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GALP ENERGIA SGPS SA (GALP.LS) Stock Fundamental Analysis

ELI:GALP - Euronext Lisbon - PTGAL0AM0009 - Common Stock - Currency: EUR

15.91  -0.06 (-0.41%)

Fundamental Rating

6

Overall GALP gets a fundamental rating of 6 out of 10. We evaluated GALP against 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 not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

GALP had positive earnings in the past year.
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.
GALP.LS Yearly Net Income VS EBIT VS OCF VS FCFGALP.LS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B

1.2 Ratios

GALP has a Return On Assets of 12.60%. This is amongst the best in the industry. GALP outperforms 81.67% of its industry peers.
GALP has a Return On Equity of 46.12%. This is amongst the best in the industry. GALP outperforms 91.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 29.61%, GALP belongs to the top of the industry, outperforming 96.67% 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 12.33%.
The 3 year average ROIC (17.31%) for GALP is below the current ROIC(29.61%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 12.6%
ROE 46.12%
ROIC 29.61%
ROA(3y)5.56%
ROA(5y)3.02%
ROE(3y)21.25%
ROE(5y)11.02%
ROIC(3y)17.31%
ROIC(5y)N/A
GALP.LS Yearly ROA, ROE, ROICGALP.LS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 30

1.3 Margins

The Profit Margin of GALP (6.13%) is worse than 68.33% of its industry peers.
In the last couple of years the Profit Margin of GALP has grown nicely.
GALP has a Operating Margin of 13.21%. This is comparable to the rest of the industry: GALP outperforms 41.67% of its industry peers.
In the last couple of years the Operating Margin of GALP has grown nicely.
GALP's Gross Margin of 20.95% is on the low side compared to the rest of the industry. GALP is outperformed by 80.00% of its industry peers.
GALP's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 13.21%
PM (TTM) 6.13%
GM 20.95%
OM growth 3YN/A
OM growth 5Y6.08%
PM growth 3YN/A
PM growth 5Y6.48%
GM growth 3Y11.58%
GM growth 5Y5.58%
GALP.LS Yearly Profit, Operating, Gross MarginsGALP.LS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15 20

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6

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
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.
GALP.LS Yearly Shares OutstandingGALP.LS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M
GALP.LS Yearly Total Debt VS Total AssetsGALP.LS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B

2.2 Solvency

An Altman-Z score of 4.08 indicates that GALP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.08, GALP belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
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.
GALP has a Debt to FCF ratio (4.82) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.90 indicates that GALP is somewhat dependend on debt financing.
GALP has a Debt to Equity ratio of 0.90. This is in the lower half of the industry: GALP underperforms 78.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.9
Debt/FCF 4.82
Altman-Z 4.08
ROIC/WACC4.75
WACC6.23%
GALP.LS Yearly LT Debt VS Equity VS FCFGALP.LS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

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.
With a Current ratio value of 1.64, GALP perfoms like the industry average, outperforming 56.67% of the companies in the same industry.
A Quick Ratio of 1.40 indicates that GALP should not have too much problems paying its short term obligations.
GALP has a Quick ratio of 1.40. This is in the better half of the industry: GALP outperforms 61.67% of its industry peers.
Industry RankSector Rank
Current Ratio 1.64
Quick Ratio 1.4
GALP.LS Yearly Current Assets VS Current LiabilitesGALP.LS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 27.29% over the past year.
GALP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.35% yearly.
Looking at the last year, GALP shows a decrease in Revenue. The Revenue has decreased by -6.20% in the last year.
The Revenue has been growing slightly by 4.13% on average over the past years.
EPS 1Y (TTM)27.29%
EPS 3YN/A
EPS 5Y7.35%
EPS Q2Q%44%
Revenue 1Y (TTM)-6.2%
Revenue growth 3Y22.39%
Revenue growth 5Y4.13%
Sales Q2Q%4.06%

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 15.33% on average per year.
Based on estimates for the next years, GALP will show a decrease in Revenue. The Revenue will decrease by -3.15% on average per year.
EPS Next Y17.82%
EPS Next 2Y-1.52%
EPS Next 3Y3.32%
EPS Next 5Y15.33%
Revenue Next Year-2.39%
Revenue Next 2Y-4.49%
Revenue Next 3Y-0.22%
Revenue Next 5Y-3.15%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better 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.
GALP.LS Yearly Revenue VS EstimatesGALP.LS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B 25B
GALP.LS Yearly EPS VS EstimatesGALP.LS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 1 2 3

