Grupo Aval Acciones y Valores SA Pfd (AVAL)
NYSE:AVAL
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Grupo Aval Acciones y Valores SA Pfd
(NYSE:AVAL)
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Rating:59Neutral
Price Target:
$5.50
▲(27.02% Upside)
Action:Reiterated
Date:06/23/26
The score is held back primarily by financial fundamentals—high leverage and a volatile cash-flow history despite a TTM rebound in growth and profitability. Technicals are a meaningful positive with an uptrend across key moving averages and supportive momentum. Valuation is reasonable with a moderate P/E and a modest dividend yield, while the earnings call was balanced: improving operations and clear 2026 targets, offset by margin/profitability headwinds tied to the equity tax and funding-cost/macro pressures.
Positive Factors
Deposit & funding growth
A strong, growing deposit base materially improves structural funding stability and reduces reliance on wholesale markets. Deposits-to-net-loans at 116% and double-digit savings growth provide a durable liquidity cushion that supports loan growth, lowers funding volatility, and preserves margin resilience over months.
Negative Factors
Elevated leverage
High leverage constrains financial flexibility and amplifies exposure to funding-cost swings and macro shocks. With debt-to-equity well above conservative peers, capital buffers are thinner, limiting capacity for opportunistic investment, acquisitions, or absorbing loan losses without raising funding costs or seeking external capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Deposit & funding growth
A strong, growing deposit base materially improves structural funding stability and reduces reliance on wholesale markets. Deposits-to-net-loans at 116% and double-digit savings growth provide a durable liquidity cushion that supports loan growth, lowers funding volatility, and preserves margin resilience over months.
Read all positive factors
Grupo Aval Acciones y Valores SA Pfd (AVAL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.11B
Dividend Yield3.03%
Average Volume (3M)98.29K
Price to Earnings (P/E)12.5
Beta (1Y)0.55
Revenue Growth6.14%
EPS Growth29.21%
CountryUS
Employees78,827
SectorFinancial
Sector Strength70
IndustryBanks
Share Statistics
EPS (TTM)1425.40
Shares Outstanding378,257,540
10 Day Avg. Volume68,157
30 Day Avg. Volume98,286
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)0.98
Price to Sales (P/S)0.43
P/FCF Ratio12.49
Enterprise Value/Market Cap10.42K
Enterprise Value/Revenue1.59
Enterprise Value/Gross Profit3.77
Enterprise Value/Ebitda11.44
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)0.46
Revenue Forecast (FY)$5.12B
Grupo Aval Acciones y Valores SA Pfd Business Overview & Revenue Model
Company Description
Grupo Aval Acciones y Valores SA engages in the provision of financial services and products. It operates through the following segments: Banking Services, Merchant Banking, Pension and Severance Fund Management, and Holding. The Banking Services ...
How the Company Makes Money
Grupo Aval makes money primarily through the earnings generated by the financial institutions it controls and the dividends/distributions it receives from those businesses. The core revenue engine is banking: its banks generate interest income by ...
Grupo Aval Acciones y Valores SA Pfd Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: operationally and strategically Grupo Aval demonstrated multiple positives — completion of the MFG sale, strong deposit growth, loan growth (notably mortgages), improving asset quality, solid AUM and fee growth in nonbank businesses, regulatory progress for payments platform, and clear efficiency initiatives and guidance. However, profitability was materially affected by a one‑time equity tax (COP 312 billion, COP 210 billion net income impact), margin pressure from a tighter monetary cycle (policy rate hikes to 11.25%), higher funding costs and some market share erosion in specific consumer products. Management framed the results as an underlying improvement once the one‑time tax is excluded and highlighted medium‑term strategic actions to offset margin and cost pressures. Overall, positives and strategic momentum are evident but near‑term earnings and margin headwinds from the tax and macro environment temper the outlook.Positive Updates
Completion of MFG Sale and Strategic Leadership Change
Banco de Bogotá completed the sale of 99.57% of Multi Financial Group (MFG) on March 18, 2026 for USD 464 million, strengthening capital position; appointment of Juan Carlos Echeverry Garzon as incoming CEO of Banco de Bogotá to drive strategic execution.
