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Galenica AG
(GALE)
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Rating:66Neutral
Price Target:
CHF90.00
▲(3.81% Upside)
Action:Reiterated
Date:08/07/26
Overall score reflects solid underlying financial performance and a positive, guidance-reaffirming earnings update, tempered by increased leverage/cash-flow volatility and a clearly weak technical setup (below key moving averages with negative momentum). Valuation and dividend are supportive but not compelling enough to outweigh the technical and leverage-related risks.
Positive Factors
Strong free cash flow generation
Consistent, high free cash flow conversion (FCF ~91% of net income in 2025) underpins durable self‑funding for operations, capex and dividends. Over the next 2–6 months this cash conversion supports financial flexibility and cushions cyclical pressures without immediate reliance on new debt.
Negative Factors
Rising leverage and debt load
A material increase in leverage reduces balance‑sheet flexibility and raises interest and refinancing sensitivity. Higher debt limits capacity for opportunistic investments or buybacks and magnifies downside risk if earnings slip, making the company more exposed to rate moves and operational volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistent, high free cash flow conversion (FCF ~91% of net income in 2025) underpins durable self‑funding for operations, capex and dividends. Over the next 2–6 months this cash conversion supports financial flexibility and cushions cyclical pressures without immediate reliance on new debt.
Read all positive factors
Galenica AG (GALE) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF4.28B
Dividend Yield2.91%
Average Volume (3M)91.35K
Price to Earnings (P/E)23.7
Beta (1Y)0.34
Revenue Growth5.47%
EPS Growth-0.96%
CountryCH
Employees6,558
SectorGeneral
Sector StrengthN/A
IndustryMedical - Distribution
Share Statistics
EPS (TTM)3.63
Shares Outstanding50,000,000
10 Day Avg. Volume70,861
30 Day Avg. Volume91,351
Financial Highlights & Ratios
PEG Ratio-24.69
Price to Book (P/B)3.29
Price to Sales (P/S)1.18
P/FCF Ratio17.88
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF85.00Price Target Upside-1.96% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)3.96
Revenue Forecast (FY)CHF4.39B
Galenica AG Business Overview & Revenue Model
Company Description
Galenica AG stands as a leading healthcare services company, serving both the Swiss market and international clients. Its operations are organized into two principal divisions: "Products & Care" and "Logistics & IT." The "Products & Care" division...
How the Company Makes Money
Galenica primarily makes money through two main areas: (1) pharmaceutical wholesale and logistics and (2) pharmacy retail and associated services. In wholesale/logistics, it generates revenue by purchasing medicines and healthcare products from ma...
Galenica AG Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 09, 2027
Earnings Call Sentiment Positive
The call presented solid operational momentum: double-digit adjusted EBIT growth (adjusted), strong retail and services performance, successful integration steps (Labor Team, homecare consolidation), and reaffirmation of full-year guidance. Headwinds are mostly seasonal or transitional (weak cold/flu season, Perskindol stock adjustments, Bichsel restructuring costs, temporary working capital and ERP-related effects) and largely framed as manageable by management. Regulatory changes and long-term liberalization of mail-order OTC present risks but are expected to be gradual. On balance, positives (broad sales and profit growth, service adoption, automation gains, and guidance confirmation) outweigh the negatives.Positive Updates
Strong Top-Line Growth
Group sales increased 7.1% to CHF 2.136 billion in H1 2026. Adjusted for the Labor Team acquisition (which contributed 3.1%), organic group growth was 4.0%.
Negative Updates
Product & Brands Sales Decline
Product & Brands sales fell 9.8% in H1 2026, driven by a weak cold/flu season, reduced demand for mosquito sprays (Anti Brumm) due to dry weather, and temporary stock adjustments in international Perskindol inventories.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Growth
Group sales increased 7.1% to CHF 2.136 billion in H1 2026. Adjusted for the Labor Team acquisition (which contributed 3.1%), organic group growth was 4.0%.
