Grupo Catalana Occidente (GCO) AI Stock Analysis

• Market Cap: €5.31B
• Dividend Yield: 10.61%
• Average Volume (3M): 83.70K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.30
• 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: €49.00 ▲(8.89% Upside)

Grupo Catalana Occidente's stock is supported by strong financial performance and attractive valuation metrics, including a low P/E ratio and high dividend yield. However, technical indicators suggest bearish momentum, which could pose short-term risks. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Strong Profitability

High profitability margins indicate efficient operations and the ability to generate significant profits from revenue, supporting long-term financial health.

Solid Balance Sheet

A low debt-to-equity ratio suggests a strong capital structure, reducing financial risk and providing flexibility for future investments or downturns.

Effective Cash Generation

Strong cash generation supports the company's ability to fund operations, invest in growth opportunities, and return capital to shareholders.

Negative Factors

Declining Revenue

A declining revenue trend poses a risk to future profitability and growth, potentially impacting the company's market position and competitive edge.

Negative Free Cash Flow Growth

Negative free cash flow growth can limit the company's ability to invest in new projects, reduce debt, or return capital to shareholders, affecting long-term sustainability.

Declining Free Cash Flow

A decline in free cash flow indicates potential difficulties in funding operations and investments, which could hinder growth and financial flexibility.

Grupo Catalana Occidente Business Overview & Revenue Model

Company Description

Grupo Catalana Occidente (GCO) is a leading Spanish multinational company operating primarily in the insurance and financial services sectors. Founded in 1864, GCO offers a diverse range of products including life, health, automobile, and property insurance, as well as reinsurance services. The company is known for its strong presence in both the domestic and international markets, catering to individual customers and businesses alike through a network of subsidiaries and partners.

How the Company Makes Money

Grupo Catalana Occidente generates revenue primarily through the sale of insurance premiums, which are collected from policyholders in exchange for coverage against various risks. The company has a diverse portfolio that includes life insurance, health insurance, and general insurance products, each contributing to its overall revenue. Additionally, GCO earns income from investment activities, where premiums collected are invested in various financial instruments, generating returns over time. The company also benefits from reinsurance arrangements, enabling it to mitigate risks and optimize capital efficiency. Strategic partnerships with brokers and agents enhance its distribution capabilities, further driving sales and revenue growth.

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: Negative
• Last Price: 45.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:GCO, the sentiment is Negative. The current price of 45 is below the 20-day moving average (MA) of 45.36, below the 50-day MA of 45.54, and above the 200-day MA of 44.72, indicating a neutral trend. The MACD of -0.18 indicates Positive momentum. The RSI at 33.51 is Neutral, neither overbought nor oversold. The STOCH value of 4.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	€5.31B	7.95	11.53%	10.61%	4.70%	18.04%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MAP	63 Neutral	€13.10B	12.36	12.20%	3.56%	―	―
LDA	62 Neutral	€1.22B	14.73	22.96%	3.49%	5.26%	128.61%