Goldman Sachs Group (GS) AI Stock Analysis

• Market Cap: $220.16B
• Dividend Yield: 1.67%
• Average Volume (3M): 2.27M
• Price to Earnings (P/E): 15.8
• Beta (1Y): 1.43
• Revenue Growth: -0.34%
• EPS Growth: 45.85%
• Country: US
• Employees: 46,600
• Sector: Financial
• Sector Strength: 72
• Industry: Financial - Capital Markets
• EPS (TTM): 10.91
• Shares Outstanding: 306,841,130
• 10 Day Avg. Volume: 2,098,203
• 30 Day Avg. Volume: 2,268,160
• PEG Ratio: 2.74
• Price to Book (P/B): 125.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.97
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 1.75
• Enterprise Value/Gross Profit: 6.45
• Enterprise Value/Ebitda: 5.91
• 1Y Price Target: $715.33
• Price Target Upside: -1.87% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 71 Outperform
• Price Target: $783.00 ▲(7.41%Upside)

Goldman Sachs' strong technical indicators and positive earnings call sentiment are the most significant contributors to the score, indicating bullish momentum and strategic growth initiatives. However, concerns over negative revenue growth and cash flow issues slightly dampen the overall outlook.

Positive Factors

Capital Management

Goldman Sachs has significant excess capital for share buybacks, having already repurchased $3 billion in shares in the second quarter.

Earnings

Goldman Sachs' second-quarter earnings per share exceeded expectations due to strong equity trading, advisory services, and asset and wealth management fees.

Financial Performance

Goldman Sachs showed impressive growth in its Global Banking and Markets division, outperforming peers with a 24% year-over-year revenue increase.

Negative Factors

Investment Challenges

Goldman Sachs faced challenges with negative equity gains from the sale of remaining on-balance-sheet investments.

Stock Performance

Choppy stock performance reflects very high expectations and questions around 'is this as good as it gets?'

Valuation Concerns

The stock is rated as Equal-weight because the multiple looks fully valued at 13 times the 2026 EPS.

Goldman Sachs Group Business Overview & Revenue Model

Company Description

The Goldman Sachs Group, Inc., a financial institution, provides a range of financial services for corporations, financial institutions, governments, and individuals worldwide. It operates through four segments: Investment Banking, Global Markets, Asset Management, and Consumer & Wealth Management. The company's Investment Banking segment provides financial advisory services, including strategic advisory assignments related to mergers and acquisitions, divestitures, corporate defense activities, restructurings, and spin-offs; and middle-market lending, relationship lending, and acquisition financing, as well as transaction banking services. This segment also offers underwriting services, such as equity underwriting for common and preferred stock and convertible and exchangeable securities; and debt underwriting for various types of debt instruments, including investment-grade and high-yield debt, bank and bridge loans, and emerging-and growth-market debt, as well as originates structured securities. Its Global Markets segment is involved in client execution activities for cash and derivative instruments; credit and interest rate products; and provision of equity intermediation and equity financing, clearing, settlement, and custody services, as well as mortgages, currencies, commodities, and equities related products. The company's Asset Management segment manages assets across various classes, including equity, fixed income, hedge funds, credit funds, private equity, real estate, currencies, and commodities; and provides customized investment advisory solutions, as well as invests in corporate, real estate, and infrastructure entities. Its Consumer & Wealth Management segment offers wealth advisory and banking services, including financial planning, investment management, deposit taking, and lending; private banking; and unsecured loans, as well as accepts saving and time deposits. The company was founded in 1869 and is headquartered in New York, New York.

How the Company Makes Money

Goldman Sachs makes money through a diversified revenue model primarily derived from four main business segments: Investment Banking, Global Markets, Asset Management, and Consumer & Wealth Management. In Investment Banking, the company earns revenue from advisory fees related to mergers and acquisitions, underwriting fees from equity and debt issuances, and loan syndications. The Global Markets segment generates income from facilitating client transactions in fixed income, currency, commodities, and equity products, primarily through market-making and proprietary trading. Asset Management provides revenue through management and incentive fees earned on assets under management, which include investment funds and separate accounts. Consumer & Wealth Management generates income from management fees on client assets, transaction fees, and lending activities, including personal loans and credit card offerings. Additionally, Goldman Sachs benefits from strategic partnerships and investments that enhance its financial product offerings and market reach.

Goldman Sachs Group Financial Statement Overview

Summary

Goldman Sachs exhibits strong profitability metrics, with high gross and net profit margins and impressive EBIT and EBITDA margins. However, revenue growth is negative, and cash flow analysis reveals significant liquidity concerns with negative operating and free cash flows.

