Grupo Financiero Galicia SA (GGAL) AI Stock Analysis

• Market Cap: $5.81B
• Dividend Yield: 2.2%
• Average Volume (3M): 3.68M
• Price to Earnings (P/E): 4.7
• Beta (1Y): 0.39
• Revenue Growth: -42.92%
• EPS Growth: -21.46%
• Country: US
• Employees: 9,183
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.90
• Shares Outstanding: 132,503,200
• 10 Day Avg. Volume: 3,417,988
• 30 Day Avg. Volume: 3,675,944
• PEG Ratio: 0.05
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 0.90
• P/FCF Ratio: -3.26
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: <0.01
• 1Y Price Target: $46.00
• Price Target Upside: 42.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 70 Outperform
• Price Target: $38.00 ▲(17.98% Upside)

Grupo Financiero Galicia SA's overall stock score is driven by strong financial performance and attractive valuation. However, technical indicators suggest potential bearish momentum, and the earnings call revealed significant challenges, including a sharp decline in net income and increased nonperforming loans.

Positive Factors

Successful Merger

The merger with Galicia Más strengthens GGAL's market position, enhancing its competitive edge and expanding its customer base, which is crucial for long-term growth.

Loan and Deposit Growth

Significant growth in loans and deposits indicates robust demand for GGAL's financial services, supporting revenue expansion and market penetration over the long term.

Net Fee Income Increase

Rising net fee income diversifies GGAL's revenue streams, reducing reliance on interest income and enhancing profitability through sustained service demand.

Negative Factors

Significant Net Income Decline

A sharp decline in net income reflects operational challenges and economic pressures, potentially impacting GGAL's ability to invest in growth and innovation.

Increase in Nonperforming Loans

Rising nonperforming loans indicate credit quality issues, which could strain GGAL's financial health and require increased provisions, affecting future profitability.

Margin Compression

Margin compression due to interest rate volatility can erode profitability, challenging GGAL's ability to maintain stable earnings in a fluctuating economic environment.

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 generates revenue through multiple key streams, primarily from interest income on loans and financial products offered to its customers. The bank earns interest from personal and corporate loans, credit card receivables, and mortgages, which constitute a significant portion of its revenue. Additionally, service fees from account maintenance, transaction fees, and commissions on the sale of investment products contribute to its earnings. The company also engages in investment banking activities, which include underwriting and advisory services, adding another layer to its revenue generation. Partnerships with various financial institutions and businesses enhance its product offerings and customer base, thus creating synergies that further support its earnings potential.

Grupo Financiero Galicia SA Financial Statement Overview

Summary

Grupo Financiero Galicia SA shows strong revenue growth and profitability with a solid balance sheet. However, challenges in cash flow management and increased liabilities pose risks.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.52T	10.63T	3.35T	5.01T	562.82B	279.83B
Gross Profit	5.91T	6.66T	3.35T	4.33T	1.63T	511.15B
EBITDA	1.44T	2.40T	1.37T	0.00	0.00	0.00
Net Income	1.14T	1.62T	337.17B	151.26B	188.62B	74.01B
Balance Sheet
Total Assets	37.70T	32.52T	10.22T	10.49T	3.27T	1.59T
Cash, Cash Equivalents and Short-Term Investments	6.07T	3.76T	2.00T	627.91B	462.49B	307.79B
Total Debt	2.22T	2.16T	465.73B	491.26B	160.31B	85.89B
Total Liabilities	30.77T	26.45T	8.20T	8.59T	2.68T	1.32T
Stockholders Equity	6.93T	6.06T	2.02T	1.90T	593.09B	275.22B
Cash Flow
Free Cash Flow	-6.05T	-2.92T	1.59T	1.74T	-302.46B	519.33B
Operating Cash Flow	-5.80T	-2.70T	6.22T	1.79T	-281.92B	540.28B
Investing Cash Flow	816.10B	939.32B	-178.26B	-137.68B	-17.57B	-19.94B
Financing Cash Flow	8.61T	413.52B	-500.34B	83.96B	51.13B	-103.22B

Grupo Financiero Galicia SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 32.21 is above the 20-day moving average (MA) of 29.90, below the 50-day MA of 37.13, and below the 200-day MA of 52.22, indicating a neutral trend. The MACD of -1.00 indicates Negative momentum. The RSI at 49.89 is Neutral, neither overbought nor oversold. The STOCH value of 81.54 is Negative, 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
SUPV	71 Outperform	$638.87M	8.89	8.59%	2.87%	-55.30%	-64.02%
GGAL	70 Outperform	$5.81B	4.67	22.42%	2.20%	-42.92%	-21.46%
BSAC	68 Neutral	$12.50B	11.25	24.13%	4.97%	12.43%	56.30%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BMA	64 Neutral	$3.62B	8.53	10.91%	2.22%	-57.78%	-67.92%
BBAR	64 Neutral	$2.15B	6.03	13.26%	0.60%	-47.41%	-18.95%
AVAL	63 Neutral	$4.16B	10.77	9.57%	3.35%	-6.63%	241.66%

Grupo Financiero Galicia SA Corporate Events

Grupo Financiero Galicia Announces October 2025 Cash Dividend Payment

On October 2, 2025, Grupo Financiero Galicia S.A. announced a cash dividend payment to its shareholders, as decided in the shareholders’ meeting on April 29, 2025. The payment, amounting to Ps. 35,845,086,882.80, will be distributed to shareholders registered by October 7, 2025, with the payment date set for October 13, 2025. This dividend distribution is subject to applicable taxes, including a 7% withholding tax, and will be processed through Caja de Valores S.A. for local shareholders and through the Bank of New York Mellon for ADR holders. The announcement reflects the company’s commitment to returning value to its shareholders and may have implications for its financial positioning and stakeholder relations.

