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GS The Goldman Sachs Group, Inc. - Fundamental Analysis

NEUTRAL
GS Stock | Fundamental Analysis & Investment Insights
NYSE Financial Services Capital Markets
Current Price
$914.34
Analyst Target
$813.47
-11.0% Downside
52W High
$919.1
52W Low
$439.38

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Confidence Score
78%
Analysis Accuracy
The Advanced Deterministic Scorecard shows a weak Piotroski F-Score of 4/9, indicating borderline financial health, while the Altman Z-Score is astronomically high at 389.49 billion, suggesting negligible bankruptcy risk. Despite strong profitability and robust earnings growth (45.8% YoY), elevated leverage (Debt/Equity: 5.86) and a bearish insider sentiment weigh on the outlook. The stock trades above the Graham defensive value of $620.63 but below the growth-based intrinsic value of $1,451.11, reflecting premium valuation supported by recent performance. Analysts concur with a 'hold' rating, aligning with technical weakness and mixed signals across fundamentals and sentiment.

Key Strengths

Exceptional profitability with operating margin of 37.20% and ROE of 13.53%
Strong earnings growth momentum: 45.8% YoY and 37.1% QoQ
Consistently beats earnings estimates, with 3 out of last 4 quarters above expectations and double-digit average surprise
Altman Z-Score of 389.49 billion indicates virtually no risk of financial distress
Healthy dividend policy with low payout ratio of 26.41% and sustainable yield of 1.75%

Key Risks

Low Piotroski F-Score of 4/9 signals weak financial health and potential instability
Extremely high Debt/Equity ratio of 5.86, significantly above sector average of 0.78
Bearish insider activity: $28.11M in net sales over last 6 months with no buys
Technical trend score of 10/100 indicates strong near-term bearish momentum
Valuation premium: trading at $914.34 vs. Graham Number of $620.63, implying limited margin of safety
AI Fair Value Estimate
Based on comprehensive analysis
$1050.0
+14.8% above current price

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