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 59 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 has a expensive valuation and it also scores bad on growth.
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.
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
GALP has a better Return On Assets (10.30%) than 77.97% of its industry peers.
With an excellent Return On Equity value of 35.01%, GALP belongs to the best of the industry, outperforming 88.14% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 25.72%, GALP belongs to the top of the industry, outperforming 93.22% of the companies in the same industry.
GALP had an Average Return On Invested Capital over the past 3 years of 17.67%. This is above the industry average of 15.65%.
The 3 year average ROIC (17.67%) for GALP is below the current ROIC(25.72%), indicating increased profibility in the last year.
| 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 67.80% of its industry peers.
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 71.19% of its industry peers.
In the last couple of years the Operating Margin of GALP has grown nicely.
GALP has a Gross Margin of 19.46%. This is amonst the worse of the industry: GALP underperforms 83.05% 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
GALP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, GALP has less shares outstanding
Compared to 5 years ago, GALP has less shares outstanding
Compared to 1 year ago, GALP has an improved debt to assets ratio.
2.2 Solvency
GALP has an Altman-Z score of 3.84. This indicates that GALP is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.84, GALP belongs to the best of the industry, outperforming 81.36% of the companies in the same industry.
GALP has a debt to FCF ratio of 11.29. This is a negative value and a sign of low solvency as GALP would need 11.29 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.29, GALP is doing worse than 61.02% of the companies in the same industry.
GALP has a Debt/Equity ratio of 0.79. This is a neutral value indicating GALP is somewhat dependend on debt financing.
GALP's Debt to Equity ratio of 0.79 is on the low side compared to the rest of the industry. GALP is outperformed by 74.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 11.29 | ||
| Altman-Z | 3.84 |
ROIC/WACC3.67
WACC7%
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's Current ratio of 1.54 is in line compared to the rest of the industry. GALP outperforms 54.24% of its industry peers.
GALP has a Quick Ratio of 1.20. This is a normal value and indicates that GALP is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.20, GALP is in line with its industry, outperforming 54.24% of the companies in the same 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 -20.49% in the last year.
GALP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.04% yearly.
The Revenue has been growing slightly by 2.16% in the past 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)-20.49%
EPS 3Y32.86%
EPS 5Y24.04%
EPS Q2Q%-49.94%
Revenue 1Y (TTM)2.16%
Revenue growth 3Y10.08%
Revenue growth 5Y5.3%
Sales Q2Q%-5.59%
3.2 Future
GALP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.20% yearly.
Based on estimates for the next years, GALP will show a small growth in Revenue. The Revenue will grow by 0.18% on average per year.
EPS Next Y-22.3%
EPS Next 2Y-2.31%
EPS Next 3Y1.13%
EPS Next 5Y1.2%
Revenue Next Year-12.93%
Revenue Next 2Y-2.14%
Revenue Next 3Y0.18%
Revenue Next 5YN/A
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
The Price/Earnings ratio is 12.96, which indicates a correct valuation of GALP.
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 26.03. GALP is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 11.27, the valuation of GALP can be described as reasonable.
GALP's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.94. GALP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.96 | ||
| Fwd PE | 11.27 |
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 64.41% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.07 | ||
| 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)0.54
EPS Next 2Y-2.31%
EPS Next 3Y1.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.91%, GALP has a reasonable but not impressive dividend return.
GALP's Dividend Yield is comparable with the industry average which is at 60.18.
Compared to an average S&P500 Dividend Yield of 2.36, GALP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
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 (5/21/2025, 7:00:00 PM)
13.87
-0.16 (-1.11%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners40.09%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap9.65B
Analysts74.48
Price Target19.03 (37.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
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)-37.14%
Min EPS beat(2)-58.35%
Max EPS beat(2)-15.93%
EPS beat(4)2
Avg EPS beat(4)-7.94%
Min EPS beat(4)-58.35%
Max EPS beat(4)23.87%
EPS beat(8)4
Avg EPS beat(8)0.67%
EPS beat(12)6
Avg EPS beat(12)3.44%
EPS beat(16)8
Avg EPS beat(16)2.17%
Revenue beat(2)2
Avg Revenue beat(2)9.58%
Min Revenue beat(2)8.8%
Max Revenue beat(2)10.37%
Revenue beat(4)4
Avg Revenue beat(4)11.57%
Min Revenue beat(4)8.8%
Max Revenue beat(4)15.84%
Revenue beat(8)5
Avg Revenue beat(8)7.99%
Revenue beat(12)8
Avg Revenue beat(12)26.2%
Revenue beat(16)9
Avg Revenue beat(16)19.13%
PT rev (1m)-6.37%
PT rev (3m)-8.11%
EPS NQ rev (1m)-2.17%
EPS NQ rev (3m)-14.37%
EPS NY rev (1m)0%
EPS NY rev (3m)-14.73%
Revenue NQ rev (1m)-7.13%
Revenue NQ rev (3m)-25.22%
Revenue NY rev (1m)-3.27%
Revenue NY rev (3m)-6.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.96 | ||
| Fwd PE | 11.27 | ||
| P/S | 0.29 | ||
| P/FCF | 22.07 | ||
| P/OCF | 5.38 | ||
| P/B | 2.02 | ||
| P/tB | 2.38 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.07
EY7.71%
EPS(NY)1.23
Fwd EY8.88%
FCF(TTM)0.63
FCFY4.53%
OCF(TTM)2.58
OCFY18.58%
SpS47.04
BVpS6.86
TBVpS5.83
PEG (NY)N/A
PEG (5Y)0.54
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 | 3.84 |
F-Score6
WACC7%
ROIC/WACC3.67
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)-20.49%
EPS 3Y32.86%
EPS 5Y24.04%
EPS Q2Q%-49.94%
EPS Next Y-22.3%
EPS Next 2Y-2.31%
EPS Next 3Y1.13%
EPS Next 5Y1.2%
Revenue 1Y (TTM)2.16%
Revenue growth 3Y10.08%
Revenue growth 5Y5.3%
Sales Q2Q%-5.59%
Revenue Next Year-12.93%
Revenue Next 2Y-2.14%
Revenue Next 3Y0.18%
Revenue Next 5YN/A
EBIT growth 1Y-10.78%
EBIT growth 3Y9.22%
EBIT growth 5Y15.14%
EBIT Next Year9.94%
EBIT Next 3Y10.3%
EBIT Next 5Y3.53%
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%