Grupo Financiero Galicia SA (GGAL) AI Stock Analysis

• Market Cap: $10.38B
• Dividend Yield: 4.81%
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): 4.7
• Beta (1Y): 0.95
• Revenue Growth: -35.65%
• EPS Growth: 70.23%
• Country: US
• Employees: 12,179
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Regional
• EPS (TTM): 10.49
• Shares Outstanding: 132,503,200
• 10 Day Avg. Volume: 1,431,847
• 30 Day Avg. Volume: 1,127,614
• PEG Ratio: 0.07
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.62
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• 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: $92.00
• Price Target Upside: 88.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Grupo Financiero Galicia SA showcases strong financial performance, particularly in revenue growth and profitability, though cash flow management remains a concern. The stock appears undervalued with a promising dividend yield. Technical indicators show bearish short-term trends but stability in the long run.

Positive Factors

Financial Performance

Galicia reported net income of ArPs409bn, implying new record high earnings for a quarter, almost doubling YoY.

Loan Growth

Real loan growth advanced above 20% YoY, followed by better asset quality trends (stable NPLs and lower CoR).

Negative Factors

Earnings Miss

3Q24 earnings miss was explained by weaker NII growth impacted by lower gains from government securities and a wider-than-expected loss in the monetary position.

Grupo Financiero Galicia SA Business Overview & Revenue Model

Company Description

Grupo Financiero Galicia S.A., a financial service holding company, provides various financial products and services to individuals and companies in Argentina. The company operates through Banks, NaranjaX, Insurance, and Other Businesses segments. The company's products and services cover savings, current, and checking accounts; personal loans; express and mortgage loans; pledge and credit card loans; credit and debit cards; and online banking services. It also offers financing products and services; consumer finance services; electronic check; global custody services; Fima funds; financial and stock market services to individuals, companies, and financial institutions; foreign trade services; and capital market and investment banking products that include debt securities, short-term securities, bills, and financial trusts. In addition, the company provides robbery, personal accident, life collective, home, life, integral pyme, pet, surety, various risks, and technical insurance products. Further, it offers private banking services to high net worth individuals; and operates digital investment platform. As of December 31, 2021, it had 312 full service banking branches; and 1,991 ATMs and self-service terminals. Grupo Financiero Galicia S.A. was founded in 1905 and is based in Buenos Aires, Argentina.

How the Company Makes Money

Grupo Financiero Galicia SA generates revenue through multiple streams primarily anchored in its banking operations. The company's main source of income comes from interest income on loans and advances issued to individuals, businesses, and government entities. Additionally, GGAL earns substantial fee-based income from services such as asset management, financial advisory, and bancassurance products. The company also benefits from transactional banking fees, including those from credit card services, account maintenance, and electronic banking transactions. GGAL's strategic partnerships, particularly within the insurance and asset management sectors, further bolster its revenue by offering diversified financial products that cater to a broad customer base. The company's ability to leverage its extensive branch network and digital platforms plays a critical role in maintaining its market share and expanding its customer reach, thus enhancing its revenue generation capabilities.

Grupo Financiero Galicia SA Financial Statement Overview

Summary

Grupo Financiero Galicia SA shows strong revenue growth and profitability, with a balanced balance sheet. However, cash flow management challenges present a risk to financial flexibility.

Income Statement

Grupo Financiero Galicia SA has demonstrated robust revenue growth with significant increases in total revenue over the years. The gross profit margin remains consistently high, indicating strong core operations. The net profit margin also shows healthy profitability. However, the absence of EBITDA figures limits a comprehensive analysis of earnings before interest, taxes, depreciation, and amortization.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, reflecting balanced leverage. The return on equity is strong, indicating efficient use of shareholder capital. The equity ratio is stable, showing a solid financial foundation. However, the significant increase in total liabilities suggests potential risks that require monitoring.

Cash Flow

Despite a negative free cash flow in the latest period, the company has shown growth in operating cash flow over previous years. The free cash flow to net income ratio is negative, indicating challenges in converting profits into cash, signaling a need for improved cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.99T	3.28T	2.15T	1.76T	597.96B
	Gross Profit
6.99T	3.35T	2.15T	1.76T	597.96B
	EBIT
5.28T	496.81B	216.64B	97.28B	71.40B
	EBITDA
0.00	36.33M	-59.29B	-73.47B	-16.21B
	Net Income Common Stockholders
1.62T	337.17B	151.26B	188.62B	74.01B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.76T	2.00T	627.91B	87.75B	307.79B
	Total Assets
32.73T	10.22T	10.49T	3.27T	1.59T
	Total Debt
3.55T	465.73B	491.26B	160.31B	85.89B
	Net Debt
-203.15B	-1.53T	-902.43B	-302.18B	-178.90B
	Total Liabilities
26.65T	8.20T	8.59T	2.68T	1.32T
	Stockholders Equity
6.08T	2.02T	1.90T	593.09B	275.22B
Cash Flow		Free Cash Flow
-12.35T	1.59T	1.74T	1.66T	519.33B
	Operating Cash Flow
-12.13T	1.67T	1.79T	1.72T	540.28B
	Investing Cash Flow
862.19B	-81.86B	-58.23B	-51.06B	-19.94B
	Financing Cash Flow
14.58T	-229.76B	83.96B	51.13B	-103.22B

Grupo Financiero Galicia SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 48.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GGAL, the sentiment is Negative. The current price of 48.92 is below the 20-day moving average (MA) of 54.53, below the 50-day MA of 57.69, and below the 200-day MA of 49.86, indicating a bearish trend. The MACD of -1.01 indicates Positive momentum. The RSI at 43.82 is Neutral, neither overbought nor oversold. The STOCH value of 31.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GGAL.

Grupo Financiero Galicia SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BMA	81 Outperform	$6.08B	13.38	9.05%	10.94%	40.86%	236.42%
CIB	77 Outperform	$9.83B	11.40	15.62%	15.90%	-0.15%	8.78%
GGAL	75 Outperform	$10.38B	4.70	38.13%	4.81%	-35.65%	70.23%
BBAR	74 Outperform	$4.19B	8.77	16.83%	9.70%	-40.21%	-16.07%
BSAC	73 Outperform	$10.47B	11.64	16.05%	2.55%	-22.63%	32.31%
BCH	73 Outperform	$13.16B	10.21	21.96%	6.44%	-19.01%	-13.44%
Sector *	64 Neutral	$13.46B	9.44	9.34%	4.72%	16.14%	-8.80%