GALP ENERGIA SGPS SA (GALP.LS) Stock Fundamental Analysis
Europe - Euronext Lisbon - ELI:GALP - PTGAL0AM0009 - Common Stock
15.668 EUR
-0.04 (-0.24%)
Overall GALP gets a fundamental rating of 6 out of 10. We evaluated GALP against 71 industry peers in the Oil, Gas & Consumable Fuels industry. While GALP belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. GALP is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year GALP was profitable.
- In the past year GALP had a positive cash flow from operations.
- GALP had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years GALP had a positive operating cash flow.
1.2 Ratios
- GALP's Return On Assets of 10.53% is amongst the best of the industry. GALP outperforms 92.96% of its industry peers.
- The Return On Equity of GALP (36.67%) is better than 97.18% of its industry peers.
- The Return On Invested Capital of GALP (22.41%) is better than 97.18% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for GALP is significantly above the industry average of 8.91%.
- The 3 year average ROIC (17.67%) for GALP is below the current ROIC(22.41%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.53% | ||
| ROE | 36.67% | ||
| ROIC | 22.41% |
ROA(3y)7.61%
ROA(5y)3.69%
ROE(3y)28.6%
ROE(5y)13.7%
ROIC(3y)17.67%
ROIC(5y)N/A
1.3 Margins
- GALP has a worse Profit Margin (5.13%) than 60.56% of its industry peers.
- GALP's Profit Margin has improved in the last couple of years.
- The Operating Margin of GALP (10.51%) is worse than 67.61% of its industry peers.
- GALP's Operating Margin has improved in the last couple of years.
- GALP's Gross Margin of 18.44% is on the low side compared to the rest of the industry. GALP is outperformed by 78.87% of its industry peers.
- In the last couple of years the Gross Margin of GALP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.51% | ||
| PM (TTM) | 5.13% | ||
| GM | 18.44% |
OM growth 3Y-0.79%
OM growth 5Y9.34%
PM growth 3Y479.79%
PM growth 5Y15.6%
GM growth 3Y-1.93%
GM growth 5Y4.03%
2. Health
2.1 Basic Checks
- GALP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for GALP has been reduced compared to 1 year ago.
- The number of shares outstanding for GALP has been reduced compared to 5 years ago.
- Compared to 1 year ago, GALP has an improved debt to assets ratio.
2.2 Solvency
- GALP has an Altman-Z score of 3.92. This indicates that GALP is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.92, GALP belongs to the top of the industry, outperforming 83.10% of the companies in the same industry.
- GALP has a debt to FCF ratio of 6.42. This is a slightly negative value and a sign of low solvency as GALP would need 6.42 years to pay back of all of its debts.
- GALP has a Debt to FCF ratio (6.42) which is in line with its industry peers.
- GALP has a Debt/Equity ratio of 0.94. This is a neutral value indicating GALP is somewhat dependend on debt financing.
- GALP has a Debt to Equity ratio of 0.94. This is in the lower half of the industry: GALP underperforms 71.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 6.42 | ||
| Altman-Z | 3.92 |
ROIC/WACC3.33
WACC6.73%
2.3 Liquidity
- GALP has a Current Ratio of 1.68. This is a normal value and indicates that GALP is financially healthy and should not expect problems in meeting its short term obligations.
- GALP has a better Current ratio (1.68) than 71.83% of its industry peers.
- GALP has a Quick Ratio of 1.35. This is a normal value and indicates that GALP is financially healthy and should not expect problems in meeting its short term obligations.
- GALP has a better Quick ratio (1.35) than 70.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
- The earnings per share for GALP have decreased by -7.19% in the last year.
- The Earnings Per Share has been growing by 24.04% on average over the past years. This is a very strong growth
- GALP shows a decrease in Revenue. In the last year, the revenue decreased by -4.98%.
- The Revenue has been growing slightly by 5.30% on average over the past years.
EPS 1Y (TTM)-7.19%
EPS 3Y32.86%
EPS 5Y24.04%
EPS Q2Q%55.56%
Revenue 1Y (TTM)-4.98%
Revenue growth 3Y10.08%
Revenue growth 5Y5.3%
Sales Q2Q%-9.13%
3.2 Future
- The Earnings Per Share is expected to grow by 0.36% on average over the next years.
- Based on estimates for the next years, GALP will show a small growth in Revenue. The Revenue will grow by 0.43% on average per year.
EPS Next Y19.27%
EPS Next 2Y3.31%
EPS Next 3Y3.77%
EPS Next 5Y0.36%
Revenue Next Year-6.15%
Revenue Next 2Y-2.48%
Revenue Next 3Y-0.21%
Revenue Next 5Y0.43%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 11.03, the valuation of GALP can be described as very reasonable.
- GALP's Price/Earnings ratio is a bit cheaper when compared to the industry. GALP is cheaper than 73.24% of the companies in the same industry.
- GALP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
- The Price/Forward Earnings ratio is 11.38, which indicates a very decent valuation of GALP.
- Based on the Price/Forward Earnings ratio, GALP is valued a bit cheaper than 66.20% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, GALP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.03 | ||
| Fwd PE | 11.38 |
4.2 Price Multiples
- GALP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.41 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- GALP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of GALP may justify a higher PE ratio.
PEG (NY)0.57
PEG (5Y)0.46
EPS Next 2Y3.31%
EPS Next 3Y3.77%
5. Dividend
5.1 Amount
- GALP has a Yearly Dividend Yield of 4.14%, which is a nice return.
- GALP's Dividend Yield is a higher than the industry average which is at 5.24.
- GALP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.14% |
5.2 History
- The dividend of GALP decreases each year by -6.04%.
Dividend Growth(5Y)-6.04%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 29.89% of the earnings are spent on dividend by GALP. This is a low number and sustainable payout ratio.
DP29.89%
EPS Next 2Y3.31%
EPS Next 3Y3.77%
GALP ENERGIA SGPS SA / GALP.LS FAQ
What is the ChartMill fundamental rating of GALP ENERGIA SGPS SA (GALP.LS) stock?
ChartMill assigns a fundamental rating of 6 / 10 to GALP.LS.
What is the valuation status of GALP ENERGIA SGPS SA (GALP.LS) stock?
ChartMill assigns a valuation rating of 6 / 10 to GALP ENERGIA SGPS SA (GALP.LS). This can be considered as Fairly Valued.
What is the profitability of GALP stock?
GALP ENERGIA SGPS SA (GALP.LS) has a profitability rating of 7 / 10.
What is the valuation of GALP ENERGIA SGPS SA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for GALP ENERGIA SGPS SA (GALP.LS) is 11.03 and the Price/Book (PB) ratio is 2.49.
Can you provide the dividend sustainability for GALP stock?
The dividend rating of GALP ENERGIA SGPS SA (GALP.LS) is 6 / 10 and the dividend payout ratio is 29.89%.