Could The Value Grupo Financiero, S.A.B. de C.V. (BMV:VALUEGFO) Ownership Structure Tell Us Something Useful?

The big shareholder groups in Value Grupo Financiero, S.A.B. de C.V. (BMV:VALUEGFO) have power over the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

Value Grupo Financiero. de is not a large company by global standards. It has a market capitalization of Mex$16b, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions don't own shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about Value Grupo Financiero. de.

Check out our latest analysis for Value Grupo Financiero. de

What Does The Lack Of Institutional Ownership Tell Us About Value Grupo Financiero. de?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. Alternatively, there might be something about the company that has kept institutional investors away. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Value Grupo Financiero. de, for yourself, below.

Hedge funds don't have many shares in Value Grupo Financiero. de. Looking at our data, we can see that the largest shareholder is the CEO Carlos Manuel Bremer Gutierrez with 17% of shares outstanding. With 5.0% and 4.9% of the shares outstanding respectively, Alfonso Garza Valdez and Jorge Luis Munoz Terrazas are the second and third largest shareholders.

On studying our ownership data, we found that 15 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Value Grupo Financiero. de

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

It seems insiders own a significant proportion of Value Grupo Financiero, S.A.B. de C.V.. It has a market capitalization of just Mex$16b, and insiders have Mex$7.6b worth of shares in their own names. I would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, mostly retail investors, hold a substantial 52% stake in Value Grupo Financiero. de, suggesting it is a fairly popular stock. With this size of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to decline an acquisition or merger that may not improve profitability.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For instance, we've identified 4 warning signs for Value Grupo Financiero. de (2 can't be ignored) that you should be aware of.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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