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Grupo Financiero Galicia SA (GGAL)
NASDAQ:GGAL

Grupo Financiero Galicia SA (GGAL) AI Stock Analysis

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Grupo Financiero Galicia SA

(NASDAQ:GGAL)

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
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 (GGAL) vs. SPDR S&P 500 ETF (SPY)

Grupo Financiero Galicia SA Business Overview & Revenue Model

Company DescriptionGrupo 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 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 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
85
Very Positive
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
78
Positive
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
70
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.69T3.35T2.15T1.76T597.96B
Gross Profit6.91T3.35T2.15T1.76T597.96B
EBITDA2.40T36.33M0.000.000.00
Net Income1.62T337.17B151.26B188.62B74.01B
Balance Sheet
Total Assets32.52T10.22T10.49T3.27T1.59T
Cash, Cash Equivalents and Short-Term Investments3.76T2.00T627.91B462.49B307.79B
Total Debt3.55T465.73B491.26B160.31B85.89B
Total Liabilities26.45T8.20T8.59T2.68T1.32T
Stockholders Equity6.06T2.02T1.90T593.09B275.22B
Cash Flow
Free Cash Flow-12.35T1.59T1.74T1.66T519.33B
Operating Cash Flow3.50T1.67T1.79T1.72T540.28B
Investing Cash Flow862.19B-81.86B-58.23B-51.06B-19.94B
Financing Cash Flow413.52B-229.76B83.96B51.13B-103.22B

Grupo Financiero Galicia SA Technical Analysis

Technical Analysis Sentiment
Negative
Last Price49.99
Price Trends
50DMA
57.81
Negative
100DMA
57.27
Negative
200DMA
56.92
Negative
Market Momentum
MACD
-2.02
Positive
RSI
33.54
Neutral
STOCH
19.94
Positive
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 49.99 is below the 20-day moving average (MA) of 53.61, below the 50-day MA of 57.81, and below the 200-day MA of 56.92, indicating a bearish trend. The MACD of -2.02 indicates Positive momentum. The RSI at 33.54 is Neutral, neither overbought nor oversold. The STOCH value of 19.94 is Positive, 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 (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$3.33B8.5215.46%37.40%-48.81%0.18%
76
Outperform
$11.77B11.0724.02%5.27%18.54%65.80%
CICIB
75
Outperform
$11.58B13.4415.99%14.91%-5.45%3.43%
BMBMA
74
Outperform
$4.44B1,013.430.11%31.07%-46.30%-79.35%
BCBCH
73
Outperform
$15.34B11.6923.88%6.92%-17.02%-10.73%
71
Outperform
$8.14B5.3828.17%2.14%-35.65%70.23%
58
Neutral
$12.54B5.84-2.71%5.27%5.88%-56.03%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GGAL
Grupo Financiero Galicia SA
50.38
23.24
85.63%
BCH
Banco De Chile
30.33
8.10
36.44%
BMA
Banco Macro SA
69.50
17.30
33.14%
BSAC
Banco Santander Chile
25.12
6.94
38.17%
CIB
Bancolombia
45.72
17.37
61.27%
BBAR
Banco BBVA Argentina
16.31
8.35
104.90%
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.Date of analysis: Apr 15, 2025