The Financial Grimes: 11 very deep value stocks

by Jeremy Grime, an ii contributor |

This top City analyst reviews the financial sector stocks making headlines today.

Jeremy Grime spent 15 years as a financial sector analyst, working at Altium Capital, RBC Capital Markets, Panmure Gordon and most recently as Director of Research at finnCap. Jeremy is also a qualified accountant.

Jeremy's blog is written with more experienced investors in mind. However, we have included a brief glossary at the bottom of the page to help those less familiar with some of the language used. For more on key financial metrics and valuation ratios click here.


  • I have recently found myself wondering if this low interest rate environment means economic cycles that we have loved and feared are now a thing of the past and the economy is more like a drunk stumbling along the pavement. And therefore maybe the underperformance of value is actually correct as the only growth is structural rather than cyclical. Until the graph below reminded me that these thoughts happen at the moment of capitulation. It may well be time for the pain trade of buying value.

  • And there are some very deep value stocks out there. I would point out a few contenders in the car boot sale:


Bank of Georgia – H1 Results  

Share Price 1346p

Mkt Cap £644 million

Conflict Disclosure: No Holding

Bank of Georgia (LSE:BGEO) is a retail bank in Georgia.

  • Results  PBT up 8.8% to 223.4 million Georgian Lari (GEL) which equates to a ROAE of 23.7%. Impairment charge reduced from 1.7$ to 1.5%. Loan book growth was 19% in constant currency, 30% reported currency, while the Tier 1 capital adequacy was 13.3%, compared to a requirement of 11.6%. Outlook is well placed to deliver strong growth over the coming years.
  • Estimates Full-year estimates look for GEL 502 million PBT, which looks reasonable in the light of GEL 223 million in H1
  • Valuation PER 4.8, Yield 6%. Price/Book is 1.2 and the bank has just delivered 23% ROAE
  • Conclusion The shares are down 24% since May and these are stellar results. Unless there is a Russian invasion imminent, the force of gravity on the share price will reverse.
PBT profit before tax
EPS earnings per share
DPS dividend per share
ROE return on equity
EBITDA earnings before interest, tax, depreciation and amortisation
PER price earnings, or PE ratio
Yield dividend yield
FCF free cash flow
NAV net asset value
Price/Book (PB) a company's share price versus what it owns
Book Value a company's worth after subtracting debts and liabilities from assets
AUM assets under management
FUM funds under management
ARPU average revenue per user
OTC over-the-counter
FCA Financial Conduct Authority
ESMA European Securities and Markets Authority

For information about Jeremy's 'deep dive' company analysis, you can email him at

Jeremy Grime is an independent equity markets analyst and freelance contributor, not a direct employee of interactive investor.

These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation, and is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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