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Argo Group International Holdings Ltd (ARGO) Stock Fundamental Analysis

NYSE:ARGO - New York Stock Exchange, Inc. - BMG0464B1072 - Common Stock - Currency: USD

29.99  -0.01 (-0.03%)

After market: 29.99 0 (0%)

Fundamental Rating

2

Overall ARGO gets a fundamental rating of 2 out of 10. We evaluated ARGO against 143 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.


Dividend Valuation Growth Profitability Health

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1

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.
ARGO had negative earnings in 4 of the past 5 years.
Of the past 5 years ARGO 4 years had a positive operating cash flow.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 100M -100M 200M 300M

1.2 Ratios

ARGO has a Return On Assets of -2.44%. This is amonst the worse of the industry: ARGO underperforms 85.71% of its industry peers.
ARGO has a worse Return On Equity (-16.21%) than 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 2015 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 2015 2016 2017 2018 2019 2020 2021 2022 0 5 -5 10 -10

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2

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 a better debt/assets ratio than last year.
ARGO Yearly Shares OutstandingARGO Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 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.
ARGO has a Debt to Equity ratio of 0.32. This is in the better half of the industry: ARGO outperforms 63.57% of its industry peers.
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 2015 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 2015 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M

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2

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.
ARGO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.16% yearly.
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
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.
ARGO Yearly Revenue VS EstimatesARGO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1 2 3

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for ARGO. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 14.14, the valuation of ARGO can be described as correct.
ARGO's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.21. ARGO is valued rather cheaply when compared to this.
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 30

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 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.
ARGO's earnings are expected to grow with 183.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y343.62%
EPS Next 3Y183.66%

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5

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 3.35.
Compared to an average S&P500 Dividend Yield of 2.39, 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

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 Yearly Income VS Free CF VS DividendARGO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 0 100M -100M 200M

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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 2023-11-08/amc
Earnings (Next)02-26 2024-02-26/amc
Inst Owners0%
Inst Owner Change0%
Ins Owners3.63%
Ins Owner Change0%
Market Cap1.06B
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
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
ROICexcg growth 3YN/A
ROICexcg 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