Goldman Sachs Group (GS) AI Stock Analysis

• Market Cap: $225.60B
• Dividend Yield: 1.78%
• Average Volume (3M): 1.76M
• Price to Earnings (P/E): 16.1
• Beta (1Y): 1.42
• Revenue Growth: 3.53%
• EPS Growth: 45.85%
• Country: US
• Employees: 46,600
• Sector: Financial
• Sector Strength: 76
• Industry: Financial - Capital Markets
• EPS (TTM): 10.91
• Shares Outstanding: 302,721,100
• 10 Day Avg. Volume: 1,530,485
• 30 Day Avg. Volume: 1,758,117
• 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: 3.97
• Enterprise Value/Revenue: 7.07
• Enterprise Value/Gross Profit: 16.33
• Enterprise Value/Ebitda: 46.19
• 1Y Price Target: $724.91
• Price Target Upside: -0.77% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 77 Outperform
• Price Target: $819.00 ▲(12.11% Upside)

Goldman Sachs' overall score is driven by strong financial performance and positive earnings call sentiment, supported by technical indicators showing bullish momentum. However, high leverage and cash flow challenges present risks that need addressing.

Positive Factors

Earnings

A strong 10% EPS beat driven mostly by Equities Trading, M&A Advisory, and FICC trading indicates robust financial performance.

Financial Performance

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

Investment Banking

Management highlighted an increasing Investment Banking backlog for a 5th consecutive quarter, driven significantly by the Advisory backlog.

Negative Factors

Equity Gains

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

Stock Performance Expectations

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

Stock Valuation

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

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 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	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: 730.56
• 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 730.56 is above the 20-day moving average (MA) of 730.54, above the 50-day MA of 715.15, and above the 200-day MA of 613.28, indicating a bullish trend. The MACD of 8.13 indicates Positive momentum. The RSI at 52.99 is Neutral, neither overbought nor oversold. The STOCH value of 59.88 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	$28.45B	33.51	19.15%	0.78%	12.30%	20.76%
GS	77 Outperform	$225.60B	16.10	12.78%	1.78%	3.53%	45.85%
MS	76 Outperform	$237.61B	16.87	14.13%	2.54%	6.36%	45.50%
RJF	75 Outperform	$33.78B	16.52	18.16%	1.17%	9.42%	14.86%
SCHW	74 Outperform	$173.97B	25.88	15.59%	1.10%	4.64%	54.26%
Sector *	68 Neutral	$17.88B	11.66	10.24%	3.76%	9.66%	1.70%
LPLA	66 Neutral	$29.16B	24.82	29.46%	0.34%	29.23%	13.45%

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.