The average target price of GALD.SW is 111 and suggests 13% downside potential. Usually, this means a SELL recommendation among investment firms, or a recommendation to decrease one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 131.5. This translates into 2% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 83.6. This is equivalent to 35% downside potential in the worst case. 

Galderma Group AG is engaged in cosmetic industry. Its segment includes Injectable Aesthetics, Dermatological Skincare and Therapeutic Dermatology.

Switzerland

Galderma Group N

Consumer Cyclical

The company pays dividends on rare occasions. There have only been a few years with dividend payments in the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are unclear. In the past 12 months, the dividend yield has barely been above zero and was substantially below that of its peers. 

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). The stock has outperformed this peer group by 19ppts over past six months and grown 11ppts faster in the past month. At the same time, the stock's performance relative to its the peers from the same country and sector is different. The stock outperformed these peers by 20ppts over the past six months and grew 12ppts faster in the past month. With respect to the stock's valuation against its peers, its overall price performance is 'fair'.

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 0.3 in the past several years. This ratio implies a weak shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

GALD.SW has average trading liquidity. The average private investor can sell his common position in the stock immediately. Liquidity is very unstable and becomes extremely unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to negligible return on capital, weak debt servicing capacity, and inadequate interest coverage. 

In highly turbulent market conditions, GALD.SW is not overly volatile. In other words, the stock will fall less than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be low. 

In normal market circumstances, GALD.SW is not overly volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will remain relatively stable. The stock's losses on its worst days (less than 1-5% of the time) will range from low to mild. We would also like to highlight the mild intraday volatility of the instrument. 

Considering past and projected metrics, the stock is distinctly 'expensive' compared to its peers. Specifically, the stock is 'expensive' on P/E, overvalued on EV/EBITDA, overpriced on P/FCF. 

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Galderma Group N

CHF 133.7

4

Galderma Group N

CHF 133.7

4

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

CHF 133.7

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