AMERIGO RESOURCES LTD (ARG.CA) Stock Fundamental Analysis
TSX:ARG - Toronto Stock Exchange - CA03074G1090 - Common Stock - Currency: CAD
Taking everything into account, ARG scores 7 out of 10 in our fundamental rating. ARG was compared to 818 industry peers in the Metals & Mining industry. While ARG belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ARG may be a bit undervalued, certainly considering the very reasonable score on growth ARG also has an excellent dividend rating. With these ratings, ARG could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year ARG was profitable.
In the past year ARG had a positive cash flow from operations.
Of the past 5 years ARG 4 years were profitable.
In the past 5 years ARG always reported a positive cash flow from operatings.
1.2 Ratios
ARG has a better Return On Assets (10.27%) than 94.19% of its industry peers.
ARG has a better Return On Equity (19.46%) than 95.41% of its industry peers.
ARG's Return On Invested Capital of 16.05% is amongst the best of the industry. ARG outperforms 97.30% of its industry peers.
ARG had an Average Return On Invested Capital over the past 3 years of 12.05%. This is in line with the industry average of 11.82%.
The 3 year average ROIC (12.05%) for ARG is below the current ROIC(16.05%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.27% | ||
| ROE | 19.46% | ||
| ROIC | 16.05% |
ROA(3y)6.12%
ROA(5y)3.38%
ROE(3y)11.87%
ROE(5y)6.39%
ROIC(3y)12.05%
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 11.23%, ARG belongs to the best of the industry, outperforming 93.38% of the companies in the same industry.
ARG's Profit Margin has declined in the last couple of years.
The Operating Margin of ARG (17.62%) is better than 91.76% of its industry peers.
ARG's Operating Margin has declined in the last couple of years.
ARG has a Gross Margin of 20.43%. This is amongst the best in the industry. ARG outperforms 87.30% of its industry peers.
ARG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.62% | ||
| PM (TTM) | 11.23% | ||
| GM | 20.43% |
OM growth 3YN/A
OM growth 5Y-19.62%
PM growth 3Y-26.06%
PM growth 5Y-22.49%
GM growth 3Y94.62%
GM growth 5Y-13.23%
2. Health
2.1 Basic Checks
ARG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ARG has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ARG has been reduced compared to 5 years ago.
The debt/assets ratio for ARG has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.92 indicates that ARG is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.92, ARG perfoms like the industry average, outperforming 58.65% of the companies in the same industry.
ARG has a debt to FCF ratio of 0.39. This is a very positive value and a sign of high solvency as it would only need 0.39 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.39, ARG belongs to the best of the industry, outperforming 95.41% of the companies in the same industry.
ARG has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
ARG has a worse Debt to Equity ratio (0.06) than 64.86% of its industry peers.
Although ARG does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.39 | ||
| Altman-Z | 2.92 |
ROIC/WACC1.74
WACC9.22%
2.3 Liquidity
A Current Ratio of 0.91 indicates that ARG may have some problems paying its short term obligations.
ARG has a Current ratio of 0.91. This is in the lower half of the industry: ARG underperforms 65.41% of its industry peers.
A Quick Ratio of 0.80 indicates that ARG may have some problems paying its short term obligations.
The Quick ratio of ARG (0.80) is worse than 66.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 800.00% 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 -22.16% on average per year.
The Revenue has grown by 11.86% in the past year. This is quite good.
Measured over the past years, ARG shows a small growth in Revenue. The Revenue has been growing by 2.85% on average per year.
EPS 1Y (TTM)800%
EPS 3Y-12.32%
EPS 5Y-22.16%
EPS Q2Q%150%
Revenue 1Y (TTM)11.86%
Revenue growth 3Y11.11%
Revenue growth 5Y2.85%
Sales Q2Q%49.82%
3.2 Future
ARG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 132.85% yearly.
The Revenue is expected to grow by 8.81% on average over the next years. This is quite good.
EPS Next Y657.5%
EPS Next 2Y165.89%
EPS Next 3Y132.85%
EPS Next 5YN/A
Revenue Next Year22%
Revenue Next 2Y10.43%
Revenue Next 3Y8.81%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.85 indicates a reasonable valuation of ARG.
Based on the Price/Earnings ratio, ARG is valued cheaply inside the industry as 94.32% of the companies are valued more expensively.
ARG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.62.
With a Price/Forward Earnings ratio of 8.82, the valuation of ARG can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ARG is valued cheaply inside the industry as 93.51% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.70. ARG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.85 | ||
| Fwd PE | 8.82 |
4.2 Price Multiples
ARG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ARG is cheaper than 96.22% 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 97.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.35 | ||
| EV/EBITDA | 3.53 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent 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 132.85% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y165.89%
EPS Next 3Y132.85%
5. Dividend
5.1 Amount
ARG has a Yearly Dividend Yield of 6.59%, which is a nice return.
