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Argo Investments Limited (AU:ARG)
ASX:ARG

Argo Investments Limited (ARG) AI Stock Analysis

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AU

Argo Investments Limited

(Sydney:ARG)

68Neutral
Argo Investments Limited shows a strong financial foundation with solid profitability and low leverage. The technical indicators present a mixed outlook with stability but weak momentum. The stock appears overvalued based on its P/E ratio but offers a decent dividend yield. Overall, the financial stability and dividend yield are strengths, while declining revenue and valuation are areas of concern.

Argo Investments Limited (ARG) vs. S&P 500 (SPY)

Argo Investments Limited Business Overview & Revenue Model

Company DescriptionArgo Investments Limited (ARG) is a leading Australian listed investment company that focuses on managing a diversified portfolio of Australian equities. Established in 1946, Argo Investments is known for its long-term investment strategy, providing shareholders with access to a broad range of Australian companies across various sectors, including financials, materials, healthcare, and consumer discretionary. The company aims to deliver sustainable income and capital growth to its investors through prudent investment management and a focus on high-quality assets.
How the Company Makes MoneyArgo Investments Limited generates revenue primarily through dividends and capital gains from its investments in a diversified portfolio of Australian stocks. The company earns income from the dividends paid by the companies in which it holds shares. Additionally, Argo may realize capital gains by selling stocks at a higher price than their purchase cost. The firm's focus on long-term investments and diversified holdings helps mitigate risks and provides steady income streams. Argo's revenue is also influenced by market conditions, the performance of its portfolio companies, and its strategic asset allocation decisions.

Argo Investments Limited Financial Statement Overview

Summary
Argo Investments Limited presents a solid financial position with strong profitability and low leverage. The balance sheet is healthy with a low debt-to-equity ratio and consistent cash flow generation, indicating operational efficiency. However, declining revenue growth is a concern.
Income Statement
―
Argo Investments Limited shows strong gross and net profit margins, indicating high profitability. However, revenue has shown a decline over recent years, which is a concern. The EBIT and EBITDA margins remain robust, supporting operational efficiency.
Balance Sheet
82
The balance sheet is healthy with a low debt-to-equity ratio, indicating low leverage and financial stability. The high equity ratio further demonstrates strong capitalization. Return on equity remains solid, showcasing effective use of shareholders' funds.
Cash Flow
―
The company has consistently positive free cash flow, which is a good sign of liquidity. Operating cash flow to net income ratio is healthy, suggesting efficient cash generation from operations. However, free cash flow growth has been limited.
Breakdown
Jun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
282.38M295.82M331.85M185.57M222.04M
Gross Profit
279.25M280.55M332.05M199.92M216.88M
EBIT
272.24M270.06M322.44M191.62M207.73M
EBITDA
275.38M270.49M322.87M192.05M208.14M
Net Income Common Stockholders
252.96M271.71M312.93M173.99M199.46M
Balance SheetCash, Cash Equivalents and Short-Term Investments
119.24M135.71M174.12M189.38M181.23M
Total Assets
7.39B6.89B6.42B6.61B5.28B
Total Debt
1.66M167.00K416.00K748.00K1.05M
Net Debt
-97.17M-125.09M-134.30M-178.55M-167.67M
Total Liabilities
1.03B889.05M787.92M962.84M561.30M
Stockholders Equity
6.36B6.00B5.64B5.64B4.72B
Cash FlowFree Cash Flow
251.64M233.91M195.91M150.22M212.58M
Operating Cash Flow
252.14M233.96M195.96M150.24M212.65M
Investing Cash Flow
-56.68M-40.24M-255.66M24.85M-71.00M
Financing Cash Flow
-211.93M-203.18M15.13M-164.51M-191.93M

Argo Investments Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.75
Price Trends
50DMA
8.69
Positive
100DMA
8.78
Negative
200DMA
8.75
Positive
Market Momentum
MACD
0.03
Negative
RSI
57.32
Neutral
STOCH
50.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ARG, the sentiment is Positive. The current price of 8.75 is above the 20-day moving average (MA) of 8.59, above the 50-day MA of 8.69, and above the 200-day MA of 8.75, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 57.32 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ARG.

Argo Investments Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUBKI
72
Outperform
22.234.44%4.69%-4.33%-13.07%
AUWHF
70
Outperform
31.113.58%3.77%9.87%5.04%
AUARG
68
Neutral
26.803.96%4.12%-3.41%-4.97%
AUAFI
68
Neutral
29.523.68%3.74%1.81%0.50%
64
Neutral
$12.54B9.797.92%16985.69%12.58%-6.07%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ARG
Argo Investments Limited
8.75
0.47
5.69%
AU:WHF
Whitefield Ltd
5.51
0.51
10.20%
AU:AFI
Australian Foundation Investment Co. Ltd.
7.09
0.11
1.62%
AU:BKI
BKI Investment Co. Ltd.
1.68
0.07
4.35%

Argo Investments Limited Corporate Events

Argo Investments Reports Estimated NTA and Highlights Investment Strengths
May 5, 2025

Argo Investments Limited has announced its estimated pre-tax net tangible asset (NTA) backing per share as $10.02 and the share price as $8.78 as of Friday’s market close. The company highlights its diversified, low-cost, and internally managed investment approach, backed by a strong balance sheet with no debt, experienced management, and a commitment to fully-franked, sustainable dividends. This announcement reinforces Argo’s long-term, proven investment strategy, potentially strengthening its position in the market and providing confidence to its stakeholders.

