Argentex Group (AIM:AGFX) - Share price, News & Analysis

AGFX fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	3/6
Past Performance	3/6
Financial Health	5/6
Dividends	3/6

AGFX Stock Overview

Argentex Group PLC provides foreign exchange services for businesses worldwide.

Rewards

Trading at 41.4% below our estimate of its fair value

Revenue is forecast to grow 21.12% per year

Risk Analysis

Unstable dividend track record

Latest financial reports are more than 6 months old

Argentex Group Competitors

Alpha FX Group

AIM:AFX

UK£856.4m

Equals Group

AIM:EQLS

UK£154.8m

Cornerstone FS

AIM:CSFS

UK£4.7m

Price History & Performance

Summary of all time highs, changes and price drops for Argentex Group
Historical stock prices
Current Share Price	UK£0.77
52 Week High	UK£1.40
52 Week Low	UK£0.67
Beta	1.61
1 Month Change	-0.52%
3 Month Change	-4.00%
1 Year Change	-38.56%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-42.24%

Recent News & Updates

Jul 06

Argentex Group (LON:AGFX) Will Pay A Dividend Of UK£0.02

Argentex Group Plc ( LON:AGFX ) will pay a dividend of UK£0.02 on the 13th of September. Including this payment, the...

Shareholder Returns

	AGFX	GB Capital Markets	GB Market
7D	3.2%	-1.0%	-0.4%
1Y	-38.6%	-12.5%	-3.9%

Return vs Industry: AGFX underperformed the UK Capital Markets industry which returned -12.5% over the past year.

Return vs Market: AGFX underperformed the UK Market which returned -3.9% over the past year.

Price Volatility

Is AGFX's price volatile compared to industry and market?
AGFX volatility
AGFX Average Weekly Movement	7.1%
Capital Markets Industry Average Movement	5.0%
Market Average Movement	6.2%
10% most volatile stocks in GB Market	11.6%
10% least volatile stocks in GB Market	3.2%

Stable Share Price: AGFX is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: AGFX's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2011	69	Harry Adams	https://www.argentex.com

Argentex Group PLC provides foreign exchange services for businesses worldwide. Its product offering includes spot, forward, and options FX capabilities provided primarily through voice broking channels. The company serves corporate, institutional, and private clients.

Argentex Group Fundamentals Summary

How do Argentex Group's earnings and revenue compare to its market cap?
AGFX fundamental statistics
Market Cap	UK£86.94m
Earnings (TTM)	UK£6.50m
Revenue (TTM)	UK£32.00m

13.4x

P/E Ratio

2.7x

P/S Ratio

Is AGFX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AGFX income statement (TTM)
Revenue	UK£32.00m
Cost of Revenue	UK£500.00k
Gross Profit	UK£31.50m
Other Expenses	UK£25.00m
Earnings	UK£6.50m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.057
Gross Margin	98.44%
Net Profit Margin	20.31%
Debt/Equity Ratio	10.7%

How did AGFX perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

48%

Payout Ratio

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

41.4%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: AGFX (£0.77) is trading below our estimate of fair value (£1.31)

Significantly Below Fair Value: AGFX is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: AGFX is poor value based on its PE Ratio (13.4x) compared to the UK Capital Markets industry average (9.3x).

PE vs Market: AGFX is good value based on its PE Ratio (13.4x) compared to the UK market (15.3x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: AGFX is overvalued based on its PB Ratio (2.9x) compared to the GB Capital Markets industry average (1.2x).

Future Growth

How is Argentex Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

21.1%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if AGFX's forecast earnings growth is above the savings rate (0.9%).

Earnings vs Market: Insufficient data to determine if AGFX's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AGFX's revenue (21.1% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: AGFX's revenue (21.1% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: AGFX's Return on Equity is forecast to be high in 3 years time (29.9%)

Past Performance

How has Argentex Group performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

6.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AGFX has high quality earnings.

Growing Profit Margin: AGFX's current net profit margins (20.3%) are lower than last year (28.2%).

Past Earnings Growth Analysis

Earnings Trend: AGFX's earnings have grown by 6.7% per year over the past 5 years.

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

Earnings vs Industry: AGFX had negative earnings growth (-14.6%) over the past year, making it difficult to compare to the Capital Markets industry average (62.1%).

Return on Equity

High ROE: AGFX's Return on Equity (21.7%) is considered high.

Financial Health

How is Argentex Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: AGFX's short term assets (£65.5M) exceed its short term liabilities (£42.1M).

Long Term Liabilities: AGFX's short term assets (£65.5M) exceed its long term liabilities (£6.4M).

Debt to Equity History and Analysis

Debt Level: AGFX has more cash than its total debt.

Reducing Debt: Insufficient data to determine if AGFX's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: AGFX's debt is well covered by operating cash flow (303.1%).

Interest Coverage: AGFX's interest payments on its debt are well covered by EBIT (23.8x coverage).

Balance Sheet

Dividend

What is Argentex Group current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.95%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: AGFX's dividend (1.95%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: AGFX's dividend (1.95%) is low compared to the top 25% of dividend payers in the UK market (4.86%).

Stability and Growth of Payments

Stable Dividend: AGFX has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: AGFX has only been paying a dividend for 2 years, and since then payments have fallen.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (47.9%), AGFX's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (21.5%), AGFX's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

2.9yrs

Average board tenure

CEO

Harry Adams (40 yo)

0.92

Tenure

UK£337,000

Compensation

Mr. Harry Alexander Adams serves as Chief Executive Officer at Argentex Group Plc since June 11, 2021. Mr. Adams served as Co-Chief Executive Officer until June 11, 2021 and is Co-Founder of Argentex Group...

CEO Compensation Analysis

Compensation vs Market: Harry's total compensation ($USD420.07K) is above average for companies of similar size in the UK market ($USD319.38K).

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

Board Members

Experienced Board: AGFX's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.

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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2021/09/30
Annual Earnings	2021/03/31