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ART

Argent IndustrialJSE:ART Stock Report

Market Cap

R677.3m

7D

13.1%

1Y

157.5%

Updated

26 Oct, 2021

Data

Company Financials
ART fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends0/6

ART Overview

Argent Industrial Limited manufactures and trades in steel and steel-related products worldwide.

Price History & Performance

Summary of all time highs, changes and price drops for Argent Industrial
Historical stock prices
Current Share PriceR12.90
52 Week HighR5.00
52 Week LowR12.40
Beta0.34
1 Month Change11.69%
3 Month Change8.86%
1 Year Change157.49%
3 Year Change275.00%
5 Year Change180.44%
Change since IPO31.58%

Recent News & Updates

Aug 14
We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Argent Industrial Limited's (JSE:ART) CEO For Now

We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Argent Industrial Limited's (JSE:ART) CEO For Now

Performance at Argent Industrial Limited ( JSE:ART ) has been reasonably good and CEO Treve Hendry has done a decent...

Jul 06
Argent Industrial's (JSE:ART) Robust Earnings Are Supported By Other Strong Factors

Argent Industrial's (JSE:ART) Robust Earnings Are Supported By Other Strong Factors

Argent Industrial Limited ( JSE:ART ) just reported healthy earnings but the stock price didn't move much. We think...

Shareholder Returns

ARTZA BuildingZA Market
7D13.1%-7.7%-0.3%
1Y157.5%21.3%19.5%

Return vs Industry: ART exceeded the ZA Building industry which returned 26.5% over the past year.

Return vs Market: ART exceeded the ZA Market which returned 19% over the past year.

Price Volatility

Is ART's price volatile compared to industry and market?
ART volatility
ART Beta0.34
Industry Beta0.51
Market Beta1

Stable Share Price: ART is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ART's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1972n/aTreve Hendryhttps://www.argent.co.za

Argent Industrial Limited manufactures and trades in steel and steel-related products worldwide. The company trades in sections, tube, sheet, coil, and plate steel products, as well as colored and galvanized steel sheets, coils, and roofing products; offers slitting, blanking, cutting-to-length, and lipped channel services, as well as flame, plasma, and laser cutting, guillotining, and bending services; and distributes aluminum products. It also manufactures ladders and scaffolding, castors, wheels, and storage bins; mounties, trolleys, and other mobile access systems; aluminum structures, such as stages, platforms, etc.; curtain and sack trucks; scrappers and wear parts; grizzly frames and segments; mining equipment; braais and fireplaces; overhead cranes, hoists, and lifting equipment; desks, cupboards, lockers, racking, school desks, beds, etc.; shelving and racking systems; and gates, pellets, security products, palisade fencing, sanitation structures, cell phone mast fencing, mezzanine structures, and mass carport.

Argent Industrial Fundamentals Summary

How do Argent Industrial's earnings and revenue compare to its market cap?
ART fundamental statistics
Market CapR677.26m
Earnings (TTM)R130.36m
Revenue (TTM)R1.97b

5.7x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ART income statement (TTM)
RevenueR1.97b
Cost of RevenueR1.47b
Gross ProfitR495.75m
ExpensesR365.39m
EarningsR130.36m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

Nov 04, 2021

Earnings per share (EPS)2.27
Gross Margin25.22%
Net Profit Margin6.63%
Debt/Equity Ratio8.9%

How did ART perform over the long term?

See historical performance and comparison

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ART (ZAR11.8) is trading below our estimate of fair value (ZAR80.48)

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


Price To Earnings Ratio

PE vs Industry: ART is good value based on its PE Ratio (5.2x) compared to the African Building industry average (10.4x).

PE vs Market: ART is good value based on its PE Ratio (5.2x) compared to the ZA market (11.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ART is good value based on its PB Ratio (0.6x) compared to the XF Building industry average (1.6x).


Future Growth

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

11.4%

Forecasted Capital Goods 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 Argent Industrial 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.


Past Performance

How has Argent Industrial performed over the past 5 years?

29.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ART has high quality earnings.

Growing Profit Margin: ART's current net profit margins (6.6%) are higher than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: ART's earnings have grown significantly by 29% per year over the past 5 years.

Accelerating Growth: ART's earnings growth over the past year (35.5%) exceeds its 5-year average (29% per year).

Earnings vs Industry: ART earnings growth over the past year (35.5%) exceeded the Building industry 6.6%.


Return on Equity

High ROE: ART's Return on Equity (11.7%) is considered low.


Financial Health

How is Argent Industrial's financial position?


Financial Position Analysis

Short Term Liabilities: ART's short term assets (ZAR943.5M) exceed its short term liabilities (ZAR355.4M).

Long Term Liabilities: ART's short term assets (ZAR943.5M) exceed its long term liabilities (ZAR197.2M).


Debt to Equity History and Analysis

Debt Level: ART's debt to equity ratio (8.9%) is considered satisfactory.

Reducing Debt: ART's debt to equity ratio has reduced from 13.8% to 8.9% over the past 5 years.

Debt Coverage: ART's debt is well covered by operating cash flow (264.4%).

Interest Coverage: ART's interest payments on its debt are well covered by EBIT (13.8x coverage).


Balance Sheet


Dividend

What is Argent Industrial current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ART's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ART's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ART's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ART's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ART is not paying a notable dividend for the ZA market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ART's dividend in 3 years as they are not forecast to pay a notable one for the ZA market.


Next Steps

Management

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

20.6yrs

Average management tenure


CEO

Treve Hendry (54 yo)

24.42yrs

Tenure

R6,019,000

Compensation

Mr. Treve Robert Hendry, B.Com, B.Compt(Hons), CA (SA) has been the Chief Executive Officer of Argent Industrial Limited since May 5, 1997. Mr. Hendry has 10 years’ experience in the mining industry. He jo...


CEO Compensation Analysis

Compensation vs Market: Treve's total compensation ($USD409.18K) is above average for companies of similar size in the ZA market ($USD278.61K).

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


Leadership Team

Experienced Management: ART's management team is seasoned and experienced (20.6 years average tenure).


Board Members

Experienced Board: ART's board of directors are seasoned and experienced ( 18.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ART 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

Argent Industrial Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Argent Industrial Limited
  • Ticker: ART
  • Exchange: JSE
  • Founded: 1972
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: R677.259m
  • Shares outstanding: 57.39m
  • Website: https://www.argent.co.za

Location

  • Argent Industrial Limited
  • Ridge 63
  • First Floor
  • La Lucia
  • KwaZulu-Natal
  • 4019
  • South Africa

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 17:02
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.