Skip to Content

The Goldman Sachs Group Inc GS

Morningstar Rating
$390.47 +2.20 (0.57%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Goldman Sachs Earnings: Capital Markets Recovery Is Positive, but Trading Is Too Big to Be Ignored

A soft landing for the U.S. economy and recovery in capital markets would be a positive for the majority of Goldman Sachs’ business lines, but the company has a heavy weight to trading that doesn’t always move in the same direction as the economy. Goldman Sachs had a decent 2023, given the uncertainty in the economy and the company’s refocusing on its core investment banking and investment management businesses. 2023 net revenue of $46 billion decreased 2% compared with 2022 and was 22% lower than the unusually strong 2021 result. The fourth quarter of 2023 didn’t showcase particular strength; net revenue was down 4% sequentially as negative seasonality in fixed-income, currency, and commodities trading offset positive seasonality in investment banking and gains on equity investments. For the full year, the company had earnings per share of $22.87 and a return on tangible equity of 8.1%; if unusual items were excluded, return on tangible equity would have been about 10.7%. We don’t anticipate making a material change to our $368 fair value estimate for narrow-moat-rated Goldman Sachs. We assess the shares as fairly valued.

Price vs Fair Value

GS is trading at a 6% premium.
Price
$390.47
Fair Value
$129.00
Uncertainty
Medium
1-Star Price
$518.20
5-Star Price
$495.40
Economic Moat
Yzmpff
Capital Allocation
Bnfnbznc

Bulls Say, Bears Say

Bulls

More stable investment management and net interest income could cause investors to reassess Goldman's earnings quality and increase their willingness to pay a premium for it.

Bears

While Goldman is in a better capital position than it was and has a shifting business mix, it may take a while for the market to give the company full credit for the changes. The company's strategy has also been somewhat muddied by recent acquisitions and divestitures.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if GS is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$388.27
Day Range
$389.00395.60
52-Week Range
$289.36396.35
Bid/Ask
$387.44 / $391.24
Market Cap
$127.34 Bil
Volume/Avg
6 / 2.1 Mil

Key Statistics

Price/Earnings (Normalized)
17.77
Price/Sales
2.83
Dividend Yield (Trailing)
2.69%
Dividend Yield (Forward)
2.82%
Total Yield
7.63%

Company Profile

Goldman Sachs is a leading global investment banking and asset management firm. Approximately 20% of its revenue comes from investment banking, 45% from trading, 20% from asset management and 15% from wealth management and retail financial services. Around 60% of the company's net revenue is generated in the Americas, 15% in Asia, and 25% in Europe, the Middle East, and Africa.
Sector
Financial Services
Industry
Capital Markets
Stock Style Box
Large Value
Total Number of Employees
48,500

Competitors

Valuation

Metric
GS
RJF
MS
Price/Earnings (Normalized)
17.7713.8814.26
Price/Book Value
1.222.271.52
Price/Sales
2.832.152.73
Price/Cash Flow
9.4911.738.83
Price/Earnings
GS
RJF
MS

Financial Strength

Metric
GS
RJF
MS
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
GS
RJF
MS
Return on Assets (Normalized)
0.77%2.31%0.97%
Return on Equity (Normalized)
11.72%18.04%12.60%
Return on Invested Capital (Normalized)
Return on Assets
GS
RJF
MS
See how this stock stacks up to its competitors with Morningstar Investor

Capital Markets Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
MS
Morgan StanleyVrzqr$140.9 Bil
SCHW
Charles Schwab CorpCkpp$117.8 Bil
RJF
Raymond James Financial IncHgrb$24.8 Bil
TW
Tradeweb Markets IncDfjv$22.2 Bil
LPLA
LPL Financial Holdings IncZyzzqz$19.6 Bil
IBKR
Interactive Brokers Group Inc Class ABgtcjs$11.4 Bil
MKTX
MarketAxess Holdings IncCrb$8.1 Bil
SF
Stifel Financial CorpGjdff$7.9 Bil
EVR
Evercore Inc Class AKvfbmp$7.0 Bil

Sponsor Center