Goldman Sachs Group (GS) AI Stock Analysis

• Market Cap: $183.56B
• Dividend Yield: 1.98%
• Average Volume (3M): 2.77M
• Price to Earnings (P/E): 13.9
• Beta (1Y): 1.40
• Revenue Growth: 7.70%
• EPS Growth: 68.64%
• Country: US
• Employees: 46,600
• Sector: Financial
• Sector Strength: 81
• Industry: Financial - Capital Markets
• EPS (TTM): 14.12
• Shares Outstanding: 306,841,130
• 10 Day Avg. Volume: 2,421,519
• 30 Day Avg. Volume: 2,766,988
• PEG Ratio: 1.95
• Price to Book (P/B): 103.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.10
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 3.75
• Enterprise Value/Ebitda: 2.32
• 1Y Price Target: $607.50
• Price Target Upside: 1.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 66 Neutral
• Price Target: ―

Goldman Sachs demonstrates solid financial performance with strong profitability and strategic initiatives, although revenue growth and cash flow remain areas of concern. The stock is fairly valued with a reasonable dividend yield. Positive corporate events and a favorable earnings call sentiment support confidence in the stock, despite macroeconomic challenges.

Positive Factors

Financial Performance

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

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.

Trading Environment

The current environment is still supportive of a healthy trading backdrop for both equities and FICC.

Negative Factors

Global Economic Risks

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

Investment Banking Challenges

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

Macro Economic Concerns

Goldman's corporate and institutional clients are concerned by the significant uncertainty that has constrained their ability to make important decisions.

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 shows a mixed financial health profile with strong profitability metrics but challenges in revenue growth and cash flow. The balance sheet is strong, but cash flow issues need attention for sustained stability.

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
51.47B	53.51B	46.25B	47.37B	59.34B	44.56B
	Gross Profit
46.36B	53.51B	46.25B	47.37B	59.34B	44.56B
	EBIT
16.20B	18.40B	10.74B	13.49B	27.04B	12.48B
	EBITDA
18.47B	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	241.58B	597.57B	261.02B	156.53B
	Total Assets
1.77T	1.68T	1.64T	1.44T	1.46T	1.16T
	Total Debt
609.74B	616.93B	333.25B	308.00B	301.00B	266.00B
	Net Debt
442.33B	434.84B	91.67B	-158.94B	40.00B	110.00B
	Total Liabilities
1.64T	1.55T	1.52T	1.32T	1.35T	1.07T
	Stockholders Equity
124.30B	122.00B	116.91B	117.00B	110.00B	96.00B
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: 598.54
• 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 598.54 is above the 20-day moving average (MA) of 580.36, above the 50-day MA of 550.18, and above the 200-day MA of 553.42, indicating a bullish trend. The MACD of 17.47 indicates Negative momentum. The RSI at 60.59 is Neutral, neither overbought nor oversold. The STOCH value of 41.08 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
LPLA	80 Outperform	$30.18B	26.12	40.36%	0.32%	26.32%	8.63%
SCHW	77 Outperform	$158.64B	26.54	14.12%	1.16%	2.32%	37.66%
IBKR	73 Outperform	$87.36B	28.53	19.26%	0.48%	14.67%	23.59%
RJF	73 Outperform	$30.79B	14.70	18.84%	1.28%	11.79%	25.74%
MS	71 Outperform	$202.56B	14.81	13.88%	2.93%	6.53%	55.54%
GS	66 Neutral	$183.56B	13.88	12.26%	1.98%	7.70%	68.64%
Sector *	64 Neutral	$12.66B	9.79	7.67%	17015.07%	12.23%	-6.06%

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.

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.