Galenica AG (GALE) AI Stock Analysis

• Market Cap: CHF4.21B
• Dividend Yield: 2.72%
• Average Volume (3M): 88.70K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.31
• Revenue Growth: 5.84%
• EPS Growth: 8.57%
• Country: CH
• Employees: 4,511
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Distribution
• EPS (TTM): 1.81
• Shares Outstanding: 50,000,000
• 10 Day Avg. Volume: 137,836
• 30 Day Avg. Volume: 88,698
• PEG Ratio: -0.57
• Price to Book (P/B): 2.39
• Price to Sales (P/S): 0.95
• P/FCF Ratio: 19.27
• 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: CHF87.00
• Price Target Upside: 2.90% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: CHF95.00 ▲(12.36% Upside)

Galenica AG's strong financial performance and solid valuation are the primary drivers of its stock score. While technical analysis indicates a neutral trend, the company's robust financial health and attractive dividend yield provide a stable investment opportunity.

Galenica AG Business Overview & Revenue Model

Company Description

Galenica AG operates as a healthcare service provider in Switzerland and internationally. It operates through two segments, Products & Care, and Logistics & IT. The Products & Care segment operates 520 pharmacies, including 368 owned pharmacies and 152 partner pharmacies under the Amavita, Sun Store, and Coop Vitality brands. This segment also offers medication for treatment of patients at home; launches and distributes a portfolio of consumer health, pharmaceutical, and parapharmaceutical products; and marketing and sale services to partners in the healthcare market. The Logistics & IT segment provides range of specialized pre-wholesale services, including storage, distribution, and debt collection to pharmaceutical and healthcare companies. This segment also offers logistics and IT services, and master data system for the healthcare market; develops management solutions for the healthcare market; and publishes printed and electronic technical information on pharmaceutical products, as well as complete management solutions for pharmacies. The company was founded in 1927 and is headquartered in Bern, Switzerland.

How the Company Makes Money

Galenica AG generates revenue through multiple streams, primarily driven by its Health & Beauty and Services segments. In the Health & Beauty segment, the company earns income from the sale of pharmaceutical and healthcare products through its own pharmacy network and third-party retail partnerships. The Services segment contributes to revenue through pharmaceutical logistics and distribution services, including warehousing and transportation for pharmaceutical companies. The company also benefits from strategic partnerships with healthcare providers and manufacturers, enhancing its product offerings and market reach.

Galenica AG Financial Statement Overview

Summary

Galenica AG exhibits a strong financial position with consistent revenue growth and solid profitability margins. The balanced leverage and robust cash flow generation indicate sound financial health. Continued focus on operational efficiency and cash conversion will further enhance the company's financial standing.

Income Statement

Galenica AG has demonstrated solid revenue growth over the years, with a notable increase in gross profit margin. The net profit margin is healthy, indicating effective cost management. However, the slight decline in EBIT margin suggests some pressure on operational efficiency.

Balance Sheet

The company maintains a strong equity base with a favorable equity ratio, reflecting financial stability. The reduction in total debt over time has improved the debt-to-equity ratio, enhancing the company's leverage position. Continued improvement in ROE highlights effective utilization of equity.

