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ARGENX SE - ADR (ARGX) Stock Fundamental Analysis

NASDAQ:ARGX - Nasdaq - US04016X1019 - ADR - Currency: USD

648.93  +1.44 (+0.22%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to ARGX. ARGX was compared to 571 industry peers in the Biotechnology industry. The financial health of ARGX is average, but there are quite some concerns on its profitability. ARGX shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year ARGX has reported negative net income.
ARGX had a negative operating cash flow in the past year.
In the past 5 years ARGX always reported negative net income.
In the past 5 years ARGX reported 4 times negative operating cash flow.
ARGX Yearly Net Income VS EBIT VS OCF VS FCFARGX 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 -400M -600M -800M

1.2 Ratios

With an excellent Return On Assets value of -5.77%, ARGX belongs to the best of the industry, outperforming 88.99% of the companies in the same industry.
ARGX's Return On Equity of -6.50% is amongst the best of the industry. ARGX outperforms 91.65% of its industry peers.
Industry RankSector Rank
ROA -5.77%
ROE -6.5%
ROIC N/A
ROA(3y)-14.49%
ROA(5y)-16.28%
ROE(3y)-16.18%
ROE(5y)-20.05%
ROIC(3y)N/A
ROIC(5y)N/A
ARGX Yearly ROA, ROE, ROICARGX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 -10 -20 -30 -40

1.3 Margins

ARGX has a better Gross Margin (89.36%) than 92.36% of its industry peers.
The Profit Margin and Operating Margin are not available for ARGX so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 89.36%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
ARGX Yearly Profit, Operating, Gross MarginsARGX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -500 -1K

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5

2. Health

2.1 Basic Checks

ARGX does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, ARGX has more shares outstanding
The number of shares outstanding for ARGX has been increased compared to 5 years ago.
Compared to 1 year ago, ARGX has a worse debt to assets ratio.
ARGX Yearly Shares OutstandingARGX Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M 50M
ARGX Yearly Total Debt VS Total AssetsARGX 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

An Altman-Z score of 44.76 indicates that ARGX is not in any danger for bankruptcy at the moment.
ARGX has a better Altman-Z score (44.76) than 97.87% of its industry peers.
ARGX has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.01, ARGX perfoms like the industry average, outperforming 43.34% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF N/A
Altman-Z 44.76
ROIC/WACCN/A
WACC7.08%
ARGX Yearly LT Debt VS Equity VS FCFARGX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B 4B

2.3 Liquidity

A Current Ratio of 8.53 indicates that ARGX has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 8.53, ARGX is in the better half of the industry, outperforming 74.42% of the companies in the same industry.
ARGX has a Quick Ratio of 7.88. This indicates that ARGX is financially healthy and has no problem in meeting its short term obligations.
ARGX has a better Quick ratio (7.88) than 71.94% of its industry peers.
Industry RankSector Rank
Current Ratio 8.53
Quick Ratio 7.88
ARGX Yearly Current Assets VS Current LiabilitesARGX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

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7

3. Growth

3.1 Past

ARGX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 78.85%, which is quite impressive.
The Revenue has grown by 62.02% in the past year. This is a very strong growth!
ARGX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 120.70% yearly.
EPS 1Y (TTM)78.85%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%211.2%
Revenue 1Y (TTM)62.02%
Revenue growth 3Y209.8%
Revenue growth 5Y120.7%
Sales Q2Q%73.28%

3.2 Future

The Earnings Per Share is expected to grow by 51.67% on average over the next years. This is a very strong growth
ARGX is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 36.83% yearly.
EPS Next Y127.93%
EPS Next 2Y99.71%
EPS Next 3Y78.55%
EPS Next 5Y51.67%
Revenue Next Year76.75%
Revenue Next 2Y65.66%
Revenue Next 3Y54.22%
Revenue Next 5Y36.83%

3.3 Evolution

Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
ARGX Yearly Revenue VS EstimatesARGX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2B 4B 6B 8B
ARGX Yearly EPS VS EstimatesARGX Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 20 40 60

