Is GOOG a safe investment?

**Google (GOOG) appears to be a relatively safe investment**, and here's why: 1. **Strong Financial Performance**: Google's financial ratios suggest a healthy company. The P/E ratio of 18.08 indicates that investors are willing to pay $18.08 for every dollar of earnings. The P/S ratio of 5.97 and P/B ratio of 5.81 show that the market values Google's revenue and assets reasonably. |code|Ticker|Name|Date|P/E(TTM)|P/S|Price to Book Ratio|market_code| |---|---|---|---|---|---|---|---| |GOOG|GOOG.O|Alphabet C|20240702|27.90341|6.956057925593384|7.874931294477606|185| |GOOG|GOOG.O|Alphabet C|20240703|28.020041|6.985133136900188|7.9078472497302315|185| |GOOG|GOOG.O|Alphabet C|20240705|28.703384|7.155484054428519|8.100700987556515|185| |GOOG|GOOG.O|Alphabet C|20240708|28.482083|7.100315704769454|8.03824507246179|185| |GOOG|GOOG.O|Alphabet C|20240709|28.476102|7.098824668292181|8.036557074756526|185| |GOOG|GOOG.O|Alphabet C|20240710|28.808054|7.18157719278078|8.130240947398615|185| |GOOG|GOOG.O|Alphabet C|20240711|28.006584|6.981778304826326|7.9040492548933905|185| |GOOG|GOOG.O|Alphabet C|20240712|27.928829|6.96239483062179|7.882105284724973|185| |GOOG|GOOG.O|Alphabet C|20240715|28.139664|7.014953866445629|7.941607203835489|185| |GOOG|GOOG.O|Alphabet C|20240716|27.710421|6.907947676986465|7.828089358156562|185| 2. **Efficient Operations**: The company's Return on Equity (ROE) is 10.31%, which is respectable. ROA is not available, but a strong ROE suggests that Google is generating profits from its equity effectively. |code|Ticker|Name|Date|ROA|ROE(Average)|market_code| |---|---|---|---|---|---|---| |GOOG|GOOG.O|Alphabet C|2024 Q2||16.1885|185| |GOOG|GOOG.O|Alphabet C|2024 Q3||24.63|185| |GOOG|GOOG.O|Alphabet C|2024 Q4||32.9085|185| |GOOG|GOOG.O|Alphabet C|2025 Q1||10.305|185| 3. **Financial Flexibility**: Google has a Debt-to-Equity Ratio of 0.03%, indicating a very low level of debt relative to equity. This provides a buffer against economic downturns and allows the company to take on more debt if needed. |code|Ticker|Name|Date|Debt-to-Equity Ratio|Debt-to-Equity Ratio YoY|market_code| |---|---|---|---|---|---|---| |GOOG|GOOG.O|Alphabet C|2024 Q2|0.044016186039707|-14.2026417013253|185| |GOOG|GOOG.O|Alphabet C|2024 Q3|0.039147584195798404|-22.39171106987508|185| |GOOG|GOOG.O|Alphabet C|2024 Q4|0.033477501199689924|-20.077330981744478|185| |GOOG|GOOG.O|Alphabet C|2025 Q1|0.03152922231200781|-30.20000318462644|185| |code|Ticker|Name|Date|Free Cash Flow|Free Cash Flow YoY|market_code| |---|---|---|---|---|---|---| |GOOG|GOOG.O|Alphabet C|2024 Q3|5.9706022712E10|18.94961310408792|185| |GOOG|GOOG.O|Alphabet C|2024 Q4|7.8021013075E10|38.810890997883384|185| |GOOG|GOOG.O|Alphabet C|2025 Q1|3.9905987537E10|105.88786532204043|185| 4. **Consistent Cash Flow**: The company has a Free Cash Flow of $18.95 billion, which is a strong indicator of its ability to generate cash after accounting for capital expenditures. 5. **Dividend Yield**: Google offers a dividend yield of 0.46%, which is modest but provides an additional return to investors. |code|Ticker|Name|Date|Payout Ratio|Dividend Yield (TTM)|market_code| |---|---|---|---|---|---|---| |GOOG|GOOG.O|Alphabet C|20240702|0.4209677821990153|0.10748834467606237|185| |GOOG|GOOG.O|Alphabet C|20240703|0.4209677821990153|0.10704093067933189|185| |GOOG|GOOG.O|Alphabet C|20240704|0.4209677821990153||185| |GOOG|GOOG.O|Alphabet C|20240705|0.4209677821990153|0.104492602625547|185| |GOOG|GOOG.O|Alphabet C|20240706|0.4209677821990153||185| |GOOG|GOOG.O|Alphabet C|20240707|0.4209677821990153||185| |GOOG|GOOG.O|Alphabet C|20240708|0.4209677821990153|0.10530449391012181|185| |GOOG|GOOG.O|Alphabet C|20240709|0.4209677821990153|0.10532661205629071|185| |GOOG|GOOG.O|Alphabet C|20240710|0.4209677821990153|0.10411294508460502|185| |GOOG|GOOG.O|Alphabet C|20240711|0.4209677821990153|0.10709236518953551|185| 6. **Growth Prospects**: Google's revenue growth rate is accelerating, with a 12% increase in consolidated revenues in Q1 2025. The company's AI initiatives are poised to expand its business, and its cloud services are expected to benefit from the increasing adoption of AI. 7. **Market Position**: Google's dominance in the search and advertising markets, coupled with its growing cloud computing and AI capabilities, positions it well for future growth. In conclusion, while no investment is completely free from risk, Google's strong financials, efficient operations, and growth prospects make it a relatively safe investment. However, investors should consider their risk tolerance and investment horizon, as with any investment.