NYSE:GS
$151.69
(2/9 12:02PM)
+0.4%
| Open | $152.7 |
Mkt Cap | $77.7 Billion |
| High | $153.53 |
52Wk High | $193.60 |
| Low | $149.65 |
52Wk Low | $72.78 |
| Volume | 7.3 Million |
Avg Vol 10D | 16.4 Million |
Ockham's Rating/Recommendation Summary
Rating specific information requires Premium Access.
Buy Now
or
Learn More about Ockham's Features and Services.
GS Revenue
As a value investing shop, we are interested in seeing how GS's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 1.70x and the low end of the range at 0.80x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for GS of 1.53x is significantly above its historical average. This places GS at the upper end of its historical range relative to sales per share and makes it difficult to suggest an attractive price outlook. At current sales per share levels, we would need to see a decline in the Price to Sales ratio of 22% merely to return GS to its historical average.
GS Cash Earnings
As the old saying goes, "Cash is King!" We look at reported Cash Earnings, but the main emphasis of our analysis involves stripping out non-cash events such as depreciation from our cash earnings analysis. This helps us view the cash flows more clearly. Nevertheless, an analysis of Cash Earnings (both reported and otherwise) is absolutely pivotal to assessing a company's value, and currently GS is significantly above its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for GS to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 26.33 and a 9.63 low over the same period.
Therefore, at the current price of $154.16 and a Price to Cash Earnings ratio of 35.52, GS is significantly overvalued. This diminishes the attractiveness of GS until we see either a significant increase in cash earnings or a decline in price. A decline of the Price to Cash Earnings ratio of 97% is needed just to return to the historical cash earnings multiple.
GS Dividends
When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for GS to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis.
The estimated annual dividend for GS is $1.40 producing a current dividend yield of 0.91%. Much like our evaluation of Sales and Cash Earnings per share, we review dividend yields from GS against the historic high and low levels over all available dividend history. Because dividends are a decision made exclusively by management, we view a healthy and rising dividend as a sign of confidence and strength. The highest dividend yield from GS over previous years was 2.95% while the lowest dividend yield was 0.40%. It is never a good sign for a company to pay significantly lower dividends, in this case 45.67% below the median yield. Although, dividends are a relatively small portion of our analysis framework, we still see this as a negative factor.
Look Out for Goldman Sachs Group, Incorporated: Its Very Active in the News
We are observing a lot of attention being paid to GS in the news, so if you hold the stock you may want to take a look at what is going on.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Goldman Sachs Group, Incorporated has actually sunk a bit in comparison to the others. As of this week's report, we have an Overvalued valuation on GS because the price has gotten too high to be justified by the fundamentals. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards GS and think that it will generally perform in-line with the S&P 500.
“… Among others who have been short are the hedge funds at GOLDMAN SACHS and JP Morgan, according to financial sources say. Same thing happened to investment banks at the end of ... …”
Goldman Sachs Group, Incorporated Crosses Extremely Active News Threshold for the Day, Now on The Opening Bell on Fox Business
If you own GS, then you need to get to a TV now. It has been mentioned in the news very frequently in the last hour.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what The Opening Bell on Fox Business said about GOLDMAN SACHS GROUP, INC.
Learn About RazorWire?Zero Hedge: An Extremely Hot News Day for Goldman Sachs Group, Incorporated Today
Be aware that something important has occurred for GS and investors interested in this stock should seek out information in any way possible.
Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Goldman Sachs Group, Incorporated will perform just about the same as the index. At Ockham, we are not advising buying Goldman Sachs Group, Incorporated at the current price level because according to our methodology it is not supported by the fundamentals. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, GS has been less covered in the news compared to the rest of our universe of stocks.
“… a V-shaped economic rebound is even more unlikely than suggested by many standard economic indicators,” said Andrew Tilton, an economist at GOLDMAN SACHS Group Inc. …”
Lots of News Today on GS from Squawk Box
If you own GS, then you need to get to a TV now. It has been mentioned in the news very frequently in the last hour.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Squawk Box said about GOLDMAN SACHS GROUP, INC.
Learn About RazorWire?The Amount of News Coverage on Goldman Sachs Group, Incorporated Places It in the Top Five Most Active Stocks
Be aware that something important has occurred for GS and investors interested in this stock should seek out information in any way possible.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, GS has been less covered in the news compared to the rest of our universe of stocks. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Goldman Sachs Group, Incorporated will perform just about the same as the index. At Ockham, we are not advising buying Goldman Sachs Group, Incorporated at the current price level because according to our methodology it is not supported by the fundamentals.
“… " The facts: Relative to the size of AIG's overall business, GOLDMAN SACHS was a small counterparty. We don't believe our marks were "aggressive," they reflected market prices at ... …”
Squawk Box: An Extremely Hot News Day for Goldman Sachs Group, Incorporated Today
Be aware that something important has occurred for GS and investors interested in this stock should seek out information in any way possible.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Squawk Box said about GOLDMAN SACHS GROUP, INC.
Learn About RazorWire?Stocks to Watch: GS Heavily Covered on Squawk Box
We are observing a lot of attention being paid to GS in the news, so if you hold the stock you may want to take a look at what is going on.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Squawk Box said about GOLDMAN SACHS GROUP, INC.
Learn About RazorWire?Stocks in the News: Goldman Sachs Group, Incorporated Among the Twenty Most Discussed Stocks
Something important is going on with GS today, as it is getting a lot of attention on business television and influential blogs.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Squawk Box said about GOLDMAN SACHS GROUP, INC.
Learn About RazorWire?GS Having an Active Day in News, Now on Felix Salmon Reuters
Something important is going on with GS today, as it is getting a lot of attention on business television and influential blogs.
Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Goldman Sachs Group, Incorporated will perform just about the same as the index. At Ockham, we are not advising buying Goldman Sachs Group, Incorporated at the current price level because according to our methodology it is not supported by the fundamentals. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, GS has been less covered in the news compared to the rest of our universe of stocks.
“… In that way GOLDMAN SACHS secretly arranged additional credit of up to $1 billion for the Greeks. This credit disguised as a swap didn’t show up in the Greek debt statistics. …”
Zero Hedge: GS is Among Most Active Stocks in the News Today
We are observing a lot of attention being paid to GS in the news, so if you hold the stock you may want to take a look at what is going on.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, GS has been less covered in the news compared to the rest of our universe of stocks. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Goldman Sachs Group, Incorporated will perform just about the same as the index. At Ockham, we are not advising buying Goldman Sachs Group, Incorporated at the current price level because according to our methodology it is not supported by the fundamentals.
“… Former GOLDMAN SACHS CEO and then US Treasury Secretary Hank Paulson stated in July 2008: “Their regulator [Fannie Mae’s and Freddie Mac’s] has made clear that they are ... …”