Grupo Financiero Galicia Announces October 2025 Cash Dividend

On October 2, 2025, Grupo Financiero Galicia S.A. announced a significant financial decision to distribute a cash dividend amounting to Ps. 35,845,086,882.80 to shareholders registered by October 7, 2025. This move, authorized during the Ordinary Shareholders’ Meeting on April 29, 2025, reflects the company’s commitment to returning value to its investors and could positively impact its market position by enhancing shareholder satisfaction.

Grupo Financiero Galicia Announces Fourth Dividend Payment for FY 2024

On September 30, 2025, Grupo Financiero Galicia S.A. announced that its subsidiary, Banco de Galicia y Buenos Aires S.A., has made available the fourth installment of cash dividends for the fiscal year 2024, amounting to ARS 35,845,730,979.60. This distribution, authorized by the Argentine Central Bank, is subject to a 7% withholding tax and reflects the company’s commitment to returning value to its shareholders, potentially strengthening its market position and stakeholder confidence.

Grupo Financiero Galicia Announces September 2025 Cash Dividend Payment

On September 2, 2025, Grupo Financiero Galicia S.A. announced a cash dividend payment to its shareholders, following a decision made at the shareholders’ meeting on April 29, 2025. The dividend, amounting to Ps. 35,185,087,298.29 or Ps. 21.9050618610535 per share, will be distributed to shareholders registered by September 5, 2025, with payments commencing on September 10, 2025. This distribution is subject to deductions for Personal Asset Tax and a 7% withholding tax under Argentine law, and will be processed through Caja de Valores S.A. for local shareholders and the Bank of New York Mellon for ADR holders.

Grupo Financiero Galicia Announces September 2025 Cash Dividend

On September 2, 2025, Grupo Financiero Galicia S.A. announced a cash dividend distribution of Ps. 35,185,087,298.29 to shareholders registered by September 5, 2025, with payments commencing on September 10, 2025. This decision, authorized by the Ordinary Shareholders’ Meeting in April 2025, reflects the company’s commitment to returning value to its shareholders and may enhance investor confidence in its financial stability.

Grupo Financiero Galicia Announces Third Dividend Payment for FY 2024

On August 29, 2025, Grupo Financiero Galicia S.A. announced that its subsidiary, Banco de Galicia y Buenos Aires S.A., has commenced the third installment of cash dividend payments for the fiscal year 2024, amounting to ARS 35,185,719,535.63. This distribution, authorized by the Argentine Central Bank, reflects the company’s commitment to its shareholders and is subject to a 7% withholding tax as per Argentine tax regulations.

Grupo Financiero Galicia Announces Q2 2025 Financial Results Amid Corporate Reorganization

On August 26, 2025, Grupo Financiero Galicia S.A. reported its financial results for the second quarter of 2025, ending June 30. The company underwent a significant corporate reorganization following the acquisition of HSBC Argentina’s businesses, aiming to optimize resources and consolidate its product portfolio. The reorganization resulted in the unification of its banking and mutual fund management businesses, enhancing its financial ecosystem and customer value proposition. Despite these strategic moves, the company reported a 70% decrease in net income compared to the second quarter of 2024, reflecting challenges in the current economic environment.

Grupo Financiero Galicia Announces Leadership Change at Banco Galicia

On August 6, 2025, Grupo Financiero Galicia S.A. announced the appointment of Mr. Diego Hernán Rivas as the new CEO of its subsidiary, Banco de Galicia y Buenos Aires S.A., effective September 1, 2025, pending approval from the Argentine Central Bank. The current CEO, Mr. Fabián Enrique Kon, will continue to serve as CEO of Grupo Financiero Galicia S.A., focusing on the group’s overall strategy, indicating a strategic leadership transition aimed at strengthening the company’s market position.

Grupo Financiero Galicia Announces August 2025 Dividend Payment

On August 4, 2025, Grupo Financiero Galicia S.A. announced a cash dividend payment to its shareholders, following a decision made at the shareholders’ meeting on April 29, 2025. The payment, amounting to approximately Ps. 34.5 billion or Ps. 21.496 per share, is scheduled for August 12, 2025, with a record date of August 7, 2025. This distribution is subject to applicable taxes, including a 7% withholding tax, and will be processed through Caja de Valores S.A. for local shareholders and the Bank of New York Mellon for ADR holders. This announcement reflects the company’s commitment to returning value to its shareholders, potentially enhancing its market position and investor confidence.

Grupo Financiero Galicia Announces Major Cash Dividend

On August 4, 2025, Grupo Financiero Galicia S.A. announced a significant financial move with the issuance of a cash dividend totaling Ps. 34,528,465,086.77. This decision, approved during the Ordinary Shareholders’ Meeting on April 29, 2025, is set to benefit shareholders registered by August 7, 2025, with payments commencing on August 12, 2025. This dividend issuance underscores the company’s strong financial position and commitment to delivering shareholder value, potentially enhancing its market reputation and stakeholder confidence.

Grupo Financiero Galicia Announces Second Dividend Payment for FY 2024

On July 31, 2025, Grupo Financiero Galicia S.A. announced that its subsidiary, Banco de Galicia y Buenos Aires S.A., has made available the second installment of cash dividends for the fiscal year 2024. The payment, totaling ARS 34,529,085,525.33, is distributed according to shareholders’ holdings and authorized by the Argentine Central Bank. This distribution is subject to a 7% withholding tax as per Argentine Income Tax Law.