Citigroup: Underpriced But Struggling To Create Value

May 15, 2023 4:24 PM ETCitigroup Inc. (C) StockC20 Comments

Summary

  • Citigroup shares appear to be cheap and offer compelling value.
  • Berkshire Hathaway's investment in Citigroup last year offered more support to the bull case.
  • And yet, Citigroup is still unable to close its massive gap to book value. In fact, it's getting even wider.
  • The recently announced Banamex asset sale is another example of the firm's mediocre capital allocation decisions.
  • Looking for more investing ideas like this one? Get them exclusively at Ian's Insider Corner. Learn More »

Citigroup Reports 25 Percent Drop In Quarterly Earnings

Michael M. Santiago

Citigroup (NYSE:C) finds itself in an odd place within the American banking industry. It's a household brand and certainly in the too-big-too-fail camp. Shares have also appeared to be one of the cheapest options within the banking

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This article was written by

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Ian Bezek is a former hedge fund analyst at Kerrisdale Capital. He has spent the decade living in Latin America, doing the boots-on-the ground research for investors interested in markets such as Mexico, Colombia, and Chile. He also specializes in high-quality compounders and growth stocks at reasonable prices in the US and other developed markets.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of WFC, BRK.B either through stock ownership, options, or other derivatives. 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.

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