AMERIGO RESOURCES LTD (ARG.CA) Stock Fundamental Analysis
TSX:ARG - Toronto Stock Exchange - CA03074G1090 - Common Stock - Currency: CAD
ARG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 797 industry peers in the Metals & Mining industry. ARG has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ARG scores decently on growth, while it is valued quite cheap. This could make an interesting combination. ARG also has an excellent dividend rating. This makes ARG very considerable for value and dividend and quality investing!
1. Profitability
1.1 Basic Checks
ARG had positive earnings in the past year.
ARG had a positive operating cash flow in the past year.
In the past 5 years ARG has always been profitable.
ARG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ARG has a Return On Assets of 9.31%. This is amongst the best in the industry. ARG outperforms 93.60% of its industry peers.
The Return On Equity of ARG (17.61%) is better than 94.23% of its industry peers.
With an excellent Return On Invested Capital value of 15.53%, ARG belongs to the best of the industry, outperforming 97.24% of the companies in the same industry.
ARG had an Average Return On Invested Capital over the past 3 years of 8.34%. This is below the industry average of 12.25%.
The 3 year average ROIC (8.34%) for ARG is below the current ROIC(15.53%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.31% | ||
| ROE | 17.61% | ||
| ROIC | 15.53% |
ROA(3y)4.32%
ROA(5y)6.06%
ROE(3y)8.42%
ROE(5y)11.89%
ROIC(3y)8.34%
ROIC(5y)N/A
1.3 Margins
ARG has a better Profit Margin (9.51%) than 92.60% of its industry peers.
ARG's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 20.77%, ARG belongs to the best of the industry, outperforming 92.72% of the companies in the same industry.
ARG's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 24.63%, ARG belongs to the top of the industry, outperforming 89.71% of the companies in the same industry.
ARG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.77% | ||
| PM (TTM) | 9.51% | ||
| GM | 24.63% |
OM growth 3Y-16.35%
OM growth 5YN/A
PM growth 3Y-20.62%
PM growth 5YN/A
GM growth 3Y-13.28%
GM growth 5Y134.26%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ARG is creating some value.
The number of shares outstanding for ARG remains at a similar level compared to 1 year ago.
ARG has less shares outstanding than it did 5 years ago.
ARG has a better debt/assets ratio than last year.
2.2 Solvency
ARG has an Altman-Z score of 3.57. This indicates that ARG is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.57, ARG is in the better half of the industry, outperforming 62.11% of the companies in the same industry.
ARG has a debt to FCF ratio of 0.26. This is a very positive value and a sign of high solvency as it would only need 0.26 years to pay back of all of its debts.
ARG has a better Debt to FCF ratio (0.26) than 96.36% of its industry peers.
ARG has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.03, ARG is in line with its industry, outperforming 43.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.26 | ||
| Altman-Z | 3.57 |
ROIC/WACC1.79
WACC8.66%
2.3 Liquidity
ARG has a Current Ratio of 0.91. This is a bad value and indicates that ARG is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.91, ARG perfoms like the industry average, outperforming 40.90% of the companies in the same industry.
A Quick Ratio of 0.77 indicates that ARG may have some problems paying its short term obligations.
With a Quick ratio value of 0.77, ARG is not doing good in the industry: 61.23% of the companies in the same industry are doing better.
The current and quick ratio evaluation for ARG is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 550.00% over the past year.
Measured over the past years, ARG shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.96% on average per year.
The Revenue has grown by 28.25% in the past year. This is a very strong growth!
The Revenue has been growing by 9.98% on average over the past years. This is quite good.
EPS 1Y (TTM)550%
EPS 3Y-18.96%
EPS 5YN/A
EPS Q2Q%-22.96%
Revenue 1Y (TTM)28.25%
Revenue growth 3Y-1.15%
Revenue growth 5Y9.98%
Sales Q2Q%-1.65%
3.2 Future
The Earnings Per Share is expected to grow by 39.37% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 2.76% on average over the next years.
EPS Next Y8.77%
EPS Next 2Y39.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.05%
Revenue Next 2Y2.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
ARG is valuated correctly with a Price/Earnings ratio of 12.56.
ARG's Price/Earnings ratio is rather cheap when compared to the industry. ARG is cheaper than 93.85% of the companies in the same industry.
ARG is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.55, the valuation of ARG can be described as very cheap.
Based on the Price/Forward Earnings ratio, ARG is valued cheaply inside the industry as 94.48% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, ARG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.56 | ||
| Fwd PE | 6.55 |
4.2 Price Multiples
ARG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ARG is cheaper than 96.74% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARG indicates a rather cheap valuation: ARG is cheaper than 97.99% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.37 | ||
| EV/EBITDA | 4.06 |
4.3 Compensation for Growth
ARG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ARG has an outstanding profitability rating, which may justify a higher PE ratio.
