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GALP

Galp Energia SGPSENXTLS:GALP Stock Report

Market Cap

€8.3b

7D

-1.1%

1Y

21.8%

Updated

16 Oct, 2021

Data

Company Financials +
GALP fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance2/6
Financial Health3/6
Dividends3/6

GALP Overview

Galp Energia, SGPS, S.A. operates as integrated energy operator in Portugal and internationally.

Galp Energia SGPS Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Galp Energia SGPS
Historical stock prices
Current Share Price€9.95
52 Week High€6.55
52 Week Low€11.00
Beta1.09
1 Month Change18.40%
3 Month Change17.61%
1 Year Change21.76%
3 Year Change-36.38%
5 Year Change-22.42%
Change since IPO65.01%

Recent News & Updates

Sep 27
These 4 Measures Indicate That Galp Energia SGPS (ELI:GALP) Is Using Debt Reasonably Well

These 4 Measures Indicate That Galp Energia SGPS (ELI:GALP) Is Using Debt Reasonably Well

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

Aug 05
Galp Energia, SGPS, S.A.'s (ELI:GALP) Intrinsic Value Is Potentially 88% Above Its Share Price

Galp Energia, SGPS, S.A.'s (ELI:GALP) Intrinsic Value Is Potentially 88% Above Its Share Price

Does the August share price for Galp Energia, SGPS, S.A. ( ELI:GALP ) reflect what it's really worth? Today, we will...

Jul 19
Returns On Capital Signal Difficult Times Ahead For Galp Energia SGPS (ELI:GALP)

Returns On Capital Signal Difficult Times Ahead For Galp Energia SGPS (ELI:GALP)

What underlying fundamental trends can indicate that a company might be in decline? Typically, we'll see the trend of...

Jun 04
Does Galp Energia SGPS (ELI:GALP) Have A Healthy Balance Sheet?

Does Galp Energia SGPS (ELI:GALP) Have A Healthy Balance Sheet?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

May 06
Galp Energia, SGPS, S.A. (ELI:GALP) Shares Could Be 29% Below Their Intrinsic Value Estimate

Galp Energia, SGPS, S.A. (ELI:GALP) Shares Could Be 29% Below Their Intrinsic Value Estimate

In this article we are going to estimate the intrinsic value of Galp Energia, SGPS, S.A. ( ELI:GALP ) by estimating the...

Shareholder Returns

GALPPT Oil and GasPT Market
7D-1.1%2.2%4.1%
1Y21.8%68.9%23.2%

Return vs Industry: GALP underperformed the Portuguese Oil and Gas industry which returned 68.6% over the past year.

Return vs Market: GALP underperformed the Portuguese Market which returned 24.3% over the past year.

Price Volatility

Is GALP's price volatile compared to industry and market?
GALP volatility
GALP Beta1.09
Industry Beta0.92
Market Beta1

Stable Share Price: GALP is not significantly more volatile than the rest of Portuguese stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: GALP's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19996,114Andy Brownhttps://www.galp.com

Galp Energia, SGPS, S.A. operates as integrated energy operator in Portugal and internationally. The company operates through four segments: Upstream, Refining and Midstream, Commercial, and Renewables and New Business. The Upstream segment engages in the exploration, development, and production of hydrocarbons primarily in Brazil, Mozambique, and Angola.

Galp Energia SGPS Fundamentals Summary

How do Galp Energia SGPS's earnings and revenue compare to its market cap?
GALP fundamental statistics
Market Cap€8.25b
Earnings (TTM)€91.00m
Revenue (TTM)€12.70b

90.7x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GALP income statement (TTM)
Revenue€12.70b
Cost of Revenue€7.91b
Gross Profit€4.79b
Expenses€4.70b
Earnings€91.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 25, 2021

Earnings per share (EPS)0.11
Gross Margin37.72%
Net Profit Margin0.72%
Debt/Equity Ratio76.8%

How did GALP perform over the long term?

