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ARGAN (ARG.PA) Stock Fundamental Analysis

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

63.7  -0.3 (-0.47%)

Fundamental Rating

4

Overall ARG gets a fundamental rating of 4 out of 10. We evaluated ARG against 40 industry peers in the Diversified REITs industry. While ARG is still in line with the averages on profitability rating, there are concerns on its financial health. ARG has a correct valuation and a medium growth rate. ARG also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year ARG was profitable.
ARG had a positive operating cash flow in the past year.
ARG had positive earnings in 4 of the past 5 years.
ARG had a positive operating cash flow in each of the past 5 years.
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

ARG has a Return On Assets (2.26%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 4.55%, ARG is in line with its industry, outperforming 50.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.34%, ARG is in line with its industry, outperforming 50.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ARG is in line with the industry average of 3.63%.
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 line with its industry, outperforming 57.50% of the companies in the same industry.
With an excellent Operating Margin value of 92.90%, ARG belongs to the best of the industry, outperforming 92.50% of the companies in the same industry.
ARG's Operating Margin has been stable in the last couple of years.
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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2

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
The debt/assets ratio for ARG is higher compared to a year ago.
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

Based on the Altman-Z score of 1.20, we must say that ARG is in the distress zone and has some risk of bankruptcy.
ARG's Altman-Z score of 1.20 is fine compared to the rest of the industry. ARG outperforms 75.00% of its industry peers.
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 in line compared to the rest of the industry. ARG outperforms 55.00% 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.
The Debt to Equity ratio of ARG (0.88) is worse than 72.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.88
Debt/FCF 11.78
Altman-Z 1.2
ROIC/WACC0.6
WACC5.56%
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

A Current Ratio of 0.65 indicates that ARG may have some problems paying its short term obligations.
The Current ratio of ARG (0.65) is comparable to the rest of the industry.
A Quick Ratio of 0.65 indicates that ARG may have some problems paying its short term obligations.
With a Quick ratio value of 0.65, ARG perfoms like the industry average, outperforming 57.50% of the companies in the same industry.
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

ARG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 118.49%, which is quite impressive.
The Revenue has grown by 9.10% in the past year. This is quite good.
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

The Earnings Per Share is expected to grow by 100.63% on average over the next years. This is a very strong growth
ARG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.95% yearly.
EPS Next Y1399.37%
EPS Next 2Y297.88%
EPS Next 3Y152.67%
EPS Next 5Y100.63%
Revenue Next Year7.27%
Revenue Next 2Y6.9%
Revenue Next 3Y5.66%
Revenue Next 5Y4.95%

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 2020 2021 2022 2023 2024 2025 2026 2027 0 2 4 6

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6

4. Valuation

4.1 Price/Earnings Ratio

ARG is valuated correctly with a Price/Earnings ratio of 16.13.
The rest of the industry has a similar Price/Earnings ratio as ARG.
The average S&P500 Price/Earnings ratio is at 27.45. ARG is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 10.65, which indicates a very decent valuation of ARG.
ARG's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of ARG to the average of the S&P500 Index (21.90), we can say ARG is valued rather cheaply.
Industry RankSector Rank
PE 16.13
Fwd PE 10.65
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

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 67.50% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 10.05
EV/EBITDA 19.5
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's earnings are expected to grow with 152.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y297.88%
EPS Next 3Y152.67%

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7

5. Dividend

5.1 Amount

ARG has a Yearly Dividend Yield of 5.16%, which is a nice return.
Compared to an average industry Dividend Yield of 5.52, ARG has a dividend in line with its industry peers.
ARG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
Industry RankSector Rank
Dividend Yield 5.16%

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 Years2
Div Non Decr Years2
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

ARG pays out 55.64% of its income as dividend. 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 2Y297.88%
EPS Next 3Y152.67%
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 (7/4/2025, 7:00:00 PM)

63.7

-0.3 (-0.47%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)04-01 2025-04-01
Earnings (Next)07-17 2025-07-17
Inst Owners34.29%
Inst Owner ChangeN/A
Ins Owners36.31%
Ins Owner ChangeN/A
Market Cap1.64B
Analysts78.33
Price Target80.78 (26.81%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.16%
Yearly Dividend2.68
Dividend Growth(5Y)35.57%
DP55.64%
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)-1.11%
PT rev (3m)-1.93%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 16.13
Fwd PE 10.65
P/S 8.49
P/FCF 10.05
P/OCF 10.05
P/B 0.79
P/tB 0.81
EV/EBITDA 19.5
EPS(TTM)3.95
EY6.2%
EPS(NY)5.98
Fwd EY9.39%
FCF(TTM)6.34
FCFY9.95%
OCF(TTM)6.34
OCFY9.95%
SpS7.51
BVpS80.62
TBVpS78.45
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 1.2
F-Score7
WACC5.56%
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 2Y297.88%
EPS Next 3Y152.67%
EPS Next 5Y100.63%
Revenue 1Y (TTM)9.1%
Revenue growth 3Y8.93%
Revenue growth 5Y16.78%
Sales Q2Q%8.43%
Revenue Next Year7.27%
Revenue Next 2Y6.9%
Revenue Next 3Y5.66%
Revenue Next 5Y4.95%
EBIT growth 1Y10.22%
EBIT growth 3Y8.63%
EBIT growth 5Y17.18%
EBIT Next Year381.03%
EBIT Next 3Y71.92%
EBIT Next 5Y50.92%
FCF growth 1Y21.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y21.4%
OCF growth 3Y12.24%
OCF growth 5Y18.05%