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ARGAN (ARG.PA) Stock Fundamental Analysis

EPA:ARG - Euronext Paris - Matif - FR0010481960 - REIT - Currency: EUR

61.1  -0.6 (-0.97%)

Fundamental Rating

5

Taking everything into account, ARG scores 5 out of 10 in our fundamental rating. ARG was compared to 44 industry peers in the Diversified REITs industry. There are concerns on the financial health of ARG while its profitability can be described as average. ARG is not valued too expensively and it also shows a decent growth rate. ARG also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year ARG was profitable.
ARG had a positive operating cash flow in the past year.
Of the past 5 years ARG 4 years were profitable.
ARG had a positive operating cash flow in each of the past 5 years.
ARG.PA Yearly Net Income VS EBIT VS OCF VS FCFARG.PA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M 600M

1.2 Ratios

ARG has a Return On Assets (2.26%) which is comparable to the rest of the industry.
With a Return On Equity value of 4.55%, ARG perfoms like the industry average, outperforming 54.76% of the companies in the same industry.
ARG has a Return On Invested Capital of 3.34%. This is comparable to the rest of the industry: ARG outperforms 52.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ARG is in line with the industry average of 3.64%.
The 3 year average ROIC (2.90%) for ARG is below the current ROIC(3.34%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 2.26%
ROE 4.55%
ROIC 3.34%
ROA(3y)3.51%
ROA(5y)5.21%
ROE(3y)7.25%
ROE(5y)11.6%
ROIC(3y)2.9%
ROIC(5y)2.65%
ARG.PA Yearly ROA, ROE, ROICARG.PA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 30

1.3 Margins

The Profit Margin of ARG (48.87%) is comparable to the rest of the industry.
Looking at the Operating Margin, with a value of 92.90%, ARG belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
ARG's Operating Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 92.9%
PM (TTM) 48.87%
GM N/A
OM growth 3Y-0.27%
OM growth 5Y0.35%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
ARG.PA Yearly Profit, Operating, Gross MarginsARG.PA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100 -100 200 300 400

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3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ARG is destroying value.
The number of shares outstanding for ARG has been increased compared to 1 year ago.
Compared to 5 years ago, ARG has more shares outstanding
Compared to 1 year ago, ARG has a worse debt to assets ratio.
ARG.PA Yearly Shares OutstandingARG.PA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M
ARG.PA Yearly Total Debt VS Total AssetsARG.PA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

2.2 Solvency

ARG has an Altman-Z score of 1.18. This is a bad value and indicates that ARG is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ARG (1.18) is better than 73.81% of its industry peers.
ARG has a debt to FCF ratio of 11.78. This is a negative value and a sign of low solvency as ARG would need 11.78 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 11.78, ARG is doing good in the industry, outperforming 61.90% of the companies in the same industry.
ARG has a Debt/Equity ratio of 0.88. This is a neutral value indicating ARG is somewhat dependend on debt financing.
ARG's Debt to Equity ratio of 0.88 is on the low side compared to the rest of the industry. ARG is outperformed by 71.43% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.88
Debt/FCF 11.78
Altman-Z 1.18
ROIC/WACC0.6
WACC5.53%
ARG.PA Yearly LT Debt VS Equity VS FCFARG.PA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B 2B

2.3 Liquidity

A Current Ratio of 0.65 indicates that ARG may have some problems paying its short term obligations.
ARG has a Current ratio of 0.65. This is in the better half of the industry: ARG outperforms 61.90% of its industry peers.
A Quick Ratio of 0.65 indicates that ARG may have some problems paying its short term obligations.
The Quick ratio of ARG (0.65) is better than 61.90% of its industry peers.
Industry RankSector Rank
Current Ratio 0.65
Quick Ratio 0.65
ARG.PA Yearly Current Assets VS Current LiabilitesARG.PA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

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5

3. Growth

3.1 Past

ARG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 118.49%, which is quite impressive.
The Revenue has grown by 9.10% in the past year. This is quite good.
ARG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.78% yearly.
EPS 1Y (TTM)118.49%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%132.73%
Revenue 1Y (TTM)9.1%
Revenue growth 3Y8.93%
Revenue growth 5Y16.78%
Sales Q2Q%8.43%

3.2 Future

The Earnings Per Share is expected to grow by 100.63% on average over the next years. This is a very strong growth
ARG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.95% yearly.
EPS Next Y1399.37%
EPS Next 2Y297.88%
EPS Next 3Y152.67%
EPS Next 5Y100.63%
Revenue Next Year7.27%
Revenue Next 2Y6.9%
Revenue Next 3Y5.66%
Revenue Next 5Y4.95%

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ARG.PA Yearly Revenue VS EstimatesARG.PA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 50M 100M 150M 200M
ARG.PA Yearly EPS VS EstimatesARG.PA Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 0 2 4 6

