Argo Investments
Market Cap
AU$6.3b
Last Updated
2021/01/23 07:01 UTC
Data Sources
Company Financials
Executive Summary
Argo Investments Limited is a publicly owned investment manager. More Details
Snowflake Analysis
Excellent balance sheet second-rate dividend payer.
Share Price & News
How has Argo Investments's share price performed over time and what events caused price changes?
Latest Share Price and Events
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.
Market Performance
7 Day Return
-1.3%
ARG
1.0%
AU Capital Markets
1.3%
AU Market
1 Year Return
-1.6%
ARG
-7.5%
AU Capital Markets
-0.6%
AU Market
Return vs Industry: ARG exceeded the Australian Capital Markets industry which returned -6% over the past year.
Return vs Market: ARG underperformed the Australian Market which returned -0.4% over the past year.
Shareholder returns
| ARG | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.3% | 1.0% | 1.3% |
| 30 Day | 4.5% | -0.007% | 3.5% |
| 90 Day | 14.1% | 2.1% | 11.9% |
| 1 Year | 2.0%-1.6% | -4.4%-7.5% | 2.8%-0.6% |
| 3 Year | 16.4%3.7% | 30.3%14.7% | 27.0%11.4% |
| 5 Year | 39.4%14.7% | 69.2%36.9% | 68.7%34.7% |
Long-Term Price Volatility Vs. Market
How volatile is Argo Investments's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
What We Learned About Argo Investments' (ASX:ARG) CEO Compensation1 month ago | Simply Wall St
Tread With Caution Around Argo Investments Limited's (ASX:ARG) 3.6% Dividend Yield2 months ago | Simply Wall St
How Much Did Argo Investments'(ASX:ARG) Shareholders Earn From Share Price Movements Over The Last Year?Valuation
Is Argo Investments undervalued compared to its fair value and its price relative to the market?
31.21x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ARG (A$8.67) is trading above our estimate of fair value (A$3.95)
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 (31.2x) compared to the AU Capital Markets industry average (24x).
PE vs Market: ARG is poor value based on its PE Ratio (31.2x) compared to the Australian market (23.2x).
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's PB Ratio (1.3x) is in line with the AU Capital Markets industry average.
Next Steps
Future Growth
How is Argo Investments forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
13.4%
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.
Next Steps
- Examine Argo Investments's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
- Argo Investments competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Diversified Financials industry.
Past Performance
How has Argo Investments performed over the past 5 years?
2.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ARG has high quality earnings.
Growing Profit Margin: ARG's current net profit margins (92%) are lower than last year (93.7%).
Past Earnings Growth Analysis
Earnings Trend: ARG's earnings have grown by 2.8% 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 (-31.8%) over the past year, making it difficult to compare to the Capital Markets industry average (-13.4%).
Return on Equity
High ROE: ARG's Return on Equity (4.2%) is considered low.
Next Steps
Financial Health
How is Argo Investments's financial position?
Financial Position Analysis
Short Term Liabilities: ARG's short term assets (A$212.8M) exceed its short term liabilities (A$12.6M).
Long Term Liabilities: ARG's short term assets (A$212.8M) do not cover its long term liabilities (A$548.7M).
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
Next Steps
Dividend
What is Argo Investments's current dividend yield, its reliability and sustainability?
3.46%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ARG's dividend (3.46%) is higher than the bottom 25% of dividend payers in the Australian market (2.06%).
High Dividend: ARG's dividend (3.46%) is low compared to the top 25% of dividend payers in the Australian market (5%).
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 (108%), 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?
7.5yrs
Average management tenure
CEO
Jason Beddow
10.83yrs
Tenure
AU$1,168,004
Compensation
Mr. Jason Beddow, BEng, GdipAppFin(SecInst) has been Managing Director and Executive Director of Argo Investments Limited since February 03, 2014. He has been Managing Director of Argo Global Listed Infras...
CEO Compensation Analysis
Compensation vs Market: Jason's total compensation ($USD906.91K) is below average for companies of similar size in the Australian market ($USD2.57M).
Compensation vs Earnings: Jason's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Executive Director | 10.83yrs | AU$1.17m | 0.049% A$ 3.1m | |
| Chief Financial Officer | 10.83yrs | AU$342.89k | 0.017% A$ 1.1m | |
| COO & Company Secretary | 5.5yrs | AU$432.21k | 0.0040% A$ 251.9k | |
| Senior Investment Officer | 6yrs | no data | no data | |
| Investment Analyst | 6yrs | AU$96.00k | no data | |
| Investment Analyst | 17yrs | no data | no data | |
| Investment Analyst | 9yrs | no data | no data | |
| Investment Analyst | 4yrs | no data | no data |
7.5yrs
Average Tenure
Experienced Management: ARG's management team is seasoned and experienced (7.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Executive Director | 10.83yrs | AU$1.17m | 0.049% A$ 3.1m | |
| Independent Non-Executive Director | 8.58yrs | AU$118.50k | 0.0044% A$ 274.5k | |
| Independent Non-Executive Director | 4.42yrs | AU$115.00k | 0.0021% A$ 130.3k | |
| Independent Non-Executive Director | 9.33yrs | AU$122.35k | 0.0023% A$ 144.1k | |
| Independent Non-Executive Director | 8.83yrs | AU$115.00k | 0.0038% A$ 237.5k | |
| Independent Non-executive Chairman | 2.5yrs | AU$237.30k | 0.0058% A$ 365.3k | |
| Independent Non Executive Director | 2.5yrs | AU$115.00k | 0.0019% A$ 117.2k |
6.9yrs
Average Tenure
64.5yo
Average Age
Experienced Board: ARG's board of directors are considered experienced (6.9 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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Argo Investments Limited's company bio, 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$6.266b
- Shares outstanding: 722.75m
- Website: https://www.argoinvestments.com.au
Location
- Argo Investments Limited
- 91 King William Street
- Level 25
- Adelaide
- South Australia
- 5000
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ARG | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Jan 1992 |
| ARG | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Jan 1992 |
Biography
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. The firm emplo...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/23 07:01 |
| End of Day Share Price | 2021/01/22 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2020/06/30 |
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.