ASX:ARG

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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 -7.5% over the past year.

Return vs Market: ARG underperformed the Australian Market which returned -0.6% over the past year.


Shareholder returns

ARGIndustryMarket
7 Day-1.3%1.0%1.3%
30 Day4.5%-0.007%3.5%
90 Day14.1%2.1%11.9%
1 Year2.0%-1.6%-4.4%-7.5%2.8%-0.6%
3 Year16.4%3.7%30.3%14.7%27.0%11.4%
5 Year39.4%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

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$3.94)

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 (26.3x).

PE vs Market: ARG is poor value based on its PE Ratio (31.2x) compared to the Australian market (23.1x).


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

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 (-14.9%).


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 (4.99%).


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 ($USD901.31K) is below average for companies of similar size in the Australian market ($USD2.58M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jason Beddow
MD & Executive Director10.83yrsAU$1.17m0.049%
A$ 3.1m
Andrew Hill
Chief Financial Officer10.83yrsAU$342.89k0.017%
A$ 1.1m
Timothy Campbell Binks
COO & Company Secretary5.5yrsAU$432.21k0.0040%
A$ 251.9k
Andrew Forster
Senior Investment Officer6yrsno datano data
Paul Frost
Investment Analyst6yrsAU$96.00kno data
Brydie Lloyd-Roberts
Investment Analyst17yrsno datano data
Colin Whitehead
Investment Analyst9yrsno datano data
Andrew Moller
Investment Analyst4yrsno datano data

7.5yrs

Average Tenure

Experienced Management: ARG's management team is seasoned and experienced (7.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jason Beddow
MD & Executive Director10.83yrsAU$1.17m0.049%
A$ 3.1m
Roger Davis
Independent Non-Executive Director8.58yrsAU$118.50k0.0044%
A$ 274.5k
Christopher Cuffe
Independent Non-Executive Director4.42yrsAU$115.00k0.0021%
A$ 130.3k
Anne Brennan
Independent Non-Executive Director9.33yrsAU$122.35k0.0023%
A$ 144.1k
Joycelyn Morton
Independent Non-Executive Director8.83yrsAU$115.00k0.0038%
A$ 237.5k
Russell Higgins
Independent Non-executive Chairman2.5yrsAU$237.30k0.0058%
A$ 365.3k
Elizabeth Lewin
Independent Non Executive Director2.5yrsAU$115.00k0.0019%
A$ 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
ARGCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/23 07:01
End of Day Share Price2021/01/22 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.