Goldman Sachs Group (GS) AI Stock Analysis

• Market Cap: $243.86B
• Dividend Yield: 1.61%
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): 17.7
• Beta (1Y): 1.44
• Revenue Growth: 3.53%
• EPS Growth: 45.85%
• Country: US
• Employees: 46,600
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 10.91
• Shares Outstanding: 302,721,100
• 10 Day Avg. Volume: 1,899,324
• 30 Day Avg. Volume: 1,721,781
• PEG Ratio: 0.17
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 1.48
• P/FCF Ratio: -12.28
• Enterprise Value/Market Cap: 3.67
• Enterprise Value/Revenue: 7.07
• Enterprise Value/Gross Profit: 16.33
• Enterprise Value/Ebitda: 46.19
• 1Y Price Target: $744.70
• Price Target Upside: -7.64% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 76 Outperform
• Price Target: $897.00 ▲(11.25% Upside)

Goldman Sachs' strong financial performance and bullish technical indicators are the most significant factors driving the score. The company's strategic growth in investment banking and asset management further supports a positive outlook. However, high leverage and cash flow challenges, along with moderate valuation metrics, slightly temper the overall score.

Positive Factors

Strategic Collaboration

This collaboration enhances Goldman Sachs' market reach and product offerings, particularly in retirement and wealth management, which can drive long-term growth and client retention.

Investment Banking Achievements

Strong performance in investment banking, particularly in M&A, highlights Goldman Sachs' competitive edge and ability to capitalize on market opportunities, supporting sustained revenue growth.

Asset and Wealth Management Success

Record levels in asset and wealth management indicate robust client trust and effective management strategies, ensuring steady fee-based income and long-term financial stability.

Negative Factors

High Leverage

High leverage can increase financial risk, especially in volatile markets, potentially impacting Goldman Sachs' ability to manage economic downturns and maintain financial flexibility.

Cash Flow Challenges

Negative cash flows may limit Goldman Sachs' ability to invest in growth opportunities and meet financial obligations, posing a risk to long-term operational sustainability.

Regulatory Uncertainty

Ongoing regulatory uncertainty can hinder Goldman Sachs' strategic planning and capital allocation, potentially affecting its competitive positioning and financial performance.

Goldman Sachs Group Business Overview & Revenue Model

Company Description

Goldman Sachs Group, Inc. is a leading global investment banking, securities, and investment management firm headquartered in New York City. Established in 1869, the firm operates in various segments, including Investment Banking, Global Markets, Asset Management, and Consumer & Wealth Management. Goldman Sachs provides a wide array of services such as mergers and acquisitions advisory, underwriting of securities, trading and market-making activities, and asset management solutions for institutions and individuals.

How the Company Makes Money

Goldman Sachs generates revenue through multiple streams. The primary sources include Investment Banking fees from advisory services on mergers and acquisitions, underwriting services for equity and debt offerings, and other related activities. In Global Markets, the firm earns trading revenue from buying and selling various securities, derivatives, and other financial instruments on behalf of clients and for its own account. The Asset Management segment contributes fees from managing investments for institutions and individuals, including hedge funds, mutual funds, and private equity. Additionally, the Consumer & Wealth Management division generates revenue through wealth management services and consumer banking products. Significant partnerships and strategic alliances enhance its capabilities and market reach, while a strong reputation and expertise in financial markets attract high-profile clients, contributing to consistent earnings growth.

Goldman Sachs Group Financial Statement Overview

Summary

Goldman Sachs shows strong revenue growth and profitability with a net profit margin of 12.3%. However, high leverage with a debt-to-equity ratio of 4.86 and negative cash flows present risks. The company must address these challenges to maintain financial stability.

Income Statement

Goldman Sachs has demonstrated strong revenue growth with a TTM increase of 26.9% and consistent profitability, evidenced by a gross profit margin of 43.3% and a net profit margin of 12.3%. The EBIT and EBITDA margins are healthy, indicating efficient operations. However, the decline in EBIT and EBITDA margins compared to the previous year suggests potential cost pressures.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 4.86, indicating significant leverage, which could pose risks in volatile markets. However, the return on equity is strong at 12.7%, reflecting effective use of equity capital. The equity ratio is moderate, suggesting a balanced asset structure.

Cash Flow

Goldman Sachs faces challenges in cash flow management, with negative operating and free cash flows in the TTM period. Despite this, the free cash flow to net income ratio is positive at 1.09, indicating that the company generates sufficient cash relative to its net income. The significant growth in free cash flow from the previous period is a positive sign.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	126.58B	126.85B	108.42B	68.71B	64.99B	53.50B
Gross Profit	54.79B	52.16B	45.23B	44.65B	58.98B	41.46B
EBITDA	19.37B	20.79B	15.60B	15.94B	29.06B	14.38B
Net Income	15.56B	14.28B	8.52B	11.26B	21.64B	9.46B
Balance Sheet
Total Assets	1.79T	1.68T	1.64T	1.44T	1.46T	1.16T
Cash, Cash Equivalents and Short-Term Investments	166.72B	921.83B	924.95B	721.95B	778.72B	588.48B
Total Debt	603.19B	616.93B	583.13B	434.55B	487.76B	420.96B
Total Liabilities	1.66T	1.55T	1.52T	1.32T	1.35T	1.07T
Stockholders Equity	124.10B	122.00B	116.91B	117.19B	109.93B	95.93B
Cash Flow
Free Cash Flow	-24.88B	-15.30B	-14.90B	4.96B	1.63B	-24.84B
Operating Cash Flow	-22.85B	-13.21B	-12.59B	8.71B	6.30B	-18.54B
Investing Cash Flow	-70.48B	-49.62B	-17.31B	-75.96B	-30.46B	-34.36B
Financing Cash Flow	32.09B	7.32B	27.80B	59.60B	134.74B	70.38B

Goldman Sachs Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 806.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 806.32 is above the 20-day moving average (MA) of 770.35, above the 50-day MA of 740.45, and above the 200-day MA of 627.91, indicating a bullish trend. The MACD of 20.05 indicates Negative momentum. The RSI at 64.05 is Neutral, neither overbought nor oversold. The STOCH value of 63.12 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	78 Outperform	28.59B	33.68	17.37%	0.76%	12.30%	20.76%
MS	76 Outperform	256.55B	18.21	12.81%	2.35%	6.36%	45.50%
GS	76 Outperform	$243.86B	17.74	12.78%	1.61%	3.53%	45.85%
RJF	75 Outperform	34.96B	17.21	17.40%	1.11%	9.42%	14.86%
SCHW	70 Outperform	171.41B	25.42	12.28%	1.13%	4.64%	54.26%
LPLA	65 Neutral	26.96B	23.05	22.03%	0.35%	29.23%	13.45%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

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.