Goldman Sachs Group (GS) AI Stock Analysis

• Market Cap: $261.64B
• Dividend Yield: 1.6%
• Average Volume (3M): 2.05M
• Price to Earnings (P/E): 17.7
• Beta (1Y): 1.35
• Revenue Growth: 2.31%
• EPS Growth: 44.49%
• Country: US
• Employees: 46,600
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 12.25
• Shares Outstanding: 299,928,500
• 10 Day Avg. Volume: 2,260,545
• 30 Day Avg. Volume: 2,050,943
• 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: 3.48
• Enterprise Value/Revenue: 7.16
• Enterprise Value/Gross Profit: 15.89
• Enterprise Value/Ebitda: 38.93
• 1Y Price Target: $841.00
• Price Target Upside: -5.87% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $966.00 ▲(8.12% Upside)

Goldman Sachs' strong financial performance and positive earnings call are the most significant factors driving the score. The stock's bullish technical indicators are tempered by overbought signals. Valuation is fair, and the company's strategic initiatives position it well for future growth despite some financial risks.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust business expansion and effective market positioning, supporting long-term financial health.

M&A Leadership

Leading M&A advisory enhances Goldman Sachs' reputation and market influence, contributing to sustained competitive advantage.

Asset Management Growth

Record asset management growth strengthens recurring revenue streams and underscores effective client asset management strategies.

Negative Factors

High Leverage

Significant leverage can increase financial risk, potentially impacting stability and flexibility in volatile market conditions.

Declining Cash Flow

Decreasing cash flow growth may limit investment capacity and operational flexibility, affecting long-term financial sustainability.

Higher Operating Expenses

Rising expenses can pressure profit margins and reduce operational efficiency, challenging cost management and profitability.

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 generates revenue through several key streams. The Investment Banking segment contributes significantly by advising clients on mergers and acquisitions, underwriting public offerings, and facilitating capital raising efforts. The Global Markets segment earns revenue through trading and market-making activities in equities, fixed income, and commodities, capitalizing on price fluctuations and liquidity needs. Asset Management services generate fees from managing investments on behalf of institutional and individual clients, while Consumer & Wealth Management offers financial planning and investment services that also produce advisory and management fees. Additionally, Goldman Sachs has formed strategic partnerships and alliances that enhance its service offerings and broaden its client base, contributing to its overall earnings. The firm's diversified approach across different sectors helps mitigate risks and stabilize revenue streams.

Goldman Sachs Group Financial Statement Overview

Summary

Goldman Sachs shows strong revenue growth and profitability, with a high gross profit margin and net profit margin. However, the high debt-to-equity ratio and negative cash flows present potential risks, indicating the need for improved cash flow management.

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	127.21B	126.85B	108.42B	68.71B	64.99B	53.50B
Gross Profit	57.34B	52.16B	45.23B	44.65B	58.98B	41.46B
EBITDA	23.41B	20.79B	15.60B	15.94B	29.06B	14.38B
Net Income	16.67B	14.28B	8.52B	11.26B	21.64B	9.46B
Balance Sheet
Total Assets	1.81T	1.68T	1.64T	1.44T	1.46T	1.16T
Cash, Cash Equivalents and Short-Term Investments	516.00B	921.83B	924.95B	721.95B	778.72B	588.48B
Total Debt	665.00B	616.93B	583.13B	434.55B	487.76B	420.96B
Total Liabilities	1.68T	1.55T	1.52T	1.32T	1.35T	1.07T
Stockholders Equity	124.00B	122.00B	116.91B	117.19B	109.93B	95.93B
Cash Flow
Free Cash Flow	15.77B	-15.30B	-14.90B	4.96B	1.63B	-24.84B
Operating Cash Flow	17.89B	-13.21B	-12.59B	8.71B	6.30B	-18.54B
Investing Cash Flow	-46.31B	-49.62B	-17.31B	-75.96B	-30.46B	-34.36B
Financing Cash Flow	41.53B	7.32B	27.80B	59.60B	134.74B	70.38B

Goldman Sachs Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 893.48
• 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 893.48 is above the 20-day moving average (MA) of 849.14, above the 50-day MA of 806.20, and above the 200-day MA of 687.58, indicating a bullish trend. The MACD of 25.46 indicates Negative momentum. The RSI at 66.30 is Neutral, neither overbought nor oversold. The STOCH value of 42.82 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
MS	76 Outperform	$277.81B	17.94	15.15%	2.18%	7.22%	48.18%
RJF	76 Outperform	$31.67B	15.64	17.64%	1.26%	6.45%	5.85%
SCHW	74 Outperform	$171.67B	22.66	17.05%	1.11%	5.90%	66.60%
GS	73 Outperform	$261.64B	17.72	13.57%	1.60%	2.31%	44.49%
BAC	72 Outperform	$398.35B	14.87	9.87%	1.95%	0.15%	33.84%
JPM	72 Outperform	$857.46B	15.60	16.35%	1.79%	1.89%	12.32%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Goldman Sachs Group Corporate Events

Goldman Sachs Reports Strong Q3 2025 Financial Results

Goldman Sachs reported strong financial results for the third quarter of 2025, with net revenues of $15.18 billion, a 20% increase from the same period in 2024, and net earnings of $4.10 billion. The firm’s earnings per share rose to $12.25, reflecting significant growth in its Global Banking & Markets and Asset & Wealth Management divisions. The company’s annualized return on equity was 14.2%, and its book value per share increased by 1.2% during the quarter. These results underscore Goldman Sachs’ robust performance across various financial segments, driven by higher investment banking fees and increased activity in mergers and acquisitions, as well as strong performance in its asset management operations.