ENXTLS:GALP

Stock Analysis Report

Executive Summary

Galp Energia, SGPS, S.A. operates as oil and natural gas integrated operator worldwide.

Rewards

Earnings are forecast to grow 13.87% per year

Risk Analysis

Has a high level of debt

Dividend of 4.43% is not well covered by earnings

Profit margins (2%) are lower than last year (5.5%)



Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Galp Energia SGPS's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GALP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.3%

GALP

-0.08%

PT Oil and Gas

0.7%

PT Market


1 Year Return

-0.1%

GALP

3.7%

PT Oil and Gas

11.4%

PT Market

Return vs Industry: GALP underperformed the Portuguese Oil and Gas industry which returned 3.7% over the past year.

Return vs Market: GALP underperformed the Portuguese Market which returned 11.4% over the past year.


Shareholder returns

GALPIndustryMarket
7 Day-1.3%-0.08%0.7%
30 Day-4.2%-5.0%-2.1%
90 Day10.0%1.6%2.8%
1 Year4.9%-0.1%9.8%3.7%16.2%11.4%
3 Year13.9%1.0%32.7%13.6%29.3%-8.7%
5 Year100.8%65.0%69.1%30.9%30.5%-49.1%

Price Volatility Vs. Market

How volatile is Galp Energia SGPS's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

36.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GALP (€14.28) is trading above our estimate of fair value (€10.06)

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


Price To Earnings Ratio

PE vs Industry: GALP is poor value based on its PE Ratio (36.3x) compared to the Oil and Gas industry average (10.2x).

PE vs Market: GALP is poor value based on its PE Ratio (36.3x) compared to the Portuguese market (15.6x).


Price to Earnings Growth Ratio

PEG Ratio: GALP is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: GALP is overvalued based on its PB Ratio (2.7x) compared to the XE Oil and Gas industry average (0.9x).


Next Steps

Future Growth

How is Galp Energia SGPS forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

13.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GALP's forecast earnings growth (13.9% per year) is above the savings rate (0.4%).

Earnings vs Market: GALP's earnings (13.9% per year) are forecast to grow faster than the Portuguese market (7.1% 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 faster than the Portuguese market (2.7% 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 (16.3%).


Next Steps

Past Performance

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

50.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GALP has high quality earnings.

Growing Profit Margin: GALP's current net profit margins (2%) are lower than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: GALP's earnings have grown significantly by 50.4% per year over the past 5 years.

Accelerating Growth: GALP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GALP had negative earnings growth (-64.7%) over the past year, making it difficult to compare to the Oil and Gas industry average (-2.6%).


Return on Equity

High ROE: GALP's Return on Equity (7.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Galp Energia SGPS's financial position?


Financial Position Analysis

Short Term Liabilities: GALP's short term assets (€4.7B) exceed its short term liabilities (€3.4B).

Long Term Liabilities: GALP's short term assets (€4.7B) do not cover its long term liabilities (€4.9B).


Debt to Equity History and Analysis

Debt Level: GALP's debt to equity ratio (50.9%) is considered high.

Reducing Debt: GALP's debt to equity ratio has reduced from 60.5% to 50.9% over the past 5 years.

Debt Coverage: GALP's debt is well covered by operating cash flow (59.8%).

Interest Coverage: GALP's interest payments on its debt are well covered by EBIT (24.7x coverage).


Balance Sheet

Inventory Level: GALP has a high level of physical assets or inventory.

Debt Coverage by Assets: GALP's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

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

4.43%

Current Dividend Yield


Dividend Yield vs Market

company4.4%marketbottom25%2.6%markettop25%6.9%industryaverage5.9%forecastin3Years5.2%

Current dividend yield vs market & industry

Notable Dividend: GALP's dividend (4.43%) is higher than the bottom 25% of dividend payers in the Portuguese market (2.56%).

High Dividend: GALP's dividend (4.43%) is low compared to the top 25% of dividend payers in the Portuguese market (6.88%).


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 (160.8%), 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 (78.3% payout ratio).


Next Steps

Management

What is the CEO of Galp Energia SGPS's salary, the management and board of directors tenure and is there insider trading?

4.7yrs

Average management tenure


CEO

Carlos Nuno Gomes da Silva (52yo)

4.7yrs

Tenure

€1,755,769

Compensation

Mr. Carlos Nuno Gomes da Silva, Eng. has been the Chief Executive Officer of Galp Energia, SGPS, S.A., since April 16, 2015 and has been its Director since April 26, 2007. Mr. da Silva also serves as Vice  ...


