GGAL - Grupo Financiero Galicia S.A.: Argentina's Old-Money Financial Group Is An Interesting Call On Stabilization
- GGAL is trading below Book Value, and has a hard-to-estimate but double-digit real ROE.
- Importantly, the Argentine peso itself looks undervalued.
- Additionally, Argentina has a minuscule financial system. If the country finances stabilize, banks could experience significant real growth at zero cost.
- GGAL's corporate structure is dominated by a few old-money families. Management compensation looks reasonable, and the company has been paying a cash dividend for the past 15 years.
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Grupo Financiero Galicia S.A.: Argentina's Old-Money Financial Group Is An Interesting Call On Stabilization