Argo Group International Holdings Ltd (ARGO)
BMG0464B1072 - Common Stock
ARGO gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 141 industry peers in the Insurance industry. ARGO may be in some trouble as it scores bad on both profitability and health. ARGO is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ARGO has reported negative net income.
In the past year ARGO had a positive cash flow from operations.
ARGO had negative earnings in 4 of the past 5 years.
ARGO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ARGO has a worse Return On Assets (-2.44%) than 85.71% of its industry peers.
ARGO's Return On Equity of -16.21% is on the low side compared to the rest of the industry. ARGO is outperformed by 82.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.44% | ||
| ROE | -16.21% | ||
| ROIC | N/A |
ROA(3y)-0.82%
ROA(5y)-0.4%
ROE(3y)-6.15%
ROE(5y)-3.2%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin and Operating Margin and Gross Margin are not available for ARGO so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
ARGO does not have a ROIC to compare to the WACC, probably because it is not profitable.
ARGO has more shares outstanding than it did 1 year ago.
ARGO has more shares outstanding than it did 5 years ago.
ARGO has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of ARGO is 2.99, which is a good value as it means it would take ARGO, 2.99 years of fcf income to pay off all of its debts.
ARGO's Debt to FCF ratio of 2.99 is in line compared to the rest of the industry. ARGO outperforms 50.71% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that ARGO is not too dependend on debt financing.
The Debt to Equity ratio of ARGO (0.32) is better than 63.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.99 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.59%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for ARGO have decreased strongly by -303.15% in the last year.
The Revenue for ARGO has decreased by -20.20% in the past year. This is quite bad
The Revenue has been growing slightly by 0.16% on average over the past years.
EPS 1Y (TTM)-303.15%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-102.25%
Revenue 1Y (TTM)-20.2%
Revenue growth 3Y-3.46%
Revenue growth 5Y0.16%
Revenue growth Q2Q-19.16%
3.2 Future
The Earnings Per Share is expected to grow by 183.66% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -2.57% on average over the next years.
EPS Next Y791.48%
EPS Next 2Y343.62%
EPS Next 3Y183.66%
EPS Next 5YN/A
Revenue Next Year-19.44%
Revenue Next 2Y-10.1%
Revenue Next 3Y-2.57%
Revenue Next 5YN/A
3.3 Evolution
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
ARGO reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
ARGO is valuated correctly with a Price/Forward Earnings ratio of 14.14.
ARGO's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of ARGO to the average of the S&P500 Index (20.72), we can say ARGO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 14.14 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARGO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.9 | ||
| EV/EBITDA | N/A |
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.
A more expensive valuation may be justified as ARGO's earnings are expected to grow with 183.66% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y343.62%
EPS Next 3Y183.66%
5. Dividend
5.1 Amount
ARGO has a Yearly Dividend Yield of 1.03%. Purely for dividend investing, there may be better candidates out there.
ARGO's Dividend Yield is comparable with the industry average which is at 4.23.
Compared to an average S&P500 Dividend Yield of 2.41, ARGO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
5.2 History
On average, the dividend of ARGO grows each year by 9.88%, which is quite nice.
ARGO has been paying a dividend for over 5 years, so it has already some track record.
ARGO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.88%
Div Incr Years0
Div Non Decr Years12
5.3 Sustainability
ARGO has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of ARGO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-16.29%
EPS Next 2Y343.62%
EPS Next 3Y183.66%
Argo Group International Holdings Ltd
NYSE:ARGO (11/15/2023, 7:18:04 PM)
After market: 29.99 0 (0%)29.99
-0.01 (-0.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.06B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 14.14 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.44% | ||
| ROE | -16.21% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-303.15%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y791.48%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-20.2%
Revenue growth 3Y-3.46%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y