company background image
GGAL

Grupo Financiero Galicia BASE:GGAL Stock Report

Last Price

AR$222.20

Market Cap

AR$327.7b

7D

-1.6%

1Y

52.8%

Updated

07 Aug, 2022

Data

Company Financials +
GGAL fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance3/6
Financial Health5/6
Dividends4/6

GGAL Stock Overview

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

Grupo Financiero Galicia Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Grupo Financiero Galicia
Historical stock prices
Current Share PriceAR$222.20
52 Week HighAR$263.90
52 Week LowAR$143.95
Beta2.58
1 Month Change11.43%
3 Month Change25.40%
1 Year Change52.82%
3 Year Change27.30%
5 Year Change228.94%
Change since IPO12,818.61%

Recent News & Updates

Shareholder Returns

GGALAR BanksAR Market
7D-1.6%-1.7%-1.2%
1Y52.8%45.9%78.8%

Return vs Industry: GGAL exceeded the AR Banks industry which returned 45.9% over the past year.

Return vs Market: GGAL underperformed the AR Market which returned 78.8% over the past year.

Price Volatility

Is GGAL's price volatile compared to industry and market?
GGAL volatility
GGAL Average Weekly Movement5.8%
Banks Industry Average Movement7.2%
Market Average Movement6.3%
10% most volatile stocks in AR Market8.4%
10% least volatile stocks in AR Market5.0%

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.

About the Company

FoundedEmployeesCEOWebsite
1905n/aFabian Enrique Konhttps://www.gfgsa.com

Grupo Financiero Galicia S.A., a financial service holding company, provides various financial products and services to individuals and companies in Argentina. The company operates through Banks, NaranjaX, Insurance, and Other Businesses segments. The company’s products and services cover savings, current, and checking accounts; personal loans; express and mortgage loans; pledge and credit card loans; credit and debit cards; and online banking services.

Grupo Financiero Galicia Fundamentals Summary

How do Grupo Financiero Galicia's earnings and revenue compare to its market cap?
GGAL fundamental statistics
Market CapAR$327.68b
Earnings (TTM)AR$34.80b
Revenue (TTM)AR$303.79b

9.4x

P/E Ratio

0.9x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GGAL income statement (TTM)
RevenueAR$303.79b
Cost of RevenueAR$8.22b
Gross ProfitAR$295.57b
Other ExpensesAR$260.77b
EarningsAR$34.80b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)23.60
Gross Margin97.29%
Net Profit Margin11.45%
Debt/Equity Ratio63.1%

How did GGAL perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

32%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is GGAL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GGAL?

Other financial metrics that can be useful for relative valuation.

GGAL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio0.3x

Price to Earnings Ratio vs Peers

How does GGAL's PE Ratio compare to its peers?

GGAL PE Ratio vs Peers
The above table shows the PE ratio for GGAL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average6.7x
BMA Banco Macro
8x6.1%AR$234.8b
BBAR Banco BBVA Argentina
7.5x7.8%AR$155.6b
BPAT Banco Patagonia
9.8xn/aAR$67.4b
BPE BPER Banca
1.6x-24.7%€2.2b
GGAL Grupo Financiero Galicia
9.4x27.3%AR$327.7b

Price-To-Earnings vs Peers: GGAL is expensive based on its Price-To-Earnings Ratio (9.4x) compared to the peer average (6.7x).


Price to Earnings Ratio vs Industry

How does GGAL's PE Ratio compare vs other companies in the South American Banks Industry?

Price-To-Earnings vs Industry: GGAL is expensive based on its Price-To-Earnings Ratio (9.4x) compared to the South American Banks industry average (7.7x)


Price to Earnings Ratio vs Fair Ratio

What is GGAL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GGAL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.4x
Fair PE Ratio13.4x

Price-To-Earnings vs Fair Ratio: GGAL is good value based on its Price-To-Earnings Ratio (9.4x) compared to the estimated Fair Price-To-Earnings Ratio (13.4x).


Share Price vs Fair Value

What is the Fair Price of GGAL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GGAL (ARS222.2) is trading above our estimate of fair value (ARS32.15)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies

Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


27.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GGAL's forecast earnings growth (27.3% per year) is above the savings rate (7.7%).

Earnings vs Market: GGAL's earnings (27.3% per year) are forecast to grow faster than the AR market (21% per year).

High Growth Earnings: GGAL's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GGAL's revenue (8.6% per year) is forecast to grow slower than the AR market (19.2% per year).

High Growth Revenue: GGAL's revenue (8.6% 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 (13.2%).


Discover growth companies

Past Performance

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

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


36.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GGAL has high quality earnings.

Growing Profit Margin: GGAL's current net profit margins (11.5%) are higher than last year (10%).


Past Earnings Growth Analysis

Earnings Trend: GGAL's earnings have grown significantly by 36.3% per year over the past 5 years.

Accelerating Growth: GGAL's earnings growth over the past year (17.7%) is below its 5-year average (36.3% per year).

Earnings vs Industry: GGAL earnings growth over the past year (17.7%) underperformed the Banks industry 34.3%.


Return on Equity

High ROE: GGAL's Return on Equity (9.8%) is considered low.


Discover strong past performing companies

Financial Health

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

Financial Health Score

5/6

Financial Health Score 5/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: GGAL's Assets to Equity ratio (5.1x) is low.

Allowance for Bad Loans: GGAL has a sufficient allowance for bad loans (153%).

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 (42%).

Low Risk Deposits: GGAL's Loans to Deposits ratio (69%) is appropriate.

Level of Bad Loans: GGAL has a high level of bad loans (3.4%).


Discover healthy companies

Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.36%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: GGAL's dividend (3.36%) is higher than the bottom 25% of dividend payers in the AR market (0.67%).

High Dividend: GGAL's dividend (3.36%) is low compared to the top 25% of dividend payers in the AR market (4.5%).


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

Earnings Coverage: With its reasonably low payout ratio (31.6%), GGAL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GGAL's dividends in 3 years are forecast to be well covered by earnings (18.5% payout ratio).


Discover strong dividend paying companies

Management

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

1.8yrs

Average management tenure


CEO

Fabian Enrique Kon

2.08yrs

Tenure

Mr. Fabian Enrique Kon has been General Manager and Chief Executive Officer at Grupo Financiero Galicia SA since July 2020. Mr. Kon has been Chief Executive Officer at Banco de Galicia y Buenos Aires SAU(f...


Leadership Team

Experienced Management: GGAL's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: GGAL's board of directors are seasoned and experienced ( 11.3 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 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
  • Implied Market Cap: AR$327.677b
  • Shares outstanding: 1.47b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/07 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.