GALP ENERGIA SGPS SA (GALP.LS)
PTGAL0AM0009 - Common Stock
Overall GALP gets a fundamental rating of 5 out of 10. We evaluated GALP against 59 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 has a correct valuation and a medium 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.
GALP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of GALP (12.60%) is better than 78.95% of its industry peers.
GALP's Return On Equity of 46.12% is amongst the best of the industry. GALP outperforms 91.23% of its industry peers.
The Return On Invested Capital of GALP (29.61%) is better than 96.49% 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 12.90%.
The last Return On Invested Capital (29.61%) for GALP is above the 3 year average (17.31%), which is a sign of increasing profitability.
| Industry Rank | Sector 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
1.3 Margins
GALP's Profit Margin of 6.13% is on the low side compared to the rest of the industry. GALP is outperformed by 68.42% 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 in the lower half of the industry: GALP underperforms 61.40% 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 78.95% of its industry peers.
In the last couple of years the Gross Margin of GALP has grown nicely.
| Industry Rank | Sector 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%
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
The number of shares outstanding for GALP has been reduced compared to 5 years ago.
The debt/assets ratio for GALP has been reduced compared to a year ago.
2.2 Solvency
GALP has an Altman-Z score of 4.11. This indicates that GALP is financially healthy and has little risk of bankruptcy at the moment.
GALP has a better Altman-Z score (4.11) than 85.96% of its industry peers.
The Debt to FCF ratio of GALP is 4.82, which is a neutral value as it means it would take GALP, 4.82 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.82, GALP is in line with its industry, outperforming 52.63% of the companies in the same industry.
A Debt/Equity ratio of 0.90 indicates that GALP is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.90, GALP is doing worse than 77.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 4.82 | ||
| Altman-Z | 4.11 |
ROIC/WACC4.69
WACC6.32%
2.3 Liquidity
A Current Ratio of 1.64 indicates that GALP should not have too much problems paying its short term obligations.
The Current ratio of GALP (1.64) is comparable to the rest of the 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 (1.40) which is in line with 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 27.29%, which is quite impressive.
Measured over the past 5 years, GALP shows a small growth in Earnings Per Share. The EPS has been growing by 7.35% on average per year.
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.
The Revenue is expected to decrease by -3.15% on average over the next years.
EPS Next Y12.29%
EPS Next 2Y-3.02%
EPS Next 3Y2.61%
EPS Next 5Y15.33%
Revenue Next Year-2.1%
Revenue Next 2Y-3.92%
Revenue Next 3Y0.21%
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.
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
With a Price/Earnings ratio of 10.79, the valuation of GALP can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of GALP is on the same level as its industry peers.
GALP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.73.
A Price/Forward Earnings ratio of 14.48 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 70.18% of the companies are valued more cheaply.
GALP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.79 | ||
| Fwd PE | 14.48 |
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 | 11.61 | ||
| 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.
The decent profitability rating of GALP may justify a higher PE ratio.
PEG (NY)0.88
PEG (5Y)1.47
EPS Next 2Y-3.02%
EPS Next 3Y2.61%
5. Dividend
5.1 Amount
GALP has a Yearly Dividend Yield of 3.30%.
Compared to an average industry Dividend Yield of 62.88, GALP has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.24, GALP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
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-3.02%
EPS Next 3Y2.61%
GALP ENERGIA SGPS SA
ELI:GALP (12/20/2024, 7:00:00 PM)
16.51
-0.14 (-0.84%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners37.88%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap11.48B
Analysts70.34
Price Target20.7 (25.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
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)-2.01%
PT rev (3m)-9.14%
EPS NQ rev (1m)-12.34%
EPS NQ rev (3m)-12.34%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.63%
Revenue NQ rev (1m)2.47%
Revenue NQ rev (3m)2.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.79 | ||
| Fwd PE | 14.48 | ||
| P/S | 0.35 | ||
| P/FCF | 11.61 | ||
| P/OCF | 5.1 | ||
| P/B | 2.62 | ||
| P/tB | 3.13 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.53
EY9.27%
EPS(NY)1.14
Fwd EY6.9%
FCF(TTM)1.42
FCFY8.61%
OCF(TTM)3.24
OCFY19.61%
SpS47.39
BVpS6.3
TBVpS5.28
PEG (NY)0.88
PEG (5Y)1.47
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)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 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 | 4.11 |
F-Score8
WACC6.32%
ROIC/WACC4.69
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 Y12.29%
EPS Next 2Y-3.02%
EPS Next 3Y2.61%
EPS Next 5Y15.33%
Revenue 1Y (TTM)-6.2%
Revenue growth 3Y22.39%
Revenue growth 5Y4.13%
Sales Q2Q%4.06%
Revenue Next Year-2.1%
Revenue Next 2Y-3.92%
Revenue Next 3Y0.21%
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 5Y10.67%
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%