ARGENX SE - ADR (ARGX) Stock Fundamental Analysis
USA - NASDAQ:ARGX - US04016X1019 - ADR
791.59 USD
+24.26 (+3.16%)
787.241 USD
-4.35 (-0.55%)
Overall ARGX gets a fundamental rating of 6 out of 10. We evaluated ARGX against 536 industry peers in the Biotechnology industry. ARGX has an excellent financial health rating, but there are some minor concerns on its profitability. ARGX is growing strongly while it is still valued neutral. This is a good combination! These ratings would make ARGX suitable for growth investing!
1. Profitability
1.1 Basic Checks
ARGX had positive earnings in the past year.
ARGX had a positive operating cash flow in the past year.
In the past 5 years ARGX reported 4 times negative net income.
In the past 5 years ARGX always reported negative operating cash flow.
1.2 Ratios
ARGX has a Return On Assets of 17.84%. This is amongst the best in the industry. ARGX outperforms 96.46% of its industry peers.
With an excellent Return On Equity value of 21.00%, ARGX belongs to the best of the industry, outperforming 95.71% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.01%, ARGX belongs to the top of the industry, outperforming 92.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.84% | ||
| ROE | 21% | ||
| ROIC | 6.01% |
ROA(3y)-5.23%
ROA(5y)-11.34%
ROE(3y)-5.76%
ROE(5y)-13.95%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of ARGX (41.97%) is better than 98.32% of its industry peers.
ARGX has a better Operating Margin (15.30%) than 93.66% of its industry peers.
ARGX has a Gross Margin of 89.40%. This is amongst the best in the industry. ARGX outperforms 91.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.3% | ||
| PM (TTM) | 41.97% | ||
| GM | 89.4% |
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
ARGX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ARGX has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ARGX has been increased compared to 5 years ago.
Compared to 1 year ago, ARGX has a worse debt to assets ratio.
2.2 Solvency
ARGX has an Altman-Z score of 27.52. This indicates that ARGX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ARGX (27.52) is better than 94.22% of its industry peers.
ARGX has a debt to FCF ratio of 0.14. This is a very positive value and a sign of high solvency as it would only need 0.14 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.14, ARGX belongs to the top of the industry, outperforming 96.27% of the companies in the same industry.
ARGX has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
ARGX's Debt to Equity ratio of 0.01 is in line compared to the rest of the industry. ARGX outperforms 45.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.14 | ||
| Altman-Z | 27.52 |
ROIC/WACC0.8
WACC7.52%
2.3 Liquidity
A Current Ratio of 5.60 indicates that ARGX has no problem at all paying its short term obligations.
With a decent Current ratio value of 5.60, ARGX is doing good in the industry, outperforming 60.26% of the companies in the same industry.
ARGX has a Quick Ratio of 5.27. This indicates that ARGX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 5.27, ARGX is in line with its industry, outperforming 58.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.6 | ||
| Quick Ratio | 5.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 345.45% over the past year.
ARGX shows a strong growth in Revenue. In the last year, the Revenue has grown by 56.80%.
ARGX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 94.61% yearly.
EPS 1Y (TTM)345.45%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%731.11%
Revenue 1Y (TTM)56.8%
Revenue growth 3Y63.92%
Revenue growth 5Y94.61%
Sales Q2Q%97.62%
3.2 Future
The Earnings Per Share is expected to grow by 102.06% on average over the next years. This is a very strong growth
ARGX is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 32.48% yearly.
EPS Next Y805.38%
EPS Next 2Y278.4%
EPS Next 3Y166.67%
EPS Next 5Y102.06%
Revenue Next Year83.54%
Revenue Next 2Y54.85%
Revenue Next 3Y42.91%
Revenue Next 5Y32.48%
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 85.39, ARGX can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ARGX is valued cheaper than 91.04% of the companies in the same industry.
When comparing the Price/Earnings ratio of ARGX to the average of the S&P500 Index (27.86), we can say ARGX is valued expensively.
Based on the Price/Forward Earnings ratio of 29.79, the valuation of ARGX can be described as expensive.
90.30% of the companies in the same industry are more expensive than ARGX, based on the Price/Forward Earnings ratio.
ARGX's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 85.39 | ||
| Fwd PE | 29.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARGX is valued cheaper than 89.93% of the companies in the same industry.
