ARGAN (ARG.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:ARG - FR0010481960 - REIT
63.5 EUR
-0.5 (-0.78%)
We assign a fundamental rating of 5 out of 10 to ARG. ARG was compared to 42 industry peers in the Diversified REITs industry. While ARG belongs to the best of the industry regarding profitability, there are concerns on its financial health. ARG scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
Of the past 5 years ARG 4 years were profitable.
In the past 5 years ARG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.75%, ARG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
ARG has a better Return On Equity (12.65%) than 97.62% of its industry peers.
ARG has a Return On Invested Capital (3.47%) which is comparable to the rest of the industry.
ARG had an Average Return On Invested Capital over the past 3 years of 3.13%. This is in line with the industry average of 3.53%.
The 3 year average ROIC (3.13%) for ARG is below the current ROIC(3.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.75% | ||
| ROE | 12.65% | ||
| ROIC | 3.47% |
ROA(3y)0.48%
ROA(5y)4.9%
ROE(3y)0.46%
ROE(5y)10.33%
ROIC(3y)3.13%
ROIC(5y)3.04%
1.3 Margins
ARG has a Profit Margin of 139.47%. This is amongst the best in the industry. ARG outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of ARG has declined.
The Operating Margin of ARG (92.63%) is better than 95.24% of its industry peers.
ARG's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 92.63% | ||
| PM (TTM) | 139.47% | ||
| GM | N/A |
OM growth 3Y-0.31%
OM growth 5Y17.53%
PM growth 3Y-33.91%
PM growth 5Y-10.3%
GM growth 3YN/A
GM growth 5YN/A
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.
Compared to 1 year ago, ARG has more shares outstanding
The number of shares outstanding for ARG has been increased compared to 5 years ago.
The debt/assets ratio for ARG has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.28, we must say that ARG is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.28, ARG belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
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 has a better Debt to FCF ratio (9.50) than 80.95% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that ARG is somewhat dependend on debt financing.
ARG's Debt to Equity ratio of 0.76 is in line compared to the rest of the industry. ARG outperforms 40.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 9.5 | ||
| Altman-Z | 1.28 |
ROIC/WACC0.61
WACC5.69%
2.3 Liquidity
A Current Ratio of 0.52 indicates that ARG may have some problems paying its short term obligations.
With a Current ratio value of 0.52, ARG perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
A Quick Ratio of 0.52 indicates that ARG may have some problems paying its short term obligations.
ARG has a Quick ratio (0.52) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
ARG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 188.61%, which is quite impressive.
The Earnings Per Share has been decreasing by -3.87% on average over the past years.
ARG shows a small growth in Revenue. In the last year, the Revenue has grown by 7.89%.
Measured over the past years, ARG shows a quite strong growth in Revenue. The Revenue has been growing by 14.50% on average per year.
EPS 1Y (TTM)188.61%
EPS 3Y-30.53%
EPS 5Y-3.87%
EPS Q2Q%39.97%
Revenue 1Y (TTM)7.89%
Revenue growth 3Y8.41%
Revenue growth 5Y14.5%
Sales Q2Q%7.59%
3.2 Future
ARG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.37% yearly.
ARG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.73% yearly.
EPS Next Y7.65%
EPS Next 2Y4.01%
EPS Next 3Y2.89%
EPS Next 5Y4.37%
Revenue Next Year6.7%
Revenue Next 2Y4.83%
Revenue Next 3Y4.68%
Revenue Next 5Y4.73%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
ARG is valuated cheaply with a Price/Earnings ratio of 5.57.
Compared to the rest of the industry, the Price/Earnings ratio of ARG indicates a rather cheap valuation: ARG is cheaper than 100.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ARG to the average of the S&P500 Index (26.46), we can say ARG is valued rather cheaply.
ARG is valuated reasonably with a Price/Forward Earnings ratio of 10.45.
Based on the Price/Forward Earnings ratio, ARG is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ARG to the average of the S&P500 Index (36.10), we can say ARG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.57 | ||
| Fwd PE | 10.45 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARG is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, ARG is valued a bit cheaper than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.48 | ||
| EV/EBITDA | 17.82 |
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.
The decent profitability rating of ARG may justify a higher PE ratio.