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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for ARGX. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 58.66, the valuation of ARGX can be described as expensive.
91.65% of the companies in the same industry are more expensive than ARGX, based on the Price/Forward Earnings ratio.
ARGX's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.06.
Industry RankSector Rank
PE N/A
Fwd PE 58.66
ARGX Price Earnings VS Forward Price EarningsARGX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 -200 -400 -600

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
ARGX Per share dataARGX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

ARGX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as ARGX's earnings are expected to grow with 78.55% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y99.71%
EPS Next 3Y78.55%

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0

5. Dividend

5.1 Amount

ARGX does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ARGENX SE - ADR

NASDAQ:ARGX (2/21/2025, 12:45:58 PM)

648.93

+1.44 (+0.22%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)10-31 2024-10-31/bmo
Earnings (Next)02-27 2025-02-27/amc
Inst Owners39.77%
Inst Owner Change-0.34%
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap39.43B
Analysts78.4
Price Target670.12 (3.27%)
Short Float %3.32%
Short Ratio8
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)59.25%
Min EPS beat(2)-26.77%
Max EPS beat(2)145.26%
EPS beat(4)2
Avg EPS beat(4)31.06%
Min EPS beat(4)-26.77%
Max EPS beat(4)145.26%
EPS beat(8)5
Avg EPS beat(8)33.89%
EPS beat(12)9
Avg EPS beat(12)29.37%
EPS beat(16)11
Avg EPS beat(16)35.2%
Revenue beat(2)1
Avg Revenue beat(2)4.46%
Min Revenue beat(2)-0.25%
Max Revenue beat(2)9.17%
Revenue beat(4)3
Avg Revenue beat(4)6.89%
Min Revenue beat(4)-0.25%
Max Revenue beat(4)11.26%
Revenue beat(8)7
Avg Revenue beat(8)19.16%
Revenue beat(12)10
Avg Revenue beat(12)22.15%
Revenue beat(16)12
Avg Revenue beat(16)38.07%
PT rev (1m)8.67%
PT rev (3m)14.01%
EPS NQ rev (1m)8.79%
EPS NQ rev (3m)387.63%
EPS NY rev (1m)280.2%
EPS NY rev (3m)299.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)1.29%
Revenue NY rev (3m)6.91%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 58.66
P/S 20.27
P/FCF N/A
P/OCF N/A
P/B 9.25
P/tB 9.57
EV/EBITDA N/A
EPS(TTM)-0.95
EYN/A
EPS(NY)11.06
Fwd EY1.7%
FCF(TTM)-5.35
FCFYN/A
OCF(TTM)-4.27
OCFYN/A
SpS32.01
BVpS70.15
TBVpS67.81
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -5.77%
ROE -6.5%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 89.36%
FCFM N/A
ROA(3y)-14.49%
ROA(5y)-16.28%
ROE(3y)-16.18%
ROE(5y)-20.05%
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-Score4
Asset Turnover0.41
Health
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 56%
Cap/Sales 3.37%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 8.53
Quick Ratio 7.88
Altman-Z 44.76
F-Score4
WACC7.08%
ROIC/WACCN/A
Cap/Depr(3y)736.22%
Cap/Depr(5y)853.41%
Cap/Sales(3y)17.76%
Cap/Sales(5y)25.06%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)78.85%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%211.2%
EPS Next Y127.93%
EPS Next 2Y99.71%
EPS Next 3Y78.55%
EPS Next 5Y51.67%
Revenue 1Y (TTM)62.02%
Revenue growth 3Y209.8%
Revenue growth 5Y120.7%
Sales Q2Q%73.28%
Revenue Next Year76.75%
Revenue Next 2Y65.66%
Revenue Next 3Y54.22%
Revenue Next 5Y36.83%
EBIT growth 1Y48.44%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year70.23%
EBIT Next 3Y75.76%
EBIT Next 5Y55.78%
FCF growth 1Y62.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y70.38%
OCF growth 3YN/A
OCF growth 5YN/A