Galp Energia SGPS SA (GLPEY) AI Stock Analysis

• Market Cap: $15.30B
• Dividend Yield: 3.71%
• Average Volume (3M): 786.00
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.52
• Revenue Growth: -5.97%
• EPS Growth: -23.18%
• Country: US
• Employees: 6,881
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.21
• Shares Outstanding: 1,390,831,300
• 10 Day Avg. Volume: 2,359
• 30 Day Avg. Volume: 786
• PEG Ratio: -0.41
• Price to Book (P/B): 5.19
• Price to Sales (P/S): 1.14
• P/FCF Ratio: 21.16
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 7.28
• Enterprise Value/Ebitda: 5.47
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $11.00 ▲(10.66% Upside)

Galp Energia's overall score reflects strong operational performance and positive technical indicators. While financial performance is stable, declining revenue and cash flow efficiency need improvement. The earnings call provided confidence in future growth, despite some external challenges.

Positive Factors

Strong Upstream Production

Consistent high production levels in Brazil strengthen Galp's upstream segment, ensuring stable revenue and enhancing market position.

Bacalhau Project Milestone

Achieving first oil at Bacalhau is a significant milestone that will boost future cash flows, supporting long-term financial health and growth.

Financial Resilience

Lowering net debt enhances financial stability, providing a solid base for future investments and shielding against economic volatility.

Negative Factors

Declining Revenue Growth

Continued revenue decline poses a risk to long-term profitability and market competitiveness, necessitating strategic adjustments.

Operational Cash Flow Concerns

Low operational cash flow conversion indicates inefficiencies in cash generation, potentially affecting liquidity and investment capacity.

Volatile Macro Environment

Ongoing macroeconomic volatility could impact operational stability and profitability, requiring adaptive strategies to mitigate risks.

Galp Energia SGPS SA Business Overview & Revenue Model

Company Description

Galp Energia SGPS SA is a Portuguese multinational energy company engaged in the exploration, production, refining, and distribution of oil and gas, as well as the development of renewable energy sources. The company operates in various sectors, including upstream (exploration and production of oil and natural gas), midstream (transportation and storage of hydrocarbons), and downstream (refining and marketing of fuels and lubricants). Additionally, Galp is involved in renewable energy projects, particularly in solar and wind energy, aligning with global trends towards sustainability.

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 strong return on equity and improving cash flow. However, declining revenue and the need for better operational cash flow generation are concerns.

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: 9.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 9.94 is below the 20-day moving average (MA) of 10.24, above the 50-day MA of 9.92, and above the 200-day MA of 8.92, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 55.71 is Neutral, neither overbought nor oversold. The STOCH value of 58.46 is Neutral, 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	79 Outperform	$57.46B	18.78	5.31%	5.90%	-3.84%	15.75%
PBR	77 Outperform	$79.14B	5.89	18.20%	12.71%	-11.63%	-15.67%
EC	74 Outperform	$20.72B	7.44	13.79%	17.67%	-7.47%	-28.81%
GLPEY	72 Outperform	$15.30B	13.84	21.59%	3.71%	-5.97%	-23.18%
EQNR	69 Neutral	$58.20B	10.82	13.46%	7.32%	1.53%	-35.81%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
YPF	54 Neutral	$15.09B	―	-4.00%	―	-2.76%	56.81%

Galp Energia SGPS SA Corporate Events

Galp Energia Reports Strong Q3 2025 Performance

Galp Energia is a prominent energy company engaged in oil and gas exploration and production, refining, and marketing, with a significant presence in the renewable energy sector. In its recent earnings report, Galp Energia showcased a strong operational performance for the third quarter of 2025, despite a challenging macroeconomic environment. The company reported a robust RCA Ebitda of €911 million, driven by solid results in its upstream and downstream operations, and a notable reduction in net debt to €1.2 billion. Key highlights include the start of production at the Bacalhau FPSO, which is expected to enhance short-term cash flow, and ongoing negotiations in Namibia for a strategic partnership. Looking ahead, Galp Energia remains confident in surpassing its 2025 guidance for Ebitda and operating cash flow, with a strategic focus on advancing its low-carbon projects and expanding its renewable energy capacity.