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5

4. Valuation

4.1 Price/Earnings Ratio

GALP is valuated reasonably with a Price/Earnings ratio of 10.40.
The rest of the industry has a similar Price/Earnings ratio as GALP.
When comparing the Price/Earnings ratio of GALP to the average of the S&P500 Index (28.47), we can say GALP is valued rather cheaply.
A Price/Forward Earnings ratio of 13.53 indicates a correct valuation of GALP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GALP is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 92.74. GALP is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 10.4
Fwd PE 13.53
GALP.LS Price Earnings VS Forward Price EarningsGALP.LS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

The rest of the industry has a similar Price/Free Cash Flow ratio as GALP.
Industry RankSector Rank
P/FCF 11.19
EV/EBITDA N/A
GALP.LS Per share dataGALP.LS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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.
The decent profitability rating of GALP may justify a higher PE ratio.
PEG (NY)0.58
PEG (5Y)1.41
EPS Next 2Y-1.52%
EPS Next 3Y3.32%

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3

5. Dividend

5.1 Amount

GALP has a Yearly Dividend Yield of 3.37%.
Compared to an average industry Dividend Yield of 60.90, GALP is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.28, GALP pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.37%

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
GALP.LS Yearly Dividends per shareGALP.LS Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6

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-1.52%
EPS Next 3Y3.32%
GALP.LS Yearly Income VS Free CF VS DividendGALP.LS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M 1B 1.5B
GALP.LS Dividend Payout.GALP.LS Dividend Payout, showing the Payout Ratio.GALP.LS Dividend Payout.PayoutRetained Earnings

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GALP ENERGIA SGPS SA

ELI:GALP (2/5/2025, 1:43:04 PM)

15.91

-0.06 (-0.41%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)10-28 2024-10-28/bmo
Earnings (Next)02-17 2025-02-17/amc
Inst Owners37.88%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap11.06B
Analysts72.41
Price Target20.71 (30.17%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.37%
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)-0.49%
PT rev (3m)-1.94%
EPS NQ rev (1m)13.07%
EPS NQ rev (3m)-0.88%
EPS NY rev (1m)4.93%
EPS NY rev (3m)4.93%
Revenue NQ rev (1m)0.54%
Revenue NQ rev (3m)3.03%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-0.29%
Valuation
Industry RankSector Rank
PE 10.4
Fwd PE 13.53
P/S 0.34
P/FCF 11.19
P/OCF 4.92
P/B 2.53
P/tB 3.01
EV/EBITDA N/A
EPS(TTM)1.53
EY9.62%
EPS(NY)1.18
Fwd EY7.39%
FCF(TTM)1.42
FCFY8.94%
OCF(TTM)3.24
OCFY20.35%
SpS47.39
BVpS6.3
TBVpS5.28
PEG (NY)0.58
PEG (5Y)1.41
Profitability
Industry RankSector 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)5.56%
ROA(5y)3.02%
ROE(3y)21.25%
ROE(5y)11.02%
ROIC(3y)17.31%
ROIC(5y)N/A
ROICexc(3y)21.5%
ROICexc(5y)N/A
ROICexgc(3y)23.33%
ROICexgc(5y)N/A
ROCE(3y)21.91%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y6.44%
ROICexc growth 3YN/A
ROICexc growth 5Y6.56%
OM growth 3YN/A
OM growth 5Y6.08%
PM growth 3YN/A
PM growth 5Y6.48%
GM growth 3Y11.58%
GM growth 5Y5.58%
F-Score8
Asset Turnover2.06
Health
Industry RankSector 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 4.08
F-Score8
WACC6.23%
ROIC/WACC4.75
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)4.56%
Cap/Sales(5y)5.17%
Profit Quality(3y)2362.21%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)27.29%
EPS 3YN/A
EPS 5Y7.35%
EPS Q2Q%44%
EPS Next Y17.82%
EPS Next 2Y-1.52%
EPS Next 3Y3.32%
EPS Next 5Y15.33%
Revenue 1Y (TTM)-6.2%
Revenue growth 3Y22.39%
Revenue growth 5Y4.13%
Sales Q2Q%4.06%
Revenue Next Year-2.39%
Revenue Next 2Y-4.49%
Revenue Next 3Y-0.22%
Revenue Next 5Y-3.15%
EBIT growth 1Y19.16%
EBIT growth 3YN/A
EBIT growth 5Y10.46%
EBIT Next Year27.28%
EBIT Next 3Y8.92%
EBIT Next 5Y3.89%
FCF growth 1Y-21.08%
FCF growth 3Y87.36%
FCF growth 5Y26.46%
OCF growth 1Y-14.4%
OCF growth 3Y43.57%
OCF growth 5Y10.49%