Goldman Sachs Group (GS) AI Stock Analysis

• Market Cap: $188.26B
• Dividend Yield: 1.96%
• Average Volume (3M): 1.98M
• Price to Earnings (P/E): 14.2
• Beta (1Y): 1.41
• Revenue Growth: 7.70%
• EPS Growth: 68.64%
• Country: US
• Employees: 46,600
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Capital Markets
• EPS (TTM): 14.12
• Shares Outstanding: 306,841,130
• 10 Day Avg. Volume: 1,637,193
• 30 Day Avg. Volume: 1,978,173
• PEG Ratio: -0.22
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.38
• Enterprise Value/Market Cap: -0.20
• Enterprise Value/Revenue: -0.08
• Enterprise Value/Gross Profit: -0.72
• Enterprise Value/Ebitda: -0.49
• 1Y Price Target: $611.54
• Price Target Upside: -0.33% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 72 Outperform
• Price Target: $693.00 ▲(12.95%Upside)

Goldman Sachs receives a strong overall score driven by robust technical analysis and positive earnings call outcomes. While financial performance shows profitability, concerns in revenue growth and cash flow moderate the score. Valuation metrics suggest the stock is reasonably priced.

Positive Factors

Earnings

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

Financial Performance

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

Strategic Execution

The company's adaptability to a changing operating environment and ability to make strategic course corrections creates a strong combination of scale and flexibility.

Negative Factors

Advisory Revenues

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

Economic Risks

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

Market Conditions

Higher recession risks and trade policy uncertainty could delay M&A and IPO decisions, and suppress wealth clients' risk.

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 wide 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 in four key business segments: Investment Banking, Global Markets, Asset Management, and Consumer & Wealth Management. The firm is known for its expertise in mergers and acquisitions, underwriting services, and prime brokerage, as well as its robust asset management and investment advisory services.

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 mixed financial health. Strong profitability metrics in the income statement are overshadowed by negative revenue growth and cash flow concerns. The balance sheet shows a robust return on equity but could benefit from optimizing its capital structure.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
126.24B	126.85B	108.42B	68.71B	64.99B	53.50B
	Gross Profit
53.04B	52.16B	45.23B	44.65B	58.98B	41.46B
	EBIT
18.81B	18.40B	10.74B	13.49B	27.04B	12.48B
	EBITDA
21.08B	20.79B	15.60B	15.94B	29.06B	14.38B
	Net Income Common Stockholders
14.88B	14.28B	8.52B	11.26B	21.64B	9.46B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
924.88B	921.83B	924.95B	721.95B	778.72B	588.48B
	Total Assets
1.77T	1.68T	1.64T	1.44T	1.46T	1.16T
	Total Debt
609.74B	616.93B	583.13B	434.55B	487.76B	420.96B
	Net Debt
442.33B	434.84B	341.56B	192.72B	226.73B	265.12B
	Total Liabilities
1.64T	1.55T	1.52T	1.32T	1.35T	1.07T
	Stockholders Equity
124.30B	122.00B	116.91B	117.19B	109.93B	95.93B
Cash Flow		Free Cash Flow
-24.50B	-15.30B	-14.90B	4.96B	-3.75B	-20.04B
	Operating Cash Flow
-22.40B	-13.21B	-12.59B	8.71B	921.00M	-13.73B
	Investing Cash Flow
-64.39B	-49.62B	-17.31B	-75.96B	-30.46B	-34.36B
	Financing Cash Flow
42.98B	7.32B	27.80B	59.60B	134.74B	70.38B

Goldman Sachs Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 613.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 613.54 is above the 20-day moving average (MA) of 607.17, above the 50-day MA of 562.30, and above the 200-day MA of 559.35, indicating a bullish trend. The MACD of 12.85 indicates Positive momentum. The RSI at 59.40 is Neutral, neither overbought nor oversold. The STOCH value of 76.09 is Neutral, 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	81 Outperform	$85.43B	27.90	19.26%	0.63%	14.67%	23.59%
LPLA	80 Outperform	$29.92B	25.89	40.36%	0.32%	26.32%	8.63%
SCHW	78 Outperform	$158.73B	26.56	14.12%	1.24%	2.32%	37.66%
RJF	77 Outperform	$29.38B	14.03	18.84%	1.37%	11.78%	25.68%
GS	72 Outperform	$188.26B	14.24	12.26%	1.96%	7.70%	68.64%
MS	71 Outperform	$207.74B	15.19	13.88%	2.86%	6.53%	55.54%
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.05%	12.07%	-7.97%

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.

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.