Galenica AG (GALE) AI Stock Analysis

• Market Cap: CHF4.81B
• Dividend Yield: 2.36%
• Average Volume (3M): 91.35K
• Price to Earnings (P/E): 25.0
• Beta (1Y): 0.32
• 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: 70,861
• 30 Day Avg. Volume: 91,351
• 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: CHF85.00
• Price Target Upside: -12.82% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: CHF107.00 ▲(9.74% Upside)

Galenica AG's strong financial performance and fair valuation are the primary drivers of its stock score. The technical analysis suggests a neutral market sentiment, with no significant bullish or bearish signals. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Balance Sheet Strength

A strong equity base and improved debt-to-equity ratio provide durable financial resilience, lowering solvency risk and preserving strategic optionality. This supports long-term investment in logistics, network expansion, and buffering regulatory or reimbursement volatility inherent in healthcare distribution.

Cash Generation

Consistent operating cash flow and growing free cash flow underpin sustainable funding for capex, store rollouts, and shareholder returns without heavy reliance on external financing. Reliable cash conversion supports multi-year reinvestment into distribution and retail capabilities.

Revenue and Margin Trends

Sustained revenue expansion combined with improving gross margins indicates durable demand and pricing/operational advantages across wholesale and retail segments. This supports long-term profitability and capacity to absorb cost inflation while investing in value-added services.

Negative Factors

Operational Efficiency Pressure

Persistent efficiency gaps can erode EBIT margins and limit scalability of distribution and retail operations. If not addressed via process improvements or automation, margin pressure may persist, reducing funds available for strategic initiatives and slowing improvement in returns on invested capital.

Earnings-to-Cash Conversion

Weak conversion of reported earnings into free cash flow can constrain the company's ability to finance growth initiatives and dividends from operations. Over months, this may force heavier dependence on working capital management or external funding to support store expansion and logistics investments.

Moderate Organic Growth

Mid-single-digit revenue growth and modest EPS gains suggest limited organic expansion relative to higher-growth healthcare niches. Without material acceleration via new products, services, or market share gains, growth may struggle to outpace sector tailwinds, constraining long-term upside for investors.

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 primarily through its wholesale and retail operations. The wholesale division supplies pharmacies, hospitals, and other healthcare institutions with pharmaceuticals and healthcare products, earning income from the distribution of these goods. The retail segment, which includes its network of pharmacies, generates revenue from the sale of prescription medications and health-related products directly to consumers. Additionally, Galenica benefits from healthcare services, such as medication management and consultation services, which contribute to its earnings. Strategic partnerships with pharmaceutical manufacturers and healthcare providers enhance its product offerings and market reach, further solidifying its revenue streams.

Galenica AG Financial Statement Overview

Summary

Galenica AG exhibits a strong financial position with consistent revenue growth and solid profitability margins. The company maintains a strong equity base and has improved its leverage position. However, there is room for improvement in operational efficiency and cash conversion.

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	775.60M	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: Positive
• Last Price: 97.50
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 97.5 is below the 20-day moving average (MA) of 97.58, above the 50-day MA of 94.55, and above the 200-day MA of 88.56, indicating a neutral trend. The MACD of 0.53 indicates Positive momentum. The RSI at 55.94 is Neutral, neither overbought nor oversold. The STOCH value of 55.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:GALE.

Galenica AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BANB	75 Outperform	CHF5.25B	39.11	10.07%	1.43%	17.34%	18.15%
SFZN	74 Outperform	CHF4.28B	26.92	15.79%	0.51%	0.77%	16.70%
MOVE	71 Outperform	CHF3.30B	36.79	23.83%	0.45%	16.59%	65.76%
GALE	70 Outperform	CHF4.81B	25.04	―	2.36%	5.84%	8.57%
YPSN	70 Outperform	CHF4.16B	21.49	27.15%	0.67%	27.63%	160.67%
TECN	65 Neutral	$1.74B	27.45	4.57%	2.31%	-9.34%	-37.50%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Galenica AG Corporate Events

Galenica tops CHF 4 billion in sales as integrated healthcare network drives record growth

Galenica AG reported record group sales of CHF 4,135.6 million for 2025, a 5.5% increase driven by broad-based growth across all business areas, notably strong demand for prescription medicines – including GLP-1 weight-loss products – and nutritional supplements. The pharmacy network expanded to 381 locations and posted higher omni-channel sales and sharply rising paid health services, while wholesale, services and production, and logistics & IT all grew in line with or slightly above the Swiss market, and the newly created Diagnostics unit from the Labor Team acquisition contributed around 1% to sales growth. Management confirmed guidance for a 10–12% rise in EBIT for 2025 and signalled that the dividend should remain at least at the previous year’s level, underlining the group’s confidence in its integrated healthcare network and strengthened positioning in the Swiss pharmacy, wholesale and diagnostics markets, supported by a revamped sales reporting structure that better reflects its strategic focus.

The most recent analyst rating on (CH:GALE) stock is a Buy with a CHF108.00 price target. To see the full list of analyst forecasts on Galenica AG stock, see the CH:GALE Stock Forecast page.

Galenica Expands Digital Presence with Puravita Stake Increase

Galenica AG has increased its stake in Puravita AG to 80%, enhancing its digital presence and diversifying its business. This move strengthens Galenica’s online offerings in the drugstore and health food sectors, aligning with its strategy to integrate digital and physical services. Puravita, with its substantial online assortment and market experience, will benefit from Galenica’s logistics and marketing infrastructure, further driving growth in the health and well-being market.

The most recent analyst rating on (CH:GALE) stock is a Hold with a CHF85.00 price target. To see the full list of analyst forecasts on Galenica AG stock, see the CH:GALE Stock Forecast page.

Galenica AG Secures CHF 250 Million Bond to Strengthen Financial Position

Galenica AG has successfully placed a CHF 250 million fixed-interest bond with a 7-year term and a 1.08% annual coupon. The proceeds will be used to repay bridge financing for the acquisition of the Labor Team Group and for general corporate purposes, helping to reduce short-term liabilities and secure long-term financing. This move strengthens Galenica’s financial position and complements its existing bonds, with the issuance led by UBS and an application for trading on the SIX Swiss Exchange.

The most recent analyst rating on (CH:GALE) stock is a Buy with a CHF95.00 price target. To see the full list of analyst forecasts on Galenica AG stock, see the CH:GALE Stock Forecast page.