PEG (NY)0.73
PEG (5Y)N/A
EPS Next 2Y4.01%
EPS Next 3Y2.89%
5. Dividend
5.1 Amount
ARG has a Yearly Dividend Yield of 5.03%, which is a nice return.
ARG's Dividend Yield is comparable with the industry average which is at 5.80.
Compared to an average S&P500 Dividend Yield of 2.32, ARG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.03% |
5.2 History
On average, the dividend of ARG grows each year by 32.61%, which is quite nice.
Dividend Growth(5Y)32.61%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
ARG pays out 22.49% of its income as dividend. This is a sustainable payout ratio.
ARG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP22.49%
EPS Next 2Y4.01%
EPS Next 3Y2.89%
EPA:ARG (12/5/2025, 7:00:00 PM)
63.5
-0.5 (-0.78%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners35.71%
Inst Owner ChangeN/A
Ins Owners36.31%
Ins Owner ChangeN/A
Market Cap1.63B
Revenue(TTM)208.43M
Net Income(TTM)290.70M
Analysts78.33
Price Target79.69 (25.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.03% |
Yearly Dividend2.17
Dividend Growth(5Y)32.61%
DP22.49%
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%
PT rev (3m)-0.32%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.36%
EPS NY rev (3m)-0.36%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.57 | ||
| Fwd PE | 10.45 | ||
| P/S | 7.84 | ||
| P/FCF | 8.48 | ||
| P/OCF | 8.47 | ||
| P/B | 0.71 | ||
| P/tB | 0.73 | ||
| EV/EBITDA | 17.82 |
EPS(TTM)11.41
EY17.97%
EPS(NY)6.08
Fwd EY9.57%
FCF(TTM)7.49
FCFY11.79%
OCF(TTM)7.49
OCFY11.8%
SpS8.1
BVpS89.25
TBVpS87.09
PEG (NY)0.73
PEG (5Y)N/A
Graham Number151.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.75% | ||
| ROE | 12.65% | ||
| ROCE | 4.72% | ||
| ROIC | 3.47% | ||
| ROICexc | 3.5% | ||
| ROICexgc | 3.55% | ||
| OM | 92.63% | ||
| PM (TTM) | 139.47% | ||
| GM | N/A | ||
| FCFM | 92.46% |
ROA(3y)0.48%
ROA(5y)4.9%
ROE(3y)0.46%
ROE(5y)10.33%
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 3Y3.68%
ROICexgc growth 5Y17.66%
ROICexc growth 3Y3.74%
ROICexc growth 5Y18.7%
OM growth 3Y-0.31%
OM growth 5Y17.53%
PM growth 3Y-33.91%
PM growth 5Y-10.3%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 9.5 | ||
| Debt/EBITDA | 8.99 | ||
| Cap/Depr | 69.58% | ||
| Cap/Sales | 0.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 99.78% | ||
| Profit Quality | 66.3% | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 1.28 |
F-Score6
WACC5.69%
ROIC/WACC0.61
Cap/Depr(3y)57.59%
Cap/Depr(5y)2471.73%
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)188.61%
EPS 3Y-30.53%
EPS 5Y-3.87%
EPS Q2Q%39.97%
EPS Next Y7.65%
EPS Next 2Y4.01%
EPS Next 3Y2.89%
EPS Next 5Y4.37%
Revenue 1Y (TTM)7.89%
Revenue growth 3Y8.41%
Revenue growth 5Y14.5%
Sales Q2Q%7.59%
Revenue Next Year6.7%
Revenue Next 2Y4.83%
Revenue Next 3Y4.68%
Revenue Next 5Y4.73%
EBIT growth 1Y7.58%
EBIT growth 3Y8.07%
EBIT growth 5Y34.57%
EBIT Next Year-9.76%
EBIT Next 3Y-1.4%
EBIT Next 5Y0.62%
FCF growth 1Y5.49%
FCF growth 3Y0.28%
FCF growth 5YN/A
OCF growth 1Y5.46%
OCF growth 3Y0.29%
OCF growth 5Y66.22%
ARGAN / ARG.PA FAQ
Can you provide the ChartMill fundamental rating for ARGAN?
ChartMill assigns a fundamental rating of 5 / 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 5.57 and the Price/Book (PB) ratio is 0.71.
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 7.65% in the next year.