Grupo Catalana Occidente (GCO) AI Stock Analysis

• Market Cap: €5.85B
• Dividend Yield: 2.44%
• Average Volume (3M): 83.70K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.35
• Revenue Growth: 4.70%
• EPS Growth: 18.04%
• Country: ES
• Employees: 8,518
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Diversified
• EPS (TTM): N/A
• Shares Outstanding: 120,000,000
• 10 Day Avg. Volume: 65,571
• 30 Day Avg. Volume: 83,704
• PEG Ratio: 0.71
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 1.70
• P/FCF Ratio: 7.90
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ―

Grupo Catalana Occidente's stock exhibits a solid technical outlook with strong upward momentum, supported by an attractive valuation with a low P/E ratio. Financial performance is a mixed bag, with strong balance sheet indicators offset by operational inefficiencies and volatile cash flows, which slightly hinder the overall score.

Grupo Catalana Occidente Business Overview & Revenue Model

Company Description

Grupo Catalana Occidente, S.A., together with its subsidiaries, provides insurance products and services worldwide. The company operates through Traditional Business and Credit Insurance Business segments. The company offers multi-risk products and services related to family home, stores, retail, blocks of flats, offices, and SMEs; life insurance products, such as risk, savings, pension plans, and investment funds, as well as funeral and health insurance; machinery breakdown; electrical equipment; and motor insurance. It also provides other insurance products, such as industrial products, accidents, transport, and third-party and civil liability; and credit and surety insurance, as well as reinsurance. In addition, the company is also involved in the real estate development business; and stock broking business. It markets its products primarily under the Seguros Catalana Occidente, Plus Ultra Seguros, Seguros Bilbao, NorteHispana Seguros, Crédito y Caución, Atradius, and Atradius Re brands. The company was formerly known as Catalana Occidente, Sociedad Anónima de Seguros y Reaseguros and changed its name to Grupo Catalana Occidente, S.A. in 2001. The company was incorporated in 1864 and is headquartered in Madrid, Spain. Grupo Catalana Occidente, S.A. is a subsidiary of INOC, S.A.

How the Company Makes Money

Grupo Catalana Occidente generates revenue primarily through the underwriting of insurance policies, where it collects premiums from policyholders in exchange for coverage against various risks. The company benefits from a diversified portfolio of insurance products, allowing it to spread risk and enhance profitability. Significant revenue streams include premiums from life and health insurance, property and casualty insurance, and reinsurance services. Additionally, GCO earns investment income from the premiums it collects, which are invested in various financial instruments. The company also engages in strategic partnerships with brokers and financial institutions, enhancing its distribution capabilities and broadening its customer base. Factors contributing to its earnings include strong brand recognition, a solid market position, and a focus on operational efficiency, enabling GCO to maintain a competitive edge in the insurance sector.

Grupo Catalana Occidente Financial Statement Overview

Summary

Grupo Catalana Occidente shows mixed financial health. The balance sheet is strong with low leverage and a solid equity position. However, the income statement indicates challenges with significant EBIT losses affecting profitability. Cash flow is stable but shows volatility, raising concerns about future financial robustness.

Income Statement

The income statement shows a volatile performance. Despite consistent revenue generation, the company experienced a significant EBIT loss in the latest year, pulling down profitability metrics. Net profit margin improved to 25.6% due to cost control, but the drastic drop in EBIT margin (-97.8%) indicates challenges in operational efficiency and competitiveness in the market.

Balance Sheet

The balance sheet displays a strong equity position with an equity ratio of 29.9% and a manageable debt-to-equity ratio of 0.10, indicating low leverage. The return on equity of 11.1% in the latest year reflects sustainable profitability, although there is room for improvement in asset utilization.

Cash Flow

Cash flow from operations remains positive, contributing to a healthy free cash flow. However, the free cash flow growth is volatile, and the absence of operating cash flow in the latest year raises concerns. The free cash flow to net income ratio suggests that cash generation is aligned with reported earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.47B	2.49B	2.25B	1.85B	4.56B	4.20B
Gross Profit	4.47B	1.87B	1.67B	1.30B	3.67B	3.37B
EBITDA	952.48M	922.69M	838.40M	789.74M	648.84M	405.38M
Net Income	831.02M	636.45M	580.60M	472.98M	427.23M	262.33M
Balance Sheet
Total Assets	19.68B	19.25B	17.62B	17.97B	18.27B	17.37B
Cash, Cash Equivalents and Short-Term Investments	0.00	11.52B	1.37B	5.29B	4.92B	4.75B
Total Debt	248.59M	554.65M	426.81M	325.27M	327.04M	330.76M
Total Liabilities	13.02B	12.96B	12.00B	13.79B	13.80B	13.43B
Stockholders Equity	6.11B	5.75B	5.10B	4.40B	4.08B	3.58B
Cash Flow
Free Cash Flow	798.97M	536.64M	379.43M	451.41M	469.33M	411.10M
Operating Cash Flow	1.11B	750.92M	428.09M	486.57M	548.94M	498.13M
Investing Cash Flow	-1.01B	-659.43M	-882.78M	-12.16M	-139.32M	-237.77M
Financing Cash Flow	-152.94M	-56.01M	-308.00M	-125.99M	-159.39M	-128.86M

Grupo Catalana Occidente Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 49.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:GCO, the sentiment is Positive. The current price of 49.7 is above the 20-day moving average (MA) of 49.58, above the 50-day MA of 49.20, and above the 200-day MA of 47.52, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 64.47 is Neutral, neither overbought nor oversold. The STOCH value of 90.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:GCO.

Grupo Catalana Occidente Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GCO	68 Neutral	€5.85B	8.76	11.53%	2.44%	4.70%	18.04%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MAP	63 Neutral	€11.98B	11.30	12.20%	3.81%	―	―
LDA	62 Neutral	€1.24B	15.02	22.96%	4.85%	5.26%	128.61%