Argo Investments Limited
Argo Investments Limited Fundamental Analysis
Argo Investments Limited (ARG.AX) shows moderate financial fundamentals with a PE ratio of 25.10, profit margin of 87.39%, and ROE of 3.97%. The company generates $0.3B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ARG.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakARG.AX struggles to generate sufficient returns from assets.
Valuation Score
WeakARG.AX trades at a premium to fair value.
Growth Score
ModerateARG.AX shows steady but slowing expansion.
Financial Health Score
ModerateARG.AX shows balanced financial health with some risks.
Profitability Score
ModerateARG.AX maintains healthy but balanced margins.
Key Financial Metrics
Is ARG.AX Expensive or Cheap?
P/E Ratio
ARG.AX trades at 25.10 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ARG.AX's PEG of 8.53 indicates potential overvaluation.
Price to Book
The market values Argo Investments Limited at 1.00 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 22.75 times EBITDA. This signals the market has high growth expectations.
How Well Does ARG.AX Make Money?
Net Profit Margin
For every $100 in sales, Argo Investments Limited keeps $87.39 as profit after all expenses.
Operating Margin
Core operations generate 96.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.97 in profit for every $100 of shareholder equity.
ROA
Argo Investments Limited generates $3.41 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Argo Investments Limited generates strong operating cash flow of $213.68M, reflecting robust business health.
Free Cash Flow
Argo Investments Limited generates strong free cash flow of $213.65M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.28 in free cash annually.
FCF Yield
ARG.AX converts 3.18% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.10
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
8.53
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.002
vs 25 benchmark
P/S Ratio
Price to sales ratio
21.88
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.001
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How ARG.AX Stacks Against Its Sector Peers
| Metric | ARG.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.10 | 18.89 | Worse (Expensive) |
| ROE | 3.97% | 818.00% | Weak |
| Net Margin | 87.39% | 2473.00% | Weak |
| Debt/Equity | 0.00 | 0.94 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 692.63 | Weak Liquidity |
| ROA | 3.41% | -24053.00% (disorted) | Weak |
ARG.AX outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Argo Investments Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical