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ARGAN (ARG.PA) Stock Fundamental Analysis

EPA:ARG - Euronext Paris - Matif - FR0010481960 - REIT - Currency: EUR

63.3  +1.6 (+2.59%)

Fundamental Rating

5

Overall ARG gets a fundamental rating of 5 out of 10. We evaluated ARG against 43 industry peers in the Diversified REITs industry. There are concerns on the financial health of ARG while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on ARG. Finally ARG also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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6

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.
ARG.PA Yearly Net Income VS EBIT VS OCF VS FCFARG.PA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M 600M

1.2 Ratios

The Return On Assets of ARG (2.26%) is better than 62.79% of its industry peers.
With a decent Return On Equity value of 4.55%, ARG is doing good in the industry, outperforming 62.79% of the companies in the same industry.
The Return On Invested Capital of ARG (3.34%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ARG is in line with the industry average of 4.02%.
The 3 year average ROIC (2.90%) for ARG is below the current ROIC(3.34%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 2.26%
ROE 4.55%
ROIC 3.34%
ROA(3y)3.51%
ROA(5y)5.21%
ROE(3y)7.25%
ROE(5y)11.6%
ROIC(3y)2.9%
ROIC(5y)2.65%
ARG.PA Yearly ROA, ROE, ROICARG.PA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 30

1.3 Margins

Looking at the Profit Margin, with a value of 48.87%, ARG is in the better half of the industry, outperforming 72.09% of the companies in the same industry.
The Operating Margin of ARG (92.90%) is better than 90.70% of its industry peers.
In the last couple of years the Operating Margin of ARG has remained more or less at the same level.
Industry RankSector Rank
OM 92.9%
PM (TTM) 48.87%
GM N/A
OM growth 3Y-0.27%
OM growth 5Y0.35%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
ARG.PA Yearly Profit, Operating, Gross MarginsARG.PA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100 -100 200 300 400

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3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARG is destroying value.
Compared to 1 year ago, ARG has more shares outstanding
Compared to 5 years ago, ARG has more shares outstanding
Compared to 1 year ago, ARG has a worse debt to assets ratio.
ARG.PA Yearly Shares OutstandingARG.PA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M
ARG.PA Yearly Total Debt VS Total AssetsARG.PA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

2.2 Solvency

ARG has an Altman-Z score of 1.19. This is a bad value and indicates that ARG is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.19, ARG belongs to the top of the industry, outperforming 81.40% of the companies in the same industry.
The Debt to FCF ratio of ARG is 11.78, which is on the high side as it means it would take ARG, 11.78 years of fcf income to pay off all of its debts.
ARG's Debt to FCF ratio of 11.78 is fine compared to the rest of the industry. ARG outperforms 62.79% of its industry peers.
ARG has a Debt/Equity ratio of 0.88. This is a neutral value indicating ARG is somewhat dependend on debt financing.
ARG's Debt to Equity ratio of 0.88 is on the low side compared to the rest of the industry. ARG is outperformed by 65.12% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.88
Debt/FCF 11.78
Altman-Z 1.19
ROIC/WACC0.6
WACC5.57%
ARG.PA Yearly LT Debt VS Equity VS FCFARG.PA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B 2B

2.3 Liquidity

ARG has a Current Ratio of 0.65. 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 better Current ratio (0.65) than 60.47% of its industry peers.
ARG has a Quick Ratio of 0.65. 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 Quick ratio of ARG (0.65) is better than 62.79% of its industry peers.
Industry RankSector Rank
Current Ratio 0.65
Quick Ratio 0.65
ARG.PA Yearly Current Assets VS Current LiabilitesARG.PA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 118.49% over the past year.
Looking at the last year, ARG shows a quite strong growth in Revenue. The Revenue has grown by 9.10% in the last year.
Measured over the past years, ARG shows a quite strong growth in Revenue. The Revenue has been growing by 16.78% on average per year.
EPS 1Y (TTM)118.49%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%132.73%
Revenue 1Y (TTM)9.1%
Revenue growth 3Y8.93%
Revenue growth 5Y16.78%
Sales Q2Q%8.43%

3.2 Future

Based on estimates for the next years, ARG will show a very strong growth in Earnings Per Share. The EPS will grow by 99.71% on average per year.
Based on estimates for the next years, ARG will show a small growth in Revenue. The Revenue will grow by 5.36% on average per year.
EPS Next Y1399.37%
EPS Next 2Y296.66%
EPS Next 3Y151.52%
EPS Next 5Y99.71%
Revenue Next Year7.27%
Revenue Next 2Y6.69%
Revenue Next 3Y5.69%
Revenue Next 5Y5.36%

3.3 Evolution

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.
ARG.PA Yearly Revenue VS EstimatesARG.PA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 50M 100M 150M 200M
ARG.PA Yearly EPS VS EstimatesARG.PA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 2 4 6

