Galderma Group AG (GALD) AI Stock Analysis

• Market Cap: CHF33.16B
• Dividend Yield: 0.11%
• Average Volume (3M): 977.20K
• Price to Earnings (P/E): 101.2
• Beta (1Y): 0.95
• Revenue Growth: 6.22%
• EPS Growth: N/A
• Country: CH
• Employees: 6,545
• Sector: Healthcare
• Sector Strength: 54
• Industry: Household & Personal Products
• EPS (TTM): 1.12
• Shares Outstanding: 237,897,630
• 10 Day Avg. Volume: 291,193
• 30 Day Avg. Volume: 977,195
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: CHF143.10
• Price Target Upside: 2.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 71 Outperform
• Price Target: CHF134.00 ▼(-4.01% Downside)

Galderma Group AG's stock score is primarily driven by strong financial performance and positive technical indicators. However, the high P/E ratio and low dividend yield suggest potential overvaluation, which tempers the overall score.

Positive Factors

Market Performance

Galderma continues to outperform peers in the aesthetics and skincare markets despite the US consumer spending slowdown.

Prescription Growth

US Nemluvio prescription volumes grew 42%, showing a strong rebound and keeping the trend in line with the bull case.

Product Launch Success

Nemluvio is expected to reach $4.8bn peak sales with faster market share gain than anticipated in rapidly growing markets.

Negative Factors

Consumer Expenditure

The mid-term forecasts remain below consensus for both aesthetics and dermatological skincare, reflecting a cautious outlook on consumer expenditure and price pressure in the fillers category.

Market Environment

Continued market softness in the US is met with intense promotional activity, affecting the overall market environment.

Net Pricing Evolution

The key unknown remains net pricing evolution, with greater clarity likely derived from 1H earnings.

Galderma Group AG Business Overview & Revenue Model

Company Description

Galderma Group AG is engaged in cosmetic industry. Its segment includes Injectable Aesthetics, Dermatological Skincare and Therapeutic Dermatology.

How the Company Makes Money

Galderma Group AG generates revenue through multiple streams, primarily driven by its three core business units: prescription drugs, aesthetics, and consumer care. The prescription drugs segment includes dermatological treatments for skin conditions such as acne, rosacea, and psoriasis, which are sold to healthcare providers and pharmacies. In the aesthetics segment, Galderma offers products like dermal fillers and botulinum toxins, marketed to dermatologists and aesthetic practitioners for cosmetic enhancements. The consumer care segment includes over-the-counter skincare products that are sold directly to consumers through retail and online channels. Galderma's earnings are bolstered by strategic partnerships and collaborations with healthcare professionals, as well as ongoing investments in research and development to create innovative solutions that meet the evolving needs of the dermatology market.

Galderma Group AG Financial Statement Overview

Summary

Galderma Group AG exhibits strong financial health with significant revenue growth and improved profitability metrics. The balance sheet reflects solid equity and manageable debt levels, contributing to stability. Cash flow generation is strong, supporting operational needs and growth investments. Despite past volatility in income and debt levels, current trends indicate a positive outlook.

Income Statement

Galderma Group AG has shown significant improvement in revenue growth, with a 21% increase from the previous year. The gross profit margin is strong at 69.5%, and the net profit margin has turned positive, indicating improved profitability. EBIT and EBITDA margins suggest robust operational efficiency. However, fluctuations in past net income pose a concern for stability.

Balance Sheet

The company's debt-to-equity ratio stands at a conservative level, indicating a balanced leverage position. The equity ratio of 61.7% showcases financial stability and strong equity base. Return on equity has improved, reflecting better profitability for shareholders. Past high levels of debt require ongoing monitoring despite improvements.

Cash Flow

Galderma's cash flow performance is commendable, with free cash flow showing robust growth. The operating cash flow to net income ratio is strong, indicating efficient cash conversion. Free cash flow to net income ratio is positive, but historical volatility in free cash flow growth necessitates cautious optimism.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.44B	3.67B	3.59B	3.12B
Gross Profit	3.08B	2.63B	2.45B	2.18B
EBITDA	959.00M	690.44M	592.24M	476.06M
Net Income	231.00M	-48.11M	-94.07M	-141.07M
Balance Sheet
Total Assets	12.62B	10.49B	11.49B	11.45B
Cash, Cash Equivalents and Short-Term Investments	457.00M	309.35M	216.59M	261.68M
Total Debt	2.76B	4.13B	5.23B	5.18B
Total Liabilities	4.83B	5.97B	7.35B	7.31B
Stockholders Equity	7.79B	4.52B	4.13B	4.14B
Cash Flow
Free Cash Flow	213.00M	37.09M	-46.03M	61.90M
Operating Cash Flow	488.00M	139.11M	106.30M	178.92M
Investing Cash Flow	-326.00M	-156.10M	-70.48M	-487.76M
Financing Cash Flow	-58.00M	142.00M	-68.86M	290.01M

Galderma Group AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 139.60
• 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 CH:GALD, the sentiment is Positive. The current price of 139.6 is above the 20-day moving average (MA) of 133.52, above the 50-day MA of 126.96, and above the 200-day MA of 106.47, indicating a bullish trend. The MACD of 3.59 indicates Negative momentum. The RSI at 67.56 is Neutral, neither overbought nor oversold. The STOCH value of 90.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:GALD.

Galderma Group AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GALD	71 Outperform	CHF33.16B	101.18		0.11%	6.22%	―
Sector *	51 Neutral	$7.83B	-0.18	-40.01%	2.28%	22.68%	-1.83%
RHHVF	―	$260.79B	23.52	31.98%	3.37%	―	―
NOVN	81 Outperform	CHF192.53B	16.98		3.46%	9.36%	-14.82%
STMN	68 Neutral	CHF14.96B	38.42		1.01%	4.49%	45.08%
ALC	―	$39.74B	36.64	4.98%	0.42%	―	―
SDZXF	―	$27.57B	120.71	2.64%	―	―	―