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

• Market Cap: $3.43B
• Dividend Yield: 4.37%
• Average Volume (3M): 106.78K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.45
• Revenue Growth: 3.70%
• EPS Growth: 70.33%
• Country: US
• Employees: 77,043
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): 0.07
• Shares Outstanding: 376,840,700
• 10 Day Avg. Volume: 72,987
• 30 Day Avg. Volume: 106,781
• PEG Ratio: 0.52
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.33
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• 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 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	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
EBITDA	0.00	0.00	0.00	0.00	0.00
Net Income	1.02T	739.00B	2.48T	3.30T	2.35T
Balance Sheet
Total Assets	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>
Cash, Cash Equivalents and Short-Term Investments	7.28T	8.41T	40.97T	35.62T	64.51T
Total Debt	43.13T	65.54T	72.12T	73.28T	58.62T
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

• Technical Analysis Sentiment: Positive
• Last Price: 2.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2.91 is above the 20-day moving average (MA) of 2.84, above the 50-day MA of 2.82, and above the 200-day MA of 2.47, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 57.44 is Neutral, neither overbought nor oversold. The STOCH value of 80.56 is Negative, 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
BANF	76 Outperform	$4.35B	19.86	14.14%	1.40%	11.42%	7.58%
OZK	76 Outperform	$5.96B	8.61	12.85%	3.35%	13.85%	2.43%
BMA	74 Outperform	$4.29B	957.37	0.11%	32.89%	-46.30%	-79.35%
SUPV	72 Outperform	$935.60M	12.20	9.61%	1.88%	-56.02%	-61.41%
BBAR	70 Outperform	$3.08B	7.74	15.46%	<0.01%	-48.81%	0.18%
Sector *	64 Neutral	$6.54B	11.08	7.19%	5.08%	23.85%	5.18%
AVAL	63 Neutral	$3.43B	10.20	8.03%	4.37%	3.70%	70.33%