Grupo Aval Acciones y Valores SA Pfd (AVAL) AI Stock Analysis

• Market Cap: $4.93B
• Dividend Yield: 3.03%
• Average Volume (3M): 98.29K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.46
• Revenue Growth: -6.62%
• EPS Growth: 111.94%
• Country: US
• Employees: 77,043
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.12
• Shares Outstanding: 378,111,940
• 10 Day Avg. Volume: 68,157
• 30 Day Avg. Volume: 98,286
• PEG Ratio: 0.28
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.90
• P/FCF Ratio: -0.72
• Enterprise Value/Market Cap: 14.88K
• Enterprise Value/Revenue: 2.01
• Enterprise Value/Gross Profit: 5.62
• Enterprise Value/Ebitda: 14.45
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: $4.50 ▲(8.70% Upside)

The score is held back primarily by weak cash flow conversion and high balance-sheet leverage despite improving earnings. Offsetting this, the stock’s technical trend is positive (price above major moving averages with supportive momentum), valuation is reasonable (P/E ~11.7 with ~3% yield), and earnings-call guidance points to improving returns, tempered by macro and credit-risk headwinds.

Positive Factors

Strong Net Income Growth

The significant increase in net income indicates effective cost management and operational efficiency, strengthening the company's financial position and ability to invest in growth initiatives.

Market Share Gains

Expanding market share in loans solidifies Grupo Aval's competitive position in the Colombian financial system, enhancing its ability to leverage economies of scale and customer loyalty.

ESG Achievements

Improved ESG scores reflect a commitment to sustainable practices, potentially attracting socially conscious investors and customers, and mitigating regulatory risks.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase vulnerability to economic downturns, potentially impacting long-term growth and stability.

Negative Free Cash Flow

Sustained negative free cash flow raises concerns about the company's ability to fund operations and growth without additional financing, affecting long-term sustainability.

Regulatory Pressure on Interest Rates

Regulatory changes on interest rates can compress margins, affecting profitability and limiting the company's ability to pass on costs to consumers, impacting future earnings.

Grupo Aval Acciones y Valores SA Pfd Business Overview & Revenue Model

Company Description

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. In addition, the company offers pension and severance fund management services; investment banking, including services relating to capital markets, mergers and acquisitions, and project finance transactions; mobile and online banking services; and bancassurance, insurance, trust, bonded warehousing and brokerage transactions, real estate escrow services, merchandise and document storage and deposit, customs agency, cargo management, surety bond and merchandise distribution services, and payment and collection services. Further, it is involved in equity investments in various sectors, including infrastructure, energy and gas, agribusiness, and hospitality; and treasury operations. Grupo Aval Acciones y Valores S.A. was incorporated in 1994 and is headquartered in Bogotá, Colombia.

How the Company Makes Money

Grupo 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	36.52T	11.74T	11.71T	27.94T	20.67T	11.19T
Gross Profit	13.05T	11.74T	11.71T	13.16T	12.82T	11.19T
EBITDA	5.08T	12.02T	0.00	7.36T	7.81T	0.00
Net Income	1.66T	1.02T	739.00B	2.48T	3.30T	2.35T
Balance Sheet
Total Assets	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>
Cash, Cash Equivalents and Short-Term Investments	50.78T	44.00T	41.82T	15.90T	35.62T	33.95T
Total Debt	76.11T	71.36T	62.82T	72.12T	74.09T	59.49T
Total Liabilities	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>
Stockholders Equity	18.41T	17.45T	16.78T	16.47T	23.01T	20.66T
Cash Flow
Free Cash Flow	-480.93B	-14.70T	-9.96T	-20.00T	3.65T	7.99T
Operating Cash Flow	127.82B	-14.04T	-9.35T	-19.45T	5.90T	10.02T
Investing Cash Flow	-25.09T	-3.14T	1.84T	-13.01T	-6.60T	-7.59T
Financing Cash Flow	25.53T	13.46T	11.82T	9.26T	-1.35T	404.45B

Grupo Aval Acciones y Valores SA Pfd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVAL, the sentiment is Positive. The current price of 4.14 is above the 20-day moving average (MA) of 4.12, below the 50-day MA of 4.15, and above the 200-day MA of 3.28, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 54.11 is Neutral, neither overbought nor oversold. The STOCH value of 45.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVAL.

Grupo Aval Acciones y Valores SA Pfd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UCB	77 Outperform	$4.02B	13.07	9.01%	3.02%	5.63%	65.11%
GGAL	71 Outperform	$9.39B	10.31	17.93%	1.82%	-36.51%	-39.66%
INTR	70 Outperform	$3.90B	18.15	12.50%	0.97%	24.97%	36.91%
BBAR	69 Neutral	$4.03B	16.67	10.17%	0.80%	-39.57%	-49.55%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BMA	65 Neutral	$6.26B	22.07	7.66%	2.37%	-55.81%	-78.94%
AVAL	60 Neutral	$4.93B	11.52	9.69%	3.03%	-6.62%	111.94%

Grupo Aval Acciones y Valores SA Pfd Corporate Events

Grupo Aval Consolidates Fiduciary Operations Under Aval Fiduciaria, Creating Colombia’s Largest Fiduciary Platform

Grupo Aval has consolidated all its fiduciary and third-party asset management businesses into a single specialized platform, Aval Fiduciaria, by transferring the operations of Fiduciaria Bogotá, Fiduciaria de Occidente, and Fiduciaria Popular. Effective January 2, 2026, Aval Fiduciaria now manages more than 5,500 fiduciary businesses, around 32 collective investment funds, and approximately COP 200 trillion (about USD 53.5 billion) in assets under management, making it the largest fiduciary entity in Colombia by assets under management and reinforcing its position with top-tier local credit and portfolio management ratings. The move, announced on January 5, 2026, is intended to expand Grupo Aval’s fiduciary and investment offering locally and internationally, leverage the backing of its main banking subsidiaries, and enhance operational capacity and client experience, while ensuring contractual continuity, uninterrupted service, and broader product access for clients. The company has also installed a new leadership team at Aval Fiduciaria, headed by President Alejandro Gómez and supported by senior executives and a 1,900-strong professional staff, to drive growth in the consolidated asset management and fiduciary business.

