Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Thematic (Sector/Industry)

<ul>
<li>We lift the lid on the consumer finance arms of ten leading LatAm retailers, providing corporate summaries in this primer on those entities with “skin in the game” of LatAm consumer credit</li>
<li>Our top pick is Mexican department store retailer <a href="https://www.smartkarma.com/entities/27611" target="_blank" data-smartkarma-citation="entities:27611:1">El Puerto de Liverpool SAB de (LIVEPOLC MM)</a> , given its attractive valuations; it is also the third largest issuer of credit cards in Mexico and the portfolio has a relatively low NPL ratio with healthy NPL coverage</li>
<li>Brazilian department store and apparel retailer <a href="https://www.smartkarma.com/entities/28023" target="_blank" data-smartkarma-citation="entities:28023:1">Guararapes Confeccoes SA (GUAR3 BZ)</a> is the second largest private label card issuer in Brazil and an attractive value, we believe, even if in the consumer credit arm its NPL coverage levels are a bit lower than its peers</li>
<li>In Chile, we like the business and geographic focus of <a href="https://www.smartkarma.com/entities/28022" target="_blank" data-smartkarma-citation="entities:28022:1">Ripley Corp SA (RIPLEY CI)</a>, despite Ripley's high debt to equity ratio, and its high return banking business in Chile in particular</li>
<li>
<a href="https://www.smartkarma.com/entities/27954" target="_blank" data-smartkarma-citation="entities:27954:1">MercadoLibre Inc (MELI US)</a> is the leader in LatAm e-commerce, with structural growth potential. It has a fast growing and, we believe, profitable payments operation in MercadoPago and small but high growth potential credit business in MercadoCredito, yet we believe that the current intensifying Brazilian competitive climate and Argentine political and economic outlook are real and near-term headwinds for the share price</li>
</ul>


We lift the lid on the consumer finance arms of ten leading LatAm retailers, providing corporate summaries in this primer on those entities with “skin in the game” of LatAm consumer credit
Our top pick is Mexican department store retailer El Puerto de Liverpool SAB de (LIVEPOLC MM) , given its attractive valuations; it is also the third largest issuer of credit cards in Mexico and the portfolio has a relatively low NPL ratio with healthy NPL coverage
Brazilian department store and apparel retailer Guararapes Confeccoes SA (GUAR3 BZ) is the second largest private label card issuer in Brazil and an attractive value, we believe, even if in the consumer credit arm its NPL coverage levels are a bit lower than its peers
In Chile, we like the business and geographic focus of Ripley Corp SA (RIPLEY CI), despite Ripley's high debt to equity ratio, and its high return banking business in Chile in particular

MercadoLibre Inc (MELI US) is the leader in LatAm e-commerce, with structural growth potential. It has a fast growing and, we believe, profitable payments operation in MercadoPago and small but high growth potential credit business in MercadoCredito, yet we believe that the current intensifying Brazilian competitive climate and Argentine political and economic outlook are real and near-term headwinds for the share price


Banking on Retail: A Primer on The Credit Operations of Leading LatAm Retailers

Brazil

Guararapes Confeccoes S.A. finishes textile fibers to produce a variety of apparel products.  The Company distributes and markets its products throughout Brazil.

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Banking on Retail: A Primer on The Credit Operations of Leading LatAm Retailers

We lift the lid on the consumer finance arms of ten leading LatAm retailers, providing corporate summaries in this primer on those entities with...

Victor Galliano