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GALE

GalenicaSWX:GALE Stock Report

Last Price

CHF63.75

Market Cap

CHF3.2b

7D

-3.6%

1Y

5.9%

Updated

18 Jan, 2022

Data

Company Financials +
GALE fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance3/6
Financial Health6/6
Dividends3/6

GALE Stock Overview

Galenica AG operates as a healthcare provider in Switzerland and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Galenica
Historical stock prices
Current Share PriceCHF63.75
52 Week HighCHF73.15
52 Week LowCHF57.20
Beta0.26
1 Month Change-3.63%
3 Month Change-7.14%
1 Year Change5.90%
3 Year Change33.31%
5 Year Changen/a
Change since IPO48.26%

Recent News & Updates

Jan 02
Should You Be Adding Galenica (VTX:GALE) To Your Watchlist Today?

Should You Be Adding Galenica (VTX:GALE) To Your Watchlist Today?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Nov 30
Does Galenica (VTX:GALE) Have A Healthy Balance Sheet?

Does Galenica (VTX:GALE) Have A Healthy Balance Sheet?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Oct 24
Returns At Galenica (VTX:GALE) Appear To Be Weighed Down

Returns At Galenica (VTX:GALE) Appear To Be Weighed Down

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Sep 25
With EPS Growth And More, Galenica (VTX:GALE) Is Interesting

With EPS Growth And More, Galenica (VTX:GALE) Is Interesting

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Aug 24
Galenica (VTX:GALE) Seems To Use Debt Quite Sensibly

Galenica (VTX:GALE) Seems To Use Debt Quite Sensibly

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

GALECH HealthcareCH Market
7D-3.6%-1.0%-1.5%
1Y5.9%0.7%14.9%

Return vs Industry: GALE exceeded the Swiss Healthcare industry which returned 1.8% over the past year.

Return vs Market: GALE underperformed the Swiss Market which returned 15.8% over the past year.

Price Volatility

Is GALE's price volatile compared to industry and market?
GALE volatility
GALE Average Weekly Movement2.4%
Healthcare Industry Average Movement4.2%
Market Average Movement3.9%
10% most volatile stocks in CH Market6.5%
10% least volatile stocks in CH Market2.0%

Stable Share Price: GALE is less volatile than 75% of Swiss stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: GALE's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20175,388Marc Wernerhttps://www.galenica.com

Galenica AG operates as a healthcare provider in Switzerland and internationally. It operates through two segments, Health & Beauty, and Services. The Health & Beauty segment operates 522 pharmacies, including 366 owned pharmacies and 156 partner pharmacies under the Amavita, Sun Store, and Coop Vitality brands.

Galenica Fundamentals Summary


Earnings & Revenue

Key profitability statistics from the latest earnings report
GALE income statement (TTM)
RevenueCHF3.65b
Cost of RevenueCHF3.25b
Gross ProfitCHF397.02m
ExpensesCHF211.64m
EarningsCHF185.38m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Mar 08, 2022

Earnings per share (EPS)3.75
Gross Margin10.87%
Net Profit Margin5.08%
Debt/Equity Ratio46.7%

How did GALE perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

48%

Payout Ratio

Valuation

Is Galenica undervalued compared to its fair value and its price relative to the market?

42.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GALE (CHF63.75) is trading below our estimate of fair value (CHF111.08)

Significantly Below Fair Value: GALE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GALE is good value based on its PE Ratio (17x) compared to the European Healthcare industry average (20.5x).

PE vs Market: GALE is good value based on its PE Ratio (17x) compared to the Swiss market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: GALE is poor value based on its PEG Ratio (6.5x)


Price to Book Ratio

PB vs Industry: GALE is overvalued based on its PB Ratio (2.8x) compared to the XE Healthcare industry average (2.3x).


Future Growth

How is Galenica forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

2.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GALE's forecast earnings growth (2.6% per year) is above the savings rate (-0.3%).

Earnings vs Market: GALE's earnings (2.6% per year) are forecast to grow slower than the Swiss market (7.1% per year).

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

Revenue vs Market: GALE's revenue (2.8% per year) is forecast to grow slower than the Swiss market (4.9% per year).

High Growth Revenue: GALE's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GALE's Return on Equity is forecast to be low in 3 years time (13.6%).


Past Performance

How has Galenica performed over the past 5 years?

12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GALE has a large one-off gain of CHF45.7M impacting its June 30 2021 financial results.

Growing Profit Margin: GALE's current net profit margins (5.1%) are higher than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: GALE's earnings have grown by 12.7% per year over the past 5 years.

Accelerating Growth: GALE's earnings growth over the past year (46.7%) exceeds its 5-year average (12.7% per year).

Earnings vs Industry: GALE earnings growth over the past year (46.7%) underperformed the Healthcare industry 46.7%.


Return on Equity

High ROE: GALE's Return on Equity (16.7%) is considered low.


Financial Health

How is Galenica's financial position?


Financial Position Analysis

Short Term Liabilities: GALE's short term assets (CHF974.3M) exceed its short term liabilities (CHF753.5M).

Long Term Liabilities: GALE's short term assets (CHF974.3M) exceed its long term liabilities (CHF646.2M).


Debt to Equity History and Analysis

Debt Level: GALE's net debt to equity ratio (35.5%) is considered satisfactory.

Reducing Debt: GALE's debt to equity ratio has reduced from 338.5% to 46.7% over the past 5 years.

Debt Coverage: GALE's debt is well covered by operating cash flow (57.3%).

Interest Coverage: GALE's interest payments on its debt are well covered by EBIT (39x coverage).


Balance Sheet


Dividend

What is Galenica current dividend yield, its reliability and sustainability?

2.82%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GALE's dividend (2.82%) is higher than the bottom 25% of dividend payers in the Swiss market (1.39%).

High Dividend: GALE's dividend (2.82%) is low compared to the top 25% of dividend payers in the Swiss market (3.56%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, GALE has been paying a dividend for less than 10 years.

Growing Dividend: GALE's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.1%), GALE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GALE's dividends in 3 years are forecast to be covered by earnings (63.6% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Marc Werner (54 yo)

1.75yrs

Tenure

CHF1,057,875

Compensation

Mr. Marc Werner serves as Chief Executive Officer at Galenica AG since April 01, 2020. Mr. Werner served as the Head of Sales & Services Division at Swisscom AG since January 2016 until December 31, 2019 a...


CEO Compensation Analysis

Compensation vs Market: Marc's total compensation ($USD1.15M) is about average for companies of similar size in the Swiss market ($USD1.37M).

Compensation vs Earnings: Insufficient data to compare Marc's compensation with company performance.


Leadership Team

Experienced Management: GALE's management team is considered experienced (2 years average tenure).


Board Members

Experienced Board: GALE's board of directors are considered experienced (4.5 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

Galenica AG's employee growth, exchange listings and data sources


Key Information

  • Name: Galenica AG
  • Ticker: GALE
  • Exchange: SWX
  • Founded: 2017
  • Industry: Health Care Distributors
  • Sector: Healthcare
  • Implied Market Cap: CHF3.156b
  • Shares outstanding: 49.50m
  • Website: https://www.galenica.com

Number of Employees


Location

  • Galenica AG
  • Untermattweg 8
  • Bern
  • Bern
  • 3027
  • Switzerland

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/18 21:24
End of Day Share Price2022/01/18 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.