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Grupo Aval Acciones Y Valores Sa Pfd (AVAL)
:AVAL
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Grupo Aval Acciones y Valores SA Pfd
(NYSE:AVAL)
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Rating:63Neutral
Price Target:―
Grupo Aval's overall score of 62.5 reflects a mixed outlook. Financial performance is hindered by revenue and cash flow challenges, with high leverage posing risks. Technical analysis indicates neutral momentum, and valuation is moderate. Positively, the earnings call showed strong income growth and strategic focuses, though offset by equity return challenges and regulatory issues.
Grupo Aval Acciones y Valores SA Pfd (AVAL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.81B
Dividend Yield3.01%
Average Volume (3M)109.22K
Price to Earnings (P/E)12.4
Beta (1Y)0.38
Revenue Growth-6.63%
EPS Growth241.66%
CountryUS
Employees77,043
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.10
Shares Outstanding378,111,940
10 Day Avg. Volume126,288
30 Day Avg. Volume109,215
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)0.61
Price to Sales (P/S)0.90
P/FCF Ratio-0.72
Enterprise Value/Market Cap4.41
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with record net income and improved net interest margins. There were significant advancements in ESG initiatives and a positive economic outlook for Colombia. However, challenges such as soft loan growth, fiscal sustainability issues, and intense price competition were noted.Q2-2025 Updates
Positive Updates
Record Net Income
Grupo Aval's net income for Q2 2025 was COP 494.9 billion, the highest quarterly figure in 3 years, representing a 37% increase over the quarter and a 142% increase year-over-year.
Improved Net Interest Margin
The net interest margin reached 4%, with the consolidated NIM on loans hitting 4.5%, the highest in 3 years.
Substantial Loan and Deposit Growth
Gross loans grew 3.2% year-over-year, and deposits grew 6.8% during the same period.
ESG Achievements
Significant progress in ESG initiatives, including a double materiality assessment involving 280 stakeholders, and the launch of the Aval Board of Directors guideline.
Positive Economic Outlook
The Colombian economy is expected to grow by 2.7% in 2025, with inflation anticipated to close at around 4.9%.
Negative Updates
Soft Loan Growth Dynamics
Loan growth dynamics have been softer than anticipated, although activity picked up in June and July.
Fiscal Challenges
Colombia's fiscal deficit is estimated to be closer to 8% of GDP, significantly above the original target.
High Central Bank Rates
The Central Bank opted to keep rates unchanged at 9.25%, maintaining a cautious stance due to external and internal risks.
Intense Price Competition
Aggressive price competition in the market affected commercial loan growth, and changes in regulation forced lower interest rate caps for consumer loans.
Company Guidance
During the second quarter of 2025, Grupo Aval reported a significant increase in net income, which reached COP 494.9 billion, marking a 37% growth over the quarter and a 142% year-over-year increase. The net interest margin (NIM) on loans improved to 4.5%, driven by a strategic focus on enhancing the deposit mix toward retail funding, with peso-denominated deposits by individuals increasing to 18.2%. The cost of risk decreased to 1.7%, and gross loans grew by 3.2% year-over-year, while deposits rose by 6.8%. Grupo Aval's strategic initiatives included the implementation of a procurement synergy center aiming for more than 10% savings on a COP 2.1 trillion manageable spending base. Looking forward, the company anticipates a return on average equity of around 10.5% for 2025, with expected loan growth of approximately 7% and a consolidated NIM in the 4% range.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.43T | 11.74T | 11.71T | 13.61T | 13.12T | 11.19T |
| Gross Profit | 13.80T | 11.74T | 11.71T | 13.57T | 15.99T | 11.19T |
| EBITDA | 3.63T | 4.41T | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Income | 1.55T | 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 | 49.38T | 7.28T | 8.41T | 15.90T | 35.62T | 64.51T |
| Total Debt | 68.73T | 43.13T | 65.54T | 72.12T | 74.09T | 59.49T |
| Total Liabilities | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Stockholders Equity | 17.76T | 17.45T | 16.78T | 16.47T | 23.01T | 20.66T |
Cash Flow | ||||||
| Free Cash Flow | -2.48T | -14.70T | 511.93B | -1.37T | 3.65T | 7.99T |
| Operating Cash Flow | -2.14T | -14.04T | 1.81T | -222.12B | 5.90T | 10.02T |
| Investing Cash Flow | -1.79T | -3.14T | 1.84T | -13.01T | -6.60T | -7.59T |
| Financing Cash Flow | 721.97B | 13.46T | 11.82T | 9.26T | -1.35T | 404.45B |
Grupo Aval Acciones y Valores SA Pfd Technical Analysis
Positive
3.74
Price Trends
3.56
Positive
3.25
Positive
2.98
Positive
Market Momentum
0.21
Negative
73.49
Negative
78.53
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 3.74 is below the 20-day moving average (MA) of 3.92, above the 50-day MA of 3.56, and above the 200-day MA of 2.98, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 73.49 is Negative, neither overbought nor oversold. The STOCH value of 78.53 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 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $4.05B | 20.66 | 12.12% | 0.83% | 19.47% | 48.35% | |
73 Outperform | $3.54B | 11.56 | 9.01% | 3.33% | 5.45% | 65.11% | |
70 Outperform | $10.03B | 8.35 | 22.42% | 1.43% | -42.92% | -21.46% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $3.62B | 11.06 | 13.26% | 0.51% | -47.41% | -18.95% | |
63 Neutral | $5.92B | 14.40 | 10.91% | 1.62% | -57.78% | -67.92% | |
63 Neutral | $4.81B | 12.43 | 9.57% | 3.01% | -6.63% | 241.66% |
* Financial Sector Average
AVAL
Grupo Aval Acciones y Valores SA Pfd
4.21
2.28
118.13%
BMA
Banco Macro SA
88.89
11.68
15.13%
BBAR
Banco BBVA Argentina
17.11
1.87
12.27%
GGAL
Grupo Financiero Galicia SA
59.17
6.33
11.98%
UCB
United Community Banks
29.45
-1.25
-4.07%
INTR
Inter & Company Incorporation Class A
9.61
3.30
52.30%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.