Read all positive updates
Company Guidance
Galenica reaffirmed its 2026 guidance for consolidated net sales growth of 5.7% and EBIT growth of 6–8%, with a stable dividend at least at prior-year level, supported by strong H1 results: sales +7.1% to CHF 2.136bn and adjusted EBIT +7.1% to just under CHF 118m (12.6% EBIT growth adjusted for prior-year one‑offs); adjusted net debt stood at CHF 837m (leverage 2.7x, targeting 2.2–2.3x at year‑end). The company noted segment and operational metrics that underpin the guidance: group growth excl. Labor Team (which contributed 3.1%) was 4.0%, Products & Care +11.5%, Logistics & IT +4.2%, Services & Production +9.4% to CHF 63.4m, local pharmacies +6.2% (organic +4.3%, net +3 locations = +1.9% incl. Puravita), wholesale +4.3% (pharmacy channel +6.3%), market H1 growth 3.7% (brick‑and‑mortar +5.4%, physicians +3.1%, volumes −0.6%). Operational and strategic datapoints included 193,000 fee‑paying consultations (+27% YoY), ~90,000 Prescription Manager users, 25,000 vaccinations in H1, >1 million policyholders with insurance coverage for services, GLP‑1s growing ~30% (≈4% of pharmacy sales, ~1% of group sales), Ecublens automation ~70%, capex guidance CHF 80–90m for 2026, Bichsel one‑off restructuring costs ~CHF 30m, and an expected liberalization of mail‑order OTC not before 2029/2030 potentially affecting up to ~13% of pharmacy‑related sales.Galenica AG Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.14B | 3.92B | 3.75B | 4.01B | 3.83B |
| Gross Profit | 428.80M | 1.09B | 387.60M | 374.13M | 350.55M |
| EBITDA | 339.18M | 331.31M | 306.92M | 290.46M | 300.33M |
| Net Income | 181.10M | 182.95M | 173.60M | 165.13M | 167.68M |
Balance Sheet | |||||
| Total Assets | 3.34B | 3.07B | 2.99B | 2.66B | 2.62B |
| Cash, Cash Equivalents and Short-Term Investments | 115.51M | 129.68M | 116.16M | 93.93M | 164.98M |
| Total Debt | 1.06B | 775.60M | 236.04M | 686.49M | 672.65M |
| Total Liabilities | 1.86B | 1.52B | 1.52B | 1.41B | 1.38B |
| Stockholders Equity | 1.48B | 1.55B | 1.47B | 1.25B | 1.23B |
Cash Flow | |||||
| Free Cash Flow | 272.35M | 192.34M | 149.34M | 166.51M | 273.02M |
| Operating Cash Flow | 299.76M | 264.70M | 225.71M | 236.87M | 333.10M |
| Investing Cash Flow | -333.14M | -151.08M | -124.17M | -130.62M | -88.34M |
| Financing Cash Flow | 19.20M | -100.22M | -79.05M | -177.21M | -139.53M |
Galenica AG Technical Analysis
Negative
86.70
Price Trends
85.65
Negative
85.77
Negative
88.59
Negative
Market Momentum
-0.64
Positive
29.69
Positive
11.97
Positive
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 86.7 is below the 20-day moving average (MA) of 86.92, above the 50-day MA of 85.65, and below the 200-day MA of 88.59, indicating a bearish trend. The MACD of -0.64 indicates Positive momentum. The RSI at 29.69 is Positive, neither overbought nor oversold. The STOCH value of 11.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:GALE.
Galenica AG Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | CHF5.06B | 23.62 | 28.54% | 1.15% | -2.39% | 154.37% | |
70 Outperform | CHF3.42B | 19.68 | 15.68% | 0.57% | 2.57% | 4.31% | |
67 Neutral | CHF5.61B | 37.59 | 10.56% | 1.20% | 4.51% | 11.05% | |
66 Neutral | CHF4.28B | 23.68 | ― | 2.88% | 5.47% | -0.96% | |
65 Neutral | CHF2.64B | 29.46 | 21.69% | 0.84% | 13.93% | 28.92% | |
59 Neutral | CHF2.39B | -21.29 | -9.09% | 1.65% | -5.54% | -264.90% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
CH:GALE
Galenica AG
82.20
0.24
0.29%
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CH:MOVE
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132.60
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-9.22%
CH:SFZN
Siegfried Holding AG
79.65
-6.71
-7.77%
CH:TECN
Tecan Group AG
195.10
42.64
27.97%
CH:YPSN
Ypsomed Holding AG
392.00
4.78
1.24%
Galenica AG Corporate Events
Galenica lifts H1 sales and earnings as pharmacies, home care and diagnostics drive growth
Aug 6, 2026
Galenica reported a 7.1% rise in first-half 2026 sales to CHF 2.14 billion and an identical increase in adjusted EBIT to CHF 117.7 million, with underlying EBIT up 12.6% after prior-year special factors. Growth was driven by expanding pharmacy-bas...
Galenica posts robust early-2026 sales and reaffirms guidance on diversified growth
May 28, 2026
Galenica AG reported a strong start to 2026, with group sales up 7.3% to CHF 1,409.7 million in the first four months despite a mild flu season that weighed on demand for cold and pain medicines. Growth was driven by the pharmacy omni-channel netw...
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.