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ARGAN (ARG.PA) Stock Fundamental Analysis

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

60.9  +0.2 (+0.33%)

Fundamental Rating

4

Overall ARG gets a fundamental rating of 4 out of 10. We evaluated ARG against 42 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 decent growth rate and is not valued too expensively. Finally 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.
Of the past 5 years ARG 4 years were profitable.
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 of 2.26%. This is comparable to the rest of the industry: ARG outperforms 52.38% of its industry peers.
With a Return On Equity value of 4.55%, ARG perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
ARG has a Return On Invested Capital (3.34%) which is in line with its industry peers.
ARG had an Average Return On Invested Capital over the past 3 years of 2.90%. This is in line with the industry average of 3.74%.
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

ARG's Profit Margin of 48.87% is in line compared to the rest of the industry. ARG outperforms 57.14% of its industry peers.
Looking at the Operating Margin, with a value of 92.90%, ARG belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
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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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
ARG has more shares outstanding than it did 5 years ago.
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

Based on the Altman-Z score of 1.18, we must say that ARG is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.18, ARG is in the better half of the industry, outperforming 73.81% 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 in line compared to the rest of the industry. ARG outperforms 59.52% 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 has a Debt to Equity ratio of 0.88. This is in the lower half of the industry: ARG underperforms 71.43% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.88
Debt/FCF 11.78
Altman-Z 1.18
ROIC/WACC0.6
WACC5.59%
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.
ARG has a better Current ratio (0.65) than 61.90% 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.
ARG's Quick ratio of 0.65 is fine compared to the rest of the industry. ARG outperforms 61.90% 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.
ARG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.10%.
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

ARG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 100.63% yearly.
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

The Price/Earnings ratio is 15.42, which indicates a correct valuation of ARG.
ARG's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.85. ARG is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 10.18, the valuation of ARG can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ARG is valued a bit cheaper than 64.29% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.77. ARG is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 15.42
Fwd PE 10.18
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 is on the same level as the industry average.
ARG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ARG is cheaper than 69.05% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.61
EV/EBITDA 19.06
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

With a Yearly Dividend Yield of 5.45%, ARG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.70, ARG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, ARG pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.45%

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 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 (4/30/2025, 7:00:00 PM)

60.9

+0.2 (+0.33%)

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)07-01 2025-07-01
Inst Owners31.33%
Inst Owner ChangeN/A
Ins Owners36.77%
Ins Owner ChangeN/A
Market Cap1.57B
Analysts81.54
Price Target81.69 (34.14%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.45%
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)-0.83%
PT rev (3m)-10.21%
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%
Valuation
Industry RankSector Rank
PE 15.42
Fwd PE 10.18
P/S 8.11
P/FCF 9.61
P/OCF 9.61
P/B 0.76
P/tB 0.78
EV/EBITDA 19.06
EPS(TTM)3.95
EY6.49%
EPS(NY)5.98
Fwd EY9.82%
FCF(TTM)6.34
FCFY10.4%
OCF(TTM)6.34
OCFY10.41%
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 1.18
F-Score7
WACC5.59%
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 3Y71.97%
EBIT Next 5Y50.94%
FCF growth 1Y21.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y21.4%
OCF growth 3Y12.24%
OCF growth 5Y18.05%