Goldman Sachs Group (GS) AI Stock Analysis

• Market Cap: $153.67B
• Dividend Yield: 2.12%
• Average Volume (3M): 3.59M
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.42
• Revenue Growth: 2.89%
• EPS Growth: 68.64%
• Country: US
• Employees: 46,600
• Sector: Financial
• Sector Strength: 85
• Industry: Financial - Capital Markets
• EPS (TTM): 14.12
• Shares Outstanding: 310,790,370
• 10 Day Avg. Volume: 4,694,050
• 30 Day Avg. Volume: 3,593,516
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.38
• Price to Cash Flow (P/CF): 0.90
• P/FCF Ratio: 0.50
• Enterprise Value/Market Cap: 5.66
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 16.25
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $607.50
• Price Target Upside: 7.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

Goldman Sachs demonstrates strong financial performance with notable revenue and profit growth, supported by strategic initiatives. High leverage and cash flow management pose challenges, but valuation metrics and positive earnings call sentiment reinforce confidence. Corporate events further bolster long-term prospects, making GS a stable investment with growth potential, despite some risks.

Positive Factors

Earnings

Investment banking fees and trading revenue have been stronger than expected, contributing to substantial EPS growth.

Share Buyback

The authorization of a $40bn share buyback program should be impactful in offering downside protection to the stock and EPS/ROTCE defensibility.

Shareholder Returns

Goldman Sachs has been an outperformer in terms of shareholder return, with above-average ROE and significant capital returns through dividends and share repurchases.

Negative Factors

Investment Banking

IB fees were down with weakness in advisory revenues, indicating some challenges in that area.

Macro Risks

There is downside risk to the stock if an S&P sell-off accelerates on a worsening macro-economic outlook and/or if tariff driven uncertainties get worse.

Market Conditions

Potential risks include global economic slowdown, prolonged high market interest rates, and contraction in market liquidity.

Goldman Sachs Group Business Overview & Revenue Model

Company Description

Goldman Sachs Group Inc. is a leading global investment banking, securities, and investment management firm that provides a broad range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments, and individuals. Founded in 1869 and headquartered in New York City, Goldman Sachs operates through four main business segments: Investment Banking, Global Markets, Asset Management, and Consumer & Wealth Management. The company is renowned for its expertise in mergers and acquisitions, underwriting, and trading, as well as its asset and wealth management services.

How the Company Makes Money

Goldman Sachs generates revenue through several key streams. In its Investment Banking segment, the company earns fees from advising on mergers and acquisitions, underwriting for equity and debt issuances, and other financial advisory services. The Global Markets segment provides market-making and trading services, earning income from buying and selling financial products such as equities, fixed income, currencies, and commodities. In Asset Management, Goldman Sachs collects management and performance fees for its services in managing a wide array of investment products, including mutual funds, hedge funds, and private equity. Consumer & Wealth Management generates revenue by offering private wealth management and consumer banking services, including lending and deposit products. Additionally, Goldman Sachs forms strategic partnerships with various financial institutions and technology firms to enhance its offerings and expand its market reach, which also contributes to its revenue.

Goldman Sachs Group Financial Statement Overview

Summary

Goldman Sachs shows strong financial health with revenue and profit growth, and improving margins. However, high leverage poses risks, and cash flow management needs improvement, despite profitability gains.

Income Statement

Goldman Sachs displays a robust performance in its income statement with a consistent revenue growth from $46.25B in 2023 to $52.16B in 2024, showing a growth rate of 12.77%. The gross profit margin remains stable at 100% due to the nature of its business model. Net profit margin improved significantly from 18.41% in 2023 to 27.36% in 2024, indicating enhanced profitability. However, the company experienced fluctuations in EBIT margin, moving from 29.09% in 2023 to 61.71% in 2024, reflecting some volatility in operational efficiency.

Balance Sheet

The balance sheet indicates a strong equity base with a stockholders' equity of $122B in 2024, resulting in a debt-to-equity ratio of 4.89, which suggests high leverage. The equity ratio stands at 7.30%, indicating a moderate portion of assets financed by equity. Return on equity increased from 7.28% in 2023 to 11.70% in 2024, highlighting improved utilization of shareholder funds. However, the overall high leverage presents potential risks if market conditions change unfavorably.

