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ARGO

Argo Group International HoldingsNYSE:ARGO Stock Report

Market Cap

US$1.8b

7D

-0.6%

1Y

51.0%

Updated

26 Sep, 2021

Data

Company Financials +
ARGO fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance2/6
Financial Health4/6
Dividends5/6

ARGO Overview

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

Argo Group International Holdings Competitors

Travelers Companies

NYSE:TRV

US$39.0b

Cincinnati Financial

NasdaqGS:CINF

US$18.8b

Arch Capital Group

NasdaqGS:ACGL

US$15.5b

W. R. Berkley

NYSE:WRB

US$13.0b

Price History & Performance

Summary of all time highs, changes and price drops for Argo Group International Holdings
Historical stock prices
Current Share PriceUS$50.82
52 Week HighUS$33.55
52 Week LowUS$58.61
Beta0.95
1 Month Change-6.06%
3 Month Change-2.55%
1 Year Change50.98%
3 Year Change-19.40%
5 Year Change3.59%
Change since IPO238.82%

Recent News & Updates

Shareholder Returns

ARGOUS InsuranceUS Market
7D-0.6%0.3%0.1%
1Y51.0%42.2%35.3%

Return vs Industry: ARGO exceeded the US Insurance industry which returned 42.2% over the past year.

Return vs Market: ARGO exceeded the US Market which returned 35.3% over the past year.

Price Volatility

Is ARGO's price volatile compared to industry and market?
ARGO volatility
ARGO Beta0.95
Industry Beta0.97
Market Beta1

Stable Share Price: ARGO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ARGO's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19991,431Kevin 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


Earnings & Revenue

Key profitability statistics from the latest earnings report
ARGO income statement (TTM)
RevenueUS$2.08b
Cost of RevenueUS$1.52b
Gross ProfitUS$559.70m
ExpensesUS$494.00m
EarningsUS$65.70m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.89
Gross Margin26.93%
Net Profit Margin3.16%
Debt/Equity Ratio24.2%

How did ARGO perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

66%

Payout Ratio

Valuation

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

13.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ARGO ($50.82) is trading below our estimate of fair value ($58.43)

Significantly Below Fair Value: ARGO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ARGO is poor value based on its PE Ratio (27x) compared to the US Insurance industry average (9.5x).

PE vs Market: ARGO is poor value based on its PE Ratio (27x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: ARGO is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: ARGO's PB Ratio (1x) 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?

16.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARGO's forecast earnings growth (16.9% per year) is above the savings rate (2%).

Earnings vs Market: ARGO's earnings (16.9% per year) are forecast to grow faster than the US market (15% per year).

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

Revenue vs Market: ARGO's revenue (2.8% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: ARGO's revenue (2.8% 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 (8.6%).


Past Performance

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

-48.5%

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 48.5% 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 (76%).


Return on Equity

High ROE: ARGO's Return on Equity (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 ($4.3B) do not cover its short term liabilities ($7.6B).

Long Term Liabilities: ARGO's short term assets ($4.3B) exceed its long term liabilities ($832.5M).


Debt to Equity History and Analysis

Debt Level: ARGO's debt to equity ratio (24.2%) is considered satisfactory.

Reducing Debt: ARGO's debt to equity ratio has increased from 21.2% to 24.2% over the past 5 years.

Debt Coverage: ARGO's debt is well covered by operating cash flow (35.4%).

Interest Coverage: ARGO's interest payments on its debt are well covered by EBIT (5.8x coverage).


Balance Sheet


Dividend

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

2.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ARGO's dividend (2.44%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: ARGO's dividend (2.44%) is low compared to the top 25% of dividend payers in the US market (3.6%).


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 reasonable payout ratio (65.5%), ARGO's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ARGO's dividends in 3 years are forecast to be well covered by earnings (27.8% payout ratio).


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Kevin Rehnberg (57 yo)

1.83yrs

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 ($USD3.93M) is about average for companies of similar size in the US market ($USD3.68M).

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 ( 0.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: ARGO's board of directors are not considered experienced ( 1.6 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: 1999
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$1.771b
  • Shares outstanding: 34.85m
  • 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 Analysis2021/09/26 22:03
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
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.