GALP ENERGIA SGPS SA (GALP.LS) Stock Fundamental Analysis
ELI:GALP - Euronext Lisbon - PTGAL0AM0009 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to GALP. GALP was compared to 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 valued expensive and 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.
Of the past 5 years GALP 4 years were profitable.
In the past 5 years GALP always reported a positive cash flow from operatings.
1.2 Ratios
GALP has a Return On Assets of 10.30%. This is amongst the best in the industry. GALP outperforms 81.97% of its industry peers.
GALP has a better Return On Equity (35.01%) than 90.16% of its industry peers.
With an excellent Return On Invested Capital value of 25.72%, GALP belongs to the best of the industry, outperforming 95.08% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GALP is above the industry average of 14.55%.
The last Return On Invested Capital (25.72%) for GALP is above the 3 year average (17.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.3% | ||
| ROE | 35.01% | ||
| ROIC | 25.72% |
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
Looking at the Profit Margin, with a value of 5.11%, GALP is doing worse than 65.57% of the companies in the same industry.
GALP's Profit Margin has improved in the last couple of years.
GALP has a Operating Margin of 11.68%. This is in the lower half of the industry: GALP underperforms 72.13% of its industry peers.
GALP's Operating Margin has improved in the last couple of years.
GALP's Gross Margin of 19.46% is on the low side compared to the rest of the industry. GALP is outperformed by 83.61% of its industry peers.
In the last couple of years the Gross Margin of GALP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.68% | ||
| PM (TTM) | 5.11% | ||
| GM | 19.46% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GALP is creating value.
GALP has less shares outstanding than it did 1 year ago.
GALP has less shares outstanding than it did 5 years ago.
The debt/assets ratio for GALP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.90 indicates that GALP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.90, GALP belongs to the top of the industry, outperforming 83.61% of the companies in the same industry.
The Debt to FCF ratio of GALP is 11.29, which is on the high side as it means it would take GALP, 11.29 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GALP (11.29) is worse than 62.30% of its industry peers.
A Debt/Equity ratio of 0.79 indicates that GALP is somewhat dependend on debt financing.
GALP has a worse Debt to Equity ratio (0.79) than 70.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 11.29 | ||
| Altman-Z | 3.9 |
ROIC/WACC3.57
WACC7.2%
2.3 Liquidity
GALP has a Current Ratio of 1.54. 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 Current ratio of 1.54. This is comparable to the rest of the industry: GALP outperforms 55.74% of its industry peers.
A Quick Ratio of 1.20 indicates that GALP should not have too much problems paying its short term obligations.
GALP has a Quick ratio of 1.20. This is comparable to the rest of the industry: GALP outperforms 55.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The earnings per share for GALP have decreased strongly by -18.28% 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
Looking at the last year, GALP shows a small growth in Revenue. The Revenue has grown by 2.16% in the last year.
GALP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.30% yearly.
EPS 1Y (TTM)-18.28%
EPS 3Y32.86%
EPS 5Y24.04%
EPS Q2Q%-43.18%
Revenue 1Y (TTM)2.16%
Revenue growth 3Y10.08%
Revenue growth 5Y5.3%
Sales Q2Q%-5.28%
3.2 Future
The Earnings Per Share is expected to grow by 0.97% on average over the next years.
GALP is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.95% yearly.
EPS Next Y-22.3%
EPS Next 2Y-2.31%
EPS Next 3Y1.13%
EPS Next 5Y0.97%
Revenue Next Year-12.93%
Revenue Next 2Y-2.14%
Revenue Next 3Y0.18%
Revenue Next 5Y-0.95%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
GALP is valuated correctly with a Price/Earnings ratio of 14.55.
Compared to the rest of the industry, the Price/Earnings ratio of GALP is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.34. GALP is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.00 indicates a correct valuation of GALP.
GALP's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.19. GALP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.55 | ||
| Fwd PE | 13 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GALP indicates a slightly more expensive valuation: GALP is more expensive than 65.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.46 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The decent profitability rating of GALP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.61
EPS Next 2Y-2.31%
EPS Next 3Y1.13%
5. Dividend
5.1 Amount
GALP has a Yearly Dividend Yield of 3.95%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 57.35, GALP has a dividend in line with its industry peers.
GALP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
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
25.07% of the earnings are spent on dividend by GALP. This is a low number and sustainable payout ratio.
