Galp Energia SGPS SA (GLPEY) AI Stock Analysis

• Market Cap: $14.07B
• Dividend Yield: 1.94%
• Average Volume (3M): 15.03K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.40
• Revenue Growth: -3.86%
• EPS Growth: -25.50%
• Country: US
• Employees: 6,881
• Sector: Energy
• Sector Strength: 56
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.24
• Shares Outstanding: 1,390,831,300
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 15,025
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 0.83
• Enterprise Value/Gross Profit: 7.19
• Enterprise Value/Ebitda: 5.41
• 1Y Price Target: $10.50
• Price Target Upside: 12.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: $10.50 ▲(12.18% Upside)

Galp Energia's overall stock score of 71 is driven by strong earnings call guidance and a reasonable valuation. Stable financial performance supports the score, though declining revenue and cash flow challenges are risks. Technical analysis indicates a neutral outlook, with no significant corporate events impacting the score.

Positive Factors

Upstream Production Strength

The increase in upstream production capacity enhances Galp's ability to generate revenue from core operations, supporting long-term growth and stability.

LNG Trading Success

The success in LNG trading boosts midstream revenue, diversifying income sources and strengthening market position in the energy sector.

Upward Financial Guidance

Revised financial guidance reflects strong operational performance and management's confidence in sustaining profitability, supporting future growth.

Negative Factors

Declining Revenue Growth

Declining revenue growth poses a risk to long-term financial health, potentially impacting investment capacity and competitive positioning.

Currency Depreciation Impact

Currency depreciation can erode profit margins and affect international competitiveness, posing a challenge to sustaining financial performance.

Capital Gains Dispute in Mozambique

Legal disputes can lead to financial liabilities and distract management, potentially affecting operational focus and strategic initiatives.

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 primarily through its upstream activities, where it explores and produces oil and gas, selling these commodities in both domestic and international markets. The company also earns significant income from its downstream operations, which include refining crude oil into various petroleum products and marketing these products through its extensive retail network. Furthermore, Galp is investing in renewable energy projects, which are expected to contribute to future revenue streams as the global energy landscape shifts. Key partnerships with other energy companies and investments in joint ventures enhance its operational capabilities and market reach, while its integrated business model allows for cost efficiencies and risk management across its operations.

Galp Energia SGPS SA Financial Statement Overview

Summary

Galp Energia demonstrates stable profitability with a net profit margin of 4.82% and an EBIT margin of 10.63%. However, declining revenue growth and a decrease in gross profit margin pose potential risks. The balance sheet is moderately strong with a debt-to-equity ratio of 1.14 and a return on equity of 21.58%. Cash flow shows positive growth, but operational cash generation needs improvement.

Income Statement

Galp Energia's income statement shows a mixed performance. The company has experienced a decline in revenue growth, with a negative growth rate of -3.31% in the TTM period. However, it maintains a stable net profit margin of 4.82% and an EBIT margin of 10.63%, indicating operational efficiency. The gross profit margin has decreased compared to previous years, which could be a concern. Overall, while profitability remains stable, the declining revenue trend is a potential risk.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio of 1.14 in the TTM period suggests a balanced leverage, though slightly higher than the previous year. The return on equity is strong at 21.58%, indicating effective use of equity to generate profits. The equity ratio is stable, showing a solid capital structure. While the company has managed its debt well, maintaining this balance is crucial to avoid financial strain.

Cash Flow

Galp Energia's cash flow statement indicates some strengths and weaknesses. The free cash flow growth rate has improved by 13.23% in the TTM period, showing positive cash generation. However, the operating cash flow to net income ratio is relatively low at 0.42, suggesting that cash generation from operations could be improved. The free cash flow to net income ratio is moderate at 0.25, indicating that a portion of earnings is being converted into free cash flow. Overall, while there is positive cash flow growth, operational cash generation needs attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.35B	21.31B	20.77B	26.84B	16.11B	11.39B
Gross Profit	2.35B	2.73B	3.98B	2.67B	1.83B	166.00M
EBITDA	3.13B	3.50B	3.75B	4.54B	1.81B	1.19B
Net Income	980.00M	1.04B	1.24B	1.48B	191.00M	-490.00M
Balance Sheet
Total Assets	15.51B	16.82B	16.61B	16.10B	14.91B	12.49B
Cash, Cash Equivalents and Short-Term Investments	2.81B	2.44B	2.37B	2.74B	2.93B	1.83B
Total Debt	4.95B	4.91B	5.41B	5.26B	5.48B	4.83B
Total Liabilities	10.40B	11.18B	11.28B	10.98B	10.94B	8.39B
Stockholders Equity	4.33B	4.69B	4.41B	4.16B	3.05B	3.16B
Cash Flow
Free Cash Flow	505.00M	1.15B	1.57B	1.99B	273.00M	239.00M
Operating Cash Flow	1.74B	2.53B	2.63B	3.07B	1.05B	888.00M
Investing Cash Flow	-543.00M	-1.05B	-1.02B	-1.27B	-460.00M	-674.00M
Financing Cash Flow	-1.26B	-1.35B	-1.91B	-1.26B	-530.00M	190.00M

Galp Energia SGPS SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.36
• 50DMA: Negative
• 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 Positive. The current price of 9.36 is below the 20-day moving average (MA) of 9.48, below the 50-day MA of 9.47, and above the 200-day MA of 8.48, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 46.36 is Neutral, neither overbought nor oversold. The STOCH value of 15.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GLPEY.

Galp Energia SGPS SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
E	78 Outperform	$53.25B	20.27	4.83%	6.72%	-6.31%	-33.87%
EC	73 Outperform	$19.34B	6.55	15.94%	18.96%	-7.51%	-29.04%
PBR	73 Outperform	$78.37B	6.01	19.48%	13.07%	-13.68%	-13.96%
EQNR	73 Outperform	$62.12B	8.24	19.22%	8.58%	1.19%	-7.87%
YPF	72 Outperform	$11.35B	9.19	10.88%	―	4.28%	―
GLPEY	71 Outperform	$14.07B	13.04	21.08%	1.94%	-3.86%	-25.50%
Sector *	65 Neutral	$15.27B	7.60	4.09%	5.25%	4.03%	-61.87%