $15,425 | -$24,844 | $1,631 | $4,960 | $21,146 |
| Capital Expenditures (MM) | $7,982 | $8,443 | $6,309 | $4,667 | $3,748 | $3,007 |
| Net Current Assets (MM) | -$711,064 | -$769,157 | -$911,258 | -$1,093,024 | -$952,156 | -$1,046,388 |
| Long Term Debt (MM) | $682,424 | $602,827 | $652,254 | $807,186 | $745,381 | $861,712 |
| Net Debt / EBITDA | 39.97 | 38.19 | 34.52 | 18.79 | 31.59 | 39.46 |
Goldman Sachs has a pattern of improving cash flows, growing revenues and decreasing reinvestment in the business, and decent operating margins with a negative growth trend. However, the firm has a highly leveraged balance sheet. Finally, we note that Goldman Sachs has flat EPS growth.
