Galp Energia SGPS SA (GLPEY) AI Stock Analysis

• Market Cap: $12.96B
• Dividend Yield: 4.12%
• Average Volume (3M): 2.34K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.36
• Revenue Growth: 1.21%
• EPS Growth: -16.46%
• Country: US
• Employees: 6,881
• Sector: Energy
• Sector Strength: 42
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.26
• Shares Outstanding: 1,390,831,300
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 2,341
• PEG Ratio: <0.01
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.57
• 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: $10.00
• Price Target Upside: 8.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: $10.50 ▲(14.13%Upside)

Galp Energia scores well due to its solid financial performance, strategic resilience, and reasonable valuation. While technical indicators show strong bullish momentum, potential overbought conditions and cash flow challenges are risks to monitor. The company's strategic focus and successful divestments highlight its capability to navigate market volatility.

Galp Energia SGPS SA Business Overview & Revenue Model

Company Description

Galp Energia, SGPS, S.A. operates as an integrated energy operator in Portugal and internationally. The company operates through four segments: Upstream, Industrial & Energy Management, Commercial, and Renewables and New Business. The Upstream segment engages in the exploration, development, and production of hydrocarbons primarily in Brazil, Mozambique, and Angola. The Industrial & Energy Management segment owns refineries in Portugal, as well as is involved in activities related to energy management of oil products, gas, and electricity. This segment also provides storage and transportation infrastructure for oil and gas products, as well as engages in the sale of electricity to the grid in Portugal and Spain. The Commercial segment is involved in the areas of retail to final business-to-business and business to consumer customers of oil, gas, and electricity. The Renewables and New Business segment is involved in the development of solar and wind power generation projects in Portugal and Spain. In addition, it produces biodiesel, biofuel, and green hydrogen; and operates 1,480 service stations and 1,186 electric mobility charging points. Further, the company engages in the reinsurance business. The company was formerly known as Galp – Petróleos e Gás de Portugal, SGPS, S.A. and changed its name to Galp Energia, SGPS, S.A. in September 2000. Galp Energia, SGPS, S.A. was incorporated in 1999 and is headquartered in Lisbon, Portugal.

How the Company Makes Money

Galp Energia generates revenue through multiple streams primarily centered around its activities in the oil and gas sector. Its upstream segment, which involves the exploration and production of oil and natural gas, contributes significantly to its earnings through the sale of crude oil and gas. The downstream segment, comprising refining and marketing, earns money by processing crude oil into refined products like gasoline, diesel, and jet fuel, which are then sold to both retail and wholesale markets. Additionally, Galp's renewable energy initiatives, including solar and wind power projects, provide revenue through the sale of electricity. The company's strategic partnerships and joint ventures in various regions enhance its operational capabilities and market reach, further boosting its financial performance.

Galp Energia SGPS SA Financial Statement Overview

Summary

Galp Energia shows stable financial performance with strong profitability metrics and a solid equity base. However, challenges in revenue growth and cash flow generation, along with potential vulnerabilities in external conditions, present risks.

Income Statement

Galp Energia has demonstrated stable profitability with consistent EBIT and EBITDA margins. The TTM (Trailing-Twelve-Months) gross profit margin is 11.59% and the net profit margin is 4.89%. However, there is a slight decline in revenue growth with a -1.26% decrease in revenue from 2024 to TTM 2025, indicating potential challenges in revenue generation.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 1.03, indicating balanced leverage levels. The equity ratio stands at 29.40%, suggesting a solid equity base. Return on equity has been stable, with some fluctuations, currently at 21.55%, which reflects decent profitability relative to shareholder investments. The balance sheet is stable but shows potential vulnerability if external conditions worsen.

Cash Flow

Galp Energia's cash flow performance is mixed, with a notable decline in free cash flow from 2024 to TTM 2025, resulting in a -61.22% free cash flow growth rate. The operating cash flow to net income ratio is 1.75, indicating efficient cash generation relative to profits. However, the free cash flow to net income ratio has decreased significantly, suggesting cash flow pressures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.04B	21.31B	20.77B	26.84B	16.11B	11.39B
Gross Profit	2.44B	2.73B	3.98B	2.67B	1.83B	166.00M
EBITDA	3.36B	3.50B	3.75B	4.54B	1.81B	1.19B
Net Income	1.03B	1.04B	1.24B	1.48B	191.00M	-490.00M
Balance Sheet
Total Assets	16.23B	16.82B	16.61B	16.10B	14.91B	12.49B
Cash, Cash Equivalents and Short-Term Investments	2.79B	2.44B	2.37B	2.74B	2.93B	1.83B
Total Debt	4.93B	4.91B	5.41B	5.26B	5.48B	4.83B
Total Liabilities	10.67B	11.18B	11.28B	10.98B	10.94B	8.39B
Stockholders Equity	4.77B	4.69B	4.41B	4.16B	3.05B	3.16B
Cash Flow
Free Cash Flow	446.00M	1.15B	1.57B	1.99B	273.00M	239.00M
Operating Cash Flow	1.80B	2.53B	2.63B	3.07B	1.05B	888.00M
Investing Cash Flow	-88.00M	-1.05B	-1.02B	-1.27B	-460.00M	-674.00M
Financing Cash Flow	-1.13B	-1.35B	-1.91B	-1.26B	-530.00M	190.00M

Galp Energia SGPS SA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLPEY, the sentiment is Neutral. The current price of 9.2 is below the 20-day moving average (MA) of 9.30, above the 50-day MA of 8.65, and above the 200-day MA of 8.40, indicating a neutral trend. The MACD of 0.19 indicates Positive momentum. The RSI at 53.87 is Neutral, neither overbought nor oversold. The STOCH value of 2.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GLPEY.

Galp Energia SGPS SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EC	83 Outperform	$18.38B	5.38	18.64%	70.27%	-2.26%	-20.04%
TTE	78 Outperform	$137.79B	10.13	11.75%	4.60%	-9.86%	-32.59%
PBR	75 Outperform	$76.56B	9.36	11.25%	27.24%	-10.84%	-61.73%
E	73 Outperform	$50.28B	18.50	4.78%	3.38%	-2.17%	-25.00%
EQNR	73 Outperform	$65.17B	8.10	18.28%	5.75%	3.96%	-1.69%
GLPEY	71 Outperform	$12.96B	12.58	21.35%	4.12%	1.21%	-16.46%
Sector *	52 Neutral	C$2.94B	-1.05	-3.46%	5.87%	3.01%	-47.13%