GALP ENERGIA SGPS SA (GALP.LS) Stock Fundamental Analysis
Europe - Euronext Lisbon - ELI:GALP - PTGAL0AM0009 - Common Stock
16.39 EUR
+0.48 (+3.02%)
GALP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 71 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 valuation in line with the averages, but on the other hand it 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.
- GALP had positive earnings in 4 of the past 5 years.
- In the past 5 years GALP always reported a positive cash flow from operatings.
1.2 Ratios
- GALP has a better Return On Assets (10.53%) than 92.96% of its industry peers.
- The Return On Equity of GALP (36.67%) is better than 97.18% of its industry peers.
- GALP has a Return On Invested Capital of 22.41%. This is amongst the best in the industry. GALP outperforms 97.18% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for GALP is significantly above the industry average of 8.91%.
- The last Return On Invested Capital (22.41%) for GALP is above the 3 year average (17.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.53% | ||
| ROE | 36.67% | ||
| ROIC | 22.41% |
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 has a worse Profit Margin (5.13%) than 60.56% of its industry peers.
- In the last couple of years the Profit Margin of GALP has grown nicely.
- With a Operating Margin value of 10.51%, GALP is not doing good in the industry: 67.61% of the companies in the same industry are doing better.
- In the last couple of years the Operating Margin of GALP has grown nicely.
- GALP has a worse Gross Margin (18.44%) than 78.87% of its industry peers.
- In the last couple of years the Gross Margin of GALP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.51% | ||
| PM (TTM) | 5.13% | ||
| GM | 18.44% |
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.
- The number of shares outstanding for GALP has been reduced compared to 1 year ago.
- Compared to 5 years ago, GALP has less shares outstanding
- The debt/assets ratio for GALP has been reduced compared to a year ago.
2.2 Solvency
- GALP has an Altman-Z score of 3.92. This indicates that GALP is financially healthy and has little risk of bankruptcy at the moment.
- GALP has a better Altman-Z score (3.92) than 84.51% of its industry peers.
- The Debt to FCF ratio of GALP is 6.42, which is on the high side as it means it would take GALP, 6.42 years of fcf income to pay off all of its debts.
- GALP has a Debt to FCF ratio (6.42) which is in line with its industry peers.
- GALP has a Debt/Equity ratio of 0.94. This is a neutral value indicating GALP is somewhat dependend on debt financing.
- GALP's Debt to Equity ratio of 0.94 is on the low side compared to the rest of the industry. GALP is outperformed by 71.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 6.42 | ||
| Altman-Z | 3.92 |
ROIC/WACC3.33
WACC6.73%
2.3 Liquidity
- GALP has a Current Ratio of 1.68. 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 1.68 is fine compared to the rest of the industry. GALP outperforms 71.83% of its industry peers.
- GALP has a Quick Ratio of 1.35. 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 1.35, GALP is in the better half of the industry, outperforming 70.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
- The earnings per share for GALP have decreased by -7.19% in the last year.
- Measured over the past years, GALP shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.04% on average per year.
- GALP shows a decrease in Revenue. In the last year, the revenue decreased by -4.98%.
- The Revenue has been growing slightly by 5.30% on average over the past years.
EPS 1Y (TTM)-7.19%
EPS 3Y32.86%
EPS 5Y24.04%
EPS Q2Q%55.56%
Revenue 1Y (TTM)-4.98%
Revenue growth 3Y10.08%
Revenue growth 5Y5.3%
Sales Q2Q%-9.13%
3.2 Future
- The Earnings Per Share is expected to grow by 0.36% on average over the next years.
- Based on estimates for the next years, GALP will show a small growth in Revenue. The Revenue will grow by 0.43% on average per year.
EPS Next Y19.27%
EPS Next 2Y3.31%
EPS Next 3Y3.77%
EPS Next 5Y0.36%
Revenue Next Year-6.15%
Revenue Next 2Y-2.48%
Revenue Next 3Y-0.21%
Revenue Next 5Y0.43%
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.
- 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
- A Price/Earnings ratio of 11.54 indicates a reasonable valuation of GALP.
- 76.06% of the companies in the same industry are more expensive than GALP, based on the Price/Earnings ratio.
- GALP is valuated cheaply when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 11.90, the valuation of GALP can be described as reasonable.
- 66.20% of the companies in the same industry are more expensive than GALP, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of GALP to the average of the S&P500 Index (25.95), we can say GALP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.54 | ||
| Fwd PE | 11.9 |
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 | 15.08 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- GALP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.6
PEG (5Y)0.48
EPS Next 2Y3.31%
EPS Next 3Y3.77%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.14%, GALP is a good candidate for dividend investing.
- GALP's Dividend Yield is a higher than the industry average which is at 5.24.
- GALP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.14% |
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 29.89% of its income as dividend. This is a sustainable payout ratio.
DP29.89%
EPS Next 2Y3.31%
EPS Next 3Y3.77%
GALP ENERGIA SGPS SA / GALP.LS FAQ
What is the ChartMill fundamental rating of GALP ENERGIA SGPS SA (GALP.LS) stock?
ChartMill assigns a fundamental rating of 6 / 10 to GALP.LS.
What is the valuation status of GALP ENERGIA SGPS SA (GALP.LS) stock?
ChartMill assigns a valuation rating of 6 / 10 to GALP ENERGIA SGPS SA (GALP.LS). This can be considered as Fairly Valued.
What is the profitability of GALP stock?
GALP ENERGIA SGPS SA (GALP.LS) has a profitability rating of 7 / 10.
What is the valuation of GALP ENERGIA SGPS SA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for GALP ENERGIA SGPS SA (GALP.LS) is 11.54 and the Price/Book (PB) ratio is 2.6.
Can you provide the dividend sustainability for GALP stock?
The dividend rating of GALP ENERGIA SGPS SA (GALP.LS) is 6 / 10 and the dividend payout ratio is 29.89%.