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7

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 16.03 indicates a correct valuation of ARG.
65.12% of the companies in the same industry are more expensive than ARG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ARG to the average of the S&P500 Index (29.35), we can say ARG is valued slightly cheaper.
With a Price/Forward Earnings ratio of 10.66, the valuation of ARG can be described as very reasonable.
ARG's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.10. ARG is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 16.03
Fwd PE 10.66
ARG.PA Price Earnings VS Forward Price EarningsARG.PA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

ARG's Enterprise Value to EBITDA ratio is in line with the industry average.
ARG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ARG is cheaper than 62.79% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.86
EV/EBITDA 19.28
ARG.PA Per share dataARG.PA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

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.
A more expensive valuation may be justified as ARG's earnings are expected to grow with 151.52% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y296.66%
EPS Next 3Y151.52%

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7

5. Dividend

5.1 Amount

ARG has a Yearly Dividend Yield of 5.35%, which is a nice return.
Compared to an average industry Dividend Yield of 8.60, ARG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, ARG pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.35%

5.2 History

On average, the dividend of ARG grows each year by 35.57%, which is quite nice.
Dividend Growth(5Y)35.57%
Div Incr Years1
Div Non Decr Years1
ARG.PA Yearly Dividends per shareARG.PA Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

5.3 Sustainability

55.64% of the earnings are spent on dividend by ARG. This is a bit on the high side, but may be sustainable.
ARG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP55.64%
EPS Next 2Y296.66%
EPS Next 3Y151.52%
ARG.PA Yearly Income VS Free CF VS DividendARG.PA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M 600M
ARG.PA Dividend Payout.ARG.PA Dividend Payout, showing the Payout Ratio.ARG.PA Dividend Payout.PayoutRetained Earnings

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ARGAN

EPA:ARG (3/7/2025, 7:00:00 PM)

63.3

+1.6 (+2.59%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)01-16 2025-01-16/amc
Earnings (Next)04-01 2025-04-01
Inst Owners31.33%
Inst Owner ChangeN/A
Ins Owners36.77%
Ins Owner ChangeN/A
Market Cap1.61B
Analysts81.54
Price Target82.37 (30.13%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.35%
Yearly Dividend2.68
Dividend Growth(5Y)35.57%
DP55.64%
Div Incr Years1
Div Non Decr Years1
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%
PT rev (3m)-9.47%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)6.71%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.05%
Valuation
Industry RankSector Rank
PE 16.03
Fwd PE 10.66
P/S 8.33
P/FCF 9.86
P/OCF 9.86
P/B 0.78
P/tB 0.8
EV/EBITDA 19.28
EPS(TTM)3.95
EY6.24%
EPS(NY)5.94
Fwd EY9.38%
FCF(TTM)6.42
FCFY10.14%
OCF(TTM)6.42
OCFY10.14%
SpS7.6
BVpS81.66
TBVpS79.47
PEG (NY)0.01
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.26%
ROE 4.55%
ROCE 4.55%
ROIC 3.34%
ROICexc 3.4%
ROICexgc 3.45%
OM 92.9%
PM (TTM) 48.87%
GM N/A
FCFM 84.42%
ROA(3y)3.51%
ROA(5y)5.21%
ROE(3y)7.25%
ROE(5y)11.6%
ROIC(3y)2.9%
ROIC(5y)2.65%
ROICexc(3y)3.09%
ROICexc(5y)2.78%
ROICexgc(3y)3.14%
ROICexgc(5y)2.83%
ROCE(3y)3.95%
ROCE(5y)3.61%
ROICexcg growth 3Y2.21%
ROICexcg growth 5Y-3.66%
ROICexc growth 3Y2.31%
ROICexc growth 5Y-3.95%
OM growth 3Y-0.27%
OM growth 5Y0.35%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.05
Health
Industry RankSector Rank
Debt/Equity 0.88
Debt/FCF 11.78
Debt/EBITDA 10.16
Cap/Depr 31.68%
Cap/Sales 0.04%
Interest Coverage 250
Cash Conversion 90.79%
Profit Quality 172.75%
Current Ratio 0.65
Quick Ratio 0.65
Altman-Z 1.19
F-Score7
WACC5.57%
ROIC/WACC0.6
Cap/Depr(3y)51.95%
Cap/Depr(5y)N/A
Cap/Sales(3y)0.08%
Cap/Sales(5y)62.23%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)118.49%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%132.73%
EPS Next Y1399.37%
EPS Next 2Y296.66%
EPS Next 3Y151.52%
EPS Next 5Y99.71%
Revenue 1Y (TTM)9.1%
Revenue growth 3Y8.93%
Revenue growth 5Y16.78%
Sales Q2Q%8.43%
Revenue Next Year7.27%
Revenue Next 2Y6.69%
Revenue Next 3Y5.69%
Revenue Next 5Y5.36%
EBIT growth 1Y10.22%
EBIT growth 3Y8.63%
EBIT growth 5Y17.18%
EBIT Next Year381.6%
EBIT Next 3Y73.01%
EBIT Next 5Y64.31%
FCF growth 1Y21.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y21.4%
OCF growth 3Y12.24%
OCF growth 5Y18.05%