Argo Group International Holdings Ltd (ARGO) Fundamental Analysis & Valuation

NYSE:ARGO • BMG0464B1072

29.99 USD
-0.01 (-0.03%)
At close: Nov 15, 2023
29.99 USD
0 (0%)
After Hours: 11/15/2023, 8:18:04 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This ARGO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to ARGO. ARGO was compared to 149 industry peers in the Insurance industry. ARGO may be in some trouble as it scores bad on both profitability and health. ARGO has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

0

1. ARGO Profitability Analysis

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 Yearly Net Income VS EBIT VS OCF VS FCFARGO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 100M -100M 200M 300M

1.2 Ratios

  • The Return On Assets of ARGO (-2.44%) is worse than 85.71% of its industry peers.
  • ARGO has a Return On Equity of -16.21%. This is amonst the worse of the industry: ARGO underperforms 82.14% of its industry peers.
Industry RankSector 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
ARGO Yearly ROA, ROE, ROICARGO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 5 -5 -10 -15

1.3 Margins

  • ARGO does not have Profit Margin and Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector 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
ARGO Yearly Profit, Operating, Gross MarginsARGO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 5 -5 10 -10

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. ARGO Health Analysis

2.1 Basic Checks

  • ARGO does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • The number of shares outstanding for ARGO has been increased compared to 1 year ago.
  • The debt/assets ratio for ARGO has been reduced compared to a year ago.
ARGO Yearly Shares OutstandingARGO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 10M 20M 30M
ARGO Yearly Total Debt VS Total AssetsARGO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B 8B 10B

2.2 Solvency

  • ARGO has a debt to FCF ratio of 2.99. This is a good value and a sign of high solvency as ARGO would need 2.99 years to pay back of 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.
  • Looking at the Debt to Equity ratio, with a value of 0.32, ARGO is in the better half of the industry, outperforming 63.57% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 2.99
Altman-Z N/A
ROIC/WACCN/A
WACC7.59%
ARGO Yearly LT Debt VS Equity VS FCFARGO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 500M 1B 1.5B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
ARGO Yearly Current Assets VS Current LiabilitesARGO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

2

3. ARGO Growth Analysis

3.1 Past

  • ARGO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -303.15%.
  • Looking at the last year, ARGO shows a very negative growth in Revenue. The Revenue has decreased by -20.20% in the last year.
  • Measured over the past years, ARGO shows a small growth in Revenue. The Revenue has been growing by 0.16% on average per year.
EPS 1Y (TTM)-303.15%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-102.25%
Revenue 1Y (TTM)-20.2%
Revenue growth 3Y-3.46%
Revenue growth 5Y0.16%
Sales 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
  • ARGO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.57% yearly.
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

  • 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.
ARGO Yearly Revenue VS EstimatesARGO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B
ARGO Yearly EPS VS EstimatesARGO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1 2 3

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4

4. ARGO Valuation Analysis

4.1 Price/Earnings Ratio

  • ARGO reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
  • The Price/Forward Earnings ratio is 14.14, which indicates a correct valuation of ARGO.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ARGO is on the same level as its industry peers.
  • ARGO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.11.
Industry RankSector Rank
PE N/A
Fwd PE 14.14
ARGO Price Earnings VS Forward Price EarningsARGO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 -10 20

4.2 Price Multiples

  • ARGO's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 7.9
EV/EBITDA N/A
ARGO Per share dataARGO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

  • ARGO's 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%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. ARGO Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.03%, ARGO has a reasonable but not impressive dividend return.
  • ARGO's Dividend Yield is comparable with the industry average which is at 2.50.
  • Compared to an average S&P500 Dividend Yield of 1.82, ARGO's dividend is way lower than the S&P500 average.
Industry RankSector 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
ARGO Yearly Dividends per shareARGO Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • The earnings of ARGO are negative and hence is the payout ratio. ARGO will probably not be able to sustain this dividend level.
  • 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 Yearly Income VS Free CF VS DividendARGO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 0 100M -100M 200M

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ARGO Fundamentals: All Metrics, Ratios and Statistics

Argo Group International Holdings Ltd

NYSE:ARGO (11/15/2023, 8:18:04 PM)

After market: 29.99 0 (0%)

29.99

-0.01 (-0.03%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)11-08
Earnings (Next)02-26
Inst Owners0%
Inst Owner Change0%
Ins Owners3.63%
Ins Owner Change0%
Market Cap1.06B
Revenue(TTM)1.58B
Net Income(TTM)-200.10M
Analysts45
Price Target30.6 (2.03%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.03%
Yearly Dividend1.54
Dividend Growth(5Y)9.88%
DP-16.29%
Div Incr Years0
Div Non Decr Years12
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-118.16%
Min EPS beat(2)-132.9%
Max EPS beat(2)-103.43%
EPS beat(4)1
Avg EPS beat(4)-41.75%
Min EPS beat(4)-132.9%
Max EPS beat(4)119.61%
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)1
Avg Revenue beat(2)-1.48%
Min Revenue beat(2)-3.53%
Max Revenue beat(2)0.58%
Revenue beat(4)2
Avg Revenue beat(4)-4.37%
Min Revenue beat(4)-19.95%
Max Revenue beat(4)5.43%
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.75%
EPS NY rev (1m)0%
EPS NY rev (3m)-42.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.6%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 14.14
P/S 0.67
P/FCF 7.9
P/OCF 7.49
P/B 0.85
P/tB 0.95
EV/EBITDA N/A
EPS(TTM)-2.58
EYN/A
EPS(NY)2.12
Fwd EY7.07%
FCF(TTM)3.8
FCFY12.66%
OCF(TTM)4
OCFY13.35%
SpS45.02
BVpS35.08
TBVpS31.71
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA -2.44%
ROE -16.21%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM N/A
FCFM 8.43%
ROA(3y)-0.82%
ROA(5y)-0.4%
ROE(3y)-6.15%
ROE(5y)-3.2%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/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
F-Score3
Asset Turnover0.19
Health
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 2.99
Debt/EBITDA N/A
Cap/Depr 46.79%
Cap/Sales 0.46%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score3
WACC7.59%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-303.15%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-102.25%
EPS Next Y791.48%
EPS Next 2Y343.62%
EPS Next 3Y183.66%
EPS Next 5YN/A
Revenue 1Y (TTM)-20.2%
Revenue growth 3Y-3.46%
Revenue growth 5Y0.16%
Sales Q2Q%-19.16%
Revenue Next Year-19.44%
Revenue Next 2Y-10.1%
Revenue Next 3Y-2.57%
Revenue Next 5YN/A
EBIT growth 1Y-326.24%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-2.2%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-13.29%
OCF growth 3YN/A
OCF growth 5YN/A

Argo Group International Holdings Ltd / ARGO FAQ

What is the fundamental rating for ARGO stock?

ChartMill assigns a fundamental rating of 2 / 10 to ARGO.


Can you provide the valuation status for Argo Group International Holdings Ltd?

ChartMill assigns a valuation rating of 4 / 10 to Argo Group International Holdings Ltd (ARGO). This can be considered as Fairly Valued.


How profitable is Argo Group International Holdings Ltd (ARGO) stock?

Argo Group International Holdings Ltd (ARGO) has a profitability rating of 1 / 10.


What is the financial health of Argo Group International Holdings Ltd (ARGO) stock?

The financial health rating of Argo Group International Holdings Ltd (ARGO) is 2 / 10.