BASE:GGAL

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Grupo Financiero Galicia

Executive Summary

Grupo Financiero Galicia S.A., a financial services holding company, provides various financial products and services to individuals and companies in Argentina. More Details


Snowflake Analysis

Solid track record with excellent balance sheet.

Share Price & News

How has Grupo Financiero Galicia's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GGAL is not significantly more volatile than the rest of AR stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: GGAL's weekly volatility has decreased from 10% to 5% over the past year.


Market Performance


7 Day Return

-2.4%

GGAL

-1.9%

AR Banks

-2.5%

AR Market


1 Year Return

7.6%

GGAL

4.3%

AR Banks

22.5%

AR Market

Return vs Industry: GGAL exceeded the AR Banks industry which returned 4.4% over the past year.

Return vs Market: GGAL underperformed the AR Market which returned 23.3% over the past year.


Shareholder returns

GGALIndustryMarket
7 Day-2.4%-1.9%-2.5%
30 Day-11.0%-7.1%-7.7%
90 Day-15.6%-15.9%-16.7%
1 Year8.8%7.6%4.7%4.3%23.2%22.5%
3 Year-12.6%-15.3%-15.1%-19.2%24.0%16.1%
5 Year163.5%153.8%100.2%83.5%196.2%159.0%

Long-Term Price Volatility Vs. Market

How volatile is Grupo Financiero Galicia's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Grupo Financiero Galicia undervalued compared to its fair value and its price relative to the market?

8.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GGAL (ARS109.9) is trading above our estimate of fair value (ARS90.76)

Significantly Below Fair Value: GGAL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GGAL is poor value based on its PE Ratio (8.2x) compared to the AR Banks industry average (4.3x).

PE vs Market: GGAL is good value based on its PE Ratio (8.2x) compared to the AR market (8.9x).


Price to Earnings Growth Ratio

PEG Ratio: GGAL is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: GGAL is overvalued based on its PB Ratio (1x) compared to the AR Banks industry average (0.8x).


Next Steps

Future Growth

How is Grupo Financiero Galicia forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

13.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GGAL's forecast earnings growth (13.5% per year) is above the savings rate (7.9%).

Earnings vs Market: GGAL's earnings (13.5% per year) are forecast to grow slower than the AR market (39.6% per year).

High Growth Earnings: GGAL's earnings are forecast to grow, but not significantly.

Revenue vs Market: GGAL's revenue (20.4% per year) is forecast to grow slower than the AR market (20.8% per year).

High Growth Revenue: GGAL's revenue (20.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GGAL's Return on Equity is forecast to be high in 3 years time (21.7%)


Next Steps

  • Explore growth companies in the Banks industry.

Past Performance

How has Grupo Financiero Galicia performed over the past 5 years?

29.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GGAL has high quality earnings.

Growing Profit Margin: GGAL's current net profit margins (13.7%) are higher than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: GGAL's earnings have grown significantly by 29.2% per year over the past 5 years.

Accelerating Growth: GGAL's earnings growth over the past year (76.2%) exceeds its 5-year average (29.2% per year).

Earnings vs Industry: GGAL earnings growth over the past year (76.2%) exceeded the Banks industry 13.9%.


Return on Equity

High ROE: GGAL's Return on Equity (12.3%) is considered low.


Next Steps

Financial Health

How is Grupo Financiero Galicia's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: GGAL's Assets to Equity ratio (6x) is low.

Allowance for Bad Loans: GGAL has a sufficient allowance for bad loans (194%).

Low Risk Liabilities: 77% of GGAL's liabilities are made up of primarily low risk sources of funding.

Loan Level: GGAL has an appropriate level of Loans to Assets ratio (47%).

Low Risk Deposits: GGAL's Loans to Deposits ratio (73%) is appropriate.

Level of Bad Loans: GGAL has a high level of bad loans (3%).


Next Steps

Dividend

What is Grupo Financiero Galicia current dividend yield, its reliability and sustainability?

1.08%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GGAL's dividend (1.08%) isn’t notable compared to the bottom 25% of dividend payers in the AR market (1.15%).

High Dividend: GGAL's dividend (1.08%) is low compared to the top 25% of dividend payers in the AR market (2.91%).


Stability and Growth of Payments

Stable Dividend: GGAL's dividend payments have been volatile in the past 10 years.

Growing Dividend: GGAL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.5%), GGAL's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GGAL's dividends in 3 years are forecast to be thoroughly covered by earnings (12% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.6yrs

Average management tenure


CEO

Fabian Enrique Kon

0.58

Tenure

Mr. Fabian Enrique Kon has been General Manager and Chief Executive Officer at Grupo Financiero Galicia SA since August 01, 2020. Mr. Kon has been Chief Executive Officer at Banco de Galicia y Buenos Aires...


Leadership Team

NamePositionTenureCompensationOwnership
Fabian Enrique Kon
GM & CEO0.58yrno datano data
Bruno Folino
Finance & Compliance Manager0.58yrno datano data
Pablo Eduardo Firvida
Institutional & Investor Relations Manager0.58yrno datano data
Enrique Pedemonte
IR Contactno datano datano data
Eduardo Antonio Fanciulli
Head of Risk Management Divisionno datano datano data
Diego Rivas
Chief Risk Officer0.58yrno datano data

0.6yrs

Average Tenure

Experienced Management: GGAL's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Eduardo José Escasany
Chairman of the Board11.17yrsno datano data
Abel Ayerza
Director21.5yrsno datano data
Daniel Llamblas
Director3.92yrsno datano data
Federico M. Braun
Director21.5yrsno datano data
Sergio Grinenco
Alternate Director17.92yrsno datano data
Pablo Alberto Gutierrez
Vice Chairman of the Board10.92yrsno datano data
Alejandro Maria Rojas Lagarde
Alternate Director20.92yrsno datano data
Miguel Maxwell
Director0.92yrno datano data
Pedro Alberto Richards
Director3.92yrsno datano data
José Luis Gentile
Member of Supervisory Committeeno datano datano data
Silvestre Vila Moret
Director18.75yrsno datano data
Claudia Raquel Estecho
Independent Director1.92yrsno datano data

11.2yrs

Average Tenure

69yo

Average Age

Experienced Board: GGAL's board of directors are seasoned and experienced ( 11.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Grupo Financiero Galicia S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Grupo Financiero Galicia S.A.
  • Ticker: GGAL
  • Exchange: BASE
  • Founded: 1905
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: AR$156.801b
  • Shares outstanding: 1.43b
  • Website: https://www.gfgsa.com

Number of Employees


Location

  • Grupo Financiero Galicia S.A.
  • Teniente General Juan D. Perón 430
  • 25th Floor
  • Buenos Aires
  • Capital Federal
  • 1038
  • Argentina

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GGALNasdaqCM (Nasdaq Capital Market)SPONSORED ADRUSUSDJul 2000
GF4DB (Deutsche Boerse AG)SPONSORED ADRDEEURJul 2000
GGAL NBMV (Bolsa Mexicana de Valores)SPONSORED ADRMXMXNJul 2000
GGAB.FOTCPK (Pink Sheets LLC)YesClass B Ordinary SharesUSUSDAug 2000
GGALBASE (Buenos Aires Stock Exchange)YesClass B Ordinary SharesARARSAug 2000

Biography

Grupo Financiero Galicia S.A., a financial services holding company, provides various financial products and services to individuals and companies in Argentina. The company operates through Banks, Regional...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/06 22:03
End of Day Share Price2021/03/05 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.