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Grupo Aval Acciones y Valores SA Pfd (AVAL)
NYSE:AVAL
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Grupo Aval Acciones y Valores SA Pfd
(NYSE:AVAL)
63Neutral
Grupo Aval Acciones y Valores SA Pfd (AVAL) vs. S&P 500 (SPY)
Market Cap
$3.24B
Dividend Yield3.41%
Average Volume (3M)146.83K
Price to Earnings (P/E)13.0
Beta (1Y)0.39
Revenue Growth3.70%
EPS GrowthN/A
CountryUS
Employees77,043
SectorFinancial
Sector Strength80
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.23
Shares Outstanding376,840,700
10 Day Avg. Volume81,583
30 Day Avg. Volume146,828
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)N/A
Price to Sales (P/S)3.56
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Grupo Aval Acciones y Valores SA Pfd Business Overview & Revenue Model
Company DescriptionGrupo Aval Acciones y Valores SA Pfd (AVAL) is a prominent financial conglomerate in Latin America, headquartered in Colombia. The company operates through a diversified portfolio of financial services, including commercial banking, investment banking, asset management, and insurance. Grupo Aval serves a wide range of clients, from individuals to large corporations, across various sectors by offering a comprehensive suite of financial products and services.
How the Company Makes MoneyGrupo Aval generates revenue primarily through its banking operations, which include interest income from loans and advances to customers, as well as fees and commissions from various financial services. The company also earns money through its investment banking activities, which involve underwriting, advisory services, and securities trading. Additionally, Grupo Aval benefits from its asset management and insurance segments, which provide fee-based income and risk management solutions. The conglomerate's strategic partnerships and its extensive presence in the Latin American financial market further bolster its earnings by expanding its customer base and enhancing its service offerings.
Grupo Aval Acciones y Valores SA Pfd Financial Statement Overview
Summary
Grupo Aval's financial performance shows challenges with declining revenue growth and cash flow sustainability, alongside high leverage and reduced return on equity, despite strong profitability margins.Income Statement
The income statement reflects moderate profitability with a gross profit margin consistently at 100%, indicating that all revenue is gross profit, likely due to the nature of financial services. However, net profit margin has shown volatility, decreasing from 24.6% in 2020 to 8.6% in 2023, and slightly improving to 8.7% in 2024. Revenue growth has been negative in recent years, with a significant decline from 2020 to 2023, but it stabilized between 2023 and 2024. EBIT margin remains strong, but fluctuated, showing some operational challenges.60
Neutral
Balance Sheet
The balance sheet indicates high leverage, with a debt-to-equity ratio of approximately 2.47 in 2024, reflecting significant reliance on debt financing. The equity ratio has been relatively stable, showing a slight decrease to 5.3% in 2024, highlighting potential financial risk. Return on equity declined sharply from 22.4% in 2020 to 5.8% in 2024, indicating reduced efficiency in generating profits from shareholders' equity.55
Neutral
Cash Flow
Cash flow analysis shows a concerning trend with negative free cash flow in 2024 at -14.7 trillion, compared to positive cash flow in past years. The operating cash flow to net income ratio is negative, suggesting operational cash flow challenges. The free cash flow to net income ratio is also negative, indicating potential sustainability issues in covering net income through free cash flow.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 11.74T | 11.71T | 16.31T | 23.95T | 23.08T |
| Gross Profit | ||||
| 11.74T | 11.71T | 16.31T | 23.94T | 23.08T |
| EBIT | ||||
| 5.37T | 5.73T | 16.42T | 6.15T | 4.19T |
| EBITDA | ||||
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Income Common Stockholders | ||||
| 1.02T | 739.00B | 4.00T | 5.67T | 4.63T |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 7.28T | 8.41T | 40.97T | 75.54T | 64.51T |
| Total Assets | ||||
| 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Total Debt | ||||
| 43.13T | 65.54T | 72.12T | 73.28T | 58.62T |
| Net Debt | ||||
| 35.85T | 48.16T | 55.08T | 36.64T | 24.60T |
| Total Liabilities | ||||
| 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Stockholders Equity | ||||
| 17.45T | 16.78T | 16.47T | 23.01T | 20.66T |
| Cash Flow | Free Cash Flow | |||
| -14.70T | 511.93B | -1.37T | 3.65T | 8.01T |
| Operating Cash Flow | ||||
| -14.04T | 1.81T | -222.12B | 5.90T | 10.02T |
| Investing Cash Flow | ||||
| -3.14T | 1.84T | -13.01T | -6.60T | -7.59T |
| Financing Cash Flow | ||||
| 13.46T | -3.54T | -8.57T | -1.35T | 404.45B |
Grupo Aval Acciones y Valores SA Pfd Technical Analysis
Negative
2.74
Price Trends
2.82
Negative
2.45
Positive
2.25
Positive
Market Momentum
-0.03
Positive
44.27
Neutral
36.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVAL, the sentiment is Negative. The current price of 2.74 is below the 20-day moving average (MA) of 2.83, below the 50-day MA of 2.82, and above the 200-day MA of 2.25, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 44.27 is Neutral, neither overbought nor oversold. The STOCH value of 36.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AVAL.
