Galenica GALE.SW
SwitzerlandHealthcare · Medical DistributionSIX Swiss Exchange · CHF
87.60 CHF (+5.0%)
5 analysts
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Galenica is a Swiss healthcare group that operates as a wholesale distributor of pharmaceutical and consumer products, as well as managing a network of retail pharmacies, being a key player in Switzerland's pharmaceutical supply chain.
Listed on SIX Swiss Exchange · Symbol GALE.SW · SWX: GALE · Currency CHF
Key points
from its scores- ✓Favourable backdrop8.5
- ✕Fragile balance sheet2.9
- ✕Weak growth3.6
- ✕Little competitive advantage3.9
AI analysis
bottom line, main risk, context and newsHold, given the leveraged balance sheet and negative earnings growth, pending an improvement in cash generation and debt reduction.
Galenica shows weak financial health (3.53) due to its high leverage (Net Debt/EBITDA of 4.18) and a very low operating margin (3.89%), while its earnings growth is negative (-24.9%). The valuation (P/E 25.84) is not justified by these fundamentals, although the dividend (2.40%) offers some yield.
The main risk is the high leverage (Net Debt/EBITDA of 4.18) which, combined with a very low operating margin (3.89%), leaves the company vulnerable to any pricing pressure or a tightening of financing conditions.
Context and risks
Galenica operates in Switzerland, a country with solid institutions and minority shareholder protection, but the assigned governance risk profile reflects a moderate regulatory risk in the pharmaceutical distribution sector, where prices and margins may be subject to political pressure. This risk is structural and not derived from recent news.
Is Galenica stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 19% above the Healthcare median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 25.8 | 26.7 | −3% |
| EV / EBITDA | 20.5 | 14.5 | +41% |
| Price / book | 2.9 | 4.1 | −28% |
| Price / sales | 1.0 | 3.4 | −72% |
Sector: median of the 217 Healthcare companies analysed. In bold, the multiples used for the comparison.
Valuation score: 4.4 out of 10 (median for Healthcare: 4.7).
Average analyst target: 87.60 CHF, +5.0% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 3.9 (sector 5.5), Growth 3.6 (sector 6.6).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Healthcare medianValuation
- P/E
- 25.8
- Forward P/E
- 19.6
- EV / EBITDA
- 20.5
- Price / book
- 2.9
- Price / sales
- 1.0
- Market cap
- 4.2B CHF
- Enterprise value
- 5.2B CHF
Profitability
- ROE
- 11.4%
- ROA
- 4.0%
- ROIC (approx.)
- 6.6%
- Gross margin
- 12.5%
- Operating margin
- 3.9%
- Net margin
- 3.7%
- Free cash flow
- 129.1M CHF
- FCF yield
- 3.1%
- Cash conversion
- 51%
Solvency
- Total debt
- 1.1B CHF
- Net debt
- 1.1B CHF
- Cash
- 39.6M CHF
- EBITDA
- 255.7M CHF
- Net debt / EBITDA
- 4.18
- Debt / equity
- 78.31
- Current ratio
- 1.07
- Quick ratio
- 0.64
Growth
- Revenue growth
- +7.0%
- Earnings growth
- −24.9%
- EPS (TTM)
- 3.23 CHF
- EPS (forward)
- 4.25 CHF
Dividend
- Dividend yield
- 3.0%
- Payout
- 77.4%
Risk and market
- Beta
- 0.26
- Analyst consensus
- none (5)
- Target price
- 87.60 CHF
- 52-week range
- 80.30 – 103.00
Recent news
All GALE.SW news →Compare it with its sector
All 217 in Healthcare →Frequently asked questions about Galenica
Is Galenica stock cheap or expensive?
On P/E and EV / EBITDA, it trades 19% above the Healthcare median on average. Valuation score: 4.4 out of 10 (median for Healthcare: 4.7). Average analyst target: 87.60 CHF, +5.0% versus the price. This is not investment advice.
What score does Galenica get on MeridIAn Screener?
It scores 4.7 out of 10, rank 1,813 of 2,130 (better than 14% of the companies analysed). Its strongest category is Risk & Context (8.5) and its weakest, Financial health (2.9). Analysis of 08/10/2026.
What is Galenica's P/E ratio?
Its P/E is 25.8: the share price equals 25.8 times earnings per share over the last 12 months. The Healthcare median is 26.7. Based on the earnings analysts expect, the forward P/E is 19.6.
How much is Galenica worth on the stock market?
Its market capitalisation is 4.2B CHF and its enterprise value, debt included, is 5.2B CHF.
How much debt does Galenica have?
Its net debt (debt minus cash) is 1.1B CHF. That is 4.18 times its EBITDA; the Healthcare median is 1.53.
Does Galenica pay a dividend?
Yes: its dividend yield is 3.00% and it pays out 77% of its earnings.
How has Galenica stock performed over the last year?
It has fallen 3.1% over the last year, excluding dividends. Over the last 52 weeks it has traded between 80.30 and 103.00 CHF. Past performance does not guarantee future results.
What do analysts think of Galenica?
5 analysts cover it; their average recommendation is “none” and their average target is 87.60 CHF (+5.0% versus the price). It is an estimate, not market data.