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Argo Group International Holdings Ltd (ARGO) Stock Fundamental Analysis

NYSE:ARGO - New York Stock Exchange, Inc. - BMG0464B1072 - Common Stock - Currency: USD

29.99  -0.01 (-0.03%)

After market: 29.99 0 (0%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to ARGO. ARGO was compared to 144 industry peers in the Insurance industry. ARGO may be in some trouble as it scores bad on both profitability and health. ARGO has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

ARGO had negative earnings in the past year.
In the past year ARGO had a positive cash flow from operations.
In the past 5 years ARGO reported 4 times negative net income.
ARGO had a positive operating cash flow in 4 of the past 5 years.
ARGO Yearly Net Income VS EBIT VS OCF VS FCFARGO 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 0 100M -100M 200M 300M

1.2 Ratios

ARGO has a Return On Assets of -2.44%. This is amonst the worse of the industry: ARGO underperforms 85.71% of its industry peers.
Looking at the Return On Equity, with a value of -16.21%, ARGO is doing worse than 82.14% of the companies in the same industry.
Industry RankSector Rank
ROA -2.44%
ROE -16.21%
ROIC N/A
ROA(3y)-0.82%
ROA(5y)-0.4%
ROE(3y)-6.15%
ROE(5y)-3.2%
ROIC(3y)N/A
ROIC(5y)N/A
ARGO Yearly ROA, ROE, ROICARGO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 0 5 -5 -10 -15

1.3 Margins

The Profit Margin and Operating Margin and Gross Margin are not available for ARGO so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
ARGO Yearly Profit, Operating, Gross MarginsARGO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 0 5 -5 10 -10

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2

2. Health

2.1 Basic Checks

ARGO does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for ARGO has been increased compared to 1 year ago.
The debt/assets ratio for ARGO has been reduced compared to a year ago.
ARGO Yearly Shares OutstandingARGO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 10M 20M 30M
ARGO Yearly Total Debt VS Total AssetsARGO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B 8B 10B

2.2 Solvency

The Debt to FCF ratio of ARGO is 2.99, which is a good value as it means it would take ARGO, 2.99 years of fcf income to pay off all of its debts.
ARGO has a Debt to FCF ratio of 2.99. This is comparable to the rest of the industry: ARGO outperforms 50.71% of its industry peers.
ARGO has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
ARGO has a Debt to Equity ratio of 0.32. This is in the better half of the industry: ARGO outperforms 63.57% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 2.99
Altman-Z N/A
ROIC/WACCN/A
WACC7.59%
ARGO Yearly LT Debt VS Equity VS FCFARGO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 500M 1B 1.5B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
ARGO Yearly Current Assets VS Current LiabilitesARGO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M

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2

3. Growth

3.1 Past

The earnings per share for ARGO have decreased strongly by -303.15% in the last year.
Looking at the last year, ARGO shows a very negative growth in Revenue. The Revenue has decreased by -20.20% in the last year.
ARGO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.16% yearly.
EPS 1Y (TTM)-303.15%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-102.25%
Revenue 1Y (TTM)-20.2%
Revenue growth 3Y-3.46%
Revenue growth 5Y0.16%
Sales Q2Q%-19.16%

3.2 Future

The Earnings Per Share is expected to grow by 183.66% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -2.57% on average over the next years.
EPS Next Y791.48%
EPS Next 2Y343.62%
EPS Next 3Y183.66%
EPS Next 5YN/A
Revenue Next Year-19.44%
Revenue Next 2Y-10.1%
Revenue Next 3Y-2.57%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ARGO Yearly Revenue VS EstimatesARGO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B
ARGO Yearly EPS VS EstimatesARGO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1 2 3

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for ARGO. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 14.14, the valuation of ARGO can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARGO is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, ARGO is valued a bit cheaper.
Industry RankSector Rank
PE N/A
Fwd PE 14.14
ARGO Price Earnings VS Forward Price EarningsARGO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 -10 20

4.2 Price Multiples

ARGO's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 7.9
EV/EBITDA N/A
ARGO Per share dataARGO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

ARGO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ARGO's earnings are expected to grow with 183.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y343.62%
EPS Next 3Y183.66%

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5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.03%, ARGO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.17, ARGO has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, ARGO's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.03%

5.2 History

On average, the dividend of ARGO grows each year by 9.88%, which is quite nice.
ARGO has been paying a dividend for over 5 years, so it has already some track record.
ARGO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.88%
Div Incr Years0
Div Non Decr Years12
ARGO Yearly Dividends per shareARGO Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 0.2 0.4 0.6 0.8 1

5.3 Sustainability

ARGO has negative earnings and hence a negative payout ratio. The dividend may be in danger.
ARGO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-16.29%
EPS Next 2Y343.62%
EPS Next 3Y183.66%
ARGO Yearly Income VS Free CF VS DividendARGO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 0 100M -100M 200M

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Argo Group International Holdings Ltd

NYSE:ARGO (11/15/2023, 8:18:04 PM)

After market: 29.99 0 (0%)

29.99

-0.01 (-0.03%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)11-08 2023-11-08/amc
Earnings (Next)02-26 2024-02-26/amc
Inst Owners0%
Inst Owner Change0%
Ins Owners3.63%
Ins Owner Change0%
Market Cap1.06B
Analysts45
Price Target30.6 (2.03%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.03%
Yearly Dividend1.54
Dividend Growth(5Y)9.88%
DP-16.29%
Div Incr Years0
Div Non Decr Years12
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-118.16%
Min EPS beat(2)-132.9%
Max EPS beat(2)-103.43%
EPS beat(4)1
Avg EPS beat(4)-41.75%
Min EPS beat(4)-132.9%
Max EPS beat(4)119.61%
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)1
Avg Revenue beat(2)-1.48%
Min Revenue beat(2)-3.53%
Max Revenue beat(2)0.58%
Revenue beat(4)2
Avg Revenue beat(4)-4.37%
Min Revenue beat(4)-19.95%
Max Revenue beat(4)5.43%
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%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.75%
EPS NY rev (1m)0%
EPS NY rev (3m)-42.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.6%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 14.14
P/S 0.67
P/FCF 7.9
P/OCF 7.49
P/B 0.85
P/tB 0.95
EV/EBITDA N/A
EPS(TTM)-2.58
EYN/A
EPS(NY)2.12
Fwd EY7.07%
FCF(TTM)3.8
FCFY12.66%
OCF(TTM)4
OCFY13.35%
SpS45.02
BVpS35.08
TBVpS31.71
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -2.44%
ROE -16.21%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM N/A
FCFM 8.43%
ROA(3y)-0.82%
ROA(5y)-0.4%
ROE(3y)-6.15%
ROE(5y)-3.2%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.19
Health
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 2.99
Debt/EBITDA N/A
Cap/Depr 46.79%
Cap/Sales 0.46%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score3
WACC7.59%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-303.15%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-102.25%
EPS Next Y791.48%
EPS Next 2Y343.62%
EPS Next 3Y183.66%
EPS Next 5YN/A
Revenue 1Y (TTM)-20.2%
Revenue growth 3Y-3.46%
Revenue growth 5Y0.16%
Sales Q2Q%-19.16%
Revenue Next Year-19.44%
Revenue Next 2Y-10.1%
Revenue Next 3Y-2.57%
Revenue Next 5YN/A
EBIT growth 1Y-326.24%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-2.2%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-13.29%
OCF growth 3YN/A
OCF growth 5YN/A