Logo image of ARG.PA

ARGAN (ARG.PA) Stock Fundamental Analysis

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

61.7  +0.8 (+1.31%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to ARG. ARG was compared to 42 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. Finally ARG also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

Quickly go to:

5

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.
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's Return On Assets of 2.26% is in line compared to the rest of the industry. ARG outperforms 52.38% of its industry peers.
ARG has a Return On Equity (4.55%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 3.34%, ARG is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ARG is in line with the industry average of 3.74%.
The last Return On Invested Capital (3.34%) for ARG is above the 3 year average (2.90%), which is a sign of increasing profitability.
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

ARG's Profit Margin of 48.87% is in line compared to the rest of the industry. ARG outperforms 57.14% of its industry peers.
ARG has a better Operating Margin (92.90%) than 92.86% of its industry peers.
In the last couple of years the Operating Margin of ARG has remained more or less at the same level.
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

More info and screens

2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARG is destroying value.
The number of shares outstanding for ARG has been increased compared to 1 year ago.
ARG has more shares outstanding than it did 5 years ago.
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.
ARG's Altman-Z score of 1.18 is fine compared to the rest of the industry. ARG outperforms 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.
ARG has a Debt to FCF ratio (11.78) which is comparable to the rest of the industry.
ARG has a Debt/Equity ratio of 0.88. This is a neutral value indicating ARG is somewhat dependend on debt financing.
ARG has a Debt to Equity ratio of 0.88. This is in the lower half of the industry: ARG underperforms 71.43% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.88
Debt/FCF 11.78
Altman-Z 1.18
ROIC/WACC0.6
WACC5.6%
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.
With a decent Current ratio value of 0.65, ARG is doing good in the industry, outperforming 61.90% of the companies in the same industry.
ARG has a Quick Ratio of 0.65. This is a bad value and indicates that ARG is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.65, ARG is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
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

More info and screens

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 118.49% over the past year.
ARG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.10%.
The Revenue has been growing by 16.78% on average over the past years. This is quite good.
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

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.
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

More info and screens

6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 15.62, ARG is valued correctly.
ARG's Price/Earnings is on the same level as the industry average.
ARG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.22.
With a Price/Forward Earnings ratio of 10.32, 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 64.29% of the companies 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 20.86.
Industry RankSector Rank
PE 15.62
Fwd PE 10.32
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

The rest of the industry has a similar Enterprise Value to EBITDA ratio as ARG.
Based on the Price/Free Cash Flow ratio, ARG is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 9.74
EV/EBITDA 19.06
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%

More info and screens

7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.45%, ARG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.70, ARG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, ARG pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.45%

5.2 History

The dividend of ARG is nicely growing with an annual growth rate of 35.57%!
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

More info and screens

ARGAN

EPA:ARG (5/2/2025, 5:26:30 PM)

61.7

+0.8 (+1.31%)

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 Cap1.59B
Analysts81.54
Price Target81.69 (32.4%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.45%
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)-10.21%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)6.71%
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 15.62
Fwd PE 10.32
P/S 8.22
P/FCF 9.74
P/OCF 9.73
P/B 0.77
P/tB 0.79
EV/EBITDA 19.06
EPS(TTM)3.95
EY6.4%
EPS(NY)5.98
Fwd EY9.69%
FCF(TTM)6.34
FCFY10.27%
OCF(TTM)6.34
OCFY10.27%
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
WACC5.6%
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 3Y71.97%
EBIT Next 5Y50.94%
FCF growth 1Y21.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y21.4%
OCF growth 3Y12.24%
OCF growth 5Y18.05%