Galp Energia, SGPS, S.A.
Galp Energia, SGPS, S.A. Fundamental Analysis
Galp Energia, SGPS, S.A. (GLPEY) shows weak financial fundamentals with a PE ratio of 45.74, profit margin of 3.28%, and ROE of 14.91%. The company generates $19.9B in annual revenue with weak year-over-year growth of -8.47%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 25.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GLPEY's fundamental strength across five key dimensions:
Efficiency Score
WeakGLPEY struggles to generate sufficient returns from assets.
Valuation Score
ModerateGLPEY shows balanced valuation metrics.
Growth Score
ModerateGLPEY shows steady but slowing expansion.
Financial Health Score
ModerateGLPEY shows balanced financial health with some risks.
Profitability Score
WeakGLPEY struggles to sustain strong margins.
Key Financial Metrics
Is GLPEY Expensive or Cheap?
P/E Ratio
GLPEY trades at 45.74 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GLPEY's PEG of -0.87 indicates potential undervaluation.
Price to Book
The market values Galp Energia, SGPS, S.A. at 7.09 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.99 times EBITDA. This signals the market has high growth expectations.
How Well Does GLPEY Make Money?
Net Profit Margin
For every $100 in sales, Galp Energia, SGPS, S.A. keeps $3.28 as profit after all expenses.
Operating Margin
Core operations generate 10.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.91 in profit for every $100 of shareholder equity.
ROA
Galp Energia, SGPS, S.A. generates $4.09 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Galp Energia, SGPS, S.A. produces operating cash flow of $2.05B, showing steady but balanced cash generation.
Free Cash Flow
Galp Energia, SGPS, S.A. produces free cash flow of $1.07B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.36 in free cash annually.
FCF Yield
GLPEY converts 3.56% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
45.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.87
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.51
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How GLPEY Stacks Against Its Sector Peers
| Metric | GLPEY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 45.74 | 21.16 | Worse (Expensive) |
| ROE | 14.91% | 975.00% | Weak |
| Net Margin | 3.28% | -58736.00% (disorted) | Weak |
| Debt/Equity | 1.05 | -0.49 (disorted) | Distorted |
| Current Ratio | 1.39 | 5.15 | Neutral |
| ROA | 4.09% | -11053687.00% (disorted) | Weak |
GLPEY outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Galp Energia, SGPS, S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
92.52%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
356.92%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
74.42%
Industry Style: Cyclical, Value, Commodity
High Growth