The most recent analyst rating on (AVAL) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Grupo Aval Acciones y Valores SA Pfd stock, see the AVAL Stock Forecast page.

Grupo Aval Confirms Interest Payment on Sixth Peso-Denominated Note Issuance

On December 29, 2025, Grupo Aval Acciones y Valores S.A. announced that it has made the scheduled interest payment on its Sixth Issuance of Notes denominated in Colombian pesos in the local market, in accordance with the terms outlined in the offering memorandum. This timely payment underscores the company’s adherence to its debt obligations and may be viewed as a signal of financial discipline and ongoing commitment to investors in its local capital markets issuances.

Grupo Aval Completes Interest Payment for Eighth Note Issuance

On December 12, 2025, Grupo Aval Acciones y Valores S.A. announced the payment of interest for its Eighth Issuance of Notes in the Colombian market. This payment aligns with the terms set out in the offering memorandum, reflecting the company’s commitment to its financial obligations and potentially reinforcing its position in the local financial market.

Grupo Aval Completes December 2025 Dividend Payment

Grupo Aval Acciones y Valores S.A., a prominent financial services company based in Bogotá, Colombia, announced that it has successfully completed the payment of dividends for December 2025. This payment was executed in line with the Proposed Distribution of Profits approved by the General Shareholders Meeting held on March 28, 2025, reflecting the company’s commitment to its shareholders and adherence to its financial strategies.

Grupo Aval Completes Interest Payment on Fifth Issuance of Notes

On November 24, 2025, Grupo Aval Acciones y Valores S.A. announced the payment of interest for its Fifth Issuance of Notes, which were issued in Colombian Pesos. This payment, made in accordance with the terms outlined in the offering memorandum, underscores the company’s commitment to fulfilling its financial obligations and maintaining investor confidence.

Grupo Aval Approves Major Share Sale and Addresses Director Conflicts

On November 18, 2025, Grupo Aval Acciones y Valores S.A. held an Extraordinary Shareholders’ Meeting where key decisions were made, including the approval of the sale of 99.56906% of Multi Financial Group, Inc. shares to BAC International Corporation. The meeting also addressed potential conflicts of interest among directors, releasing one director from conflict while denying the release of three others. The shareholders granted management general authorization to engage in transactions within the ordinary course of business until 2026, indicating a strategic move to streamline operations and manage conflicts effectively.

Grupo Aval Reports Strong 3Q2025 Financial Results

Grupo Aval reported a consolidated net income of Ps 521.0 billion for the third quarter of 2025, marking a 5.3% increase from the previous quarter and a 25.3% rise from the same period last year. The company’s gross loans grew by 4.6% year-over-year, and deposits increased by 8.5%. The loan portfolio quality improved, and the cost of risk decreased slightly. The company’s market share in consumer and mortgage loans increased, while commercial loans saw a slight decline. Operational expenses decreased, and the cost-to-income ratio slightly increased compared to the previous year.

Grupo Aval Completes Interest Payment on Colombian Peso Notes

On November 14, 2025, Grupo Aval Acciones y Valores S.A. announced the payment of interest for its Seventh Issuance of Notes, which were issued in Pesos in the Colombian market. This payment aligns with the terms outlined in the offering memorandum and reflects the company’s ongoing commitment to fulfilling its financial obligations, potentially reinforcing its reputation and stability in the financial sector.

Grupo Aval Releases Q3 2025 Financial Results

On November 12, 2025, Grupo Aval Acciones y Valores S.A. announced that its quarterly consolidated results for the period ending September 30, 2025, are now available. These results will be discussed in a call scheduled for November 13, 2025. The release of these financial results is significant as it provides stakeholders with insights into the company’s financial performance and strategic positioning in the market.

Grupo Aval Announces Extraordinary Shareholder Meeting to Discuss Major Asset Sale

On November 11, 2025, Grupo Aval Acciones y Valores S.A. announced an Extraordinary General Meeting of Shareholders scheduled for November 18, 2025. The meeting’s agenda includes the consideration of a significant transaction involving the potential sale of 99.56906% of the shares of Multi Financial Group, Inc. to BAC International Corporation. This move could have substantial implications for Grupo Aval’s strategic positioning and stakeholder interests, as it involves a major asset transfer within its subsidiary network.

Grupo Aval Announces Extraordinary Shareholders’ Meeting for Potential Sale

On November 5, 2025, Grupo Aval Acciones y Valores S.A. announced that its Board of Directors approved the summoning of an extraordinary General Shareholders’ Assembly meeting. This meeting will discuss the potential sale of 99.56906% of Multi Financial Group, Inc. shares by Banco de Bogotá’s subsidiary, Multi Financial Holdings, Inc., to BAC International Corporation. The decision could significantly impact Grupo Aval’s strategic positioning and stakeholder interests, as it involves deliberations on potential conflicts of interest.

Grupo Aval Completes November 2025 Dividend Payment

On November 4, 2025, Grupo Aval Acciones y Valores S.A. announced that it successfully completed the payment of dividends for November 2025. This payment was executed according to the Proposed Distribution of Profits approved by the General Shareholders Meeting on March 28, 2025. The timely dividend payment underscores Grupo Aval’s commitment to its shareholders and reflects its stable financial standing, potentially reinforcing its position in the financial services industry.