CEO Compensation Analysis

Compensation vs Market: Carlos Nuno's total compensation ($USD1.95M) is below average for companies of similar size in the Portuguese market ($USD3.77M).

Compensation vs Earnings: Carlos Nuno's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.7yrs

Average Tenure

52yo

Average Age

Experienced Management: GALP's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

4.9yrs

Average Tenure

53.5yo

Average Age

Experienced Board: GALP's board of directors are considered experienced (4.9 years average tenure).


Insider Trading

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.


Management Team

  • Thore Kristiansen (58yo)

    Executive Director & COO

    • Tenure: 5.2yrs
    • Compensation: €920.39k
  • Filipe Silva (55yo)

    CFO & Executive Director

    • Tenure: 7.4yrs
    • Compensation: €705.00k
  • Carlos Nuno Gomes da Silva (52yo)

    Vice Chairman & CEO

    • Tenure: 4.7yrs
    • Compensation: €1.76m
  • Tiago Villas-Boas

    Chief Financial Officer of Exploration & Production Business Segment

    • Tenure: 5.6yrs
  • Carlos Manuel Pina (49yo)

    COO & Executive Director

    • Tenure: 7.7yrs
    • Compensation: €705.00k
  • José Da Silva Costa (56yo)

    Executive Director & COO

    • Tenure: 7.1yrs
    • Compensation: €887.08k
  • Pedro Dias

    Head of Strategy & Investor Relations

    • Tenure: 0yrs
  • Susana Quintana-Plaza (45yo)

    COO & Director

    • Tenure: 0.7yrs
  • Rui De Neves

    Company Secretary

    • Tenure: 0yrs
  • Sofia Fernandes Tenreiro (44yo)

    COO & Director

    • Tenure: 0.7yrs

Board Members

  • Luís Manuel Todo-Bom (71yo)

    Independent Non-Executive Director

    • Tenure: 7.1yrs
    • Compensation: €42.00k
  • Miguel Jose Pereira Marques (64yo)

    Vice Chairman & Lead Independent Director

    • Tenure: 3.2yrs
    • Compensation: €84.00k
  • Thore Kristiansen (58yo)

    Executive Director & COO

    • Tenure: 5.2yrs
    • Compensation: €920.39k
  • Filipe Silva (55yo)

    CFO & Executive Director

    • Tenure: 7.4yrs
    • Compensation: €705.00k
  • Carlos Nuno Gomes da Silva (52yo)

    Vice Chairman & CEO

    • Tenure: 4.7yrs
    • Compensation: €1.76m
  • Carlos Manuel Pina (49yo)

    COO & Executive Director

    • Tenure: 7.7yrs
    • Compensation: €705.00k
  • Paula Fernanda Amorim (48yo)

    Chairman of the Board

    • Tenure: 3.2yrs
  • José Da Silva Costa (56yo)

    Executive Director & COO

    • Tenure: 7.1yrs
    • Compensation: €887.08k
  • Susana Quintana-Plaza (45yo)

    COO & Director

    • Tenure: 0.7yrs
  • Sofia Fernandes Tenreiro (44yo)

    COO & Director

    • Tenure: 0.7yrs

Company Information

Galp Energia, SGPS, S.A.'s company bio, 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: €11.838b
  • Shares outstanding: 829.25m
  • Website: https://www.galpenergia.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GALPENXTLS (Euronext Lisbon)YesCategory B SharesPTEUROct 2006
GZ5DB (Deutsche Boerse AG)YesCategory B SharesDEEUROct 2006
0B67LSE (London Stock Exchange)YesCategory B SharesGBEUROct 2006
GLPE.FOTCPK (Pink Sheets LLC)YesCategory B SharesUSUSDOct 2006
GALPUBATS-CHIXE (BATS 'Chi-X Europe')YesCategory B SharesGBEUROct 2006
GALP NBMV (Bolsa Mexicana de Valores)YesCategory B SharesMXMXNOct 2006
GLPE.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

Galp Energia, SGPS, S.A. operates as oil and natural gas integrated operator worldwide. It explores, develops, and produces hydrocarbons in approximately 50 projects with proved, probable, and possible res ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 20:52
End of Day Share Price2019/12/11 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.