Argo Group International Holdings Ltd (ARGO) Stock Fundamental Analysis
USA - NYSE:ARGO - BMG0464B1072 - Common Stock
29.99 USD
-0.01 (-0.03%)
29.99 USD
0 (0%)
Taking everything into account, ARGO scores 2 out of 10 in our fundamental rating. ARGO was compared to 147 industry peers in the Insurance industry. Both the profitability and financial health of ARGO have multiple concerns. ARGO is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ARGO had negative earnings in the past year.
ARGO had a positive operating cash flow in the past year.
In the past 5 years ARGO reported 4 times negative net income.
Of the past 5 years ARGO 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -2.44%, ARGO is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
With a Return On Equity value of -16.21%, ARGO is not doing good in the industry: 82.14% of the companies in the same industry are doing better.
| 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.
Compared to 1 year ago, ARGO has more shares outstanding
The debt/assets ratio for ARGO has been reduced compared to a year ago.
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.
ARGO has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.32, ARGO is doing good in the industry, outperforming 63.57% of the companies in the same industry.
| 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.
Looking at the last year, ARGO shows a very negative growth in Revenue. The Revenue has decreased by -20.20% in the last year.
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 Q2Q%-102.25%
Revenue 1Y (TTM)-20.2%
Revenue growth 3Y-3.46%
Revenue growth 5Y0.16%
Sales Q2Q%-19.16%
3.2 Future
ARGO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 183.66% yearly.
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
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
The Price/Earnings Ratio is negative for ARGO. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 14.14, which indicates a correct valuation of ARGO.
ARGO's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.09, ARGO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 14.14 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as ARGO.
| 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%.
ARGO's Dividend Yield is comparable with the industry average which is at 3.26.
Compared to an average S&P500 Dividend Yield of 2.30, 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
The earnings of ARGO are negative and hence is the payout ratio. ARGO will probably not be able to sustain this dividend level.
ARGO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-16.29%
EPS Next 2Y343.62%
EPS Next 3Y183.66%
29.99
-0.01 (-0.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners0%
Inst Owner Change0%
Ins Owners3.63%
Ins Owner Change0%
Market Cap1.06B
Revenue(TTM)1.58B
Net Income(TTM)-200100000
Analysts45
Price Target30.6 (2.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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.
What is the valuation status for ARGO stock?
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 earnings growth outlook for Argo Group International Holdings Ltd?
The Earnings per Share (EPS) of Argo Group International Holdings Ltd (ARGO) is expected to grow by 791.48% in the next year.