ARGAN (ARG.PA) Stock Fundamental Analysis
Europe - EPA:ARG - FR0010481960 - REIT
68.2 EUR
-0.4 (-0.58%)
ARG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 40 industry peers in the Diversified REITs industry. While ARG has a great profitability rating, there are quite some concerns on its financial health. ARG may be a bit undervalued, certainly considering the very reasonable score on growth ARG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ARG had positive earnings in the past year.
In the past year ARG had a positive cash flow from operations.
ARG had positive earnings in 4 of the past 5 years.
In the past 5 years ARG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.75%, ARG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
ARG has a better Return On Equity (12.65%) than 97.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.47%, ARG is in line with its industry, outperforming 55.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ARG is in line with the industry average of 3.49%.
The 3 year average ROIC (3.13%) for ARG is below the current ROIC(3.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.75% | ||
| ROE | 12.65% | ||
| ROIC | 3.47% |
ROA(3y)0.48%
ROA(5y)4.9%
ROE(3y)0.46%
ROE(5y)10.33%
ROIC(3y)3.13%
ROIC(5y)3.04%
1.3 Margins
Looking at the Profit Margin, with a value of 139.47%, ARG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
ARG's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 92.63%, ARG belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
In the last couple of years the Operating Margin of ARG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 92.63% | ||
| PM (TTM) | 139.47% | ||
| GM | N/A |
OM growth 3Y-0.31%
OM growth 5Y17.53%
PM growth 3Y-33.91%
PM growth 5Y-10.3%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
ARG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ARG has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ARG has been increased compared to 5 years ago.
Compared to 1 year ago, ARG has an improved debt to assets ratio.
2.2 Solvency
ARG has an Altman-Z score of 1.32. This is a bad value and indicates that ARG is not financially healthy and even has some risk of bankruptcy.
ARG's Altman-Z score of 1.32 is amongst the best of the industry. ARG outperforms 85.00% of its industry peers.
ARG has a debt to FCF ratio of 9.50. This is a negative value and a sign of low solvency as ARG would need 9.50 years to pay back of all of its debts.
ARG has a better Debt to FCF ratio (9.50) than 80.00% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that ARG is somewhat dependend on debt financing.
ARG has a worse Debt to Equity ratio (0.76) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 9.5 | ||
| Altman-Z | 1.32 |
ROIC/WACC0.6
WACC5.8%
2.3 Liquidity
A Current Ratio of 0.52 indicates that ARG may have some problems paying its short term obligations.
ARG has a Current ratio (0.52) which is in line with its industry peers.
ARG has a Quick Ratio of 0.52. This is a bad value and indicates that ARG is not financially healthy enough and could expect problems in meeting its short term obligations.
ARG has a Quick ratio (0.52) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 188.61% over the past year.
ARG shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.87% yearly.
ARG shows a small growth in Revenue. In the last year, the Revenue has grown by 7.89%.
ARG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.50% yearly.
EPS 1Y (TTM)188.61%
EPS 3Y-30.53%
EPS 5Y-3.87%
EPS Q2Q%39.97%
Revenue 1Y (TTM)7.89%
Revenue growth 3Y8.41%
Revenue growth 5Y14.5%
Sales Q2Q%7.59%
3.2 Future
Based on estimates for the next years, ARG will show a small growth in Earnings Per Share. The EPS will grow by 3.87% on average per year.
The Revenue is expected to grow by 4.23% on average over the next years.
EPS Next Y8.03%
EPS Next 2Y4.26%
EPS Next 3Y3.05%
EPS Next 5Y3.87%
Revenue Next Year6.7%
Revenue Next 2Y4.83%
Revenue Next 3Y4.68%
Revenue Next 5Y4.23%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 5.98, the valuation of ARG can be described as very cheap.
100.00% of the companies in the same industry are more expensive than ARG, based on the Price/Earnings ratio.
ARG is valuated cheaply when we compare the Price/Earnings ratio to 26.19, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.17 indicates a reasonable valuation of ARG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARG is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of ARG to the average of the S&P500 Index (22.50), we can say ARG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.98 | ||
| Fwd PE | 11.17 |
4.2 Price Multiples
ARG's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, ARG is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.11 | ||
| EV/EBITDA | 18.43 |
4.3 Compensation for Growth
ARG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ARG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.74
PEG (5Y)N/A
EPS Next 2Y4.26%
EPS Next 3Y3.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.83%, ARG is a good candidate for dividend investing.
ARG's Dividend Yield is comparable with the industry average which is at 5.85.
Compared to an average S&P500 Dividend Yield of 2.33, ARG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
5.2 History
On average, the dividend of ARG grows each year by 32.61%, which is quite nice.
