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Grupo Financiero Galicia S.A.: Argentina's Old-Money Financial Group Is An Interesting Call On Stabilization

Martín Maas profile picture
Martín Maas


  • 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.
Argentina Imposes Controls On Foreign Exchange Market
Photo by Ricardo Ceppi/Getty Images News via Getty Images

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This article was written by

Martín Maas profile picture
I am an Argentinean independent investor and analyst. Even though I have a PhD in Mathematics, I favor a simple, qualitative approach to long term investing.

Analyst’s Disclosure: I am/we are long GGAL, CEPU. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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