ARGAN (ARG.PA) Stock Fundamental Analysis
Europe - EPA:ARG - FR0010481960 - REIT
65.2 EUR
-0.1 (-0.15%)
We assign a fundamental rating of 5 out of 10 to ARG. ARG was compared to 41 industry peers in the Diversified REITs industry. While ARG belongs to the best of the industry regarding profitability, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on ARG. ARG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ARG was profitable.
ARG had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 6.75%, ARG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ARG has a better Return On Equity (12.65%) than 97.56% of its industry peers.
The Return On Invested Capital of ARG (3.47%) is comparable to the rest of the industry.
ARG had an Average Return On Invested Capital over the past 3 years of 3.13%. This is in line with the industry average of 3.46%.
The last Return On Invested Capital (3.47%) for ARG is above the 3 year average (3.13%), which is a sign of increasing profitability.
| 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
The Profit Margin of ARG (139.47%) is better than 100.00% of its industry peers.
ARG's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 92.63%, ARG belongs to the best of the industry, outperforming 95.12% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARG is destroying value.
Compared to 1 year ago, ARG has more shares outstanding
Compared to 5 years ago, ARG has more shares outstanding
The debt/assets ratio for ARG has been reduced compared to a year ago.
2.2 Solvency
ARG has an Altman-Z score of 1.29. This is a bad value and indicates that ARG is not financially healthy and even has some risk of bankruptcy.
ARG has a better Altman-Z score (1.29) than 85.37% of its industry peers.
The Debt to FCF ratio of ARG is 9.50, which is on the high side as it means it would take ARG, 9.50 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.50, ARG belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
A Debt/Equity ratio of 0.76 indicates that ARG is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.76, ARG perfoms like the industry average, outperforming 41.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 9.5 | ||
| Altman-Z | 1.29 |
ROIC/WACC0.6
WACC5.75%
2.3 Liquidity
A Current Ratio of 0.52 indicates that ARG may have some problems paying its short term obligations.
ARG's Current ratio of 0.52 is in line compared to the rest of the industry. ARG outperforms 56.10% of 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.
With a Quick ratio value of 0.52, ARG perfoms like the industry average, outperforming 58.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
ARG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 188.61%, which is quite impressive.
Measured over the past years, ARG shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.87% on average per year.
The Revenue has been growing slightly by 7.89% in the past year.
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 4.36% on average per year.
Based on estimates for the next years, ARG will show a small growth in Revenue. The Revenue will grow by 4.73% on average per year.
EPS Next Y7.65%
EPS Next 2Y4.01%
EPS Next 3Y2.89%
EPS Next 5Y4.36%
Revenue Next Year6.7%
Revenue Next 2Y4.83%
Revenue Next 3Y4.68%
Revenue Next 5Y4.73%
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
ARG is valuated cheaply with a Price/Earnings ratio of 5.71.
Compared to the rest of the industry, the Price/Earnings ratio of ARG indicates a rather cheap valuation: ARG is cheaper than 100.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ARG to the average of the S&P500 Index (25.07), we can say ARG is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.73, the valuation of ARG can be described as very reasonable.
ARG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ARG is cheaper than 63.41% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ARG to the average of the S&P500 Index (34.08), we can say ARG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.71 | ||
| Fwd PE | 10.73 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ARG.
78.05% of the companies in the same industry are more expensive than ARG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.71 | ||
| EV/EBITDA | 17.99 |
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.
The decent profitability rating of ARG may justify a higher PE ratio.
PEG (NY)0.75
PEG (5Y)N/A
EPS Next 2Y4.01%
EPS Next 3Y2.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.90%, ARG is a good candidate for dividend investing.
ARG's Dividend Yield is comparable with the industry average which is at 5.79.
ARG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.9% |
5.2 History
The dividend of ARG is nicely growing with an annual growth rate of 32.61%!
Dividend Growth(5Y)32.61%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
22.49% of the earnings are spent on dividend by ARG. This is a low number and sustainable payout ratio.
ARG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP22.49%
EPS Next 2Y4.01%
EPS Next 3Y2.89%
EPA:ARG (11/21/2025, 9:30:45 AM)
65.2
-0.1 (-0.15%)
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 Cap1.68B
Revenue(TTM)208.43M
Net Income(TTM)290.70M
Analysts78.33
Price Target79.69 (22.22%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.9% |
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%
PT rev (3m)-2.04%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.36%
EPS NY rev (3m)1.13%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.71 | ||
| Fwd PE | 10.73 | ||
| P/S | 8.05 | ||
| P/FCF | 8.71 | ||
| P/OCF | 8.7 | ||
| P/B | 0.73 | ||
| P/tB | 0.75 | ||
| EV/EBITDA | 17.99 |
EPS(TTM)11.41
EY17.5%
EPS(NY)6.08
Fwd EY9.32%
FCF(TTM)7.49
FCFY11.48%
OCF(TTM)7.49
OCFY11.49%
SpS8.1
BVpS89.25
TBVpS87.09
PEG (NY)0.75
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 | 1.29 |
F-Score6
WACC5.75%
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 Y7.65%
EPS Next 2Y4.01%
EPS Next 3Y2.89%
EPS Next 5Y4.36%
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 5Y4.73%
EBIT growth 1Y7.58%
EBIT growth 3Y8.07%
EBIT growth 5Y34.57%
EBIT Next Year-9.76%
EBIT Next 3Y-1.4%
EBIT Next 5Y0.62%
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 5.71 and the Price/Book (PB) ratio is 0.73.
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 7.65% in the next year.