Dividend Growth(5Y)32.61%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
ARG pays out 22.49% of its income as dividend. This is a sustainable payout ratio.
The dividend of ARG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP22.49%
EPS Next 2Y4.26%
EPS Next 3Y3.05%
EPA:ARG (10/30/2025, 7:00:00 PM)
68.2
-0.4 (-0.58%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners35.71%
Inst Owner ChangeN/A
Ins Owners36.31%
Ins Owner ChangeN/A
Market Cap1.76B
Revenue(TTM)208.43M
Net Income(TTM)290.70M
Analysts78.33
Price Target79.69 (16.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
Yearly Dividend2.17
Dividend Growth(5Y)32.61%
DP22.49%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.32%
PT rev (3m)-2.04%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)1.5%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.98 | ||
| Fwd PE | 11.17 | ||
| P/S | 8.42 | ||
| P/FCF | 9.11 | ||
| P/OCF | 9.1 | ||
| P/B | 0.76 | ||
| P/tB | 0.78 | ||
| EV/EBITDA | 18.43 |
EPS(TTM)11.41
EY16.73%
EPS(NY)6.11
Fwd EY8.96%
FCF(TTM)7.49
FCFY10.98%
OCF(TTM)7.49
OCFY10.99%
SpS8.1
BVpS89.25
TBVpS87.09
PEG (NY)0.74
PEG (5Y)N/A
Graham Number151.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.75% | ||
| ROE | 12.65% | ||
| ROCE | 4.72% | ||
| ROIC | 3.47% | ||
| ROICexc | 3.5% | ||
| ROICexgc | 3.55% | ||
| OM | 92.63% | ||
| PM (TTM) | 139.47% | ||
| GM | N/A | ||
| FCFM | 92.46% |
ROA(3y)0.48%
ROA(5y)4.9%
ROE(3y)0.46%
ROE(5y)10.33%
ROIC(3y)3.13%
ROIC(5y)3.04%
ROICexc(3y)3.21%
ROICexc(5y)3.17%
ROICexgc(3y)3.25%
ROICexgc(5y)3.22%
ROCE(3y)4.26%
ROCE(5y)4.13%
ROICexgc growth 3Y3.68%
ROICexgc growth 5Y17.66%
ROICexc growth 3Y3.74%
ROICexc growth 5Y18.7%
OM growth 3Y-0.31%
OM growth 5Y17.53%
PM growth 3Y-33.91%
PM growth 5Y-10.3%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 9.5 | ||
| Debt/EBITDA | 8.99 | ||
| Cap/Depr | 69.58% | ||
| Cap/Sales | 0.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 99.78% | ||
| Profit Quality | 66.3% | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 1.32 |
F-Score6
WACC5.8%
ROIC/WACC0.6
Cap/Depr(3y)57.59%
Cap/Depr(5y)2471.73%
Cap/Sales(3y)0.08%
Cap/Sales(5y)39.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)188.61%
EPS 3Y-30.53%
EPS 5Y-3.87%
EPS Q2Q%39.97%
EPS Next Y8.03%
EPS Next 2Y4.26%
EPS Next 3Y3.05%
EPS Next 5Y3.87%
Revenue 1Y (TTM)7.89%
Revenue growth 3Y8.41%
Revenue growth 5Y14.5%
Sales Q2Q%7.59%
Revenue Next Year6.7%
Revenue Next 2Y4.83%
Revenue Next 3Y4.68%
Revenue Next 5Y4.23%
EBIT growth 1Y7.58%
EBIT growth 3Y8.07%
EBIT growth 5Y34.57%
EBIT Next Year-9.76%
EBIT Next 3Y-1.4%
EBIT Next 5Y0.14%
FCF growth 1Y5.49%
FCF growth 3Y0.28%
FCF growth 5YN/A
OCF growth 1Y5.46%
OCF growth 3Y0.29%
OCF growth 5Y66.22%
ARGAN / ARG.PA FAQ
Can you provide the ChartMill fundamental rating for ARGAN?
ChartMill assigns a fundamental rating of 5 / 10 to ARG.PA.
What is the valuation status of ARGAN (ARG.PA) stock?
ChartMill assigns a valuation rating of 7 / 10 to ARGAN (ARG.PA). This can be considered as Undervalued.
Can you provide the profitability details for ARGAN?
ARGAN (ARG.PA) has a profitability rating of 7 / 10.
What is the valuation of ARGAN based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ARGAN (ARG.PA) is 5.98 and the Price/Book (PB) ratio is 0.76.
What is the expected EPS growth for ARGAN (ARG.PA) stock?
The Earnings per Share (EPS) of ARGAN (ARG.PA) is expected to grow by 8.03% in the next year.