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
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet second-rate dividend payer.
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 +/- 6% a week.
Volatility Over Time: GGAL's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
-2.0%
GGAL
-2.0%
AR Banks
-1.2%
AR Market
1 Year Return
44.5%
GGAL
37.3%
AR Banks
46.1%
AR Market
Return vs Industry: GGAL exceeded the AR Banks industry which returned 37.3% over the past year.
Return vs Market: GGAL underperformed the AR Market which returned 46.1% over the past year.
Shareholder returns
| GGAL | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.0% | -2.0% | -1.2% |
| 30 Day | 19.6% | 19.4% | 16.1% |
| 90 Day | 38.7% | 34.5% | 28.6% |
| 1 Year | 47.5%44.5% | 38.3%37.3% | 48.1%46.1% |
| 3 Year | 63.8%58.5% | 47.8%42.0% | 95.0%82.1% |
| 5 Year | 275.1%259.2% | 170.3%148.3% | 283.7%234.0% |
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?
13.6x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: GGAL (ARS161.65) is trading above our estimate of fair value (ARS98.72)
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 (13.6x) compared to the AR Banks industry average (9.9x).
PE vs Market: GGAL is poor value based on its PE Ratio (13.6x) compared to the AR market (11x).
Price to Earnings Growth Ratio
PEG Ratio: GGAL is good value based on its PEG Ratio (0.4x)
Price to Book Ratio
PB vs Industry: GGAL is overvalued based on its PB Ratio (1.2x) compared to the AR Banks industry average (1x).
Future Growth
How is Grupo Financiero Galicia forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
36.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GGAL's forecast earnings growth (36.1% per year) is above the savings rate (7.6%).
Earnings vs Market: GGAL's earnings (36.1% per year) are forecast to grow slower than the AR market (41.4% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: GGAL's revenue (18% per year) is forecast to grow slower than the AR market (19.4% per year).
High Growth Revenue: GGAL's revenue (18% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: GGAL's Return on Equity is forecast to be low in 3 years time (18.2%).
Past Performance
How has Grupo Financiero Galicia performed over the past 5 years?
35.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GGAL has high quality earnings.
Growing Profit Margin: GGAL's current net profit margins (9.6%) are lower than last year (14.4%).
Past Earnings Growth Analysis
Earnings Trend: GGAL's earnings have grown significantly by 35.4% per year over the past 5 years.
Accelerating Growth: GGAL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: GGAL had negative earnings growth (-42%) over the past year, making it difficult to compare to the Banks industry average (-28.5%).
Return on Equity
High ROE: GGAL's Return on Equity (8.4%) is considered low.
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 (5.7x) is low.
Allowance for Bad Loans: GGAL has a sufficient allowance for bad loans (345%).
Low Risk Liabilities: 76% 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 (44%).
Low Risk Deposits: GGAL's Loans to Deposits ratio (71%) is appropriate.
Level of Bad Loans: GGAL has an appropriate level of bad loans (1.7%).
Dividend
What is Grupo Financiero Galicia current dividend yield, its reliability and sustainability?
0.63%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GGAL's dividend (0.63%) isn’t notable compared to the bottom 25% of dividend payers in the AR market (0.9%).
High Dividend: GGAL's dividend (0.63%) is low compared to the top 25% of dividend payers in the AR market (3.27%).
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 (8.6%), 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 (11.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
0.5yrs
Average management tenure
CEO
Fabian Enrique Kon
0.83
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
Experienced Management: GGAL's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.
Board Members
Experienced Board: GGAL's board of directors are considered experienced (7.7 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 been diluted in the past year, with total shares outstanding growing by 3.4%.
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$238.384b
- Shares outstanding: 1.47b
- Website: https://www.gfgsa.com
Number of Employees
Location
- Grupo Financiero Galicia S.A.
- Teniente General Juan D. PerOn 430
- 25th Floor
- Buenos Aires
- Capital Federal
- 1038
- Argentina
Listings
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, Ecosiste...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/06/22 11:16 |
| End of Day Share Price | 2021/06/18 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.