ARGAN (ARG.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:ARG - FR0010481960 - REIT
66.3 EUR
+0.2 (+0.3%)
ARG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 41 industry peers in the Diversified REITs industry. ARG has an excellent profitability rating, but there are concerns on its financial health. ARG scores decently on growth, while it is valued quite cheap. This could make an interesting combination. ARG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year ARG was profitable.
- In the past year ARG had a positive cash flow from operations.
- Of the past 5 years ARG 4 years were profitable.
- ARG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of ARG (6.76%) is better than 100.00% of its industry peers.
- With an excellent Return On Equity value of 12.66%, ARG belongs to the best of the industry, outperforming 97.56% of the companies in the same industry.
- The Return On Invested Capital of ARG (3.48%) is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for ARG is in line with the industry average of 3.37%.
- The 3 year average ROIC (3.13%) for ARG is below the current ROIC(3.48%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.76% | ||
| ROE | 12.66% | ||
| ROIC | 3.48% |
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
- ARG has a Profit Margin of 139.56%. This is amongst the best in the industry. ARG outperforms 100.00% of its industry peers.
- In the last couple of years the Profit Margin of ARG has declined.
- The Operating Margin of ARG (92.83%) is better than 92.68% of its industry peers.
- In the last couple of years the Operating Margin of ARG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 92.83% | ||
| PM (TTM) | 139.56% | ||
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ARG is destroying value.
- Compared to 1 year ago, ARG has more shares outstanding
- Compared to 5 years ago, ARG has more shares outstanding
- ARG has a better debt/assets ratio than last year.
2.2 Solvency
- ARG has an Altman-Z score of 1.30. 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 (1.30) than 82.93% 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's Debt to FCF ratio of 9.50 is amongst the best of the industry. ARG outperforms 82.93% of its industry peers.
- ARG has a Debt/Equity ratio of 0.76. This is a neutral value indicating ARG is somewhat dependend on debt financing.
- ARG has a Debt to Equity ratio (0.76) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 9.5 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.6
WACC5.79%
2.3 Liquidity
- ARG has a Current 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 Current ratio (0.52) which is comparable to the rest of the industry.
- 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
- The Earnings Per Share has grown by an impressive 191.42% 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%.
- Measured over the past years, ARG shows a quite strong growth in Revenue. The Revenue has been growing by 14.50% on average per year.
EPS 1Y (TTM)191.42%
EPS 3Y-30.53%
EPS 5Y-3.87%
EPS Q2Q%39.96%
Revenue 1Y (TTM)7.89%
Revenue growth 3Y8.41%
Revenue growth 5Y14.5%
Sales Q2Q%7.59%
3.2 Future
- The Earnings Per Share is expected to grow by 2.50% on average over the next years.
- 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 Y7.52%
EPS Next 2Y4.02%
EPS Next 3Y2.62%
EPS Next 5Y2.5%
Revenue Next Year6.57%
Revenue Next 2Y5.1%
Revenue Next 3Y4.73%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- ARG is valuated cheaply with a Price/Earnings ratio of 5.76.
- Based on the Price/Earnings ratio, ARG is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 28.39. ARG is valued rather cheaply when compared to this.
- ARG is valuated reasonably with a Price/Forward Earnings ratio of 10.91.
- Based on the Price/Forward Earnings ratio, ARG is valued a bit cheaper than 65.85% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. ARG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.76 | ||
| Fwd PE | 10.91 |
4.2 Price Multiples
- ARG's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, ARG is valued a bit cheaper than the industry average as 75.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.85 | ||
| EV/EBITDA | 18.09 |
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)0.76
PEG (5Y)N/A
EPS Next 2Y4.02%
EPS Next 3Y2.62%
5. Dividend
5.1 Amount
- ARG has a Yearly Dividend Yield of 5.09%, which is a nice return.
- Compared to an average industry Dividend Yield of 5.41, ARG has a dividend in line with its industry peers.
- ARG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.09% |
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 22.47% 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.
DP22.47%
EPS Next 2Y4.02%
EPS Next 3Y2.62%
ARGAN / ARG.PA FAQ
Can you provide the ChartMill fundamental rating for ARGAN?
ChartMill assigns a fundamental rating of 5 / 10 to ARG.PA.
Can you provide the valuation status for ARGAN?
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.
Can you provide the PE and PB ratios for ARG stock?
The Price/Earnings (PE) ratio for ARGAN (ARG.PA) is 5.76 and the Price/Book (PB) ratio is 0.74.
Can you provide the dividend sustainability for ARG stock?
The dividend rating of ARGAN (ARG.PA) is 7 / 10 and the dividend payout ratio is 22.47%.