AMERIGO RESOURCES LTD (ARG.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ARG - CA03074G1090 - Common Stock
6.05 CAD
+0.27 (+4.67%)
We assign a fundamental rating of 7 out of 10 to ARG. ARG was compared to 820 industry peers in the Metals & Mining industry. Both the health and profitability get an excellent rating, making ARG a very profitable company, without any liquidiy or solvency issues. ARG is not valued too expensively and it also shows a decent growth rate. These ratings would make ARG suitable for 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.
- In the past 5 years ARG always reported a positive cash flow from operatings.
1.2 Ratios
- ARG has a Return On Assets of 10.43%. This is amongst the best in the industry. ARG outperforms 93.51% of its industry peers.
- ARG has a Return On Equity of 18.62%. This is amongst the best in the industry. ARG outperforms 95.35% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 16.17%, ARG belongs to the top of the industry, outperforming 97.18% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ARG is below the industry average of 12.04%.
- The last Return On Invested Capital (16.17%) for ARG is above the 3 year average (8.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.43% | ||
| ROE | 18.62% | ||
| ROIC | 16.17% |
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
- The Profit Margin of ARG (10.05%) is better than 92.04% of its industry peers.
- In the last couple of years the Profit Margin of ARG has declined.
- ARG's Operating Margin of 20.52% is amongst the best of the industry. ARG outperforms 92.41% of its industry peers.
- In the last couple of years the Operating Margin of ARG has declined.
- ARG has a better Gross Margin (24.47%) than 89.35% of its industry peers.
- In the last couple of years the Gross Margin of ARG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.52% | ||
| PM (TTM) | 10.05% | ||
| GM | 24.47% |
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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ARG is still creating some value.
- ARG has about the same amout of shares outstanding than it did 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 7.04. This indicates that ARG is financially healthy and has little risk of bankruptcy at the moment.
- ARG has a Altman-Z score (7.04) which is comparable to the rest of the industry.
- There is no outstanding debt for ARG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.24 | ||
| Altman-Z | 7.04 |
ROIC/WACC1.69
WACC9.58%
2.3 Liquidity
- A Current Ratio of 1.02 indicates that ARG should not have too much problems paying its short term obligations.
- ARG has a Current ratio (1.02) which is in line with its industry peers.
- A Quick Ratio of 0.91 indicates that ARG may have some problems paying its short term obligations.
- With a Quick ratio value of 0.91, ARG perfoms like the industry average, outperforming 40.51% of the companies in the same industry.
- ARG does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.02 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 550.00% over the past year.
- The earnings per share for ARG have been decreasing by -18.96% on average. This is quite bad
- ARG shows a small growth in Revenue. In the last year, the Revenue has grown by 7.55%.
- 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%100%
Revenue 1Y (TTM)7.55%
Revenue growth 3Y-1.15%
Revenue growth 5Y9.98%
Sales Q2Q%15.5%
3.2 Future
- The Earnings Per Share is expected to grow by 18.26% on average over the next years. This is quite good.
- Based on estimates for the next years, ARG will show a small growth in Revenue. The Revenue will grow by 7.25% on average per year.
EPS Next Y63.15%
EPS Next 2Y18.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.54%
Revenue Next 2Y7.25%
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 quite expensively with a Price/Earnings ratio of 33.61.
- Compared to the rest of the industry, the Price/Earnings ratio of ARG indicates a rather cheap valuation: ARG is cheaper than 89.84% of the companies listed in the same industry.
- ARG's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 24.18 indicates a rather expensive valuation of ARG.
- 89.35% of the companies in the same industry are more expensive than ARG, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of ARG to the average of the S&P500 Index (25.98), we can say ARG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.61 | ||
| Fwd PE | 24.18 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ARG is valued cheaper than 95.84% of the companies in the same industry.
- ARG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ARG is cheaper than 95.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.85 | ||
| EV/EBITDA | 10.84 |
4.3 Compensation for Growth
- ARG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of ARG may justify a higher PE ratio.
- A more expensive valuation may be justified as ARG's earnings are expected to grow with 18.26% in the coming years.
PEG (NY)0.53
PEG (5Y)N/A
EPS Next 2Y18.26%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- ARG has a Yearly Dividend Yield of 2.77%.
- Compared to an average industry Dividend Yield of 0.56, ARG pays a better dividend. On top of this ARG pays more dividend than 98.78% of the companies listed in the same industry.
- ARG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
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 67.94% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of ARG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP67.94%
EPS Next 2Y18.26%
EPS Next 3YN/A
AMERIGO RESOURCES LTD / ARG.CA FAQ
Can you provide the ChartMill fundamental rating for AMERIGO RESOURCES LTD?
ChartMill assigns a fundamental rating of 7 / 10 to ARG.CA.
Can you provide the valuation status for AMERIGO RESOURCES LTD?
ChartMill assigns a valuation rating of 7 / 10 to AMERIGO RESOURCES LTD (ARG.CA). This can be considered as Undervalued.
Can you provide the profitability details for AMERIGO RESOURCES LTD?
AMERIGO RESOURCES LTD (ARG.CA) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for ARG stock?
The Price/Earnings (PE) ratio for AMERIGO RESOURCES LTD (ARG.CA) is 33.61 and the Price/Book (PB) ratio is 6.64.
Can you provide the dividend sustainability for ARG stock?
The dividend rating of AMERIGO RESOURCES LTD (ARG.CA) is 7 / 10 and the dividend payout ratio is 67.94%.