Argan SA
Argan SA Fundamental Analysis
Argan SA (ARLLF) shows strong financial fundamentals with a PE ratio of 7.99, profit margin of 98.57%, and ROE of 10.96%. The company generates $0.2B in annual revenue with moderate year-over-year growth of 8.24%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ARLLF's fundamental strength across five key dimensions:
Efficiency Score
WeakARLLF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentARLLF trades at attractive valuation levels.
Growth Score
ModerateARLLF shows steady but slowing expansion.
Financial Health Score
ModerateARLLF shows balanced financial health with some risks.
Profitability Score
ModerateARLLF maintains healthy but balanced margins.
Key Financial Metrics
Is ARLLF Expensive or Cheap?
P/E Ratio
ARLLF trades at 7.99 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ARLLF's PEG of -0.45 indicates potential undervaluation.
Price to Book
The market values Argan SA at 0.86 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.52 times EBITDA. This is generally considered low.
How Well Does ARLLF Make Money?
Net Profit Margin
For every $100 in sales, Argan SA keeps $98.57 as profit after all expenses.
Operating Margin
Core operations generate 1.02 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.96 in profit for every $100 of shareholder equity.
ROA
Argan SA generates $5.76 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Argan SA generates strong operating cash flow of $93.17M, reflecting robust business health.
Free Cash Flow
Argan SA generates strong free cash flow of $93.11M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.62 in free cash annually.
FCF Yield
ARLLF converts 6.43% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.99
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.45
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.80
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.52
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How ARLLF Stacks Against Its Sector Peers
| Metric | ARLLF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.99 | 24.23 | Better (Cheaper) |
| ROE | 10.96% | 659.00% | Weak |
| Net Margin | 98.57% | 4497.00% | Weak |
| Debt/Equity | 0.80 | -22.14 (disorted) | Distorted |
| Current Ratio | 0.52 | 13.87 | Weak Liquidity |
| ROA | 5.76% | -1390.00% (disorted) | Weak |
ARLLF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Argan SA's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
68.23%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-17.89%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
811.76%
Industry Style: Income, Inflation Hedge, REIT
High Growth