GALP ENERGIA SGPS SA (GALP.LS) Stock Fundamental Analysis
ELI:GALP - Euronext Lisbon - PTGAL0AM0009 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to GALP. GALP was compared to 62 industry peers in the Oil, Gas & Consumable Fuels industry. GALP gets an excellent profitability rating and is at the same time showing great financial health properties. GALP is not valued too expensively and it also shows a decent growth rate. This makes GALP very considerable for quality investing!
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.
GALP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 12.60%, GALP belongs to the best of the industry, outperforming 84.13% of the companies in the same industry.
The Return On Equity of GALP (46.12%) is better than 92.06% of its industry peers.
With an excellent Return On Invested Capital value of 29.61%, GALP belongs to the best of the industry, outperforming 96.83% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GALP is significantly above the industry average of 11.89%.
The 3 year average ROIC (17.72%) for GALP is below the current ROIC(29.61%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.6% | ||
| ROE | 46.12% | ||
| ROIC | 29.61% |
ROA(3y)7.61%
ROA(5y)3.69%
ROE(3y)28.6%
ROE(5y)13.7%
ROIC(3y)17.72%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 6.13%, GALP is doing worse than 60.32% of the companies in the same industry.
In the last couple of years the Profit Margin of GALP has grown nicely.
GALP has a Operating Margin (13.21%) which is in line with its industry peers.
GALP's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 20.95%, GALP is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
GALP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.21% | ||
| PM (TTM) | 6.13% | ||
| GM | 20.95% |
OM growth 3Y-0.9%
OM growth 5Y9.26%
PM growth 3Y479.79%
PM growth 5Y15.6%
GM growth 3Y-2.01%
GM growth 5Y3.98%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GALP 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
An Altman-Z score of 4.04 indicates that GALP is not in any danger for bankruptcy at the moment.
GALP's Altman-Z score of 4.04 is amongst the best of the industry. GALP outperforms 87.30% of its industry peers.
GALP has a debt to FCF ratio of 4.82. This is a neutral value as GALP would need 4.82 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.82, GALP is doing good in the industry, outperforming 61.90% of the companies in the same industry.
GALP has a Debt/Equity ratio of 0.90. This is a neutral value indicating GALP is somewhat dependend on debt financing.
GALP has a worse Debt to Equity ratio (0.90) than 74.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 4.82 | ||
| Altman-Z | 4.04 |
ROIC/WACC4.56
WACC6.5%
2.3 Liquidity
GALP has a Current Ratio of 1.64. 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 Current ratio, with a value of 1.64, GALP is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
GALP has a Quick Ratio of 1.40. 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 Quick ratio of 1.40. This is in the better half of the industry: GALP outperforms 69.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
GALP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.59%, which is quite impressive.
The Earnings Per Share has been growing by 23.46% on average over the past years. This is a very strong growth
GALP shows a strong growth in Revenue. In the last year, the Revenue has grown by 37.72%.
GALP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.30% yearly.
EPS 1Y (TTM)29.59%
EPS 3Y554.42%
EPS 5Y23.46%
EPS Q2Q%50.94%
Revenue 1Y (TTM)37.72%
Revenue growth 3Y10.08%
Revenue growth 5Y5.3%
Sales Q2Q%327.71%
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 14.41% on average per year.
The Revenue is expected to grow by 1.30% on average over the next years.
EPS Next Y-21.73%
EPS Next 2Y-3.61%
EPS Next 3Y-2.49%
EPS Next 5Y14.41%
Revenue Next Year-9.98%
Revenue Next 2Y0.24%
Revenue Next 3Y1.3%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 4.75, the valuation of GALP can be described as very cheap.
76.19% of the companies in the same industry are more expensive than GALP, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.35. GALP is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 13.42, which indicates a correct valuation of GALP.
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 60.32% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, GALP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.75 | ||
| Fwd PE | 13.42 |
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 | 10.46 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The decent profitability rating of GALP may justify a higher PE ratio.
GALP's earnings are expected to decrease with -2.49% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.2
EPS Next 2Y-3.61%
EPS Next 3Y-2.49%
5. Dividend
5.1 Amount
GALP has a Yearly Dividend Yield of 3.71%.
Compared to an average industry Dividend Yield of 60.92, 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 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
5.2 History
The dividend of GALP decreases each year by -2.96%.
