ARGAN (ARG.PA) Stock Fundamental Analysis
Europe • Euronext Paris • EPA:ARG • FR0010481960
66 EUR
-0.3 (-0.45%)
Last: Jan 30, 2026, 07:00 PM
ARG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 41 industry peers in the Diversified REITs industry. While ARG belongs to the best of the industry regarding profitability, there are 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.
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.
- ARG had positive earnings in 4 of the past 5 years.
- In the past 5 years ARG always reported a positive cash flow from operatings.
1.2 Ratios
- ARG's Return On Assets of 6.76% is amongst the best of the industry. ARG outperforms 100.00% of its industry peers.
- ARG has a Return On Equity of 12.66%. This is amongst the best in the industry. ARG outperforms 97.56% of its industry peers.
- ARG has a Return On Invested Capital (3.48%) which is comparable to the rest of the industry.
- ARG had an Average Return On Invested Capital over the past 3 years of 3.13%. This is in line with the industry average of 3.37%.
- The 3 year average ROIC (3.13%) for ARG is below the current ROIC(3.48%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.76% | ||
| ROE | 12.66% | ||
| ROIC | 3.48% |
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
- ARG's Profit Margin of 139.56% is amongst the best of the industry. ARG outperforms 100.00% of its industry peers.
- In the last couple of years the Profit Margin of ARG has declined.
- With an excellent Operating Margin value of 92.83%, ARG belongs to the best of the industry, outperforming 92.68% of the companies in the same industry.
- ARG's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 92.83% | ||
| PM (TTM) | 139.56% | ||
| 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.
- The number of shares outstanding for ARG has been increased compared to 1 year ago.
- The number of shares outstanding for ARG has been increased compared to 5 years ago.
- Compared to 1 year ago, ARG has an improved debt to assets ratio.
2.2 Solvency
- ARG has an Altman-Z score of 1.30. This is a bad value and indicates that ARG is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of ARG (1.30) is better than 82.93% 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's Debt to FCF ratio of 9.50 is amongst the best of the industry. ARG outperforms 82.93% of its industry peers.
- A Debt/Equity ratio of 0.76 indicates that ARG is somewhat dependend on debt financing.
- ARG has a Debt to Equity ratio (0.76) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 9.5 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.6
WACC5.78%
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.
- The Current ratio of ARG (0.52) is comparable to the rest of the industry.
- ARG has a Quick 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 Quick ratio of 0.52. This is comparable to the rest of the industry: ARG outperforms 58.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 191.42% over the past year.
- 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.
- The Revenue has been growing by 14.50% on average over the past years. This is quite good.
EPS 1Y (TTM)191.42%
EPS 3Y-30.53%
EPS 5Y-3.87%
EPS Q2Q%39.96%
Revenue 1Y (TTM)7.89%
Revenue growth 3Y8.41%
Revenue growth 5Y14.5%
Sales Q2Q%7.59%
3.2 Future
- ARG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.50% yearly.
- The Revenue is expected to grow by 4.73% on average over the next years.
EPS Next Y7.52%
EPS Next 2Y4.02%
EPS Next 3Y2.62%
EPS Next 5Y2.5%
Revenue Next Year6.57%
Revenue Next 2Y5.1%
Revenue Next 3Y4.73%
Revenue Next 5Y4.73%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- Based on the Price/Earnings ratio of 5.73, the valuation of ARG can be described as very cheap.
- Compared to the rest of the industry, the Price/Earnings ratio of ARG indicates a rather cheap valuation: ARG is cheaper than 100.00% of the companies listed in the same industry.
- ARG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.30.
- With a Price/Forward Earnings ratio of 10.86, the valuation of ARG can be described as very reasonable.
- ARG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ARG is cheaper than 65.85% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, ARG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.73 | ||
| Fwd PE | 10.86 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as ARG.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARG indicates a somewhat cheap valuation: ARG is cheaper than 75.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.81 | ||
| EV/EBITDA | 18.09 |
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.
- ARG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.76
PEG (5Y)N/A
EPS Next 2Y4.02%
EPS Next 3Y2.62%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.09%, ARG is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 5.41, ARG has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, ARG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.09% |
5.2 History
- On average, the dividend of ARG grows each year by 32.61%, which is quite nice.
Dividend Growth(5Y)32.61%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 22.47% of the earnings are spent on dividend by ARG. This is a low number and sustainable payout ratio.
- The dividend of ARG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP22.47%
EPS Next 2Y4.02%
EPS Next 3Y2.62%
ARGAN / ARG.PA FAQ
Can you provide the ChartMill fundamental rating for ARGAN?
ChartMill assigns a fundamental rating of 5 / 10 to ARG.PA.
Can you provide the valuation status for ARGAN?
ChartMill assigns a valuation rating of 7 / 10 to ARGAN (ARG.PA). This can be considered as Undervalued.
Can you provide the profitability details for ARGAN?
ARGAN (ARG.PA) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for ARG stock?
The Price/Earnings (PE) ratio for ARGAN (ARG.PA) is 5.73 and the Price/Book (PB) ratio is 0.74.
Can you provide the dividend sustainability for ARG stock?
The dividend rating of ARGAN (ARG.PA) is 7 / 10 and the dividend payout ratio is 22.47%.