ARGAN (ARG.PA) Stock Fundamental Analysis
Europe - EPA:ARG - FR0010481960 - REIT
68.3 EUR
-0.6 (-0.87%)
Taking everything into account, ARG scores 5 out of 10 in our fundamental rating. ARG was compared to 40 industry peers in the Diversified REITs industry. While ARG has a great profitability rating, there are quite some concerns on its financial health. ARG scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally ARG also has an excellent dividend rating.
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.
Each year in the past 5 years ARG had a positive operating cash flow.
1.2 Ratios
ARG has a better Return On Assets (6.75%) than 100.00% of its industry peers.
ARG has a better Return On Equity (12.65%) than 97.50% of its industry peers.
The Return On Invested Capital of ARG (3.47%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for ARG is in line with the industry average of 3.49%.
The 3 year average ROIC (3.13%) for ARG is below the current ROIC(3.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.75% | ||
| ROE | 12.65% | ||
| ROIC | 3.47% |
ROA(3y)0.48%
ROA(5y)4.9%
ROE(3y)0.46%
ROE(5y)10.33%
ROIC(3y)3.13%
ROIC(5y)3.04%
1.3 Margins
The Profit Margin of ARG (139.47%) is better than 100.00% of its industry peers.
ARG's Profit Margin has declined in the last couple of years.
ARG's Operating Margin of 92.63% is amongst the best of the industry. ARG outperforms 95.00% of its industry peers.
ARG's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 92.63% | ||
| PM (TTM) | 139.47% | ||
| GM | N/A |
OM growth 3Y-0.31%
OM growth 5Y17.53%
PM growth 3Y-33.91%
PM growth 5Y-10.3%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARG is destroying value.
ARG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ARG has more shares outstanding
The debt/assets ratio for ARG has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.32, we must say that ARG is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ARG (1.32) is better than 85.00% of its industry peers.
ARG has a debt to FCF ratio of 9.50. This is a negative value and a sign of low solvency as ARG would need 9.50 years to pay back of all of its debts.
ARG has a better Debt to FCF ratio (9.50) than 80.00% of its industry peers.
ARG has a Debt/Equity ratio of 0.76. This is a neutral value indicating ARG is somewhat dependend on debt financing.
ARG's Debt to Equity ratio of 0.76 is on the low side compared to the rest of the industry. ARG is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 9.5 | ||
| Altman-Z | 1.32 |
ROIC/WACC0.6
WACC5.8%
2.3 Liquidity
ARG has a Current Ratio of 0.52. This is a bad value and indicates that ARG is not financially healthy enough and could expect problems in meeting its short term obligations.
ARG has a Current ratio (0.52) which is in line with its industry peers.
A Quick Ratio of 0.52 indicates that ARG may have some problems paying its short term obligations.
With a Quick ratio value of 0.52, ARG perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
ARG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 188.61%, which is quite impressive.
Measured over the past years, ARG shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.87% on average per year.
The Revenue has been growing slightly by 7.89% in the past year.
Measured over the past years, ARG shows a quite strong growth in Revenue. The Revenue has been growing by 14.50% on average per year.
EPS 1Y (TTM)188.61%
EPS 3Y-30.53%
EPS 5Y-3.87%
EPS Q2Q%39.97%
Revenue 1Y (TTM)7.89%
Revenue growth 3Y8.41%
Revenue growth 5Y14.5%
Sales Q2Q%7.59%
3.2 Future
The Earnings Per Share is expected to grow by 3.87% on average over the next years.
Based on estimates for the next years, ARG will show a small growth in Revenue. The Revenue will grow by 4.23% on average per year.
EPS Next Y8.03%
EPS Next 2Y4.26%
EPS Next 3Y3.05%
EPS Next 5Y3.87%
Revenue Next Year6.7%
Revenue Next 2Y4.83%
Revenue Next 3Y4.68%
Revenue Next 5Y4.23%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ARG is valuated cheaply with a Price/Earnings ratio of 5.99.
ARG's Price/Earnings ratio is rather cheap when compared to the industry. ARG is cheaper than 100.00% of the companies in the same industry.
ARG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.67.
Based on the Price/Forward Earnings ratio of 11.18, the valuation of ARG can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as ARG.
ARG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.99 | ||
| Fwd PE | 11.18 |
4.2 Price Multiples
ARG's Enterprise Value to EBITDA is on the same level as the industry average.
