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The Goldman Sachs Group logo

The Goldman Sachs Group

GS
47
Financial - Capital Markets · Financial Services
Price
$1065.22
-30.24 (-2.76%)
Market Cap
$314.25B
Winston Score
47
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

10.7% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 355.8M (2021) → 317.6M (2025)

Goldman Sachs is one of the most well-known investment banks in the world. It helps large companies, governments, and wealthy individuals manage money, raise capital, and make big financial deals. Its main businesses include investment banking, trading stocks and bonds, wealth management, and asset management.

Goldman makes money by charging fees for advising on mergers and acquisitions, earning commissions from trading, and collecting management fees on the money it invests for clients. It operates globally, with major hubs in New York, London, and Hong Kong, and manages over $2 trillion in assets. Its competitive edge comes from deep relationships with the world's largest corporations and governments, plus a strong reputation built over 150 years. The key risk the company faces is that its revenue is closely tied to market activity — when markets slow down or volatility drops, deal-making and trading income can fall sharply.

Winston Score History

Politician Trades

35 trades / 12mo

19 Congressional buys and 16 sells on GS in the last 12 months.

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Score breakdown

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Quality

Gross Margin
98.2%
Premium pricing power — 98.2% gross margin
Operating Margin
37.7%
Excellent — 37.7% operating margin
ROCE
0.8%
Weak — 0.8% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-12.4%
Shrinking sales (-12.4% YoY)
EPS YoY
+27.0%
Earnings growing fast (27.0% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion
-250%
Weak — only -250% of profit becomes cash
FCF Margin
-42.6%
Burning cash (-42.6%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
5.43
Heavy debt load (5.43)
Interest Cover
0.34x
Dangerous — barely covers interest (0.3x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

P/E Ratio (TTM)
19.2x
Fair value — P/E 19.2

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
+3.6
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (19.2 → 15.6)

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Dividends

Dividend Yield
1.67%
Small dividend — 1.67% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth
+41.7%
Dividend growing fast (41.7% YoY)

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