Grupo Aval Acciones y Valores SA Pfd Risk Analysis
Grupo Aval Acciones y Valores SA Pfd disclosed 74 risk factors in its most recent earnings report. Grupo Aval Acciones y Valores SA Pfd reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Grupo Aval Acciones y Valores SA Pfd Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $10.49B | 12.10 | 15.62% | 15.22% | -0.15% | 8.78% | |
76 Outperform | $56.08B | 8.58 | 20.84% | 7.06% | -7.01% | 15.18% | |
75 Outperform | $10.87B | 4.98 | 38.13% | 4.55% | -35.65% | 70.23% | |
74 Outperform | $15.31B | 10.44 | 16.36% | 4.81% | 5.84% | 12.67% | |
73 Outperform | $10.93B | 12.22 | 16.05% | 2.43% | -22.63% | 32.31% | |
63 Neutral | $14.39B | 9.81 | 8.95% | 4.37% | 16.38% | -11.64% | |
63 Neutral | $3.24B | 13.01 | 6.70% | 3.41% | 3.70% | ― |
* Financial Sector Average
Performance Comparison
AVAL
Grupo Aval Acciones y Valores SA Pfd
2.71
0.38
16.31%
BSAC
Banco Santander Chile
23.12
3.35
16.94%
CIB
Bancolombia
42.23
11.16
35.92%
BAP
Credicorp
193.60
34.75
21.88%
GGAL
Grupo Financiero Galicia SA
53.62
29.68
123.98%
ITUB
Itau Unibanco
5.69
0.21
3.83%
Grupo Aval Acciones y Valores SA Pfd Earnings Call Summary
Earnings Call Date: Feb 18, 2025 | % Change Since: -8.36% | Next Earnings Date: May 14, 2025
Earnings Call Sentiment Neutral
Grupo Aval demonstrated strong growth in net income and market share, with significant achievements in ESG criteria. However, challenges in capital markets, lower than expected return on equity, and regulatory pressures on interest rates detracted from overall performance.Highlights
Strong Net Income Growth
Grupo Aval's net income surpassed COP1 trillion in 2024, marking a 38% increase compared to the previous year.
Market Share Gains
Grupo Aval increased its market share in deposits and loans, reaching a 25.3% share in loans, consolidating its position in the Colombian financial system.
ESG Achievements
Grupo Aval achieved a 16-point increase in the Corporate Sustainability Assessment, with Banco de Bogota and Corficolombiana obtaining 78 and 80 points respectively.
Loan Portfolio Quality Improvement
30-day PDLs improved by 46 basis points quarter-on-quarter to 5.3%, and 90-day PDLs improved by 29 basis points to 4%.
Consumer Loan Recovery
Consumer loans began to recover, delivering a second consecutive quarter of growth, with a 1.4% quarter-on-quarter increase.
Lowlights
Lower Than Expected Return on Equity
The quarter's return on average equity was somewhat below initial expectations due to a weaker-than-expected NIM on investment.
Negative NIM on Investments
The NIM on investments was close to zero for the year, with a negative 2.6% in the fourth quarter, one of the weakest performances in recent years.
Challenges in Capital Markets
Porvenir had a weak quarter net income due to negative returns in line with weaker capital markets.
Regulatory Pressure on Interest Rates
Superintendency of Finance introduced changes to the formula used to set interest rate caps, lowering the rate of some consumer loan categories.
Macroeconomic Challenges
Higher inflation than expected and a cautious Central Bank have kept interest rates higher, affecting margins and growth.
Company Guidance
In the fourth quarter of 2024, Grupo Aval reported several key financial metrics and strategic priorities. The risk-adjusted net interest margin (NIM) on loans reached its highest level in the past seven quarters, although the overall return on average equity (ROAE) fell below initial expectations due to weaker performance in local and international capital markets. The group's net income surpassed COP1 trillion, marking a 38% increase compared to the previous year, with a significant market share in loans at 25.3%. Cost of risk net of recoveries was 2% for the year, while the net interest margin (NIM) was projected to be around 4.15% for 2025. Additionally, Grupo Aval outlined its strategy for 2025, focusing on customer experience, financial diversification, digital transformation, corporate culture, and sustainability. The company expects a loan growth rate of around 10%, with an anticipated return on average equity (ROAE) of approximately 11% for 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.