Income Statement

Goldman Sachs' income statement shows a mixed performance. The gross profit margin is strong at 90.1% TTM, indicating efficient cost management. However, the net profit margin has slightly declined to 28.9% TTM, suggesting increased costs or reduced revenue efficiency. Revenue growth is negative at -3.8% TTM, reflecting a potential challenge in maintaining revenue streams. EBIT and EBITDA margins are robust at 31.5% and 35.9% TTM respectively, highlighting profitability before interest and taxes.

Balance Sheet

The balance sheet presents a stable yet cautious outlook. The debt-to-equity ratio is 0.04 TTM, indicating manageable leverage compared to equity. Return on equity is impressive at 84.3% TTM, showcasing strong returns. However, the equity ratio of 100% reflects a potential over-reliance on equity financing, which may limit leverage benefits. Overall, the financial position is strong but could be optimized for better capital structure.

Cash Flow

Cash flow analysis reveals some areas of concern. Operating cash flow is negative at -22.4 billion TTM, indicating challenges in generating cash from operations. Free cash flow is also negative at -24.5 billion TTM, pointing to potential liquidity issues. The operating cash flow to net income ratio is -1.51 TTM, suggesting inefficiencies in cash conversion. While free cash flow to net income ratio is -1.65 TTM, further emphasizing cash management concerns.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	126.85B	108.42B	68.71B	64.99B	53.50B
Gross Profit	52.16B	45.23B	44.65B	58.98B	41.46B
EBITDA	20.79B	15.60B	15.94B	29.06B	14.38B
Net Income	14.28B	8.52B	11.26B	21.64B	9.46B
Balance Sheet
Total Assets	1.68T	1.64T	1.44T	1.46T	1.16T
Cash, Cash Equivalents and Short-Term Investments	921.83B	924.95B	721.95B	778.72B	588.48B
Total Debt	616.93B	583.13B	434.55B	487.76B	420.96B
Total Liabilities	1.55T	1.52T	1.32T	1.35T	1.07T
Stockholders Equity	122.00B	116.91B	117.19B	109.93B	95.93B
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: 728.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 728.98 is above the 20-day moving average (MA) of 708.71, above the 50-day MA of 654.67, and above the 200-day MA of 588.48, indicating a bullish trend. The MACD of 18.50 indicates Positive momentum. The RSI at 69.89 is Neutral, neither overbought nor oversold. The STOCH value of 91.05 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
IBKR	80 Outperform	$28.20B	33.17	19.15%	0.77%	12.25%	20.76%
LPLA	80 Outperform	$30.13B	26.24	40.36%	0.32%	26.32%	8.63%
RJF	78 Outperform	$33.66B	15.78	18.22%	1.16%	9.01%	14.86%
MS	77 Outperform	$227.72B	16.11	14.13%	2.60%	6.31%	45.50%
SCHW	74 Outperform	$172.88B	25.62	15.59%	1.08%	4.64%	54.26%
GS	71 Outperform	$220.16B	15.81	12.78%	1.67%	-0.34%	45.85%
Sector *	64 Neutral	$6.69B	10.23	7.22%	190.13%	24.15%	5.15%

Goldman Sachs Group Corporate Events

Goldman Sachs Reports Strong Q2 2025 Earnings Growth

Goldman Sachs reported its second quarter 2025 earnings with net revenues of $14.58 billion and net earnings of $3.72 billion, reflecting a 15% increase in net revenues compared to the same period in 2024. The firm announced an increase in the quarterly dividend to $4.00 per common share for the third quarter, highlighting strong performance in Global Banking & Markets, particularly in investment banking and equities, despite a slight decline in Asset & Wealth Management revenues.

The most recent analyst rating on (GS) stock is a Buy with a $553.00 price target. To see the full list of analyst forecasts on Goldman Sachs Group stock, see the GS Stock Forecast page.

Goldman Sachs Announces 33% Dividend Increase Post-CCAR

On June 27, 2025, the Federal Reserve released the results of its 2025 Comprehensive Capital Analysis and Review (CCAR) stress test process, which indicated that Goldman Sachs’ Stress Capital Buffer (SCB) requirement will be 3.4%, resulting in a Standardized Common Equity Tier 1 (CET1) ratio requirement of 10.9%, effective October 1. The firm’s capital plan includes a 33% increase in the common stock dividend from $3.00 to $4.00 per share beginning July 1, 2025, subject to approval by the Board of Directors. This move reflects Goldman Sachs’ efforts to reduce capital intensity and aligns with the Federal Reserve’s intention to implement a more transparent and fair approach to stress tests, supporting the firm’s ability to serve clients, invest in businesses, and support economic growth.

The most recent analyst rating on (GS) stock is a Hold with a $550.00 price target. To see the full list of analyst forecasts on Goldman Sachs Group stock, see the GS Stock Forecast page.