GALP ENERGIA SGPS SA (GALP.LS)
PTGAL0AM0009 - Common Stock
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. GALP scores excellent on profitability, but there are some minor concerns on its financial health. GALP is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
GALP had positive earnings in the past year.
GALP had a positive operating cash flow in the past year.
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 has a better Return On Assets (11.67%) than 80.00% of its industry peers.
With an excellent Return On Equity value of 40.07%, GALP belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
GALP's Return On Invested Capital of 26.79% is amongst the best of the industry. GALP outperforms 96.67% 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 12.62%.
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 Rank | Sector 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: 60.00% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of GALP has grown nicely.
GALP has a Operating Margin of 13.38%. This is comparable to the rest of the industry: GALP outperforms 46.67% 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 80.00% of its industry peers.
In the last couple of years the Gross Margin of GALP has grown nicely.
| Industry Rank | Sector 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%
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
Compared to 5 years ago, GALP has less shares outstanding
GALP has a better debt/assets ratio than last year.
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's Altman-Z score of 4.03 is amongst the best of the industry. GALP outperforms 85.00% 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.
GALP has a Debt to FCF ratio (3.86) which is comparable to the rest of the industry.
GALP has a Debt/Equity ratio of 0.95. This is a neutral value indicating GALP is somewhat dependend on debt financing.
GALP has a Debt to Equity ratio of 0.95. This is amonst the worse of the industry: GALP underperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 4.03 |
ROIC/WACC3.98
WACC6.73%
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 comparable to the rest of the industry.
GALP has a Quick Ratio of 1.31. This is a normal value and indicates that GALP is financially healthy and should not expect problems in meeting its short term obligations.
GALP's Quick ratio of 1.31 is in line compared to the rest of the industry. GALP outperforms 55.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
GALP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.07%, which is quite good.
GALP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.35% yearly.
GALP shows a decrease in Revenue. In the last year, the revenue decreased by -6.78%.
Measured over the past years, GALP shows a small growth in Revenue. The Revenue has been growing by 4.13% on average per year.
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
GALP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.33% yearly.
GALP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.30% yearly.
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 5Y1.3%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
GALP is valuated correctly with a Price/Earnings ratio of 13.99.
Based on the Price/Earnings ratio, GALP is valued a bit more expensive than 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of GALP to the average of the S&P500 Index (24.41), we can say GALP is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.16 indicates a correct valuation of GALP.
Based on the Price/Forward Earnings ratio, GALP is valued a bit more expensive than the industry average as 76.67% of the companies are valued more cheaply.
GALP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.99 | ||
| Fwd PE | 15.16 |
4.2 Price Multiples
GALP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.21 | ||
| 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.
GALP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.17
PEG (5Y)1.9
EPS Next 2Y1.4%
EPS Next 3Y3.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.86%, GALP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 54.63, GALP is paying slightly less dividend.
GALP's Dividend Yield is a higher than the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
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 (7/26/2024, 7:00:00 PM)
18.89
-0.14 (-0.76%)
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 Cap13.51B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
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)
Avg EPS beat(8)
EPS beat(12)
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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)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.99 | ||
| Fwd PE | 15.16 | ||
| 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)2.17
PEG (5Y)1.9
Profitability
| Industry Rank | Sector 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 Rank | Sector 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