ARG's earnings are expected to grow with 39.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.43
PEG (5Y)N/A
EPS Next 2Y39.37%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.26%, ARG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 13.23, ARG pays a better dividend. On top of this ARG pays more dividend than 99.12% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, ARG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.26% |
5.2 History
The dividend of ARG is nicely growing with an annual growth rate of 24.22%!
ARG has been paying a dividend for at least 10 years, so it has a reliable track record.
ARG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)24.22%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
ARG pays out 104.92% of its income as dividend. This is not a sustainable payout ratio.
The dividend of ARG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP104.92%
EPS Next 2Y39.37%
EPS Next 3YN/A
TSX:ARG (7/8/2025, 7:00:00 PM)
2.26
-0.03 (-1.31%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners24.9%
Inst Owner ChangeN/A
Ins Owners14.03%
Ins Owner ChangeN/A
Market Cap371.48M
Analysts84
Price Target2.55 (12.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.26% |
Yearly Dividend0.16
Dividend Growth(5Y)24.22%
DP104.92%
Div Incr Years1
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)-5%
Min Revenue beat(2)-11.53%
Max Revenue beat(2)1.52%
Revenue beat(4)2
Avg Revenue beat(4)-1.93%
Min Revenue beat(4)-11.53%
Max Revenue beat(4)4.76%
Revenue beat(8)3
Avg Revenue beat(8)-2.41%
Revenue beat(12)5
Avg Revenue beat(12)-1.33%
Revenue beat(16)5
Avg Revenue beat(16)-1.42%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.56 | ||
| Fwd PE | 6.55 | ||
| P/S | 1.42 | ||
| P/FCF | 6.37 | ||
| P/OCF | 4.76 | ||
| P/B | 2.62 | ||
| P/tB | 2.7 | ||
| EV/EBITDA | 4.06 |
EPS(TTM)0.18
EY7.96%
EPS(NY)0.34
Fwd EY15.26%
FCF(TTM)0.35
FCFY15.69%
OCF(TTM)0.47
OCFY20.99%
SpS1.6
BVpS0.86
TBVpS0.84
PEG (NY)1.43
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.31% | ||
| ROE | 17.61% | ||
| ROCE | 28.1% | ||
| ROIC | 15.53% | ||
| ROICexc | 19.28% | ||
| ROICexgc | 19.78% | ||
| OM | 20.77% | ||
| PM (TTM) | 9.51% | ||
| GM | 24.63% | ||
| FCFM | 22.22% |
ROA(3y)4.32%
ROA(5y)6.06%
ROE(3y)8.42%
ROE(5y)11.89%
ROIC(3y)8.34%
ROIC(5y)N/A
ROICexc(3y)10.81%
ROICexc(5y)N/A
ROICexgc(3y)11.1%
ROICexgc(5y)N/A
ROCE(3y)15.09%
ROCE(5y)N/A
ROICexcg growth 3Y-6.54%
ROICexcg growth 5YN/A
ROICexc growth 3Y-6.66%
ROICexc growth 5YN/A
OM growth 3Y-16.35%
OM growth 5YN/A
PM growth 3Y-20.62%
PM growth 5YN/A
GM growth 3Y-13.28%
GM growth 5Y134.26%
F-Score9
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.26 | ||
| Debt/EBITDA | 0.05 | ||
| Cap/Depr | 62.58% | ||
| Cap/Sales | 7.51% | ||
| Interest Coverage | 31.48 | ||
| Cash Conversion | 90.71% | ||
| Profit Quality | 233.62% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 3.57 |
F-Score9
WACC8.66%
ROIC/WACC1.79
Cap/Depr(3y)56.05%
Cap/Depr(5y)50.06%
Cap/Sales(3y)7.03%
Cap/Sales(5y)5.9%
Profit Quality(3y)227.23%
Profit Quality(5y)233.17%
High Growth Momentum
Growth
EPS 1Y (TTM)550%
EPS 3Y-18.96%
EPS 5YN/A
EPS Q2Q%-22.96%
EPS Next Y8.77%
EPS Next 2Y39.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)28.25%
Revenue growth 3Y-1.15%
Revenue growth 5Y9.98%
Sales Q2Q%-1.65%
Revenue Next Year2.05%
Revenue Next 2Y2.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y1739.14%
EBIT growth 3Y-17.31%
EBIT growth 5YN/A
EBIT Next Year85.18%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y391.24%
FCF growth 3Y-14.58%
FCF growth 5YN/A
OCF growth 1Y179.11%
OCF growth 3Y-13.96%
OCF growth 5Y43.83%