Goldman Sachs Group (GS) AI Stock Analysis

• Market Cap: $236.22B
• Dividend Yield: 1.65%
• Average Volume (3M): 2.03M
• Price to Earnings (P/E): 16.0
• Beta (1Y): 1.37
• 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: 1,780,732
• 30 Day Avg. Volume: 2,028,926
• 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: 3.86
• Enterprise Value/Revenue: 7.20
• Enterprise Value/Gross Profit: 16.63
• Enterprise Value/Ebitda: 41.24
• 1Y Price Target: $824.50
• Price Target Upside: 4.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $866.00 ▲(10.13% Upside)

Goldman Sachs' overall stock score is driven by strong financial performance and a positive earnings call, indicating robust growth and strategic positioning. However, technical indicators suggest caution due to potential bearish momentum, and high leverage poses a risk. The valuation is fair, supporting a balanced investment outlook.

Positive Factors

M&A Advisory Leadership

Leading the M&A advisory space with significant volumes showcases Goldman Sachs' strong market position and expertise, enhancing its reputation and attracting high-profile clients, which is crucial for sustained revenue growth.

Asset and Wealth Management Growth

Record growth in assets under supervision and alternative investments indicates robust demand for Goldman Sachs' wealth management services, supporting long-term revenue stability and diversification.

Strategic Acquisitions and Partnerships

Strategic acquisitions and partnerships enhance Goldman Sachs' capabilities in venture capital and retirement solutions, positioning it for long-term growth and competitive advantage in these expanding markets.

Negative Factors

High Leverage

Significant leverage increases financial risk, particularly in volatile markets, potentially impacting Goldman Sachs' ability to navigate economic downturns and maintain financial flexibility.

Negative Cash Flows

Negative cash flows can strain liquidity and limit Goldman Sachs' ability to invest in growth opportunities or weather financial challenges, posing a risk to long-term financial health.

Higher Operating Expenses

Rising operating expenses, driven by higher transaction-based costs and other factors, could pressure margins and reduce profitability if not managed effectively over the long term.

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 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 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	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	22.09B	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: 786.34
• 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 786.34 is above the 20-day moving average (MA) of 776.20, above the 50-day MA of 777.96, and above the 200-day MA of 660.36, indicating a bullish trend. The MACD of 4.34 indicates Negative momentum. The RSI at 53.45 is Neutral, neither overbought nor oversold. The STOCH value of 56.11 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	80 Outperform	$31.42B	33.98	19.82%	0.40%	11.88%	28.96%
RJF	78 Outperform	$31.81B	15.49	17.72%	1.23%	6.55%	5.90%
MS	74 Outperform	$262.52B	16.95	15.15%	2.37%	7.22%	48.18%
GS	71 Outperform	$236.22B	16.00	13.57%	1.65%	2.31%	44.49%
SCHW	70 Outperform	$170.99B	22.08	17.04%	1.12%	5.90%	66.60%
LPLA	70 Outperform	$29.83B	34.30	21.32%	0.32%	35.19%	-18.62%
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 Earnings

Goldman Sachs Group, Inc. is a leading global financial institution that provides a wide range of financial services to corporations, financial institutions, governments, and individuals worldwide, with a strong presence in major financial centers.

Goldman Sachs Shines in Q3 Earnings Call

Goldman Sachs’ recent earnings call painted a picture of robust financial health and strategic growth, with record revenues and significant advancements in various sectors. The sentiment was overwhelmingly positive, with strong performance metrics and strategic initiatives outweighing any challenges faced during the quarter.

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.

The most recent analyst rating on (GS) stock is a Buy with a $720.00 price target. To see the full list of analyst forecasts on Goldman Sachs Group stock, see the GS Stock Forecast page.