NasdaqCM:GGAL

Stock Analysis Report

Grupo Financiero Galicia

Executive Summary

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

Snowflake

Fundamentals

Undervalued with high growth potential.

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


Market Performance


7 Day Return

-2.2%

GGAL

1.4%

US Banks

1.0%

US Market


1 Year Return

-47.4%

GGAL

0.2%

US Banks

6.7%

US Market

Return vs Industry: GGAL underperformed the US Banks industry which returned 0.2% over the past year.

Return vs Market: GGAL underperformed the US Market which returned 6.7% over the past year.


Share holder returns

GGALIndustryMarket
7 Day-2.2%1.4%1.0%
30 Day17.3%-2.6%-1.8%
90 Day-63.9%0.8%-1.8%
1 Year-46.7%-47.4%3.1%0.2%9.1%6.7%
3 Year-58.0%-58.9%52.0%41.5%46.0%36.6%
5 Year0.5%-1.9%69.7%51.2%66.9%48.6%

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

Valuation

Is Grupo Financiero Galicia undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: GGAL ($13.06) is trading below our estimate of fair value ($67.27)

Significantly Undervalued: GGAL is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: GGAL is good value based on its PE Ratio (11x) compared to the Banks industry average (12.5x).

PE vs Market: GGAL is good value based on its PE Ratio (11x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: GGAL is good value based on its PEG Ratio (0.5x)


Price Based on Value of Assets

PB vs Industry: GGAL is overvalued based on its PB Ratio (1.8x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Grupo Financiero Galicia expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

24.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: GGAL's forecast earnings growth (24.1% per year) is above the savings rate (2.7%).

Earnings vs Market: GGAL's earnings (24.1% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: GGAL's revenue (19.6% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: GGAL's revenue (19.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: GGAL's Return on Equity is forecast to be high in 3 years time (31.9%)


Next Steps

Past Performance

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

15.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GGAL's earnings have grown by 15.3% per year over the past 5 years.

Accelerating Growth: GGAL's earnings growth over the past year (29.9%) exceeds its 5-year average (15.3% per year).

Earnings vs Industry: GGAL earnings growth over the past year (29.9%) underperformed the Banks industry 31.8%.


Return on Equity

High ROE: GGAL's Return on Equity (15.2%) is considered low.


Return on Assets

ROA vs Industry: GGAL has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate GGAL's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

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

Inventory Level: GGAL has a low level of unsold assets or inventory.

Debt Coverage by Assets: GGAL's debt is covered by short term assets (assets are 2.998500x debt).


Financial Institutions Analysis

Asset Level: GGAL's level of assets compared to its equity is low.

Allowance for Bad Loans: GGAL has a low allowance for bad loans.

Low Risk Liabilities: GGAL's liabilities are made up of primarily low risk sources of funding.

Loan Level: GGAL has an acceptable proportion of non-loan assets held.

Low Risk Deposits: GGAL's loans are broadly funded by customer deposits.

Level of Bad Loans: GGAL has a high level of bad loans (6.12%)


Next Steps

Dividend

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

4.28%

Expected Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.5%markettop25%3.8%industryaverage2.5%forecastin3Years4.3%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: GGAL's dividend (1.55%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: GGAL's dividend (1.55%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: GGAL has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: GGAL's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.1%), 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 (17.1% payout ratio).


Next Steps

Management

What is the CEO of Grupo Financiero Galicia's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

Pedro Alberto Richards (67yo)

9.8yrs

Tenure

0

Lic. Pedro Alberto Richards has obtained a degree in economics from the Universidad Católica Argentina. He holds a Master of Science in Management from the Sloan School of Management at the Massachusetts I ...


Management Age and Tenure

3.5yrs

Average Tenure

68yo

Average Age

Experienced Management: GGAL's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

9.6yrs

Average Tenure

70yo

Average Age

Experienced Board: GGAL's board of directors are considered experienced (9.6 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


Management Team

  • Eduardo Antonio Fanciulli (68yo)

    Head of Risk Management Division

    • Tenure: 0yrs
  • Sergio Grinenco (71yo)

    Alternate Director

    • Tenure: 7.5yrs
  • Enrique Mariano Garda Olaciregui (73yo)

    Secretary & Director

    • Tenure: 0yrs
  • Guillermo Juan Pando (71yo)

    • Tenure: 16.5yrs
  • Pedro Alberto Richards (67yo)

    CEO & Director

    • Tenure: 9.8yrs
  • Pablo Eduardo Firvida (52yo)

    Institutional Relations Manager

    • Tenure: 0yrs
  • Jose Luis Ronsini (48yo)

    Chief Financial Officer

    • Tenure: 2.5yrs
  • Fabian Enrique Kon

    • Tenure: 3.5yrs
  • Enrique Pedemonte

    IR Contact

    • Tenure: 0yrs

Board Members

  • Eduardo José Escasany (69yo)

    Chairman of the Board

    • Tenure: 9.8yrs
  • Abel Ayerza (80yo)

    Director

    • Tenure: 20.1yrs
  • Daniel Llamblas (72yo)

    Director

    • Tenure: 2.5yrs
  • Federico M. Braun (69yo)

    Director

    • Tenure: 20.1yrs
  • Sergio Grinenco (71yo)

    Alternate Director

    • Tenure: 7.5yrs
  • Pablo Alberto Gutierrez (60yo)

    Vice Chairman of the Board

    • Tenure: 9.5yrs
  • Enrique Mariano Garda Olaciregui (73yo)

    Secretary & Director

    • Tenure: 0yrs
  • Guillermo Juan Pando (71yo)

    • Tenure: 16.5yrs
  • Pedro Alberto Richards (67yo)

    CEO & Director

    • Tenure: 9.8yrs
  • Raúl H. Seoane (66yo)

    • Tenure: 0yrs

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: NasdaqCM
  • Founded: 1905
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: AR$128.837b
  • Listing Market Cap: AR$2.219b
  • Shares outstanding: 1.43b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GGALNasdaqCM (Nasdaq Capital Market)ADR EACH REPR 10 CLASS'B' ARS1 LVL11USUSDJul 2000
GF4DB (Deutsche Boerse AG)ADR EACH REPR 10 CLASS'B' ARS1 LVL11DEEURJul 2000
GGAL NBMV (Bolsa Mexicana de Valores)ADR EACH REPR 10 CLASS'B' ARS1 LVL11MXMXNJul 2000
GGAB.FOTCPK (Pink Sheets LLC)YesClass B Ordinary SharesUSUSDAug 2000
GGALBASE (Buenos Aires Stock Exchange)YesClass B Ordinary SharesARARSAug 2000

Biography

Grupo Financiero Galicia S.A., a financial services holding company, provides various financial products and services in Argentina. The company operates through Banks, Regional Credit Cards, Insurance, and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:19
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
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.

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