ARGAN (ARG.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:ARG - FR0010481960 - REIT
64.1 EUR
+0.2 (+0.31%)
ARG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 40 industry peers in the Diversified REITs industry. ARG has an excellent profitability rating, but there are some minor concerns on its financial health. ARG may be a bit undervalued, certainly considering the very reasonable score on growth Finally 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.
ARG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ARG has a Return On Assets of 6.76%. This is amongst the best in the industry. ARG outperforms 100.00% of its industry peers.
ARG has a Return On Equity of 12.67%. This is amongst the best in the industry. ARG outperforms 97.56% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.48%, ARG is in line with its industry, outperforming 53.66% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ARG is in line with the industry average of 3.53%.
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 | 12.67% | ||
| ROIC | 3.48% |
ROA(3y)0.48%
ROA(5y)4.9%
ROE(3y)0.47%
ROE(5y)10.34%
ROIC(3y)3.13%
ROIC(5y)3.04%
1.3 Margins
ARG has a better Profit Margin (139.62%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of ARG has declined.
ARG has a Operating Margin of 92.91%. This is amongst the best in the industry. ARG outperforms 95.12% of its industry peers.
In the last couple of years the Operating Margin of ARG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 92.91% | ||
| PM (TTM) | 139.62% | ||
| GM | N/A |
OM growth 3Y-0.36%
OM growth 5Y17.5%
PM growth 3Y-33.89%
PM growth 5Y-10.28%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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 1.29. This is a bad value and indicates that ARG is not financially healthy and even has some risk of bankruptcy.
ARG has a Altman-Z score of 1.29. This is amongst the best in the industry. ARG outperforms 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 80.49% 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.
Looking at the Debt to Equity ratio, with a value of 0.76, ARG is in line with its industry, outperforming 43.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 9.5 | ||
| Altman-Z | 1.29 |
ROIC/WACC0.61
WACC5.7%
2.3 Liquidity
ARG has a Current Ratio of 0.53. This is a bad value and indicates that ARG is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.53, ARG is in line with its industry, outperforming 58.54% of the companies in the same industry.
ARG has a Quick Ratio of 0.53. 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 (0.53) is better than 60.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
ARG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 189.18%, which is quite impressive.
ARG shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.10% yearly.
ARG shows a small growth in Revenue. In the last year, the Revenue has grown by 7.89%.
ARG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.50% yearly.
EPS 1Y (TTM)189.18%
EPS 3Y-30.8%
EPS 5Y-4.1%
EPS Q2Q%37.63%
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 4.37% on average over the next years.
ARG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.73% yearly.
EPS Next Y7.68%
EPS Next 2Y4.22%
EPS Next 3Y2.88%
EPS Next 5Y4.37%
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.
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
Based on the Price/Earnings ratio of 5.61, the valuation of ARG can be described as very cheap.
100.00% of the companies in the same industry are more expensive than ARG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.92, ARG is valued rather cheaply.
ARG is valuated reasonably with a Price/Forward Earnings ratio of 10.50.
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.
The average S&P500 Price/Forward Earnings ratio is at 23.46. ARG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.61 | ||
| Fwd PE | 10.5 |
4.2 Price Multiples
ARG's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, ARG is valued a bit cheaper than the industry average as 75.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.56 | ||
| EV/EBITDA | 17.78 |
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)0.73
PEG (5Y)N/A
EPS Next 2Y4.22%
EPS Next 3Y2.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.15%, ARG is a good candidate for dividend investing.
ARG's Dividend Yield is comparable with the industry average which is at 5.16.
ARG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.15% |
5.2 History
On average, the dividend of ARG grows each year by 33.10%, which is quite nice.
Dividend Growth(5Y)33.1%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
ARG pays out 22.34% of its income as dividend. This is a sustainable payout ratio.
