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Grupo Financiero Galicia (GGAL)
:GGAL
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Grupo Financiero Galicia SA
(NASDAQ:GGAL)
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Rating:71Outperform
Price Target:―
Grupo Financiero Galicia SA displays strong financial performance with solid revenue growth and profitability. The stock's technical indicators show potential upward momentum, though the MACD suggests caution. The valuation indicates the stock is undervalued with a low P/E ratio and attractive dividend yield. Cash flow management is a concern that may affect financial flexibility, necessitating improvement in this area.
Positive Factors
Revenue Growth
The company's consistent revenue growth highlights its strong market position and ability to expand its customer base, ensuring long-term sustainability.
Profitability
High profit margins reflect efficient operations and pricing power, contributing to sustained profitability and competitive advantage in the financial sector.
Balance Sheet Health
A moderate debt-to-equity ratio indicates prudent financial management, providing stability and flexibility to navigate economic fluctuations.
Negative Factors
Cash Flow Management
Negative free cash flow suggests difficulties in cash conversion, potentially impacting liquidity and limiting investment in growth opportunities.
Liability Increase
Rising liabilities can strain financial resources and increase risk exposure, necessitating careful management to maintain financial health.
Revenue Decline
A significant decline in revenue growth rate can indicate market challenges or operational inefficiencies, affecting long-term growth prospects.
Grupo Financiero Galicia SA (GGAL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.25B
Dividend Yield1.78%
Average Volume (3M)2.70M
Price to Earnings (P/E)3.7
Beta (1Y)0.59
Revenue Growth-42.92%
EPS Growth-21.46%
CountryUS
Employees9,183
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.90
Shares Outstanding132,503,200
10 Day Avg. Volume4,033,815
30 Day Avg. Volume2,703,451
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$38.00Price Target Upside18.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Grupo Financiero Galicia SA Business Overview & Revenue Model
Company DescriptionGrupo Financiero Galicia SA (GGAL) is a leading financial services holding company based in Argentina. The company operates through its various subsidiaries, offering a wide range of financial products and services, including commercial and retail banking, insurance, wealth management, and other financial solutions. As a prominent player in the Argentine financial sector, GGAL is known for its strong presence in the banking industry, primarily through its flagship subsidiary, Banco Galicia, which is one of the largest private-sector banks in the country.
How the Company Makes MoneyGrupo 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 Earnings Call Summary
Earnings Call Date:Aug 26, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 25, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with substantial growth in loans and deposits, as well as a successful merger, but faced significant challenges with a sharp decline in net income, increased nonperforming loans, and margin compression due to interest rate volatility.Q2-2025 Updates
Positive Updates
Economic Activity Growth
The Argentina economy recorded a 6.4% year-over-year increase during June, reaching an expansion of 6.2% during the first half of 2025.
Successful Merger with Galicia Más
Grupo Financiero Galicia successfully completed the merger with Galicia Más, formerly HSBC in Argentina, leading to a market share growth of around 2.5% in both loans and deposits.
Growth in Loans and Deposits
The bank's financing to the private sector increased 123% in the last 12 months, with peso financing rising 106% and dollar-denominated financing growing 181%. Deposits reached ARS 19.9 trillion, a 72% increase from the previous year.
Net Fee Income Increase
Net fee income increased by 30% from June 2024, driven by a 51% increase in income from credit card fees and a 28% rise in fees on deposits.
Negative Updates
Significant Net Income Decline
Net income amounted to ARS 173 billion, 70% lower than the previous year. This was due to a 67% lower operating result and a 36% decrease in net interest income.
Increase in Nonperforming Loans
The ratio of nonperforming loans to total financing ended the quarter at 4.4%, recording a 240 basis points deterioration compared to the previous year, particularly in personal loans and credit card financing.
Operating Income and Loan Loss Provisions
Net operating income decreased by 40%, with loan loss provisions increasing by 192% due to growth in the financing portfolio and increased delinquency.
Margin Compression and Interest Rate Volatility
Significant short-term interest rate increases led to margin compression expected in Q3, with funding repricing faster than assets. This is expected to stabilize after elections.
