DB:3AR

Stock Analysis Report

Argo Group International Holdings

Executive Summary

Argo Group International Holdings, Ltd. underwrites specialty insurance and reinsurance products in the property and casualty markets.

Snowflake

Fundamentals

Established dividend payer with acceptable track record.


Similar Companies

Share Price & News

How has Argo Group International Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.6%

3AR

2.9%

DE Insurance

1.4%

DE Market


1 Year Return

19.0%

3AR

22.0%

DE Insurance

3.7%

DE Market

Return vs Industry: 3AR underperformed the German Insurance industry which returned 22% over the past year.

Return vs Market: 3AR exceeded the German Market which returned 3.7% over the past year.


Shareholder returns

3ARIndustryMarket
7 Day1.6%2.9%1.4%
30 Day0.4%4.1%1.3%
90 Day-3.5%3.4%3.4%
1 Year21.1%19.0%27.3%22.0%7.0%3.7%
3 Year47.0%39.6%70.6%50.0%18.5%8.3%
5 Year124.6%107.1%119.6%75.9%42.2%22.9%

Price Volatility Vs. Market

How volatile is Argo Group International Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Argo Group International Holdings undervalued compared to its fair value and its price relative to the market?

10.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 3AR (€62) is trading below our estimate of fair value (€69.29)

Significantly Undervalued: 3AR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 3AR is poor value based on its PE Ratio (20.2x) compared to the Insurance industry average (13.4x).

PE vs Market: 3AR is poor value based on its PE Ratio (20.2x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 3AR is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: 3AR is overvalued based on its PB Ratio (1.2x) compared to the DE Insurance industry average (1.1x).


Next Steps

Future Growth

How is Argo Group International Holdings forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3AR's forecast earnings growth (6.7% per year) is above the savings rate (0.2%).

Earnings vs Market: 3AR's earnings (6.7% per year) are forecast to grow slower than the German market (12.7% per year).

High Growth Earnings: 3AR's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3AR's revenue (6.1% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: 3AR's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 3AR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Argo Group International Holdings performed over the past 5 years?

-17.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 3AR's earnings have declined by -17.6% per year over the past 5 years.

Accelerating Growth: 3AR's earnings growth over the past year (242.1%) exceeds its 5-year average (-17.6% per year).

Earnings vs Industry: 3AR earnings growth over the past year (242.1%) exceeded the Insurance industry 15.2%.


Return on Equity

High ROE: 3AR's Return on Equity (6.1%) is considered low.


Return on Assets

ROA vs Industry: 3AR has a higher Return on Assets than the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: 3AR's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Argo Group International Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 3AR has a low level of unsold assets or inventory.

Debt Coverage by Assets: 3AR's debt is covered by short term assets (assets are 7.118220x debt).


Financial Institutions Analysis

Asset Level: 3AR's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 3AR has a sufficient allowance for bad loans.

Low Risk Liabilities: 3AR reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 3AR has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 3AR has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 3AR has an appropriate level of bad loans.


Next Steps

Dividend

What is Argo Group International Holdings's current dividend yield, its reliability and sustainability?

1.79%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.5%markettop25%3.8%industryaverage3.9%forecastin3Years1.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 3AR's dividend (1.79%) is higher than the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: 3AR's dividend (1.79%) is low compared to the top 25% of dividend payers in the German market (3.83%).

Stable Dividend: 3AR's dividends per share have been stable in the past 10 years.

Growing Dividend: 3AR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.7%), 3AR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3AR's dividends in 3 years are forecast to be well covered by earnings (29.8% payout ratio).


Next Steps

Management

What is the CEO of Argo Group International Holdings's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Mark Watson (55yo)

12.2yrs

Tenure

US$8,346,464

Compensation

Mr. Mark Edmund Watson, III, has been the Chief Executive Officer of Argo Managing Agency Limited, since January 2000 and serves as its Director since 1999 and President since January 2000. Mr. Watson serv ...


