argenx SE
argenx SE Fundamental Analysis
argenx SE (ARGX) shows strong financial fundamentals with a PE ratio of 37.72, profit margin of 37.50%, and ROE of 23.66%. The company generates $3.7B in annual revenue with strong year-over-year growth of 77.27%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 96.6/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze ARGX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentARGX demonstrates superior asset utilization.
Valuation Score
ModerateARGX shows balanced valuation metrics.
Growth Score
ModerateARGX shows steady but slowing expansion.
Financial Health Score
ExcellentARGX maintains a strong and stable balance sheet.
Profitability Score
ExcellentARGX achieves industry-leading margins.
Key Financial Metrics
Is ARGX Expensive or Cheap?
P/E Ratio
ARGX trades at 37.72 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ARGX's PEG of 0.93 indicates potential undervaluation.
Price to Book
The market values argenx SE at 8.49 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 58.43 times EBITDA. This signals the market has high growth expectations.
How Well Does ARGX Make Money?
Net Profit Margin
For every $100 in sales, argenx SE keeps $37.50 as profit after all expenses.
Operating Margin
Core operations generate 12.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.66 in profit for every $100 of shareholder equity.
ROA
argenx SE generates $19.12 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
argenx SE produces operating cash flow of $486.44M, showing steady but balanced cash generation.
Free Cash Flow
argenx SE generates strong free cash flow of $480.11M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.76 in free cash annually.
FCF Yield
ARGX converts 0.90% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
37.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.93
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.49
vs 25 benchmark
P/S Ratio
Price to sales ratio
14.34
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.007
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.60
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.19
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How ARGX Stacks Against Its Sector Peers
| Metric | ARGX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 37.72 | 29.43 | Worse (Expensive) |
| ROE | 23.66% | 800.00% | Weak |
| Net Margin | 37.50% | -20145.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.30 | Strong (Low Leverage) |
| Current Ratio | 5.60 | 4.64 | Strong Liquidity |
| ROA | 19.12% | -17936.00% (disorted) | Strong |
ARGX outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews argenx SE's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
1541.52%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
362.92%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
-132.33%
Industry Style: Defensive, Growth, Innovation
Declining