Grupo Financiero Galicia SA (GGAL) AI Stock Analysis

• Market Cap: $7.71B
• Dividend Yield: 5.53%
• Average Volume (3M): 1.49M
• Price to Earnings (P/E): 5.1
• Beta (1Y): 0.73
• Revenue Growth: -35.65%
• EPS Growth: 70.23%
• Country: US
• Employees: 9,183
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Regional
• EPS (TTM): 0.78
• Shares Outstanding: 119,347,046
• 10 Day Avg. Volume: 1,257,360
• 30 Day Avg. Volume: 1,487,381
• PEG Ratio: -0.83
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.01
• 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: $70.00
• Price Target Upside: 46.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• 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

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 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.

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	10.69T	3.35T	2.15T	1.76T	597.96B
Gross Profit	6.91T	3.35T	2.15T	1.76T	597.96B
EBITDA	2.40T	36.33M	0.00	0.00	0.00
Net Income	1.62T	337.17B	151.26B	188.62B	74.01B
Balance Sheet
Total Assets	32.52T	10.22T	10.49T	3.27T	1.59T
Cash, Cash Equivalents and Short-Term Investments	3.76T	2.00T	627.91B	462.49B	307.79B
Total Debt	3.55T	465.73B	491.26B	160.31B	85.89B
Total Liabilities	26.45T	8.20T	8.59T	2.68T	1.32T
Stockholders Equity	6.06T	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	3.50T	1.67T	1.79T	1.72T	540.28B
Investing Cash Flow	862.19B	-81.86B	-58.23B	-51.06B	-19.94B
Financing Cash Flow	413.52B	-229.76B	83.96B	51.13B	-103.22B

Grupo Financiero Galicia SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 47.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 47.81 is below the 20-day moving average (MA) of 49.38, below the 50-day MA of 54.67, and below the 200-day MA of 57.18, indicating a bearish trend. The MACD of -2.12 indicates Negative momentum. The RSI at 36.87 is Neutral, neither overbought nor oversold. The STOCH value of 24.99 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
BSAC	76 Outperform	$11.14B	10.45	24.02%	5.63%	18.54%	65.80%
CIB	75 Outperform	$12.12B	13.50	15.99%	23.24%	-5.45%	3.43%
BMA	74 Outperform	$4.20B	942.19	0.11%	6.03%	-46.30%	-79.35%
GGAL	71 Outperform	$7.71B	5.15	28.17%	5.53%	-35.65%	70.23%
BBAR	70 Outperform	$3.12B	7.93	15.46%	0.46%	-48.81%	0.18%
BCH	69 Neutral	$14.35B	10.96	23.88%	0.28%	-17.02%	-10.73%
Sector *	68 Neutral	$16.89B	11.69	9.78%	3.90%	11.76%	-7.55%