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6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 15.47, which indicates a correct valuation of ARG.
Compared to the rest of the industry, the Price/Earnings ratio of ARG is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 25.91. ARG is valued slightly cheaper when compared to this.
ARG is valuated reasonably with a Price/Forward Earnings ratio of 10.22.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARG indicates a somewhat cheap valuation: ARG is cheaper than 66.67% of the companies listed in the same industry.
ARG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.77.
Industry RankSector Rank
PE 15.47
Fwd PE 10.22
ARG.PA Price Earnings VS Forward Price EarningsARG.PA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

ARG's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARG indicates a somewhat cheap valuation: ARG is cheaper than 76.19% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 9.64
EV/EBITDA 19.08
ARG.PA Per share dataARG.PA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ARG's earnings are expected to grow with 152.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y297.88%
EPS Next 3Y152.67%

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7

5. Dividend

5.1 Amount

ARG has a Yearly Dividend Yield of 5.31%, which is a nice return.
ARG's Dividend Yield is comparable with the industry average which is at 6.80.
ARG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
Industry RankSector Rank
Dividend Yield 5.31%

5.2 History

On average, the dividend of ARG grows each year by 35.57%, which is quite nice.
Dividend Growth(5Y)35.57%
Div Incr Years1
Div Non Decr Years1
ARG.PA Yearly Dividends per shareARG.PA Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

5.3 Sustainability

ARG pays out 55.64% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of ARG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP55.64%
EPS Next 2Y297.88%
EPS Next 3Y152.67%
ARG.PA Yearly Income VS Free CF VS DividendARG.PA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M 600M
ARG.PA Dividend Payout.ARG.PA Dividend Payout, showing the Payout Ratio.ARG.PA Dividend Payout.PayoutRetained Earnings

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ARGAN

EPA:ARG (5/23/2025, 7:00:00 PM)

61.1

-0.6 (-0.97%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)04-01 2025-04-01
Earnings (Next)07-01 2025-07-01
Inst Owners31.33%
Inst Owner ChangeN/A
Ins Owners36.77%
Ins Owner ChangeN/A
Market Cap1.57B
Analysts81.67
Price Target81.69 (33.7%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.31%
Yearly Dividend2.68
Dividend Growth(5Y)35.57%
DP55.64%
Div Incr Years1
Div Non Decr Years1
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)-0.83%
PT rev (3m)-0.83%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 15.47
Fwd PE 10.22
P/S 8.14
P/FCF 9.64
P/OCF 9.64
P/B 0.76
P/tB 0.78
EV/EBITDA 19.08
EPS(TTM)3.95
EY6.46%
EPS(NY)5.98
Fwd EY9.79%
FCF(TTM)6.34
FCFY10.37%
OCF(TTM)6.34
OCFY10.38%
SpS7.51
BVpS80.62
TBVpS78.45
PEG (NY)0.01
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.26%
ROE 4.55%
ROCE 4.55%
ROIC 3.34%
ROICexc 3.4%
ROICexgc 3.45%
OM 92.9%
PM (TTM) 48.87%
GM N/A
FCFM 84.42%
ROA(3y)3.51%
ROA(5y)5.21%
ROE(3y)7.25%
ROE(5y)11.6%
ROIC(3y)2.9%
ROIC(5y)2.65%
ROICexc(3y)3.09%
ROICexc(5y)2.78%
ROICexgc(3y)3.14%
ROICexgc(5y)2.83%
ROCE(3y)3.95%
ROCE(5y)3.61%
ROICexcg growth 3Y2.21%
ROICexcg growth 5Y-3.66%
ROICexc growth 3Y2.31%
ROICexc growth 5Y-3.95%
OM growth 3Y-0.27%
OM growth 5Y0.35%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.05
Health
Industry RankSector Rank
Debt/Equity 0.88
Debt/FCF 11.78
Debt/EBITDA 10.16
Cap/Depr 31.68%
Cap/Sales 0.04%
Interest Coverage 250
Cash Conversion 90.79%
Profit Quality 172.75%
Current Ratio 0.65
Quick Ratio 0.65
Altman-Z 1.18
F-Score7
WACC5.53%
ROIC/WACC0.6
Cap/Depr(3y)51.95%
Cap/Depr(5y)N/A
Cap/Sales(3y)0.08%
Cap/Sales(5y)62.23%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)118.49%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%132.73%
EPS Next Y1399.37%
EPS Next 2Y297.88%
EPS Next 3Y152.67%
EPS Next 5Y100.63%
Revenue 1Y (TTM)9.1%
Revenue growth 3Y8.93%
Revenue growth 5Y16.78%
Sales Q2Q%8.43%
Revenue Next Year7.27%
Revenue Next 2Y6.9%
Revenue Next 3Y5.66%
Revenue Next 5Y4.95%
EBIT growth 1Y10.22%
EBIT growth 3Y8.63%
EBIT growth 5Y17.18%
EBIT Next Year381.03%
EBIT Next 3Y71.92%
EBIT Next 5Y50.92%
FCF growth 1Y21.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y21.4%
OCF growth 3Y12.24%
OCF growth 5Y18.05%