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AVAL

Grupo Aval Acciones y Valores NYSE:AVAL Stock Report

Last Price

Col$4.07

Market Cap

Col$4.5b

7D

2.3%

1Y

-28.6%

Updated

25 May, 2022

Data

Company Financials +
AVAL fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance4/6
Financial Health3/6
Dividends5/6

AVAL Stock Overview

Grupo Aval Acciones y Valores S.A. provides a range of financial services and products to public and private sector customers in Colombia and Central America.

Grupo Aval Acciones y Valores Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Grupo Aval Acciones y Valores
Historical stock prices
Current Share PriceCol$4.07
52 Week HighCol$6.17
52 Week LowCol$3.86
Beta0.75
1 Month Change-1.69%
3 Month Change-23.93%
1 Year Change-28.60%
3 Year Change-41.69%
5 Year Change-51.32%
Change since IPO-70.18%

Recent News & Updates

Aug 22

Grupo Aval Is A Strong Buy After Massive Earnings Beat

After trimming my exposure to Colombian stocks in February 2020, I've made a big buy this past week. Colombia's economy has decisively turned the corner; foreign investors haven't picked up on it yet. Colombia has been in a bear market for 10 years now. The last time Colombian shares came out of a bear market in the early 2000s, shares subsequently went up thousands of percent.

Jul 02

Grupo Aval And Grupo Sura: Valuations Currently More Than Compensate For Political Risk

Most Latin American companies have historically been attractive during particular cyclical periods similar to today, of rising commodity prices. As a Latin American case study, Colombia offers two exceptionally high quality and extremely cheap financial conglomerates trading at 6x-7x normalized earnings in Grupo Aval and Grupo Sura. Discounts in those stocks likely exist not only from economic uncertainty but worries about the political direction of the country. Those concerns, while not invalid, appear to be pricing in the absolute worst-case scenario for the economic and political future of the county. While investors need to deeply understand countries and individual companies to make sound investments, discerning investors can find bargains throughout Latin America today.

Shareholder Returns

AVALUS BanksUS Market
7D2.3%0.01%-4.0%
1Y-28.6%-15.5%-13.2%

Return vs Industry: AVAL underperformed the US Banks industry which returned -15.5% over the past year.

Return vs Market: AVAL underperformed the US Market which returned -13.2% over the past year.

Price Volatility

Is AVAL's price volatile compared to industry and market?
AVAL volatility
AVAL Average Weekly Movement5.0%
Banks Industry Average Movement3.9%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

Stable Share Price: AVAL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: AVAL's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199470,247Luis Carlos Sarmiento Gutierrezhttps://www.grupoaval.com

Grupo Aval Acciones y Valores S.A. provides a range of financial services and products to public and private sector customers in Colombia and Central America. It offers traditional deposit services and products, including checking accounts, savings accounts, time deposits, and other deposits. The company also provides commercial loans comprising general purpose loans, working capital loans, leases, loans funded by development banks, corporate credit cards, and overdraft loans; consumer loans, such as payroll loans, personal loans, automobile and other vehicle loans, credit cards, overdrafts, leases, and general purpose loans; and microcredit and mortgage loans.

Grupo Aval Acciones y Valores Fundamentals Summary

How do Grupo Aval Acciones y Valores's earnings and revenue compare to its market cap?
AVAL fundamental statistics
Market CapCol$17.87t
Earnings (TTM)Col$3.30t
Revenue (TTM)Col$19.88t

5.4x

P/E Ratio

1.1x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AVAL income statement (TTM)
RevenueCol$0
Cost of RevenueCol$0
Gross ProfitCol$0
Other ExpensesCol$0
EarningsCol$0

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)148.01
Gross Margin100.00%
Net Profit Margin16.59%
Debt/Equity Ratio216.9%

How did AVAL perform over the long term?

