Now trading at a price of $835.89, Goldman Sachs has moved 3.2% so far today.
Goldman Sachs returned gains of 36.4% last year, with its stock price reaching a high of $838.61 and a low of $439.38. Over the same period, the stock outperformed the S&P 500 index by 22.0%. More recently, the company's 50-day average price was $780.58. The Goldman Sachs Group, Inc., a financial institution, provides a range of financial services for corporations, financial institutions, governments, and individuals in the Americas, Europe, the Middle East, Africa, and Asia. Based in New York, NY, the Large-Cap Finance company has 48,300 full time employees. Goldman Sachs has returned a 1.6% dividend yield over the last 12 months, but this may not be sustainable seen that the company has a choppy cash flow record.
Exceptional Profitability Overshadowed by Excessive Leverage:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $32,184 | $39,809 | $52,869 | $39,687 | $39,903 | $45,456 |
| Interest Income (M) | $4,362 | $4,751 | $6,470 | $7,678 | $6,351 | $8,056 |
| Operating Margins | 33% | 31% | 51% | 34% | 27% | 40% |
| Net Margins | 26% | 24% | 41% | 28% | 21% | 31% |
| Net Income (M) | $8,466 | $9,459 | $21,635 | $11,261 | $8,516 | $14,276 |
| Depreciation & Amort. (M) | $1,704 | $1,902 | $2,015 | $2,455 | $4,856 | $2,392 |
| Diluted Shares (M) | 376 | 360 | 356 | 358 | 346 | 334 |
| Earnings Per Share | $21.03 | $24.74 | $59.45 | $30.06 | $22.87 | $40.54 |
| EPS Growth | n/a | 17.64% | 140.3% | -49.44% | -23.92% | 77.26% |
| Avg. Price | $186.15 | $192.48 | $346.59 | $319.27 | $385.77 | $835.68 |
| P/E Ratio | 8.79 | 7.72 | 5.75 | 10.5 | 16.74 | 20.35 |
| Free Cash Flow (M) | $15,425 | -$24,844 | $1,631 | $4,960 | -$14,903 | -$15,303 |
| CAPEX (M) | $8,443 | $6,309 | $4,667 | $3,748 | $2,316 | $2,091 |
| EV / EBITDA | 36.65 | 31.77 | 18.71 | 35.96 | 41.61 | 40.85 |
| Total Debt (M) | $515,323 | $546,247 | $684,885 | $707,153 | $761,083 | $759,248 |
| Net Debt / EBITDA | 31.07 | 27.15 | 14.59 | 29.19 | 33.31 | 27.76 |
Goldman Sachs's Valuation Is in Line With Its Sector Averages:
Goldman Sachs has a trailing twelve month P/E ratio of 15.8, compared to an average of 15.92 for the Finance sector. Based on its EPS guidance of $41.56, the company has a forward P/E ratio of 18.8. The 10.2% compound average growth rate of Goldman Sachs's historical and projected earnings per share yields a PEG ratio of 1.55. This suggests that these shares are overvalued. Furthermore, Goldman Sachs is likely overvalued compared to the book value of its equity, since its P/B ratio of 2.4 is higher than the sector average of 1.78. The company's shares are currently trading 44.7% below their Graham number.
Goldman Sachs Has an Analyst Consensus of Little Upside Potential:
The 19 analysts following Goldman Sachs have set target prices ranging from $630.0 to $898.0 per share, for an average of $802.53 with a hold rating. The company is trading 4.2% away from its average target price, indicating that there is an analyst consensus of little upside potential.
Goldman Sachs has an average amount of shares sold short because 2.2% of the company's shares are sold short. Institutions own 74.8% of the company's shares, and the insider ownership rate stands at 0.57%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 10% stake in the company is worth $23,902,785,697.
