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Goldman Sachs Group Inc GS

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Goldman Sachs' Q2 Revenue Decreases Modestly From Record Q1, but Relative Strength Should Persist

Michael Wong, CFA, CPA Sector Director

Analyst Note

| Michael Wong, CFA, CPA |

Goldman Sachs reported a modest sequential decline in its second quarter from record first-quarter results, but we continue to believe that it and other investment banks will still put up relatively strong numbers for the foreseeable future. The company reported earnings to common shareholders of $5.3 billion, or $15.02 per diluted share, on $15.4 billion of net revenue for the second quarter of 2021. Return on tangible common equity was 25.1% for the quarter and 28.9% year to date. We don’t anticipate making a material change to our $313 fair value estimate for narrow-moat Goldman Sachs.

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Company Profile

Business Description

Goldman Sachs is a leading global investment banking firm whose activities are organized into investment banking (20% of net revenue), global markets (40%), asset management (25%), and consumer and wealth management (15%) segments. Approximately 60% of the company's net revenue is generated in the Americas, 15% in Asia, and 25% in Europe, the Middle East, and Africa. In 2008, Goldman reorganized itself as a financial holding company regulated by the Federal Reserve System.

Contact
200 West Street
New York, NY, 10282
T +1 212 902-1000
Sector Financial Services
Industry Capital Markets
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 40,500

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