ARG's Dividend Yield is rather good when compared to the industry average which is at 7.55. ARG pays more dividend than 99.32% of the companies in the same industry.
ARG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.59% |
5.2 History
The dividend of ARG is nicely growing with an annual growth rate of 17.33%!
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)17.33%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
93.80% of the earnings are spent on dividend by ARG. This is not a sustainable payout ratio.
The dividend of ARG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP93.8%
EPS Next 2Y165.89%
EPS Next 3Y132.85%
TSX:ARG (2/21/2025, 7:00:00 PM)
1.77
-0.05 (-2.75%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners23.88%
Inst Owner ChangeN/A
Ins Owners12.87%
Ins Owner ChangeN/A
Market Cap291.48M
Analysts84
Price Target2.54 (43.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.59% |
Yearly Dividend0.09
Dividend Growth(5Y)17.33%
DP93.8%
Div Incr Years1
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.59%
Min EPS beat(2)-33.99%
Max EPS beat(2)18.81%
EPS beat(4)2
Avg EPS beat(4)45.21%
Min EPS beat(4)-33.99%
Max EPS beat(4)197.03%
EPS beat(8)4
Avg EPS beat(8)-5.24%
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)1.15%
Min Revenue beat(2)-2.47%
Max Revenue beat(2)4.76%
Revenue beat(4)1
Avg Revenue beat(4)-2.72%
Min Revenue beat(4)-6.78%
Max Revenue beat(4)4.76%
Revenue beat(8)3
Avg Revenue beat(8)-1.16%
Revenue beat(12)4
Avg Revenue beat(12)-0.89%
Revenue beat(16)4
Avg Revenue beat(16)-2.25%
PT rev (1m)24.59%
PT rev (3m)24.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)7.14%
EPS NY rev (3m)7.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.85 | ||
| Fwd PE | 8.82 | ||
| P/S | 1.11 | ||
| P/FCF | 5.35 | ||
| P/OCF | 4.29 | ||
| P/B | 1.93 | ||
| P/tB | 1.98 | ||
| EV/EBITDA | 3.53 |
EPS(TTM)0.2
EY11.3%
EPS(NY)0.2
Fwd EY11.34%
FCF(TTM)0.33
FCFY18.7%
OCF(TTM)0.41
OCFY23.3%
SpS1.59
BVpS0.92
TBVpS0.89
PEG (NY)0.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.27% | ||
| ROE | 19.46% | ||
| ROCE | 22.29% | ||
| ROIC | 16.05% | ||
| ROICexc | 19.4% | ||
| ROICexgc | 19.88% | ||
| OM | 17.62% | ||
| PM (TTM) | 11.23% | ||
| GM | 20.43% | ||
| FCFM | 20.82% |
ROA(3y)6.12%
ROA(5y)3.38%
ROE(3y)11.87%
ROE(5y)6.39%
ROIC(3y)12.05%
ROIC(5y)N/A
ROICexc(3y)16.09%
ROICexc(5y)N/A
ROICexgc(3y)16.48%
ROICexgc(5y)N/A
ROCE(3y)16.73%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-11.38%
ROICexc growth 3YN/A
ROICexc growth 5Y-11.4%
OM growth 3YN/A
OM growth 5Y-19.62%
PM growth 3Y-26.06%
PM growth 5Y-22.49%
GM growth 3Y94.62%
GM growth 5Y-13.23%
F-Score9
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.39 | ||
| Debt/EBITDA | 0.12 | ||
| Cap/Depr | 41.56% | ||
| Cap/Sales | 5.12% | ||
| Interest Coverage | 23.75 | ||
| Cash Conversion | 86.63% | ||
| Profit Quality | 185.42% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 2.92 |
F-Score9
WACC9.22%
ROIC/WACC1.74
Cap/Depr(3y)65.71%
Cap/Depr(5y)54.04%
Cap/Sales(3y)7.52%
Cap/Sales(5y)6.67%
Profit Quality(3y)207.34%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)800%
EPS 3Y-12.32%
EPS 5Y-22.16%
EPS Q2Q%150%
EPS Next Y657.5%
EPS Next 2Y165.89%
EPS Next 3Y132.85%
EPS Next 5YN/A
Revenue 1Y (TTM)11.86%
Revenue growth 3Y11.11%
Revenue growth 5Y2.85%
Sales Q2Q%49.82%
Revenue Next Year22%
Revenue Next 2Y10.43%
Revenue Next 3Y8.81%
Revenue Next 5YN/A
EBIT growth 1Y207.05%
EBIT growth 3YN/A
EBIT growth 5Y-17.32%
EBIT Next Year852%
EBIT Next 3Y104.96%
EBIT Next 5YN/A
FCF growth 1Y57.28%
FCF growth 3Y-41.55%
FCF growth 5YN/A
OCF growth 1Y32.21%
OCF growth 3Y0.84%
OCF growth 5Y-5.67%