Sunday, November 17, 2024

3 Things Dividend Investors Need To Know About Google Before Earnings (NASDAQ:GOOG)

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Nattakorn Maneerat

It’s earnings season once more, and tech earnings season is kicking off this week with Alphabet Inc. (NASDAQ:GOOG)(NASDAQ:GOOGL) and Microsoft Corporation (MSFT).

Naturally, many articles will preview and review Alphabet’s earnings results this week.

That’s to be expected

Company Cumulative Growth Spending 2024-2029 Free Cash Flow Return On Invested Capital Future FCF From Growth Spending 2024-2029 10-Year Average Price/FCF Market Value Current FCF Market Cap Price/Free Cash Flow Investment Spending CAGR 2029 Growth Spending
Microsoft $529,445 24.55% $129,979 26.52 $3,447,036 $73,520 $3,220 22.83 14.0% $124,054
Apple $268,909 58.21% $156,532 18.53 $2,900,537 $105,512 $2,950 35.77 1.0% $36,114
Nvidia $109,842 86.57% $95,090 41.14 $3,912,012 $57,167 $2,660 21.49 29.8% $25,082
Amazon $1,063,878 18.55% $197,349 49.18 $9,705,642 $62,608 $1,880 33.30 6.3% $203,097
Alphabet $693,209 24.05% $166,717 29.13 $4,856,459 $82,052 $2,090 39.26 6.7% $134,463
Meta $585,139 31.43% $183,909 32 $5,885,094 $44,549 $1,190 37.44 7.3% $112,942
Eli Lilly $103,748 -11.68% -$12,118 31.47 $777,057 $8,941 $791 11.30 6.2% $19,563
Broadcom $21,310 23.32% $4,969 18.47 $91,787 $23,297 $716 32.54 10.2% $7,981
Tesla $98,582 2.29% $2,258 127.7 $288,241 $5,108 $555 9.20 7.5% $22,039
Visa $8,262 32.94% $2,722 29.7 $80,856 $20,643 $551 37.46 -12.9% $1,659
UnitedHealth Group $19,780 6.50% $1,286 18.24 $23,451 $25,836 $551 46.89 3.0% $4,186
Mastercard $5,545 48.38% $2,683 33.9 $90,969 $13,512 $428 31.57 -9.4% $1,181
Average/Total $3,507,649 28.76% $931,375 38.0 $32,059,141.27 $522,745.00 $17,582 29.92 5.8% $692,361
US Government R&D $1,775 Billion US Government 2029 Forecast $617.53 billion.

Year Alphabet R&D (Millions) Alphabet Capex (Millions) Total Growth Spending (Millions)
2024 $49,290 $47,945 $97,235
2025 $53,957 $50,582 $104,539
2026 $57,752 $52,096 $109,848
2027 $65,003 $55,349 $120,352
2028 $71,025 $55,747 $126,772
2029 $77,140 $57,323 $134,463
Total $374,167 $319,042 $693,209
Annual Growth Rate 9.4% 3.6% 6.7%

TTM Free Cash Flow Return On Invested Capital 24.05%
Annual Cash Flow From Future Growth Spending Alone (2024 to 2029) $166,717
10-Year Average Price/Free Cash Flow 29.13
Market Value Of Future Cash Flow Just From Growth Spending Through 2029 $4,856,459
Current Free Cash Flow $69,495

Year Sales Free Cash Flow EBITDA EBIT (Operating Income) Net Income
2023 $307,394 $69,495 $120,582 $84,293 $73,795
2024 $346,775 $81,502 $145,786 $105,963 $94,231
2025 $385,814 $93,343 $165,543 $118,510 $105,260
2026 $424,718 $114,090 $188,469 $135,430 $117,498
2027 $475,887 $131,934 $212,113 $154,717 $137,873
2028 $528,281 NA $249,184 $183,478 $165,716
2029 $592,655 NA $291,331 $213,917 $199,779
Annualized Growth 2024-2029 11.6% 17.4% 15.8% 16.8% 18.1%
Cumulative 2024-2029 $2,754,130 $420,869 $1,252,426 $912,015 $820,357

S&P LT Risk Management Score Rating
0% to 9% Very Poor
10% to 19% Poor
20% to 29% Suboptimal
30% to 59% Acceptable
60% to 69% Good
70% to 79% Very Good
80+% Exceptional
GOOG 64% Optimal
Global Percentile 89%

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