Cash Flow

Solid operating cash flow generation supports the company's liquidity. The free cash flow growth is commendable, supporting potential reinvestment and shareholder returns. However, the free cash flow to net income ratio indicates room for improvement in converting earnings to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.02B	3.92B	3.75B	4.01B	3.83B	3.48B
Gross Profit	391.10M	1.09B	387.60M	374.13M	350.55M	349.41M
EBITDA	340.46M	331.31M	306.92M	290.46M	300.33M	302.78M
Net Income	192.34M	182.95M	173.60M	165.13M	167.68M	172.25M
Balance Sheet
Total Assets	3.06B	3.07B	2.99B	2.66B	2.62B	2.26B
Cash, Cash Equivalents and Short-Term Investments	67.07M	129.68M	116.16M	93.93M	164.98M	59.78M
Total Debt	862.41M	235.89M	236.04M	686.49M	672.65M	640.63M
Total Liabilities	1.62B	1.52B	1.52B	1.41B	1.38B	1.21B
Stockholders Equity	1.44B	1.55B	1.47B	1.25B	1.23B	1.05B
Cash Flow
Free Cash Flow	298.18M	192.34M	149.34M	166.51M	273.02M	168.67M
Operating Cash Flow	329.81M	264.70M	225.71M	236.87M	333.10M	224.36M
Investing Cash Flow	-154.48M	-151.08M	-124.17M	-130.62M	-88.34M	-115.84M
Financing Cash Flow	-177.76M	-100.22M	-79.05M	-177.21M	-139.53M	-139.30M

Galenica AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 84.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:GALE, the sentiment is Negative. The current price of 84.55 is below the 20-day moving average (MA) of 86.14, below the 50-day MA of 86.24, and above the 200-day MA of 82.20, indicating a neutral trend. The MACD of -0.42 indicates Positive momentum. The RSI at 41.50 is Neutral, neither overbought nor oversold. The STOCH value of 24.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:GALE.

Galenica AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MOVE	73 Outperform	3.03B	33.76	19.20%	0.47%	16.59%	65.76%
GALE	71 Outperform	CHF4.21B	21.94	―	2.72%	5.84%	8.57%
SFZN	70 Outperform	3.62B	22.78	16.33%	0.49%	0.77%	16.70%
TECN	67 Neutral	1.98B	31.21	4.71%	2.01%	-9.34%	-37.50%
BANB	60 Neutral	4.69B	34.95	8.64%	1.46%	17.34%	18.15%
YPSN	56 Neutral	4.81B	54.98	12.87%	0.65%	36.54%	11.60%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Galenica AG Corporate Events

Galenica AG Expands into Diagnostics with Labor Team Acquisition

Galenica AG has completed the acquisition of Labor Team, a leading Swiss diagnostic service provider, marking its entry into the diagnostics business. This strategic move will expand Galenica’s health network by integrating innovative laboratory services, strengthening its market position and enhancing healthcare offerings in Switzerland.

The most recent analyst rating on (CH:GALE) stock is a Hold with a CHF92.00 price target. To see the full list of analyst forecasts on Galenica AG stock, see the CH:GALE Stock Forecast page.

Galenica AG Reports Strong Half-Year Results, Raises EBIT Outlook

Galenica AG reported a 5.0% increase in sales to CHF 1,995.4 million for the first half of 2025, with adjusted EBIT rising by 10.9% to CHF 109.9 million. The company has raised its EBIT growth outlook to between 7% and 9%, driven by strong demand for prescription drugs and positive special effects. This performance positions Galenica slightly ahead of the broader pharmaceutical and consumer healthcare markets, indicating a robust operational footing and promising future prospects.

The most recent analyst rating on (CH:GALE) stock is a Hold with a CHF89.00 price target. To see the full list of analyst forecasts on Galenica AG stock, see the CH:GALE Stock Forecast page.

Galenica Expands into Diagnostics with Labor Team Acquisition

Galenica AG has announced its entry into the diagnostics business through the acquisition of Labor Team Group, a leading Swiss diagnostics service provider. This strategic move is expected to strengthen Galenica’s healthcare network and expand its offerings in the medical segment, particularly in diagnostics. The acquisition aligns with Galenica’s goal of enhancing healthcare connectivity and innovation, and it positions the company to meet future regulatory challenges in the Swiss laboratory market. The transaction is subject to approval by the Swiss Competition Commission and is anticipated to close in the second half of 2025.

The most recent analyst rating on (CH:GALE) stock is a Hold with a CHF89.00 price target. To see the full list of analyst forecasts on Galenica AG stock, see the CH:GALE Stock Forecast page.