Company Guidance
During Grupo Financiero Galicia's second quarter 2025 earnings call, several key metrics were highlighted. Argentina's economy showed a robust 6.4% year-over-year growth in June, contributing to a 6.2% expansion in the first half of 2025. The country's primary surplus in the second quarter was 0.4% of GDP, with overall surplus at 0.2% of GDP due to primary revenues rising 37.7% year-over-year and primary spending increasing by 42.1%. Inflation was a focal point, with the National Consumer Price Index increasing 6% in the second quarter and 17.3% year-to-date by July. The exchange rate averaged ARS 1,181 per dollar in June, reflecting a 23.5% year-over-year devaluation. Grupo Galicia's net income for the quarter was ARS 173 billion, marking a 70% decrease from the previous year, with a 1.9% annualized return on average assets and a 9.5% return on average shareholders' equity. The bank's Tier 1 capital ratio stood at 23.2%, down from the previous year, while the loan portfolio saw significant growth, with peso-denominated loans increasing 19% quarterly and 181.7% annually. Additionally, the merger with Galicia Más boosted the bank's market share by 2.5% in both loans and deposits.Grupo Financiero Galicia SA Financial Statement Overview
Summary
Grupo Financiero Galicia SA shows strong revenue growth and profitability supported by a solid balance sheet. However, challenges in cash flow management need attention to maintain 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.85
Very Positive
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.78
Positive
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.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.86T | 10.63T | 3.35T | 2.15T | 1.76T | 597.96B |
| Gross Profit | 6.24T | 6.66T | 3.35T | 2.15T | 1.76T | 597.96B |
| EBITDA | 1.77T | 2.40T | 36.33M | 0.00 | 0.00 | 0.00 |
| Net Income | 1.38T | 1.62T | 337.17B | 151.26B | 188.62B | 74.01B |
Balance Sheet | ||||||
| Total Assets | 28.85T | 32.52T | 10.22T | 10.49T | 3.27T | 1.59T |
| Cash, Cash Equivalents and Short-Term Investments | 5.58T | 3.76T | 2.00T | 627.91B | 462.49B | 307.79B |
| Total Debt | 1.36T | 2.16T | 465.73B | 491.26B | 160.31B | 85.89B |
| Total Liabilities | 23.36T | 26.45T | 8.20T | 8.59T | 2.68T | 1.32T |
| Stockholders Equity | 5.49T | 6.06T | 2.02T | 1.90T | 593.09B | 275.22B |
Cash Flow | ||||||
| Free Cash Flow | -3.43T | -2.92T | 1.59T | 1.74T | 1.66T | 519.33B |
| Operating Cash Flow | -3.10T | -2.70T | 1.67T | 1.79T | 1.72T | 540.28B |
| Investing Cash Flow | -2.98T | 862.19B | -81.86B | -58.23B | -51.06B | -19.94B |
| Financing Cash Flow | 8.13T | 413.52B | -229.76B | 83.96B | 51.13B | -103.22B |
Grupo Financiero Galicia SA Technical Analysis
Negative
32.03
Price Trends
43.24
Negative
49.44
Negative
54.92
Negative
Market Momentum
-4.58
Positive
40.11
Neutral
35.13
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 32.03 is below the 20-day moving average (MA) of 34.43, below the 50-day MA of 43.24, and below the 200-day MA of 54.92, indicating a bearish trend. The MACD of -4.58 indicates Positive momentum. The RSI at 40.11 is Neutral, neither overbought nor oversold. The STOCH value of 35.13 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 Risk Analysis
Grupo Financiero Galicia SA disclosed 44 risk factors in its most recent earnings report. Grupo Financiero Galicia SA reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
The management of Banco Galicia's business (the main subsidiary of Grupo Galicia) could be affected by its shareholder composition. Q4, 2022
2.
Possible negative effects on the results of Banco Galicia (the main subsidiary of Grupo Galicia) due to an increase in the default rate may occur, with a corresponding negative impact on the results of Grupo Financiero Galicia. Q4, 2022
3.
Restriction on the distribution of results by financial institutions. Q4, 2022
Grupo Financiero Galicia SA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | 14.06B | 14.68 | 14.39% | 12.47% | -8.82% | 4.87% | |
76 Outperform | 12.37B | 10.77 | 16.23% | 5.04% | 12.43% | 56.30% | |
73 Outperform | 15.15B | 11.56 | 19.19% | 7.08% | -13.16% | -8.10% | |
71 Outperform | $5.25B | 3.73 | 22.42% | 1.78% | -42.92% | -21.46% | |
68 Neutral | 2.06B | 5.37 | 13.98% | 0.57% | -47.41% | -18.95% | |
63 Neutral | 3.08B | 6.31 | 8.04% | 2.40% | -57.78% | -67.92% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
GGAL
Grupo Financiero Galicia SA
32.03
-11.83
-26.97%
BMA
Banco Macro SA
47.21
-20.61
-30.39%
BSAC
Banco Santander Chile
26.36
6.33
31.60%
BBAR
Banco BBVA Argentina
9.85
-1.51
-13.29%
AVAL
Grupo Aval Acciones y Valores SA Pfd
3.27
1.28
64.32%
SUPV
Grupo Supervielle SA
6.22
-1.62
-20.66%
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.