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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)
Rating:63Neutral
Price Target:―
Grupo Aval Acciones y Valores SA Pfd (AVAL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.42B
Dividend Yield3.57%
Average Volume (3M)112.31K
Price to Earnings (P/E)10.0
Beta (1Y)0.43
Revenue Growth3.70%
EPS Growth70.33%
CountryUS
Employees77,043
SectorFinancial
Sector Strength75
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.07
Shares Outstanding376,840,700
10 Day Avg. Volume154,068
30 Day Avg. Volume112,313
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)0.61
Price to Sales (P/S)0.00
P/FCF Ratio-0.72
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 Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 4.44%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant growth in net income and market share, improvements in loan quality, and strong ESG recognition. However, challenges remain with commercial loan NIM, fiscal outlook, and investment performance. The overall sentiment is cautiously optimistic with awareness of fiscal and market risks.Q1-2025 Updates
Positive Updates
Significant Increase in Net Income
Net income was Ps. 362 billion, a 28% increase compared to the fourth quarter of 2024 and 3.2 times that of the first quarter of 2024.
Record Market Share in Loans and Mortgages
Grupo Aval gained market share in deposits and loans, reaching a 25.3% share in loans and 16.6% in mortgages, the highest level in its history.
Improvement in Loan Portfolio Quality
Loan quality improved with 30-day PDLs at 5.18%, a 13 basis points improvement over three months.
Strong ESG Recognition
Grupo Aval rose to 71st place in the Medco ESG responsibility ranking, and its entities ranked highly in the financial sector.
Successful Digital Transformation Initiatives
Partnership with Microsoft to enhance AI usage and significant progress in real-time payment systems with 8.9 million keys enabled.
Negative Updates
Pressure on Commercial Loan NIM
Total NIM on loans remained flat due to strong price competition in the corporate segment.
Deterioration of Fiscal Outlook
The country's fiscal outlook deteriorated, affecting local markets, with the fiscal deficit expected to exceed 60% of GDP.
Challenges in Fixed Income Investments
Lower-than-expected NIM on investments due to poor performance in local fixed income, negatively impacting profitability.
Volatile Local and Global Environment
Loan growth expectations adjusted downward due to a tighter monetary policy and more volatile local and global environment.
Company Guidance
In the first quarter of 2025, Grupo Aval reported a net income of Ps. 362 billion, marking a 28% increase from the fourth quarter of 2024 and a 3.2x rise compared to the first quarter of 2024. The company achieved a 25.3% market share in loans and a 16.6% share in mortgages, the highest in its history. Despite a challenging high-interest rate environment and poor capital market performance in March, Grupo Aval maintained stability with a flat total NIM on loans due to competitive pressures in commercial loans, while NIM on retail loans reached a two-year high. Asset quality showed improvement, and operational expenses remained under control. The company anticipates a GDP growth of 2.7% for Colombia in 2025, with inflation expected to end the year at 4.7%. The Central Bank's interest rate is projected to conclude 2025 at 8.5%, considering fiscal challenges. Grupo Aval's strategic priorities include enhancing customer experience through improved NPS scores, financial diversification, capturing synergies, digital transformation, fostering corporate culture, and advancing sustainability initiatives.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 | 16.28T | 16.01T | 15.41T | Gross Profit |
| 11.74T | 11.71T | 13.57T | 15.99T | 15.41T | EBIT |
| 5.37T | 5.73T | 4.00T | 6.15T | 6.30T | EBITDA |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 1.02T | 739.00B | 2.48T | 3.30T | 2.35T |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 7.28T | 8.41T | 40.97T | 35.62T | 64.51T | Total Assets |
| 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | Total Debt |
| 71.36T | 65.54T | 72.12T | 73.28T | 58.62T | Net Debt |
| 35.85T | 48.16T | 55.08T | 36.64T | 25.54T | 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 | 7.99T | 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
Positive
2.82
Price Trends
2.74
Positive
2.77
Positive
2.40
Positive
Market Momentum
0.02
Positive
50.37
Neutral
39.29
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 2.82 is below the 20-day moving average (MA) of 2.83, above the 50-day MA of 2.74, and above the 200-day MA of 2.40, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 50.37 is Neutral, neither overbought nor oversold. The STOCH value of 39.29 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $1.04B | 13.64 | 9.61% | 1.71% | -44.77% | -10.25% | |
80 Outperform | $5.04B | 7.27 | 12.85% | 3.87% | 13.85% | 2.43% | |
76 Outperform | $3.47B | 8.95 | 15.46% | 36.17% | -48.81% | 0.18% | |
74 Outperform | $4.86B | 1,064.67 | 0.11% | 29.64% | -46.30% | -79.35% | |
65 Neutral | $3.94B | 17.97 | 14.14% | 1.55% | 11.42% | 7.58% | |
64 Neutral | $12.73B | 9.77 | 7.84% | 78.17% | 12.05% | -7.99% | |
63 Neutral | $3.42B | 9.99 | 8.03% | 3.57% | 3.70% | 70.33% |
* Financial Sector Average
Performance Comparison
AVAL
Grupo Aval Acciones y Valores SA Pfd
2.82
0.74
35.58%
BANF
BancFirst
118.54
36.02
43.65%
BMA
Banco Macro SA
72.78
17.58
31.85%
OZK
Bank OZK
44.91
7.44
19.86%
BBAR
Banco BBVA Argentina
17.02
8.41
97.68%
SUPV
Grupo Supervielle SA
10.94
4.33
65.51%
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.