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ARGO

Argo Group International HoldingsNYSE:ARGO Stock Report

Last Price

US$57.85

Market Cap

US$2.0b

7D

-2.1%

1Y

28.7%

Updated

19 Jan, 2022

Data

Company Financials +
ARGO fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance2/6
Financial Health3/6
Dividends5/6

ARGO Stock Overview

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

Argo Group International Holdings Competitors

Chubb

NYSE:CB

US$84.0b

Travelers Companies

NYSE:TRV

US$40.2b

Cincinnati Financial

NasdaqGS:CINF

US$18.9b

Arch Capital Group

NasdaqGS:ACGL

US$17.9b

Price History & Performance

Summary of all time highs, changes and price drops for Argo Group International Holdings
Historical stock prices
Current Share PriceUS$57.85
52 Week HighUS$61.30
52 Week LowUS$39.74
Beta0.92
1 Month Change7.29%
3 Month Change6.26%
1 Year Change28.73%
3 Year Change-10.03%
5 Year Change1.41%
Change since IPO285.69%

Recent News & Updates

Shareholder Returns

ARGOUS InsuranceUS Market
7D-2.1%-3.1%-4.6%
1Y28.7%18.8%7.7%

Return vs Industry: ARGO exceeded the US Insurance industry which returned 21.2% over the past year.

Return vs Market: ARGO exceeded the US Market which returned 10.2% over the past year.

Price Volatility

Is ARGO's price volatile compared to industry and market?
ARGO volatility
ARGO Average Weekly Movement3.3%
Insurance Industry Average Movement4.2%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

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

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

About the Company

FoundedEmployeesCEOWebsite
19481,431Kevin Rehnberghttps://www.argolimited.com

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 International Operations.

Argo Group International Holdings Fundamentals Summary

How do Argo Group International Holdings's earnings and revenue compare to its market cap?
ARGO fundamental statistics
Market CapUS$2.02b
Earnings (TTM)US$110.60m
Revenue (TTM)US$2.12b

18.2x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARGO income statement (TTM)
RevenueUS$2.12b
Cost of RevenueUS$1.52b
Gross ProfitUS$608.20m
ExpensesUS$497.60m
EarningsUS$110.60m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.17
Gross Margin28.63%
Net Profit Margin5.21%
Debt/Equity Ratio24.2%

How did ARGO perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

39%

Payout Ratio

Valuation

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

20.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ARGO ($57.85) is trading below our estimate of fair value ($72.51)

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


Price To Earnings Ratio

PE vs Industry: ARGO is poor value based on its PE Ratio (18.2x) compared to the US Insurance industry average (11.3x).

PE vs Market: ARGO is poor value based on its PE Ratio (18.2x) compared to the US market (17x).


Price to Earnings Growth Ratio

PEG Ratio: ARGO is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: ARGO's PB Ratio (1.2x) is in line with the US Insurance industry average.


Future Growth

How is Argo Group International Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

12.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARGO's forecast earnings growth (12.7% per year) is above the savings rate (2%).

Earnings vs Market: ARGO's earnings (12.7% per year) are forecast to grow slower than the US market (13% per year).

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

Revenue vs Market: ARGO's revenue (3.1% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: ARGO's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ARGO's Return on Equity is forecast to be low in 3 years time (8.7%).


Past Performance

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

-40.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARGO has high quality earnings.

Growing Profit Margin: ARGO became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ARGO's earnings have declined by 40.1% per year over the past 5 years.

Accelerating Growth: ARGO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ARGO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Insurance industry (39.8%).


Return on Equity

High ROE: ARGO's Return on Equity (6.4%) is considered low.


Financial Health

How is Argo Group International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ARGO's short term assets ($4.4B) do not cover its short term liabilities ($7.7B).

Long Term Liabilities: ARGO's short term assets ($4.4B) exceed its long term liabilities ($885.3M).


Debt to Equity History and Analysis

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

Reducing Debt: ARGO's debt to equity ratio has increased from 20.7% to 24.2% over the past 5 years.

Debt Coverage: ARGO's debt is not well covered by operating cash flow (2.5%).

Interest Coverage: ARGO's interest payments on its debt are well covered by EBIT (8.5x coverage).


Balance Sheet


Dividend

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

2.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ARGO's dividend (2.14%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: ARGO's dividend (2.14%) is low compared to the top 25% of dividend payers in the US market (3.48%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39%), ARGO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ARGO's dividends in 3 years are forecast to be well covered by earnings (26.4% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Kevin Rehnberg (57 yo)

2.17yrs

Tenure

US$3,927,090

Compensation

Mr. Kevin James Rehnberg serves as Director at Argo Group International Holdings, Ltd. since April 16, 2020. Mr. Rehnberg serves as the President of U.S.Operations of Argo Group US, Inc. Mr. Rehnberg has...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD3.93M) is about average for companies of similar size in the US market ($USD3.70M).

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


Leadership Team

Experienced Management: ARGO's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: ARGO'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.


Top Shareholders

Company Information

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


Key Information

  • Name: Argo Group International Holdings, Ltd.
  • Ticker: ARGO
  • Exchange: NYSE
  • Founded: 1948
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Implied Market Cap: US$2.017b
  • Shares outstanding: 34.87m
  • Website: https://www.argolimited.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 23:33
End of Day Share Price2022/01/19 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.