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ARG

Argosy PropertyNZSE:ARG Stock Report

Market Cap

NZ$1.3b

7D

-0.3%

1Y

8.9%

Updated

26 Oct, 2021

Data

Company Financials +
ARG fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance3/6
Financial Health2/6
Dividends3/6

ARG Overview

Argosy Property Limited in properties in New Zealand.

Price History & Performance

Summary of all time highs, changes and price drops for Argosy Property
Historical stock prices
Current Share PriceNZ$1.60
52 Week HighNZ$1.38
52 Week LowNZ$1.73
Beta0.80
1 Month Change-3.33%
3 Month Change-2.45%
1 Year Change8.87%
3 Year Change48.37%
5 Year Change51.91%
Change since IPO59.50%

Recent News & Updates

Shareholder Returns

ARGNZ REITsNZ Market
7D-0.3%-0.6%0.5%
1Y8.9%-3.4%2.1%

Return vs Industry: ARG exceeded the NZ REITs industry which returned -3.4% over the past year.

Return vs Market: ARG exceeded the NZ Market which returned 2.1% over the past year.

Price Volatility

Is ARG's price volatile compared to industry and market?
ARG volatility
ARG Beta0.80
Industry Beta0.55
Market Beta1

Stable Share Price: ARG is less volatile than 75% of NZ stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ARG's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2002n/aPeter Mencehttps://www.argosy.co.nz

Argosy Property Limited in properties in New Zealand. Its investment portfolio consists of approximately 100 properties comprising retail, industrial, and commercial properties. The company’s properties are primarily located in Auckland, Hamilton, and Wellington in New Zealand.

Argosy Property Fundamentals Summary


Earnings & Revenue

Key profitability statistics from the latest earnings report
ARG income statement (TTM)
RevenueNZ$131.41m
Cost of RevenueNZ$25.76m
Gross ProfitNZ$105.65m
Expenses-NZ$136.00m
EarningsNZ$241.65m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.29
Gross Margin80.40%
Net Profit Margin183.89%
Debt/Equity Ratio62.7%

How did ARG perform over the long term?

See historical performance and comparison

Dividends

4.0%

Current Dividend Yield

51%

Payout Ratio

Valuation

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

22.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ARG (NZ$1.6) is trading below our estimate of fair value (NZ$2.05)

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


Price To Earnings Ratio

PE vs Industry: ARG is good value based on its PE Ratio (5.6x) compared to the NZ REITs industry average (5.9x).

PE vs Market: ARG is good value based on its PE Ratio (5.6x) compared to the NZ market (22.2x).


Price to Earnings Growth Ratio

PEG Ratio: ARG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ARG's PB Ratio (1x) is in line with the NZ REITs industry average.


Future Growth

How is Argosy Property forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-32.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARG's earnings are forecast to decline over the next 3 years (-32% per year).

Earnings vs Market: ARG's earnings are forecast to decline over the next 3 years (-32% per year).

High Growth Earnings: ARG's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ARG's revenue is expected to decline over the next 3 years (-1% per year).

High Growth Revenue: ARG's revenue is forecast to decline over the next 3 years (-1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ARG's Return on Equity is forecast to be low in 3 years time (4.6%).


Past Performance

How has Argosy Property performed over the past 5 years?

18.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARG has a large one-off gain of NZ$183.0M impacting its March 31 2021 financial results.

Growing Profit Margin: ARG's current net profit margins are higher than last year (98.5%).


Past Earnings Growth Analysis

Earnings Trend: ARG's earnings have grown by 18.3% per year over the past 5 years.

Accelerating Growth: ARG's earnings growth over the past year (102.9%) exceeds its 5-year average (18.3% per year).

Earnings vs Industry: ARG earnings growth over the past year (102.9%) underperformed the REITs industry 267.1%.


Return on Equity

High ROE: ARG's Return on Equity (18.9%) is considered low.


Financial Health

How is Argosy Property's financial position?


Financial Position Analysis

Short Term Liabilities: ARG's short term assets (NZ$97.9M) exceed its short term liabilities (NZ$19.7M).

Long Term Liabilities: ARG's short term assets (NZ$97.9M) do not cover its long term liabilities (NZ$856.5M).


Debt to Equity History and Analysis

Debt Level: ARG's debt to equity ratio (62.7%) is considered high.

Reducing Debt: ARG's debt to equity ratio has reduced from 66.9% to 62.7% over the past 5 years.

Debt Coverage: ARG's debt is not well covered by operating cash flow (11%).

Interest Coverage: ARG's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Dividend

What is Argosy Property current dividend yield, its reliability and sustainability?

4.04%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ARG's dividend (4.04%) is higher than the bottom 25% of dividend payers in the NZ market (2.41%).

High Dividend: ARG's dividend (4.04%) is low compared to the top 25% of dividend payers in the NZ market (4.9%).


Stability and Growth of Payments

Stable Dividend: ARG's dividend payments have been volatile in the past 10 years.

Growing Dividend: ARG's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51%), ARG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ARG's dividends in 3 years are forecast to be covered by earnings (81.9% payout ratio).


Next Steps

Management

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

9.4yrs

Average management tenure


CEO

Peter Mence

12.75yrs

Tenure

Mr. Peter Mence serves as the Chief Executive Officer of Argosy Property Limited. Mr. Mence served as a General Manager of ING Property Trust Management Limited-Manager for ING Property. Mr. Mence is worki...


Leadership Team

Experienced Management: ARG's management team is seasoned and experienced (9.4 years average tenure).


Board Members

Experienced Board: ARG's board of directors are not considered experienced ( 2.4 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: ARG insiders have only sold shares 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

Argosy Property Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Argosy Property Limited
  • Ticker: ARG
  • Exchange: NZSE
  • Founded: 2002
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: NZ$1.323b
  • Shares outstanding: 842.57m
  • Website: https://www.argosy.co.nz

Location

  • Argosy Property Limited
  • 39 Market Place
  • Level 1
  • Auckland
  • 1010
  • New Zealand

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 06:01
End of Day Share Price2021/10/26 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.