Negative Updates
One‑time Equity Tax Hit
Recorded an equity tax of COP 312 billion in operating expenses with a COP 210 billion impact on attributable net income; management stated this reduced the quarter's ROAE by approximately 467 basis points and the 2026 guidance incorporates 114 bps impact from the equity tax.
Read all updates
Q1-2026 Updates
Positive
Negative
Completion of MFG Sale and Strategic Leadership Change
Banco de Bogotá completed the sale of 99.57% of Multi Financial Group (MFG) on March 18, 2026 for USD 464 million, strengthening capital position; appointment of Juan Carlos Echeverry Garzon as incoming CEO of Banco de Bogotá to drive strategic execution.
Read all positive updates
Company Guidance
Grupo Aval's 2026 guidance targets roughly 9.5% loan growth (commercial ~6.5%, retail ~14%), a consolidated NIM around 3.9% with NIM on loans ~4.4% (banking segment NIM ~4.8% and NIM on loans ~5.2%), net cost of risk (net of recoveries) ~1.9%, cost-to-assets ~2.85% (including a ~9 bp impact from the equity tax), a fee-income ratio near 22%, income from the nonfinancial sector ~1.3x 2025, and return on average equity about 9.25% for 2026 (incorporating an estimated ~114 bp drag from the equity tax).Grupo Aval Acciones y Valores SA Pfd Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
48
Neutral
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 39.91T | 42.33T | 36.97T | 38.44T | 27.94T | 20.67T |
| Gross Profit | 16.85T | 21.54T | 11.30T | 11.05T | 13.16T | 12.82T |
| EBITDA | 5.56T | 3.86T | 4.41T | 4.64T | 7.36T | 7.81T |
| Net Income | 1.69T | 1.60T | 1.02T | 739.00B | 2.48T | 3.30T |
Balance Sheet | ||||||
| Total Assets | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Cash, Cash Equivalents and Short-Term Investments | 79.49T | 48.40T | 44.00T | 41.82T | 15.90T | 35.62T |
| Total Debt | 64.43T | 68.60T | 71.36T | 62.82T | 72.12T | 74.09T |
| Total Liabilities | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Stockholders Equity | 17.80T | 18.43T | 17.45T | 16.78T | 16.47T | 23.01T |
Cash Flow | ||||||
| Free Cash Flow | 1.19T | 1.45T | -14.70T | -9.96T | -20.00T | 3.65T |
| Operating Cash Flow | 1.77T | 2.04T | -14.04T | -9.35T | -19.45T | 5.90T |
| Investing Cash Flow | -22.82T | -25.07T | -3.14T | 1.84T | -13.01T | -6.60T |
| Financing Cash Flow | 27.26T | 26.09T | 13.46T | 11.82T | 9.26T | -1.35T |
Grupo Aval Acciones y Valores SA Pfd Technical Analysis
Positive
4.33
Price Trends
4.73
Positive
4.49
Positive
4.21
Positive
Market Momentum
0.23
Positive
53.46
Neutral
22.16
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 4.33 is below the 20-day moving average (MA) of 5.15, below the 50-day MA of 4.73, and above the 200-day MA of 4.21, indicating a bullish trend. The MACD of 0.23 indicates Positive momentum. The RSI at 53.46 is Neutral, neither overbought nor oversold. The STOCH value of 22.16 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $4.08B | 12.61 | 9.41% | 3.02% | 4.20% | 29.58% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $4.36B | 27.07 | 6.79% | 0.80% | -0.28% | -56.93% | |
63 Neutral | $9.05B | 27.09 | 1.16% | 1.82% | 0.55% | -94.15% | |
62 Neutral | $2.35B | 8.48 | 14.49% | 0.97% | 50.00% | 44.63% | |
60 Neutral | $6.35B | 26.51 | 7.28% | 2.37% | 6.98% | 6551.65% | |
59 Neutral | $6.11B | 12.46 | 9.35% | 3.03% | 6.14% | 29.21% |
* Financial Sector Average
AVAL
Grupo Aval Acciones y Valores SA Pfd
5.17
2.42
87.80%
BMA
Banco Macro SA
89.69
22.45
33.39%
BBAR
Banco BBVA Argentina
18.95
2.49
15.15%
GGAL
Grupo Financiero Galicia SA
49.10
-0.48
-0.97%
UCB
United Community Banks
34.55
5.56
19.20%
INTR
Inter & Company Incorporation Class A
5.28
-2.10
-28.42%
Grupo Aval Acciones y Valores SA Pfd Corporate Events
Grupo Aval Restructures 52.8% Corficolombiana Stake Through Panamanian Affiliate Ficentro
Jun 10, 2026
On June 9, 2026, Grupo Aval and its banking subsidiaries Banco de Bogotá, Banco de Occidente and Banco Popular transferred, via in-kind contributions at book value, all of their common shares in Corporación Financiera Colombiana S.A., re...