ARGX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ARGX is cheaper than 91.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 156.92 | ||
| EV/EBITDA | 84.35 |
4.3 Compensation for Growth
ARGX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ARGX's earnings are expected to grow with 166.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y278.4%
EPS Next 3Y166.67%
5. Dividend
5.1 Amount
ARGX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
791.59
+24.26 (+3.16%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners41.51%
Inst Owner Change-19%
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap48.45B
Analysts85.6
Price Target857.55 (8.33%)
Short Float %2.84%
Short Ratio4.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.16%
Min EPS beat(2)7.11%
Max EPS beat(2)23.2%
EPS beat(4)3
Avg EPS beat(4)3962.36%
Min EPS beat(4)-38.07%
Max EPS beat(4)15857.2%
EPS beat(8)5
Avg EPS beat(8)1996.71%
EPS beat(12)8
Avg EPS beat(12)1343.38%
EPS beat(16)12
Avg EPS beat(16)1012.62%
Revenue beat(2)1
Avg Revenue beat(2)3.68%
Min Revenue beat(2)-0.81%
Max Revenue beat(2)8.17%
Revenue beat(4)3
Avg Revenue beat(4)5.02%
Min Revenue beat(4)-0.81%
Max Revenue beat(4)8.17%
Revenue beat(8)6
Avg Revenue beat(8)5.96%
Revenue beat(12)10
Avg Revenue beat(12)14.45%
Revenue beat(16)13
Avg Revenue beat(16)17.87%
PT rev (1m)3.08%
PT rev (3m)9.51%
EPS NQ rev (1m)1.67%
EPS NQ rev (3m)65.39%
EPS NY rev (1m)6.02%
EPS NY rev (3m)33.45%
Revenue NQ rev (1m)0.56%
Revenue NQ rev (3m)20.78%
Revenue NY rev (1m)1.35%
Revenue NY rev (3m)11.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 85.39 | ||
| Fwd PE | 29.79 | ||
| P/S | 15.88 | ||
| P/FCF | 156.92 | ||
| P/OCF | 119.99 | ||
| P/B | 7.95 | ||
| P/tB | 8.24 | ||
| EV/EBITDA | 84.35 |
EPS(TTM)9.27
EY1.17%
EPS(NY)26.57
Fwd EY3.36%
FCF(TTM)5.04
FCFY0.64%
OCF(TTM)6.6
OCFY0.83%
SpS49.85
BVpS99.6
TBVpS96.03
PEG (NY)0.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.84% | ||
| ROE | 21% | ||
| ROCE | 7.61% | ||
| ROIC | 6.01% | ||
| ROICexc | 16.72% | ||
| ROICexgc | 18.56% | ||
| OM | 15.3% | ||
| PM (TTM) | 41.97% | ||
| GM | 89.4% | ||
| FCFM | 10.12% |
ROA(3y)-5.23%
ROA(5y)-11.34%
ROE(3y)-5.76%
ROE(5y)-13.95%
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-Score5
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.14 | ||
| Debt/EBITDA | 0.07 | ||
| Cap/Depr | 428.74% | ||
| Cap/Sales | 3.12% | ||
| Interest Coverage | 519.07 | ||
| Cash Conversion | 82.6% | ||
| Profit Quality | 24.11% | ||
| Current Ratio | 5.6 | ||
| Quick Ratio | 5.27 | ||
| Altman-Z | 27.52 |
F-Score5
WACC7.52%
ROIC/WACC0.8
Cap/Depr(3y)176.19%
Cap/Depr(5y)545.91%
Cap/Sales(3y)10.66%
Cap/Sales(5y)13.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)345.45%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%731.11%
EPS Next Y805.38%
EPS Next 2Y278.4%
EPS Next 3Y166.67%
EPS Next 5Y102.06%
Revenue 1Y (TTM)56.8%
Revenue growth 3Y63.92%
Revenue growth 5Y94.61%
Sales Q2Q%97.62%
Revenue Next Year83.54%
Revenue Next 2Y54.85%
Revenue Next 3Y42.91%
Revenue Next 5Y32.48%
EBIT growth 1Y207%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year1305.72%
EBIT Next 3Y205.97%
EBIT Next 5Y113.35%
FCF growth 1Y140.74%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y161.79%
OCF growth 3YN/A
OCF growth 5YN/A