See historical performance and comparison

Dividends

5.0%

Current Dividend Yield

548%

Payout Ratio

Valuation

Is Galp Energia SGPS undervalued compared to its fair value and its price relative to the market?

12.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GALP (€9.95) is trading below our estimate of fair value (€11.35)

Significantly Below Fair Value: GALP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GALP is poor value based on its PE Ratio (90.7x) compared to the European Oil and Gas industry average (12.5x).

PE vs Market: GALP is poor value based on its PE Ratio (90.7x) compared to the Portuguese market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: GALP is poor value based on its PEG Ratio (5.4x)


Price to Book Ratio

PB vs Industry: GALP is overvalued based on its PB Ratio (2.5x) compared to the XE Oil and Gas industry average (1.1x).


Future Growth

How is Galp Energia SGPS forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

17.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GALP's forecast earnings growth (16.7% per year) is above the savings rate (1.4%).

Earnings vs Market: GALP's earnings (16.7% per year) are forecast to grow faster than the Portuguese market (11.8% per year).

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

Revenue vs Market: GALP's revenue (3.5% per year) is forecast to grow slower than the Portuguese market (6.2% per year).

High Growth Revenue: GALP's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GALP's Return on Equity is forecast to be low in 3 years time (18.8%).


Past Performance

How has Galp Energia SGPS performed over the past 5 years?

-26.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GALP has high quality earnings.

Growing Profit Margin: GALP became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GALP's earnings have declined by 26.5% per year over the past 5 years.

Accelerating Growth: GALP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GALP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (3.8%).


Return on Equity

High ROE: GALP's Return on Equity (4.3%) is considered low.


Financial Health

How is Galp Energia SGPS's financial position?


Financial Position Analysis

Short Term Liabilities: GALP's short term assets (€4.5B) exceed its short term liabilities (€2.4B).

Long Term Liabilities: GALP's short term assets (€4.5B) do not cover its long term liabilities (€6.2B).


Debt to Equity History and Analysis

Debt Level: GALP's debt to equity ratio (76.8%) is considered high.

Reducing Debt: GALP's debt to equity ratio has increased from 56.9% to 76.8% over the past 5 years.

Debt Coverage: GALP's debt is well covered by operating cash flow (44.3%).

Interest Coverage: GALP's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet


Dividend

What is Galp Energia SGPS current dividend yield, its reliability and sustainability?

5.03%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GALP's dividend (5.03%) is higher than the bottom 25% of dividend payers in the Portuguese market (1.63%).

High Dividend: GALP's dividend (5.03%) is low compared to the top 25% of dividend payers in the Portuguese market (5.3%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (547.8%), GALP's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GALP's dividends in 3 years are forecast to be covered by earnings (87.5% payout ratio).


Next Steps

Management

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

0.7yrs

Average management tenure


CEO

Andy Brown (59 yo)

0.67

Tenure

Mr. Andrew Richard Dingley Brown, also known as Andy, is Vice Chairman of the Board and Chief Executive Officer at Galp Energia, SGPS, S.A. since February 5, 2021. He is also a Member of the Nigerian Presi...


Leadership Team

Experienced Management: GALP's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: GALP's board of directors are considered experienced (6.8 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

Galp Energia, SGPS, S.A.'s employee growth, exchange listings and data sources


Key Information

  • Name: Galp Energia, SGPS, S.A.
  • Ticker: GALP
  • Exchange: ENXTLS
  • Founded: 1999
  • Industry: Integrated Oil and Gas
  • Sector: Energy
  • Market Cap: €8.251b
  • Shares outstanding: 829.25m
  • Website: https://www.galp.com

Number of Employees


Location

  • Galp Energia, SGPS, S.A.
  • Rua TomAs da Fonseca - Torre A
  • Lisbon
  • Lisbon
  • 1600-209
  • Portugal

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 18:34
End of Day Share Price2021/10/15 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.