The dividend of ARG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP22.34%
EPS Next 2Y4.22%
EPS Next 3Y2.88%
EPA:ARG (12/24/2025, 7:00:00 PM)
64.1
+0.2 (+0.31%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners36.78%
Inst Owner ChangeN/A
Ins Owners36.53%
Ins Owner ChangeN/A
Market Cap1.65B
Revenue(TTM)208.43M
Net Income(TTM)291.00M
Analysts78.33
Price Target79.05 (23.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.15% |
Yearly Dividend2.21
Dividend Growth(5Y)33.1%
DP22.34%
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)-0.8%
PT rev (3m)-1.12%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.03%
EPS NY rev (3m)-0.33%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.61 | ||
| Fwd PE | 10.5 | ||
| P/S | 7.92 | ||
| P/FCF | 8.56 | ||
| P/OCF | 8.55 | ||
| P/B | 0.72 | ||
| P/tB | 0.74 | ||
| EV/EBITDA | 17.78 |
EPS(TTM)11.43
EY17.83%
EPS(NY)6.1
Fwd EY9.52%
FCF(TTM)7.49
FCFY11.69%
OCF(TTM)7.5
OCFY11.7%
SpS8.1
BVpS89.24
TBVpS87.06
PEG (NY)0.73
PEG (5Y)N/A
Graham Number151.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.76% | ||
| ROE | 12.67% | ||
| ROCE | 4.73% | ||
| ROIC | 3.48% | ||
| ROICexc | 3.51% | ||
| ROICexgc | 3.56% | ||
| OM | 92.91% | ||
| PM (TTM) | 139.62% | ||
| GM | N/A | ||
| FCFM | 92.51% |
ROA(3y)0.48%
ROA(5y)4.9%
ROE(3y)0.47%
ROE(5y)10.34%
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 3Y3.63%
ROICexgc growth 5Y17.63%
ROICexc growth 3Y3.69%
ROICexc growth 5Y18.67%
OM growth 3Y-0.36%
OM growth 5Y17.5%
PM growth 3Y-33.89%
PM growth 5Y-10.28%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 9.5 | ||
| Debt/EBITDA | 8.96 | ||
| Cap/Depr | 69.23% | ||
| Cap/Sales | 0.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 99.53% | ||
| Profit Quality | 66.26% | ||
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 1.29 |
F-Score7
WACC5.7%
ROIC/WACC0.61
Cap/Depr(3y)57.67%
Cap/Depr(5y)2471.78%
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)189.18%
EPS 3Y-30.8%
EPS 5Y-4.1%
EPS Q2Q%37.63%
EPS Next Y7.68%
EPS Next 2Y4.22%
EPS Next 3Y2.88%
EPS Next 5Y4.37%
Revenue 1Y (TTM)7.89%
Revenue growth 3Y8.41%
Revenue growth 5Y14.5%
Sales Q2Q%7.59%
Revenue Next Year6.57%
Revenue Next 2Y5.1%
Revenue Next 3Y4.73%
Revenue Next 5Y4.73%
EBIT growth 1Y7.7%
EBIT growth 3Y8.02%
EBIT growth 5Y34.54%
EBIT Next Year-9.64%
EBIT Next 3Y-0.95%
EBIT Next 5Y0.62%
FCF growth 1Y5.54%
FCF growth 3Y0.34%
FCF growth 5YN/A
OCF growth 1Y5.51%
OCF growth 3Y0.35%
OCF growth 5Y66.28%
ARGAN / ARG.PA FAQ
Can you provide the ChartMill fundamental rating for ARGAN?
ChartMill assigns a fundamental rating of 6 / 10 to ARG.PA.
What is the valuation status of ARGAN (ARG.PA) stock?
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.
What is the valuation of ARGAN based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ARGAN (ARG.PA) is 5.61 and the Price/Book (PB) ratio is 0.72.
What is the expected EPS growth for ARGAN (ARG.PA) stock?
The Earnings per Share (EPS) of ARGAN (ARG.PA) is expected to grow by 7.68% in the next year.