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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.
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 (AVAL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.72B
Dividend Yield3.06%
Average Volume (3M)97.10K
Price to Earnings (P/E)11.3
Beta (1Y)0.40
Revenue Growth-6.62%
EPS Growth111.94%
CountryUS
Employees77,043
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.12
Shares Outstanding378,111,940
10 Day Avg. Volume72,601
30 Day Avg. Volume97,101
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 Cap5.16
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:Nov 14, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 11, 2026
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with significant net income growth and progress in strategic projects, particularly in asset management and sustainability. However, challenges remain in the macroeconomic environment, including fiscal deficits and inflationary pressures.Q3-2025 Updates
Positive Updates
Record Net Income Growth
Grupo Aval achieved a year-to-date net income of COP 1.4 trillion, representing an 88% increase compared to the same period in 2024. Quarterly net income peaked at COP 521 billion, marking the highest figure in three years with a 25.3% year-over-year growth.
Strong Deposit and Loan Growth
Peso-denominated deposits from individuals grew 22% year-over-year, with savings and checking accounts increasing by 11% and term deposits by 31%. Consumer loans showed the strongest quarterly growth in 10 quarters at 1.5%, while commercial loans grew 2.1% during the quarter.
Sustainability and ESG Achievements
Grupo Aval defined a comprehensive sustainable strategy and received several accolades for sustainability, including being included among the top 50 leading companies in sustainability in Colombia.
Advancements in Asset Management
Aval Fiduciaria is set to become the largest fiduciary in Colombia with assets under management reaching COP 201 trillion and projecting fee income growth of 13.2% in 2026.
Negative Updates
Fiscal Environment Challenges
The fiscal environment in Colombia remains challenging with a projected fiscal deficit of minus 7.5% of GDP in 2025, highlighting ongoing fiscal balance concerns.
Inflationary Pressures
Inflation has stalled at 5.1% in October, with expectations of closing at 5.3% in 2025, which may impact economic conditions and growth prospects.
Company Guidance
During Grupo Aval's third quarter 2025 conference call, the company reported a year-to-date net income of COP 1.4 trillion, which is an 88% increase compared to the same period in 2024. For the quarter, net income reached COP 521 billion, marking a 25.3% year-over-year growth and a 5.3% increase over the previous quarter. The company's net interest income grew by 11.6% to COP 2.9 trillion, and its net interest margin stood at 4.3%. Peso-denominated deposits from individuals grew by 22% over the year, with savings and checking accounts rising by 11% and term deposits by 31%. The company's efforts in the consumer segment, including an alliance with Visa for exclusivity in Colombia for the FIFA World Cup, are aimed at increasing its market share in credit cards. Additionally, Grupo Aval launched Gou Payments to enhance its payment platform and reduce cash transactions, which currently represent 75% of monetary transactions in Colombia. The Central Bank's immediate payment system, which started operations in October, is expected to contribute to a reduction in cash usage. Looking ahead, Grupo Aval anticipates a 2025 return on average equity of around 10.5%, with a projected loan growth of 4.5%, and a cost of risk around 1.9%. For 2026, the company expects an ROE between 12% and 12.5%, loan growth in the 8% area, and a slight increase in the cost of risk to approximately 2%.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 | 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 | -3.20T | -14.70T | 4.71T | -20.00T | 3.65T | 7.99T |
| Operating Cash Flow | -2.99T | -14.04T | 6.01T | -19.45T | 5.90T | 10.02T |
| Investing Cash Flow | -2.80T | -3.14T | 1.84T | -13.01T | -6.60T | -7.59T |
| Financing Cash Flow | 2.90T | 13.46T | -3.54T | 9.26T | -1.35T | 404.45B |
Grupo Aval Acciones y Valores SA Pfd Technical Analysis
Positive
3.74
Price Trends
4.07
Positive
3.65
Positive
3.19
Positive
Market Momentum
<0.01
Positive
49.37
Neutral
25.29
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 4.13, below the 50-day MA of 4.07, and above the 200-day MA of 3.19, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.37 is Neutral, neither overbought nor oversold. The STOCH value of 25.29 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.62B | 16.96 | 12.50% | 0.97% | 24.97% | 36.91% | |
77 Outperform | $3.92B | 12.76 | 9.01% | 3.04% | 5.63% | 65.11% | |
71 Outperform | $9.28B | 9.89 | 17.93% | 1.82% | -36.51% | -39.66% | |
69 Neutral | $3.99B | 16.10 | 10.17% | 0.80% | -39.57% | -49.55% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $6.12B | 20.82 | 7.66% | 2.38% | -55.81% | -78.94% | |
63 Neutral | $4.72B | 11.33 | 9.69% | 3.06% | -6.62% | 111.94% |
* Financial Sector Average
AVAL
Grupo Aval Acciones y Valores SA Pfd
4.10
2.11
106.03%
BMA
Banco Macro SA
90.03
-4.43
-4.69%
BBAR
Banco BBVA Argentina
18.27
0.02
0.11%
GGAL
Grupo Financiero Galicia SA
54.17
-7.63
-12.35%
UCB
United Community Banks
32.26
1.48
4.81%
INTR
Inter & Company Incorporation Class A
8.23
4.08
98.31%
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.