ENXTPA:ARG

Stock Analysis Report

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Executive Summary

Argan SA engages in designing, building, developing, owning, leasing, and managing logistical platforms in France. More Details


Snowflake Analysis

Average dividend payer and overvalued.

Share Price & News

How has Argan's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ARG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.6%

ARG

-5.1%

FR REITs

-1.7%

FR Market


1 Year Return

28.5%

ARG

-35.6%

FR REITs

-8.0%

FR Market

Return vs Industry: ARG exceeded the French REITs industry which returned -35.6% over the past year.

Return vs Market: ARG exceeded the French Market which returned -8% over the past year.


Shareholder returns

ARGIndustryMarket
7 Day-1.6%-5.1%-1.7%
30 Day-1.2%-7.8%1.5%
90 Day4.8%-15.8%0.6%
1 Year32.1%28.5%-31.1%-35.6%-6.0%-8.0%
3 Year146.7%128.6%-23.2%-35.1%6.9%-2.3%
5 Year400.7%332.0%-2.5%-27.1%42.3%22.9%

Price Volatility Vs. Market

How volatile is Argan's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

16.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ARG (€83.8) is trading above our estimate of fair value (€34.32)

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 (16.1x) compared to the FR REITs industry average (7.7x).

PE vs Market: ARG is good value based on its PE Ratio (16.1x) compared to the French market (17x).


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 overvalued based on its PB Ratio (1.5x) compared to the FR REITs industry average (0.6x).


Next Steps

Future Growth

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

25.6%

Forecasted Real Estate 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 Argan 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 Argan performed over the past 5 years?

26.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARG has a large one-off gain of €74.9M impacting its June 30 2020 financial results.

Growing Profit Margin: ARG's current net profit margins (85.8%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: ARG's earnings have grown significantly by 26% 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 (-52.9%) over the past year, making it difficult to compare to the REITs industry average (13.2%).


Return on Equity

High ROE: ARG's Return on Equity (8.6%) is considered low.


Next Steps

Financial Health

How is Argan's financial position?


Financial Position Analysis

Short Term Liabilities: ARG's short term assets (€113.0M) do not cover its short term liabilities (€228.5M).

Long Term Liabilities: ARG's short term assets (€113.0M) do not cover its long term liabilities (€1.6B).


Debt to Equity History and Analysis

Debt Level: ARG's debt to equity ratio (109.4%) is considered high.

Reducing Debt: ARG's debt to equity ratio has reduced from 123% to 109.4% over the past 5 years.

Debt Coverage: ARG's debt is not well covered by operating cash flow (4.5%).

Interest Coverage: ARG's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


Next Steps

Dividend

What is Argan current dividend yield, its reliability and sustainability?

2.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ARG's dividend (2.27%) is higher than the bottom 25% of dividend payers in the French market (1.54%).

High Dividend: ARG's dividend (2.27%) is low compared to the top 25% of dividend payers in the French market (5.05%).


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 reasonable payout ratio (62.4%), ARG's dividend payments are 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?

4.0yrs

Average board tenure


CEO

Argan has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Jean-Claude Le Lan
Founding President & Chairman of the Supervisory Board17.42yrs€96.00k25.93%
€ 484.7m
Francoise Leroy
Independent Director3.5yrs€9.00kno data
Florence de Lafont
Independent Member of the Supervisory Boardno data€12.00kno data
Nicolas Le Lan
Member of the Supervisory Board3.5yrs€12.00k3.75%
€ 70.0m
Bernard Thévenin
Independent Member of the Supervisory Boardno data€12.00kno data
François-Régis Causans
Independent Member of the Supervisory Board4.5yrs€12.00kno data

4.0yrs

Average Tenure

Experienced Board: ARG's board of directors are considered experienced (4 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 been diluted in the past year, with total shares outstanding growing by 34.2%.


Top Shareholders

Company Information

Argan SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Argan SA
  • Ticker: ARG
  • Exchange: ENXTPA
  • Founded: 1993
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Market Cap: €1.869b
  • Shares outstanding: 22.31m
  • Website: https://www.argan.fr

Number of Employees


Location

  • Argan SA
  • 21, rue Beffroy
  • Neuilly sur Seine
  • Ile-de-France
  • 92200
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARGENXTPA (Euronext Paris)YesCommon SharesFREURJun 2007
0GN6LSE (London Stock Exchange)YesCommon SharesGBEURJun 2007
ARGPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURJun 2007
ARLL.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 2007

Biography

Argan SA engages in designing, building, developing, owning, leasing, and managing logistical platforms in France. It is also involved in the development and management of land. The company’s real estate p ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/22 04:08
End of Day Share Price2020/09/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.