See historical performance and comparison

Dividends

6.8%

Current Dividend Yield

36%

Payout Ratio

Valuation

Is Grupo Aval Acciones y Valores undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: AVAL ($4.07) is trading below our estimate of fair value ($8.77)

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


Price To Earnings Ratio

PE vs Industry: AVAL is good value based on its Price-To-Earnings Ratio (5.4x) compared to the US Banks industry average (9.7x).

PE vs Market: AVAL is good value based on its Price-To-Earnings Ratio (5.4x) compared to the US market (14.9x).


Price to Earnings Growth Ratio

PEG Ratio: AVAL is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: AVAL's Price-To-Book Ratio (1.1x) is in line with the US Banks industry average.


Future Growth

How is Grupo Aval Acciones y Valores forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


1.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVAL's forecast earnings growth (1.5% per year) is below the savings rate (1.9%).

Earnings vs Market: AVAL's earnings (1.5% per year) are forecast to grow slower than the US market (12.1% per year).

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

Revenue vs Market: AVAL's revenue (5.9% per year) is forecast to grow slower than the US market (7.7% per year).

High Growth Revenue: AVAL's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AVAL's Return on Equity is forecast to be low in 3 years time (15.1%).


Past Performance

How has Grupo Aval Acciones y Valores performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


6.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AVAL has a high level of non-cash earnings.

Growing Profit Margin: AVAL's current net profit margins (16.6%) are higher than last year (13.7%).


Past Earnings Growth Analysis

Earnings Trend: AVAL's earnings have grown by 6.6% per year over the past 5 years.

Accelerating Growth: AVAL's earnings growth over the past year (40.4%) exceeds its 5-year average (6.6% per year).

Earnings vs Industry: AVAL earnings growth over the past year (40.4%) exceeded the Banks industry 20.8%.


Return on Equity

High ROE: Whilst AVAL's Return on Equity (23.71%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Grupo Aval Acciones y Valores's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

3/6

Financial Health Score 3/6

  • 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: AVAL's Assets to Equity ratio (8.8x) is low.

Allowance for Bad Loans: AVAL has a low allowance for bad loans (81%).

Low Risk Liabilities: 66% of AVAL's liabilities are made up of primarily low risk sources of funding.

Loan Level: AVAL has an appropriate level of Loans to Assets ratio (84%).

Low Risk Deposits: AVAL's Loans to Deposits ratio (144%) is high.

Level of Bad Loans: AVAL has a high level of bad loans (6.9%).


Dividend

What is Grupo Aval Acciones y Valores's current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


6.77%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: AVAL's dividend (6.77%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: AVAL's dividend (6.77%) is in the top 25% of dividend payers in the US market (4.06%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (36.5%), AVAL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AVAL's dividends in 3 years are forecast to be well covered by earnings (33.6% payout ratio).


Discover strong dividend paying companies

Management

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

12.8yrs

Average management tenure


CEO

Luis Carlos Sarmiento Gutierrez (59 yo)

22.33yrs

Tenure

Mr. Luis Carlos Sarmiento Gutierrez is the Chairman of the Board at Corporación Financiera Colombiana SA. He has been President of Grupo Aval Acciones Y Valores S.A. since 2000. Mr. Sarmiento Gutiérrez ser...


Leadership Team

Experienced Management: AVAL's management team is seasoned and experienced (12.8 years average tenure).


Board Members

Experienced Board: AVAL's board of directors are considered experienced (9.3 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 Aval Acciones y Valores S.A.'s employee growth, exchange listings and data sources


Key Information

  • Name: Grupo Aval Acciones y Valores S.A.
  • Ticker: AVAL
  • Exchange: NYSE
  • Founded: 1994
  • Industry: Diversified Banks
  • Sector: Banks
  • Implied Market Cap: Col$17.869t
  • Listing Market Cap: Col$4.518b
  • Shares outstanding: 22.28b
  • Website: https://www.grupoaval.com

Number of Employees


Location

  • Grupo Aval Acciones y Valores S.A.
  • Carrera 13 No. 26A – 47
  • 23rd Floor
  • Bogotá
  • Colombia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/25 00:00
End of Day Share Price2022/05/25 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.