Sells search and YouTube advertising, and runs Google Cloud alongside a set of long-horizon research bets.
Alphabet (GOOGL) scores 7.6 out of 10 as of , computed from its reported financial statements. That reads as high quality. The reading rests on solvency, and efficiency is what holds it back.
Data provided by Twelve Data. Scores are computed by Lemma Analysis from reported financials.
Alphabet’s returns on capital beat their cost in almost every measured year, by a clear margin: 5 of 5 indicators passed.
Quantitative signs of a moat, read from the filed statements. This is not a judgement of where it comes from (brand, network effects, switching costs). How Lemma measures a moat →
Search economics produce profitability that would look implausible in almost any other industry, which makes the score top-heavy on one pillar. Advertising is cyclical, so predictability is the honest counterweight, and the capital going into AI infrastructure is beginning to press on efficiency. The reading worth having is how the pillars balance once that buildout is fully in the cash flow statement.
Alphabet (GOOGL) has a Lemma Quality Score of 7.6 out of 10 as of October 19, 2026, which reads as high quality. A high reading means most of the pillars are strong, with no serious weakness pulling the average down. Five pillars feed it, and every one of them is computed from what the company reported rather than from its share price.
Among the 80 Communication Services companies with a published score, that ranks at the 96th percentile, near the very top of the group. For reference, the middle of the group scores 4.6 and a company needs 6.0 to reach its top quarter, which leaves Alphabet well above the median.
On profitability, Alphabet scores 8.9, a strong reading. Its peers have a median of 3.7 across 77 Communication Services companies, which places it well above them, at the 97th percentile. High profitability means each unit of capital and of sales is turning into more profit than at most of its peers, which is usually the first sign of pricing power or a cost advantage.
Solvency scores 9.3 out of 10, which reads as strong. The median across 62 Communication Services companies is 4.8, so Alphabet is well above its peers on this pillar and ranks at the 92nd percentile. A high solvency score means leverage is modest relative to earnings and cash flow, which gives management room to act in a bad year.
Growth scores 6.3 out of 10, which reads as average. The median across 64 Communication Services companies is 4.7, so Alphabet is well above its peers on this pillar and ranks at the 63rd percentile. A middling growth reading is typical of a mature company whose next step depends on reinvestment rather than on its market growing for it.
Efficiency scores 5.5 out of 10, which reads as average. The median across 76 Communication Services companies is 6.1, so Alphabet is below its peers on this pillar and ranks at the 39th percentile. An average efficiency reading suggests the business turns its assets and earnings into cash at roughly the rate its sector does.
Alphabet’s predictability score is 7.2 out of 10 (strong). Against a median of 4.5 among 80 Communication Services companies, that is well above the group and the 96th percentile. High predictability means the company’s results have moved steadily from year to year, which makes the other pillars more trustworthy as a guide.
This is a lopsided profile. Solvency scores 9.3 but efficiency only 5.5, a gap of 3.8 points, so the overall hides a business that is excellent in one respect and weak in another. A solvency lead means the balance sheet is the company’s strongest asset, a cushion that buys time when trading gets harder. An efficiency shortfall means profit is not turning into cash as readily as it could.
Every scored pillar is at or above the median of Communication Services companies, so there is no catch-up left to lift the overall. The risk runs the other way: a one point fall in profitability, the heaviest of them, would take the score from 7.6 to about 7.3. All five pillars could be scored, so the overall uses the full set of weights out of 100: profitability 25, solvency 20, growth 20, efficiency 15, predictability 20.
These are the Communication Services companies closest to Alphabet in market value. Each has its own page scored on the same five pillars, so the comparison is like for like.
How much profit the company generates from its capital and sales.
The company’s ability to service debt and meet its obligations.
How fast revenue, earnings and cash flow are compounding.
How well assets and earnings convert into cash and output.
How stable and consistent results have been over time.
Each metric is scored from 0 to 10 against sector-aware benchmarks, where higher is better. Metrics roll up into five pillars, and the pillars combine into the overall score using the weights shown. Sector-sensitive metrics are judged relative to peers in the same sector.
This score is a systematic, backward-looking read of reported fundamentals. It does not judge valuation, management quality, competitive moat, or future prospects, and can be distorted by one-off items or unusual accounting. Treat it as a starting point, not a recommendation.
Educational only. Not investment advice.
On this reading Alphabet scores 7.6 out of 10, which reads as high quality. Its strongest pillar is solvency, its weakest is efficiency. Quality is not the same as a good investment: the score says nothing about the price you would pay.
Alphabet ranks at the 96th percentile of the 80 Communication Services companies Lemma publishes a score for. The median there is 4.6 and the top quarter starts at 6.0, against Alphabet’s 7.6.
Five pillars, each scored from 0 to 10 against sector-aware benchmarks and then weighted into one overall reading: profitability, solvency, growth, efficiency and predictability. Everything comes from reported financials, and nothing comes from price, sentiment or forecasts.
This page last changed on October 19, 2026. The score moves with the financial statements, so the page changes when a new filing moves the reading rather than on a schedule. Live figures for GOOGL are in the app.
No. Quality and valuation are separate questions, and a good business at the wrong price is still a bad purchase. Score the business here, then price it with a DCF you control.
Inside Lemma Analysis the same five pillars run on every company we cover, with the metrics behind each one, current fundamentals, a DCF you control and a watchlist that tells you when the price catches up.
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