Cash Flow

Cash flow analysis reveals challenges with operating cash flow being negative in 2023, recovering slightly in 2024. The free cash flow remains a concern, with fluctuations in recent years, suggesting potential liquidity management issues. The absence of operating cash flow and free cash flow metrics in 2024 limits comprehensive analysis. This reflects a need for better cash flow management despite improved profitability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
53.51B	46.25B	47.37B	59.34B	44.56B
	Gross Profit
53.51B	46.25B	47.37B	59.34B	44.56B
	EBIT
18.40B	10.74B	13.49B	27.04B	12.48B
	EBITDA
20.79B	15.60B	15.94B	29.06B	14.38B
	Net Income Common Stockholders
14.28B	8.52B	11.26B	21.64B	9.46B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
182.09B	241.58B	597.57B	261.02B	156.53B
	Total Assets
1.68T	1.64T	1.44T	1.46T	1.16T
	Total Debt
342.56B	333.25B	308.00B	301.00B	266.00B
	Net Debt
160.46B	91.67B	-158.94B	40.00B	110.00B
	Total Liabilities
1.55T	1.52T	1.32T	1.35T	1.07T
	Stockholders Equity
122.00B	116.91B	117.00B	110.00B	96.00B
Cash Flow		Free Cash Flow
-15.30B	-14.90B	4.96B	-3.75B	-20.04B
	Operating Cash Flow
-13.21B	-12.59B	8.71B	921.00M	-13.73B
	Investing Cash Flow
-49.62B	-17.31B	-75.96B	-30.46B	-34.36B
	Financing Cash Flow
7.32B	27.80B	59.60B	134.74B	70.38B

Goldman Sachs Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 566.10
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GS, the sentiment is Positive. The current price of 566.1 is above the 20-day moving average (MA) of 516.19, above the 50-day MA of 547.89, and above the 200-day MA of 545.31, indicating a bullish trend. The MACD of 3.64 indicates Negative momentum. The RSI at 60.78 is Neutral, neither overbought nor oversold. The STOCH value of 91.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GS.

Goldman Sachs Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCHW	77 Outperform	$151.97B	24.78	14.12%	1.25%	2.32%	37.66%
IBKR	73 Outperform	$72.41B	24.74	19.26%	0.58%	15.28%	23.59%
RJF	73 Outperform	$28.22B	13.26	18.91%	1.35%	11.79%	25.74%
LPLA	73 Outperform	$25.57B	22.79	42.26%	0.37%	23.20%	2.38%
GS	72 Outperform	$153.67B	12.20	12.27%	2.12%	2.89%	68.64%
MS	71 Outperform	$174.38B	12.68	13.88%	3.17%	6.57%	55.54%
Sector *	64 Neutral	$12.65B	9.74	8.04%	17044.64%	12.65%	-5.11%

Goldman Sachs Group Corporate Events

Goldman Sachs Shareholders Approve Stock Incentive Plan

At the Annual Meeting of Shareholders held on April 23, 2025, Goldman Sachs shareholders approved the Amended and Restated Stock Incentive Plan (2025), which extends the equity plan’s term through 2029 and includes administrative enhancements. Additionally, the meeting saw the election of 14 directors, approval of executive compensation, and ratification of PricewaterhouseCoopers LLP as the independent registered public accounting firm, while several shareholder proposals were not approved.

Spark’s Take on GS Stock

According to Spark, TipRanks’ AI Analyst, GS is a Outperform.

Goldman Sachs demonstrates robust revenue and profit growth, supported by strategic initiatives and leadership changes. While high leverage and cash flow challenges require attention, the stock maintains fair valuation metrics and positive earnings call sentiment. Technical analysis indicates a cautious short-term outlook, but the overall performance and strategic positioning suggest a stable investment with growth potential despite some risks.

To see Spark’s full report on GS stock, click here.

Goldman Sachs Reports Strong Q1 2025 Financial Results

Goldman Sachs reported strong financial results for the first quarter of 2025, with net revenues of $15.06 billion and net earnings of $4.74 billion, marking a 6% increase in revenues compared to the same period in 2024. The firm’s performance was driven by record net revenues in its Global Banking & Markets division, particularly in equities and fixed income, currency, and commodities. The firm also maintained its leading position in mergers and acquisitions and equity offerings, while its asset and wealth management division saw a slight decrease in revenues. The results underscore Goldman Sachs’ ability to support clients amidst a changing operating environment and highlight its strategic priorities.

Spark’s Take on GS Stock

According to Spark, TipRanks’ AI Analyst, GS is a Outperform.

Goldman Sachs demonstrates strong financial performance with robust revenue and profit growth, supported by strategic initiatives and leadership changes. However, high leverage and cash flow challenges require attention. Technical analysis indicates a cautious short-term outlook, while valuation metrics suggest a fair pricing with a decent dividend yield. The positive sentiment from the earnings call and corporate events further bolsters confidence in the stock, making it a stable investment with growth potential despite some risks.

To see Spark’s full report on GS stock, click here.

Goldman Sachs Appoints McClure and Waldron to Board

On February 26, 2025, Goldman Sachs announced the appointment of KC McClure and John Waldron to its Board of Directors. McClure, who retired from Accenture, will join the Board’s Audit, Governance, and Risk Committees on April 1, 2025. Her extensive experience in finance and operations is expected to enhance the Board’s capabilities. Waldron, President and COO of Goldman Sachs, will provide insights into the firm’s execution priorities, although he will not serve on any committees. These appointments aim to strengthen the company’s strategic direction and long-term value creation for shareholders.