DP25.07%
EPS Next 2Y-2.31%
EPS Next 3Y1.13%
ELI:GALP (6/19/2025, 7:00:00 PM)
16
+0.28 (+1.75%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners38.21%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap11.13B
Analysts74.48
Price Target18.55 (15.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
Yearly Dividend0.55
Dividend Growth(5Y)-6.04%
DP25.07%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-31.07%
Min EPS beat(2)-58.35%
Max EPS beat(2)-3.79%
EPS beat(4)2
Avg EPS beat(4)-4.91%
Min EPS beat(4)-58.35%
Max EPS beat(4)23.87%
EPS beat(8)4
Avg EPS beat(8)2.19%
EPS beat(12)6
Avg EPS beat(12)4.45%
EPS beat(16)8
Avg EPS beat(16)2.93%
Revenue beat(2)2
Avg Revenue beat(2)9.76%
Min Revenue beat(2)9.15%
Max Revenue beat(2)10.37%
Revenue beat(4)4
Avg Revenue beat(4)11.66%
Min Revenue beat(4)9.15%
Max Revenue beat(4)15.84%
Revenue beat(8)5
Avg Revenue beat(8)8.03%
Revenue beat(12)8
Avg Revenue beat(12)26.23%
Revenue beat(16)9
Avg Revenue beat(16)19.15%
PT rev (1m)-2.56%
PT rev (3m)-9.25%
EPS NQ rev (1m)-5.23%
EPS NQ rev (3m)-8.51%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.61%
Revenue NQ rev (1m)-2.03%
Revenue NQ rev (3m)-22.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.55 | ||
| Fwd PE | 13 | ||
| P/S | 0.34 | ||
| P/FCF | 25.46 | ||
| P/OCF | 6.21 | ||
| P/B | 2.33 | ||
| P/tB | 2.74 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.1
EY6.88%
EPS(NY)1.23
Fwd EY7.69%
FCF(TTM)0.63
FCFY3.93%
OCF(TTM)2.58
OCFY16.11%
SpS47.04
BVpS6.86
TBVpS5.83
PEG (NY)N/A
PEG (5Y)0.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.3% | ||
| ROE | 35.01% | ||
| ROCE | 32.56% | ||
| ROIC | 25.72% | ||
| ROICexc | 33.9% | ||
| ROICexgc | 36.87% | ||
| OM | 11.68% | ||
| PM (TTM) | 5.11% | ||
| GM | 19.46% | ||
| FCFM | 1.34% |
ROA(3y)7.61%
ROA(5y)3.69%
ROE(3y)28.6%
ROE(5y)13.7%
ROIC(3y)17.67%
ROIC(5y)N/A
ROICexc(3y)21.92%
ROICexc(5y)N/A
ROICexgc(3y)23.69%
ROICexgc(5y)N/A
ROCE(3y)22.45%
ROCE(5y)N/A
ROICexcg growth 3Y2.22%
ROICexcg growth 5Y13.45%
ROICexc growth 3Y2.72%
ROICexc growth 5Y13.4%
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%
F-Score6
Asset Turnover2.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 11.29 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 4.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 26.15% | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 3.9 |
F-Score6
WACC7.2%
ROIC/WACC3.57
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)5.08%
Cap/Sales(5y)5.11%
Profit Quality(3y)124.07%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-18.28%
EPS 3Y32.86%
EPS 5Y24.04%
EPS Q2Q%-43.18%
EPS Next Y-22.3%
EPS Next 2Y-2.31%
EPS Next 3Y1.13%
EPS Next 5Y0.97%
Revenue 1Y (TTM)2.16%
Revenue growth 3Y10.08%
Revenue growth 5Y5.3%
Sales Q2Q%-5.28%
Revenue Next Year-12.93%
Revenue Next 2Y-2.14%
Revenue Next 3Y0.18%
Revenue Next 5Y-0.95%
EBIT growth 1Y-10.78%
EBIT growth 3Y9.22%
EBIT growth 5Y15.14%
EBIT Next Year5.34%
EBIT Next 3Y8.77%
EBIT Next 5Y3.3%
FCF growth 1Y-26.84%
FCF growth 3Y61.5%
FCF growth 5Y8.07%
OCF growth 1Y-3.84%
OCF growth 3Y33.93%
OCF growth 5Y5.97%