CEO Compensation Analysis

Compensation vs. Market: Mark's total compensation ($USD8.35M) is about average for companies of similar size in the German market ($USD1.61M).

Compensation vs Earnings: Mark's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.0yrs

Average Tenure

55yo

Average Age

Experienced Management: 3AR's management team is considered experienced (3 years average tenure).


Board Age and Tenure

12.2yrs

Average Tenure

65yo

Average Age

Experienced Board: 3AR's board of directors are seasoned and experienced ( 12.2 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$78,19511 Jun 19
Kathleen Nealon
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,210
Max PriceUS$64.62
BuyUS$18,20827 Feb 19
Jose Hernandez
EntityIndividual
Role
Senior Key Executive
Chair of International Operations
Shares313
Max PriceUS$61.93
BuyUS$75,035,20004 Feb 19
Voce Capital Management, LLC
EntityCompany
Shares1,266,966
Max PriceUS$59.22

Ownership Breakdown


Management Team

  • Kevin Rehnberg (55yo)

    President of Americas & Chief Administrative Officer

    • Tenure: 0.8yrs
    • Compensation: US$3.02m
  • Mark Watson (55yo)

    President

    • Tenure: 12.2yrs
    • Compensation: US$8.35m
  • Craig Comeaux

    VP, Corporate Counsel & Secretary

    • Tenure: 0yrs
  • Tony Cicio

    Chief Human Resources Officer

    • Tenure: 0.5yrs
  • Jose Hernandez (53yo)

    Chair of International Operations

    • Tenure: 3yrs
    • Compensation: US$1.45m
  • Jay Bullock (55yo)

    Executive VP & CFO

    • Tenure: 11.4yrs
    • Compensation: US$1.89m
  • Mark Rose

    Chief Investment Officer & Senior VP

    • Tenure: 0yrs
  • Axel Schmidt (62yo)

    Group Chief Underwriting Officer

    • Tenure: 5.2yrs
    • Compensation: US$1.67m
  • Phil Vedell

    Group Head of Operations

    • Tenure: 3.1yrs
  • Brett Shirreffs

    Interim Head of Investor Relations

    • Tenure: 0.3yrs

Board Members

  • Gary Woods (76yo)

    Chairman of the Board

    • Tenure: 18.5yrs
    • Compensation: US$275.97k
  • John Power (63yo)

    Independent Director

    • Tenure: 12.2yrs
    • Compensation: US$249.97k
  • Francis Browne (76yo)

    Independent Director

    • Tenure: 12.2yrs
    • Compensation: US$227.97k
  • John Tonelli (54yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$229.97k
  • Hector De Leon (72yo)

    Independent Director

    • Tenure: 12.2yrs
    • Compensation: US$217.97k
  • Joe Josephson (70yo)

    Independent Director

    • Tenure: 12.2yrs
    • Compensation: US$227.97k
  • Kate Nealon (65yo)

    Independent Director

    • Tenure: 8.7yrs
    • Compensation: US$273.75k
  • Al-Noor Gulamali Abdulla Ramji (65yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: US$190.97k
  • Mark Watson (55yo)

    President

    • Tenure: 12.2yrs
    • Compensation: US$8.35m
  • Dee Lehane (55yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: US$190.97k

Company Information

Argo Group International Holdings, Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Argo Group International Holdings, Ltd.
  • Ticker: 3AR
  • Exchange: DB
  • Founded: 1986
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$2.378b
  • Listing Market Cap: US$2.135b
  • Shares outstanding: 34.29m
  • Website: https://www.argolimited.com

Number of Employees


Location

  • Argo Group International Holdings, Ltd.
  • 90 Pitts Bay Road
  • Pembroke
  • HM 08
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARGONYSE (New York Stock Exchange)YesCommon StockUSUSDNov 1986
3ARDB (Deutsche Boerse AG)YesCommon StockDEEURNov 1986

Biography

Argo Group International Holdings, Ltd. underwrites specialty insurance and reinsurance products in the property and casualty markets. The company operates in two segments, U.S. Operations and Internationa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 20:51
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.