GALP ENERGIA SGPS SA (GALP.LS)

PTGAL0AM0009 - Common Stock

19.175  +0.05 (+0.24%)

Fundamental Rating

5

Overall GALP gets a fundamental rating of 5 out of 10. We evaluated GALP against 61 industry peers in the Oil, Gas & Consumable Fuels industry. While GALP has a great profitability rating, there are some minor concerns on its financial health. GALP is quite expensive at the moment. It does show a decent growth rate.



7

1. Profitability

1.1 Basic Checks

In the past year GALP was profitable.
GALP had a positive operating cash flow in the past year.
GALP had positive earnings in 4 of the past 5 years.
In the past 5 years GALP always reported a positive cash flow from operatings.

1.2 Ratios

With a decent Return On Assets value of 11.67%, GALP is doing good in the industry, outperforming 77.97% of the companies in the same industry.
GALP has a Return On Equity of 40.07%. This is amongst the best in the industry. GALP outperforms 89.83% of its industry peers.
GALP's Return On Invested Capital of 26.79% is amongst the best of the industry. GALP outperforms 96.61% of its industry peers.
GALP had an Average Return On Invested Capital over the past 3 years of 17.31%. This is above the industry average of 13.01%.
The last Return On Invested Capital (26.79%) for GALP is above the 3 year average (17.31%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 11.67%
ROE 40.07%
ROIC 26.79%
ROA(3y)5.56%
ROA(5y)3.02%
ROE(3y)21.25%
ROE(5y)11.02%
ROIC(3y)17.31%
ROIC(5y)N/A

1.3 Margins

With a Profit Margin value of 5.99%, GALP is not doing good in the industry: 61.02% of the companies in the same industry are doing better.
GALP's Profit Margin has improved in the last couple of years.
GALP's Operating Margin of 13.38% is in line compared to the rest of the industry. GALP outperforms 42.37% of its industry peers.
GALP's Operating Margin has improved in the last couple of years.
The Gross Margin of GALP (21.64%) is worse than 79.66% of its industry peers.
In the last couple of years the Gross Margin of GALP has grown nicely.
Industry RankSector Rank
OM 13.38%
PM (TTM) 5.99%
GM 21.64%
OM growth 3YN/A
OM growth 5Y6.08%
PM growth 3YN/A
PM growth 5Y6.48%
GM growth 3Y11.58%
GM growth 5Y5.58%

6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GALP 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 4.03. This indicates that GALP is financially healthy and has little risk of bankruptcy at the moment.
GALP has a better Altman-Z score (4.03) than 84.75% of its industry peers.
The Debt to FCF ratio of GALP is 3.86, which is a good value as it means it would take GALP, 3.86 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GALP (3.86) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.95 indicates that GALP is somewhat dependend on debt financing.
GALP has a Debt to Equity ratio of 0.95. This is in the lower half of the industry: GALP underperforms 79.66% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.95
Debt/FCF 3.86
Altman-Z 4.03
ROIC/WACC4.03
WACC6.65%

2.3 Liquidity

A Current Ratio of 1.62 indicates that GALP should not have too much problems paying its short term obligations.
GALP has a Current ratio (1.62) which is in line with its industry peers.
A Quick Ratio of 1.31 indicates that GALP should not have too much problems paying its short term obligations.
The Quick ratio of GALP (1.31) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.62
Quick Ratio 1.31

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 14.07% over the past year.
The Earnings Per Share has been growing slightly by 7.35% on average over the past years.
GALP shows a decrease in Revenue. In the last year, the revenue decreased by -6.78%.
The Revenue has been growing slightly by 4.13% on average over the past years.
EPS 1Y (TTM)14.07%
EPS 3YN/A
EPS 5Y7.35%
EPS Q2Q%43.79%
Revenue 1Y (TTM)-6.78%
Revenue growth 3Y22.39%
Revenue growth 5Y4.13%
Sales Q2Q%-3.44%

3.2 Future

Based on estimates for the next years, GALP will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.33% on average per year.
Based on estimates for the next years, GALP will show a small growth in Revenue. The Revenue will grow by 6.52% on average per year.
EPS Next Y6.44%
EPS Next 2Y1.4%
EPS Next 3Y3.52%
EPS Next 5Y15.33%
Revenue Next Year-1.71%
Revenue Next 2Y-2.32%
Revenue Next 3Y0.7%
Revenue Next 5Y6.52%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 14.20, which indicates a correct valuation of GALP.
66.10% of the companies in the same industry are cheaper than GALP, based on the Price/Earnings ratio.
GALP is valuated cheaply when we compare the Price/Earnings ratio to 28.57, which is the current average of the S&P500 Index.
GALP is valuated correctly with a Price/Forward Earnings ratio of 15.39.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GALP indicates a slightly more expensive valuation: GALP is more expensive than 76.27% of the companies listed in the same industry.
GALP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.18, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 14.2
Fwd PE 15.39

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of GALP is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 10.36
EV/EBITDA N/A

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GALP does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of GALP may justify a higher PE ratio.
PEG (NY)2.21
PEG (5Y)1.93
EPS Next 2Y1.4%
EPS Next 3Y3.52%

3

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.88%, GALP has a reasonable but not impressive dividend return.
GALP's Dividend Yield is slightly below the industry average, which is at 56.74.
Compared to an average S&P500 Dividend Yield of 2.39, GALP pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.88%

5.2 History

The dividend of GALP decreases each year by -2.96%.
Dividend Growth(5Y)-2.96%
Div Incr Years1
Div Non Decr Years1

5.3 Sustainability

21.99% of the earnings are spent on dividend by GALP. This is a low number and sustainable payout ratio.
DP21.99%
EPS Next 2Y1.4%
EPS Next 3Y3.52%

GALP ENERGIA SGPS SA

ELI:GALP (6/20/2024, 5:35:15 PM)

19.175

+0.05 (+0.24%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.71B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.88%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 14.2
Fwd PE 15.39
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.21
PEG (5Y)1.93
Profitability
Industry RankSector Rank
ROA 11.67%
ROE 40.07%
ROCE
ROIC
ROICexc
ROICexgc
OM 13.38%
PM (TTM) 5.99%
GM 21.64%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.95
Health
Industry RankSector Rank
Debt/Equity 0.95
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.62
Quick Ratio 1.31
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)14.07%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y6.44%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.78%
Revenue growth 3Y22.39%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y