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Argo Group International Holdings Ltd (ARGO) Stock Fundamental Analysis

USA - New York Stock Exchange - NYSE:ARGO - BMG0464B1072 - Common Stock

29.99 USD
-0.01 (-0.03%)
Last: 11/15/2023, 8:18:04 PM
29.99 USD
0 (0%)
After Hours: 11/15/2023, 8:18:04 PM
Fundamental Rating

2

Taking everything into account, ARGO scores 2 out of 10 in our fundamental rating. ARGO was compared to 148 industry peers in the Insurance industry. ARGO has a bad profitability rating. Also its financial health evaluation is rather negative. ARGO has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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1

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.
In the past 5 years ARGO reported 4 times negative net income.
ARGO had a positive operating cash flow in 4 of the past 5 years.
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 worse Return On Assets (-2.44%) than 85.71% of its industry peers.
The Return On Equity of ARGO (-16.21%) is worse 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

The Profit Margin and Operating Margin and Gross Margin are not available for ARGO so they could not be analyzed.
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.
Compared to 1 year ago, ARGO has more shares outstanding
Compared to 1 year ago, ARGO has an improved debt to assets ratio.
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

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.
Looking at the Debt to FCF ratio, with a value of 2.99, ARGO is in line with its industry, outperforming 50.71% of the companies in the same industry.
ARGO has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
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 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.
The Revenue for ARGO has decreased by -20.20% in the past year. This is quite bad
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

ARGO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 183.66% yearly.
Based on estimates for the next years, ARGO will show a decrease in Revenue. The Revenue will decrease by -2.57% on average per year.
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.
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.
ARGO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
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 40

4.2 Price Multiples

The rest of the industry has a similar Price/Free Cash Flow ratio as ARGO.
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%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.30, ARGO has a dividend in line with its industry peers.
With a Dividend Yield of 1.03, ARGO pays less dividend than the S&P500 average, which is at 1.88.
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.
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%
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
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.


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.