GALP ENERGIA SGPS SA (GALP.LS) Stock Fundamental Analysis
ELI:GALP - Euronext Lisbon - PTGAL0AM0009 - Common Stock - Currency: EUR
Taking everything into account, GALP scores 5 out of 10 in our fundamental rating. GALP was compared to 62 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 has a expensive valuation and it also scores bad on growth.
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.
GALP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of GALP (10.30%) is better than 83.87% of its industry peers.
The Return On Equity of GALP (35.01%) is better than 90.32% of its industry peers.
Looking at the Return On Invested Capital, with a value of 25.72%, GALP belongs to the top of the industry, outperforming 95.16% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GALP is above the industry average of 14.65%.
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
GALP's Profit Margin of 5.11% is on the low side compared to the rest of the industry. GALP is outperformed by 62.90% of its industry peers.
In the last couple of years the Profit Margin of GALP has grown nicely.
Looking at the Operating Margin, with a value of 11.68%, GALP is doing worse than 67.74% of the companies in the same industry.
GALP's Operating Margin has improved in the last couple of years.
The Gross Margin of GALP (19.46%) is worse than 82.26% of its industry peers.
GALP's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GALP is creating value.
Compared to 1 year ago, GALP has less shares outstanding
The number of shares outstanding for GALP has been reduced compared to 5 years ago.
GALP has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.92 indicates that GALP is not in any danger for bankruptcy at the moment.
GALP has a better Altman-Z score (3.92) than 83.87% of its industry peers.
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.
GALP has a Debt to FCF ratio of 11.29. This is comparable to the rest of the industry: GALP outperforms 41.94% of its industry peers.
GALP has a Debt/Equity ratio of 0.79. This is a neutral value indicating GALP is somewhat dependend on debt financing.
GALP has a Debt to Equity ratio of 0.79. This is in the lower half of the industry: GALP underperforms 70.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 11.29 | ||
| Altman-Z | 3.92 |
ROIC/WACC3.54
WACC7.26%
2.3 Liquidity
A Current Ratio of 1.54 indicates that GALP should not have too much problems paying its short term obligations.
With a Current ratio value of 1.54, GALP perfoms like the industry average, outperforming 54.84% of the companies in the same industry.
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 (1.20) which is comparable to the rest of the industry.
| 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
GALP shows a small growth in Revenue. In the last year, the Revenue has grown by 2.16%.
Measured over the past years, GALP shows a small growth in Revenue. The Revenue has been growing by 5.30% on average per year.
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
GALP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.05% yearly.
Based on estimates for the next years, GALP will show a decrease in Revenue. The Revenue will decrease by -0.95% on average per year.
EPS Next Y-22.3%
EPS Next 2Y-2.31%
EPS Next 3Y1.13%
EPS Next 5Y4.05%
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.
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
Based on the Price/Earnings ratio of 14.60, the valuation of GALP can be described as correct.
GALP's Price/Earnings ratio is in line with the industry average.
GALP is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.05, which indicates a correct valuation of GALP.
The rest of the industry has a similar Price/Forward Earnings ratio as GALP.
The average S&P500 Price/Forward Earnings ratio is at 21.90. GALP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.6 | ||
| Fwd PE | 13.05 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.56 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
GALP has a very decent profitability rating, which 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
With a Yearly Dividend Yield of 4.01%, GALP is a good candidate for dividend investing.
GALP's Dividend Yield is comparable with the industry average which is at 56.55.
Compared to an average S&P500 Dividend Yield of 2.42, GALP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
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
GALP pays out 25.07% of its income as dividend. This is a sustainable payout ratio.
DP25.07%
EPS Next 2Y-2.31%
EPS Next 3Y1.13%
ELI:GALP (7/4/2025, 7:00:00 PM)
16.06
-0.11 (-0.68%)
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 Cap11.17B
Analysts74.48
Price Target18.75 (16.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
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)-1.49%
PT rev (3m)-7.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.51%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-22.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.6 | ||
| Fwd PE | 13.05 | ||
| P/S | 0.34 | ||
| P/FCF | 25.56 | ||
| P/OCF | 6.23 | ||
| P/B | 2.34 | ||
| P/tB | 2.75 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.1
EY6.85%
EPS(NY)1.23
Fwd EY7.67%
FCF(TTM)0.63
FCFY3.91%
OCF(TTM)2.58
OCFY16.05%
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 | 3.92 |
F-Score6
WACC7.26%
ROIC/WACC3.54
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 5Y4.05%
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 5Y5.05%
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%