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ARG

Argo InvestmentsASX:ARG Stock Report

Market Cap

AU$6.8b

7D

1.4%

1Y

23.9%

Updated

21 Oct, 2021

Data

Company Financials
ARG fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance1/6
Financial Health5/6
Dividends3/6

ARG Overview

Argo Investments Limited is a publicly owned investment manager.

Price History & Performance

Summary of all time highs, changes and price drops for Argo Investments
Historical stock prices
Current Share PriceAU$9.42
52 Week HighAU$7.42
52 Week LowAU$9.85
Beta0.66
1 Month Change5.72%
3 Month Change2.28%
1 Year Change23.95%
3 Year Change22.34%
5 Year Change29.75%
Change since IPO323.73%

Recent News & Updates

Oct 18
Argo Investments Limited's (ASX:ARG) CEO Compensation Looks Acceptable To Us And Here's Why

Argo Investments Limited's (ASX:ARG) CEO Compensation Looks Acceptable To Us And Here's Why

Performance at Argo Investments Limited ( ASX:ARG ) has been rather uninspiring recently and shareholders may be...

Aug 18
Argo Investments (ASX:ARG) Has Affirmed Its Dividend Of AU$0.14

Argo Investments (ASX:ARG) Has Affirmed Its Dividend Of AU$0.14

The board of Argo Investments Limited ( ASX:ARG ) has announced that it will pay a dividend of AU$0.14 per share on the...

Mar 21
Is Argo Investments Limited (ASX:ARG) A Risky Dividend Stock?

Is Argo Investments Limited (ASX:ARG) A Risky Dividend Stock?

Dividend paying stocks like Argo Investments Limited ( ASX:ARG ) tend to be popular with investors, and for good reason...

Feb 14
Why It Might Not Make Sense To Buy Argo Investments Limited (ASX:ARG) For Its Upcoming Dividend

Why It Might Not Make Sense To Buy Argo Investments Limited (ASX:ARG) For Its Upcoming Dividend

Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be...

Shareholder Returns

ARGAU Capital MarketsAU Market
7D1.4%4.0%1.5%
1Y23.9%24.9%21.1%

Return vs Industry: ARG matched the Australian Capital Markets industry which returned 24.9% over the past year.

Return vs Market: ARG exceeded the Australian Market which returned 21.1% over the past year.

Price Volatility

Is ARG's price volatile compared to industry and market?
ARG volatility
ARG Beta0.66
Industry Beta0.99
Market Beta1

Stable Share Price: ARG is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: ARG's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1946n/aJason Beddowhttps://www.argoinvestments.com.au

Argo Investments Limited is a publicly owned investment manager. The firm manages separate client focused equity portfolios for its clients. It invests in public equity markets of Australia.

Argo Investments Fundamentals Summary

How do Argo Investments's earnings and revenue compare to its market cap?
ARG fundamental statistics
Market CapAU$6.85b
Earnings (TTM)AU$173.99m
Revenue (TTM)AU$199.92m

39.4x

P/E Ratio

34.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARG income statement (TTM)
RevenueAU$199.92m
Cost of RevenueAU$0
Gross ProfitAU$199.92m
ExpensesAU$25.93m
EarningsAU$173.99m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.24
Gross Margin100.00%
Net Profit Margin87.03%
Debt/Equity Ratio0%

How did ARG perform over the long term?

See historical performance and comparison

Dividends

3.0%

Current Dividend Yield

116%

Payout Ratio

Valuation

Is Argo Investments undervalued compared to its fair value and its price relative to the market?

39.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ARG (A$9.42) is trading above our estimate of fair value (A$3.51)

Significantly Below Fair Value: ARG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ARG is poor value based on its PE Ratio (39.4x) compared to the Australian Capital Markets industry average (17.5x).

PE vs Market: ARG is poor value based on its PE Ratio (39.4x) compared to the Australian market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ARG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ARG is good value based on its PB Ratio (1.2x) compared to the AU Capital Markets industry average (1.4x).


Future Growth

How is Argo Investments forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.0%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Argo Investments has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Argo Investments performed over the past 5 years?

-2.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARG has high quality earnings.

Growing Profit Margin: ARG's current net profit margins (87%) are lower than last year (92%).


Past Earnings Growth Analysis

Earnings Trend: ARG's earnings have declined by 2.6% per year over the past 5 years.

Accelerating Growth: ARG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ARG had negative earnings growth (-12.8%) over the past year, making it difficult to compare to the Capital Markets industry average (12.8%).


Return on Equity

High ROE: ARG's Return on Equity (3.1%) is considered low.


Financial Health

How is Argo Investments's financial position?


Financial Position Analysis

Short Term Liabilities: ARG's short term assets (A$216.1M) exceed its short term liabilities (A$45.9M).

Long Term Liabilities: ARG's short term assets (A$216.1M) do not cover its long term liabilities (A$916.9M).


Debt to Equity History and Analysis

Debt Level: ARG is debt free.

Reducing Debt: ARG has not had any debt for past 5 years.

Debt Coverage: ARG has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ARG has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Argo Investments's current dividend yield, its reliability and sustainability?

2.97%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ARG's dividend (2.97%) is higher than the bottom 25% of dividend payers in the Australian market (2.29%).

High Dividend: ARG's dividend (2.97%) is low compared to the top 25% of dividend payers in the Australian market (5.31%).


Stability and Growth of Payments

Stable Dividend: ARG's dividends per share have been stable in the past 10 years.

Growing Dividend: ARG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (116.3%), ARG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.3yrs

Average management tenure


CEO

Jason Beddow

11.58yrs

Tenure

AU$1,064,921

Compensation

Mr. Jason Beddow, BEng, GdipAppFin(SecInst) has been Managing Director and Non-Independent Executive Director of Argo Investments Limited since February 03, 2014. He has been Managing Director of Argo Glob...


CEO Compensation Analysis

Compensation vs Market: Jason's total compensation ($USD797.51K) is below average for companies of similar size in the Australian market ($USD2.18M).

Compensation vs Earnings: Jason's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ARG's management team is seasoned and experienced (8.3 years average tenure).


Board Members

Experienced Board: ARG's board of directors are considered experienced (7.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Argo Investments Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Argo Investments Limited
  • Ticker: ARG
  • Exchange: ASX
  • Founded: 1946
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: AU$6.850b
  • Shares outstanding: 727.16m
  • Website: https://www.argoinvestments.com.au

Location

  • Argo Investments Limited
  • 91 King William Street
  • Level 25
  • Adelaide
  • South Australia
  • 5000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 18:03
End of Day Share Price2021/10/21 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.