Grupo Aval Confirms Execution of June 2026 Dividend Payment
Jun 2, 2026
Grupo Aval Acciones y Valores S.A., the Bogotá-based Colombian financial holding company active in banking and related financial services, serves retail and corporate clients in Colombia and across parts of Latin America. Its business centers...
Grupo Aval Confirms Interest Payment on Fifth Peso Note Issuance
May 26, 2026
On May 25, 2026, Grupo Aval Acciones y Valores S.A. announced that it had paid interest on its Fifth Issuance of Notes denominated in Colombian pesos in the local market, in line with the terms set out in the offering memorandum. The timely intere...
Grupo Aval Posts Solid Q1 2026 Growth Despite One-Time Equity Tax Hit
May 18, 2026
On May 15, 2026, Grupo Aval reported consolidated attributable net income of Ps 336.6 billion, or Ps 14.2 per share, for the first quarter of 2026, with a return on average equity of 7.4% and return on average assets of 0.9%. Net income declined 2...
Grupo Aval Confirms May 14 Interest Payment on Seventh Peso Note Issuance
May 15, 2026
On May 14, 2026, Grupo Aval Acciones y Valores S.A., the Colombian financial holding company, reported that it had paid interest due on its Seventh Issuance of Notes denominated in pesos in the local Colombian market. The payment was made in accor...
Grupo Aval Publishes First-Quarter 2026 Results Materials for Investor Call
May 14, 2026
On May 13, 2026, Grupo Aval Acciones y Valores S.A., the Colombian financial holding company, announced the availability of its quarterly consolidated financial results materials for the period ended March 31, 2026. The group, which operates acros...
Grupo Aval Confirms Execution of May 2026 Dividend Payment
May 5, 2026
Grupo Aval Acciones y Valores S.A., the Colombian financial holding company, reported that the dividend payment scheduled for May 2026 has been executed. The payout was made in line with the profit distribution plan approved by shareholders at the...
Grupo Aval Files 2025 Form 20‑F With U.S. SEC
Apr 20, 2026
Grupo Aval Acciones y Valores S.A. announced on April 16, 2026, that it has filed its Form 20‑F for the year ended December 31, 2025, with the U.S. Securities and Exchange Commission. The filing provides investors with the company’s au...
Grupo Aval Confirms Completion of April 2026 Dividend Payment
Apr 7, 2026
Grupo Aval Acciones y Valores S.A., a Bogotá-based financial holding company, oversees a portfolio of banks and financial service providers serving retail and corporate clients in Colombia and the wider Latin American region. Its operations s...
Grupo Aval Confirms Interest Payment on Sixth Peso Note Issuance
Mar 31, 2026
On March 30, 2026, Grupo Aval Acciones y Valores S.A. announced that it has paid the interest due on its Sixth Issuance of Notes, which were issued in Colombian pesos in the local market. The company stated that the payment was made in accordance ...
Grupo Aval Shareholders Approve 2025 Results, Year-Long Dividend and Board Mandate
Mar 30, 2026
On March 27, 2026, Grupo Aval Acciones y Valores S.A. held its ordinary shareholders’ meeting in Bogotá with full quorum, approving the agenda, the 2025 results and sustainability report, and the separated and consolidated financial sta...
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.