75.00% of the companies in the same industry are more expensive than ARG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.12 | ||
| EV/EBITDA | 18.47 |
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.
ARG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.75
PEG (5Y)N/A
EPS Next 2Y4.26%
EPS Next 3Y3.05%
5. Dividend
5.1 Amount
ARG has a Yearly Dividend Yield of 4.95%, which is a nice return.
ARG's Dividend Yield is comparable with the industry average which is at 5.84.
ARG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.95% |
5.2 History
The dividend of ARG is nicely growing with an annual growth rate of 32.61%!
Dividend Growth(5Y)32.61%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
22.49% of the earnings are spent on dividend by ARG. This is a low number and sustainable payout ratio.
ARG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP22.49%
EPS Next 2Y4.26%
EPS Next 3Y3.05%
EPA:ARG (10/23/2025, 7:00:00 PM)
68.3
-0.6 (-0.87%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners35.71%
Inst Owner ChangeN/A
Ins Owners36.31%
Ins Owner ChangeN/A
Market Cap1.76B
Revenue(TTM)208.43M
Net Income(TTM)290.70M
Analysts78.33
Price Target79.69 (16.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.95% |
Yearly Dividend2.17
Dividend Growth(5Y)32.61%
DP22.49%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)-0.32%
PT rev (3m)-2.04%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)1.5%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.99 | ||
| Fwd PE | 11.18 | ||
| P/S | 8.43 | ||
| P/FCF | 9.12 | ||
| P/OCF | 9.11 | ||
| P/B | 0.77 | ||
| P/tB | 0.78 | ||
| EV/EBITDA | 18.47 |
EPS(TTM)11.41
EY16.71%
EPS(NY)6.11
Fwd EY8.94%
FCF(TTM)7.49
FCFY10.96%
OCF(TTM)7.49
OCFY10.97%
SpS8.1
BVpS89.25
TBVpS87.09
PEG (NY)0.75
PEG (5Y)N/A
Graham Number151.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.75% | ||
| ROE | 12.65% | ||
| ROCE | 4.72% | ||
| ROIC | 3.47% | ||
| ROICexc | 3.5% | ||
| ROICexgc | 3.55% | ||
| OM | 92.63% | ||
| PM (TTM) | 139.47% | ||
| GM | N/A | ||
| FCFM | 92.46% |
ROA(3y)0.48%
ROA(5y)4.9%
ROE(3y)0.46%
ROE(5y)10.33%
ROIC(3y)3.13%
ROIC(5y)3.04%
ROICexc(3y)3.21%
ROICexc(5y)3.17%
ROICexgc(3y)3.25%
ROICexgc(5y)3.22%
ROCE(3y)4.26%
ROCE(5y)4.13%
ROICexgc growth 3Y3.68%
ROICexgc growth 5Y17.66%
ROICexc growth 3Y3.74%
ROICexc growth 5Y18.7%
OM growth 3Y-0.31%
OM growth 5Y17.53%
PM growth 3Y-33.91%
PM growth 5Y-10.3%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 9.5 | ||
| Debt/EBITDA | 8.99 | ||
| Cap/Depr | 69.58% | ||
| Cap/Sales | 0.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 99.78% | ||
| Profit Quality | 66.3% | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 1.32 |
F-Score6
WACC5.8%
ROIC/WACC0.6
Cap/Depr(3y)57.59%
Cap/Depr(5y)2471.73%
Cap/Sales(3y)0.08%
Cap/Sales(5y)39.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)188.61%
EPS 3Y-30.53%
EPS 5Y-3.87%
EPS Q2Q%39.97%
EPS Next Y8.03%
EPS Next 2Y4.26%
EPS Next 3Y3.05%
EPS Next 5Y3.87%
Revenue 1Y (TTM)7.89%
Revenue growth 3Y8.41%
Revenue growth 5Y14.5%
Sales Q2Q%7.59%
Revenue Next Year6.7%
Revenue Next 2Y4.83%
Revenue Next 3Y4.68%
Revenue Next 5Y4.23%
EBIT growth 1Y7.58%
EBIT growth 3Y8.07%
EBIT growth 5Y34.57%
EBIT Next Year-9.76%
EBIT Next 3Y-1.4%
EBIT Next 5Y0.14%
FCF growth 1Y5.49%
FCF growth 3Y0.28%
FCF growth 5YN/A
OCF growth 1Y5.46%
OCF growth 3Y0.29%
OCF growth 5Y66.22%