Dividend Growth(5Y)-2.96%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
20.75% of the earnings are spent on dividend by GALP. This is a low number and sustainable payout ratio.
DP20.75%
EPS Next 2Y-3.61%
EPS Next 3Y-2.49%
ELI:GALP (3/7/2025, 7:00:00 PM)
14.88
+0.05 (+0.34%)
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 Cap10.35B
Analysts73.79
Price Target20.43 (37.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
Yearly Dividend0.53
Dividend Growth(5Y)-2.96%
DP20.75%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.25%
Min EPS beat(2)18.64%
Max EPS beat(2)23.87%
EPS beat(4)4
Avg EPS beat(4)26.99%
Min EPS beat(4)18.64%
Max EPS beat(4)42.52%
EPS beat(8)5
Avg EPS beat(8)11.38%
EPS beat(12)6
Avg EPS beat(12)6.72%
EPS beat(16)8
Avg EPS beat(16)-2.14%
Revenue beat(2)2
Avg Revenue beat(2)13.56%
Min Revenue beat(2)11.29%
Max Revenue beat(2)15.84%
Revenue beat(4)2
Avg Revenue beat(4)4.53%
Min Revenue beat(4)-5.87%
Max Revenue beat(4)15.84%
Revenue beat(8)4
Avg Revenue beat(8)22.66%
Revenue beat(12)7
Avg Revenue beat(12)16.98%
Revenue beat(16)7
Avg Revenue beat(16)9.22%
PT rev (1m)-1.34%
PT rev (3m)-1.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.26%
EPS NY rev (1m)-5.67%
EPS NY rev (3m)-2.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.49%
Revenue NY rev (1m)-3.51%
Revenue NY rev (3m)-4.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.75 | ||
| Fwd PE | 13.42 | ||
| P/S | 0.31 | ||
| P/FCF | 10.46 | ||
| P/OCF | 4.6 | ||
| P/B | 2.36 | ||
| P/tB | 2.82 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.13
EY21.03%
EPS(NY)1.11
Fwd EY7.45%
FCF(TTM)1.42
FCFY9.56%
OCF(TTM)3.24
OCFY21.75%
SpS47.39
BVpS6.3
TBVpS5.28
PEG (NY)N/A
PEG (5Y)0.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.6% | ||
| ROE | 46.12% | ||
| ROCE | 37.49% | ||
| ROIC | 29.61% | ||
| ROICexc | 36.4% | ||
| ROICexgc | 39.34% | ||
| OM | 13.21% | ||
| PM (TTM) | 6.13% | ||
| GM | 20.95% | ||
| FCFM | 3% |
ROA(3y)7.61%
ROA(5y)3.69%
ROE(3y)28.6%
ROE(5y)13.7%
ROIC(3y)17.72%
ROIC(5y)N/A
ROICexc(3y)22.06%
ROICexc(5y)N/A
ROICexgc(3y)23.85%
ROICexgc(5y)N/A
ROCE(3y)22.42%
ROCE(5y)N/A
ROICexcg growth 3Y2.52%
ROICexcg growth 5Y13.65%
ROICexc growth 3Y3%
ROICexc growth 5Y13.58%
OM growth 3Y-0.9%
OM growth 5Y9.26%
PM growth 3Y479.79%
PM growth 5Y15.6%
GM growth 3Y-2.01%
GM growth 5Y3.98%
F-Score8
Asset Turnover2.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 4.82 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 3.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 48.98% | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 4.04 |
F-Score8
WACC6.5%
ROIC/WACC4.56
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)29.59%
EPS 3Y554.42%
EPS 5Y23.46%
EPS Q2Q%50.94%
EPS Next Y-21.73%
EPS Next 2Y-3.61%
EPS Next 3Y-2.49%
EPS Next 5Y14.41%
Revenue 1Y (TTM)37.72%
Revenue growth 3Y10.08%
Revenue growth 5Y5.3%
Sales Q2Q%327.71%
Revenue Next Year-9.98%
Revenue Next 2Y0.24%
Revenue Next 3Y1.3%
Revenue Next 5YN/A
EBIT growth 1Y19.16%
EBIT growth 3Y9.09%
EBIT growth 5Y15.06%
EBIT Next Year18.9%
EBIT Next 3Y7.92%
EBIT Next 5Y12.05%
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A