Logo image of ARG.PA

ARGAN (ARG.PA) Stock Fundamental Analysis

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

63.6  +0.5 (+0.79%)

Fundamental Rating

5

Overall ARG gets a fundamental rating of 5 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 is not valued too expensively and it also shows a decent growth rate. ARG also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

Quickly go to:

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.
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.
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 67.50% of its industry peers.
The Return On Equity of ARG (4.55%) is better than 67.50% of its industry peers.
The Return On Invested Capital of ARG (3.34%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for ARG is in line with the industry average of 3.65%.
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

The Profit Margin of ARG (48.87%) is better than 77.50% of its industry peers.
ARG has a better Operating Margin (92.90%) than 90.00% of its industry peers.
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

More info and screens

2

2. Health

2.1 Basic Checks

ARG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ARG has been increased compared to 1 year ago.
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 1.19, we must say that ARG is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ARG (1.19) is better than 80.00% of its industry peers.
ARG has a debt to FCF ratio of 11.78. This is a negative value and a sign of low solvency as ARG would need 11.78 years to pay back of all of its debts.
ARG has a Debt to FCF ratio (11.78) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.88 indicates that ARG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.88, ARG is doing worse than 70.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.88
Debt/FCF 11.78
Altman-Z 1.19
ROIC/WACC0.62
WACC5.43%
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.
The Quick ratio of ARG (0.65) is better than 62.50% 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

More info and screens

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 118.49% over the past year.
The Revenue has grown by 9.10% in the past year. This is quite good.
ARG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.78% yearly.
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 99.71% yearly.
The Revenue is expected to grow by 5.86% on average over the next years.
EPS Next Y1399.37%
EPS Next 2Y296.66%
EPS Next 3Y151.52%
EPS Next 5Y99.71%
Revenue Next Year7.27%
Revenue Next 2Y7.21%
Revenue Next 3Y6.08%
Revenue Next 5Y5.86%

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

More info and screens

6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 16.10, the valuation of ARG can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as ARG.
Compared to an average S&P500 Price/Earnings ratio of 28.47, ARG is valued a bit cheaper.
With a Price/Forward Earnings ratio of 10.71, the valuation of ARG can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as ARG.
When comparing the Price/Forward Earnings ratio of ARG to the average of the S&P500 Index (92.74), we can say ARG is valued rather cheaply.
Industry RankSector Rank
PE 16.1
Fwd PE 10.71
ARG.PA Price Earnings VS Forward Price EarningsARG.PA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ARG is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, ARG is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 9.91
EV/EBITDA 19.25
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

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.
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%

More info and screens

7

5. Dividend

5.1 Amount

ARG has a Yearly Dividend Yield of 5.31%, which is a nice return.
ARG's Dividend Yield is comparable with the industry average which is at 7.06.
Compared to an average S&P500 Dividend Yield of 2.28, ARG pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.31%

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 0.5 1 1.5

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 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

More info and screens

ARGAN

EPA:ARG (2/5/2025, 5:29:18 PM)

63.6

+0.5 (+0.79%)

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)N/A N/A
Inst Owners31.43%
Inst Owner ChangeN/A
Ins Owners36.79%
Ins Owner ChangeN/A
Market Cap1.62B
Analysts83.08
Price Target82.37 (29.51%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.31%
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)-9.47%
PT rev (3m)-9.47%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)6.71%
EPS NY rev (3m)6.71%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.05%
Valuation
Industry RankSector Rank
PE 16.1
Fwd PE 10.71
P/S 8.36
P/FCF 9.91
P/OCF 9.9
P/B 0.78
P/tB 0.8
EV/EBITDA 19.25
EPS(TTM)3.95
EY6.21%
EPS(NY)5.94
Fwd EY9.34%
FCF(TTM)6.42
FCFY10.1%
OCF(TTM)6.42
OCFY10.1%
SpS7.61
BVpS81.7
TBVpS79.5
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
WACC5.43%
ROIC/WACC0.62
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 2Y7.21%
Revenue Next 3Y6.08%
Revenue Next 5Y5.86%
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%