Argo Investments Reports Strong NTA Backing and Market Position
Apr 28, 2025

Argo Investments Limited announced its estimated pre-tax net tangible asset backing per share and share price as of Thursday’s market close. The company highlights its diversified, low-cost, and internally managed investment approach, emphasizing a strong balance sheet with no debt, experienced management, and sustainable dividends. This announcement underscores Argo’s commitment to long-term, proven investment strategies, potentially impacting its market positioning and offering reassurance to its stakeholders.

Argo Investments Announces Nationwide Investor Meetings
Apr 28, 2025

Argo Investments Limited has announced a series of investor information meetings across major Australian cities, providing an opportunity for stakeholders to engage with the company’s management and gain insights into their investment strategies. These meetings will cover updates on Argo Investments and Argo Global Listed Infrastructure, offering a platform for attendees to ask questions and learn about the company’s market outlook and portfolio management.

Argo Investments Reports Stable NTA and Reinforces Investment Strategy
Apr 22, 2025

Argo Investments Limited reported an estimated pre-tax net tangible asset backing per share of $9.50 as of April 17, 2025, reflecting a slight increase from the previous figure. The company emphasizes its diversified, low-cost, and internally managed investment approach, supported by a strong balance sheet with no debt, experienced management, and a commitment to sustainable dividends. This announcement underscores Argo’s stable financial standing and its long-term, proven investment strategy, which is likely to reassure stakeholders of its continued robust performance in the investment sector.

Argo Investments Reports Estimated NTA and Share Price
Apr 14, 2025

Argo Investments Limited released its estimated pre-tax net tangible asset (NTA) backing per share and share price as of April 11, 2025. The company highlights its strong balance sheet with no debt, experienced management, and commitment to fully-franked, sustainable dividends. This announcement underscores Argo’s long-term, proven investment strategy and its stable position in the market, offering significant benefits to its shareholders.

Argo Investments Reports Decline in NTA Amid Market Uncertainty
Apr 8, 2025

Argo Investments Limited reported a decline in its net tangible asset (NTA) backing per share as of March 31, reflecting broader market trends influenced by geopolitical uncertainties and trade concerns. The S&P/ASX 200 Accumulation Index fell by 3.4% in March, with significant declines in the Information Technology and Consumer Discretionary sectors. Despite these challenges, Argo continues to focus on long-term shareholder returns through its diversified portfolio and low-cost management structure. The announcement also highlights the company’s upcoming shareholder meetings to discuss global economic outlooks and macroeconomic themes impacting the Australian share market.

Argo Investments Reports Estimated Pre-Tax NTA and Share Price
Apr 7, 2025

Argo Investments Limited has released its estimated pre-tax net tangible asset (NTA) backing per share and share price as of April 4, 2025. The company emphasizes its diversified and administratively simple investment approach, highlighting its strong balance sheet, experienced management, and commitment to fully-franked, sustainable dividends. This announcement underscores Argo’s long-term investment strategy and its position as a stable choice for shareholders, reflecting its significant role in the Australian investment landscape.

Argo Investments Reports Stable NTA and Share Price
Mar 31, 2025

Argo Investments Limited reported its estimated pre-tax net tangible asset (NTA) backing per share and share price as of March 28, 2025. The company emphasizes its diversified, low-cost, and internally managed investment approach, supported by a strong balance sheet with no debt and a commitment to sustainable dividends. This announcement reflects Argo’s stable financial position and its long-term investment strategy, which may reassure stakeholders about the company’s ongoing market presence.

Argo Investments Director Increases Shareholding Through Dividend Reinvestment
Mar 24, 2025

Argo Investments Limited announced a change in the director’s interest, with Lianne Margaret Buck acquiring 205 fully paid ordinary shares through the company’s Dividend Reinvestment Plan, increasing her total holdings to 11,011 shares. This change reflects the director’s continued confidence in the company’s performance and strategic direction, potentially signaling positive stakeholder sentiment and reinforcing Argo’s commitment to shareholder value.

Argo Investments Updates Dividend Distribution Details
Mar 17, 2025

Argo Investments Limited announced an update regarding its dividend distribution, specifying the Dividend Reinvestment Plan (DRP) and Dividend Substitution Share Plan (DSSP) prices. This update pertains to the dividend for the six-month period ending December 31, 2024, and reflects the company’s ongoing commitment to providing shareholder value through consistent dividend distributions.

Argo Investments Announces Estimated NTA Backing and Share Price
Mar 17, 2025

Argo Investments Limited has announced its estimated pre-tax net tangible asset (NTA) backing per share and share price as of March 14, 2025. The company highlights its diversified, low-cost, and internally managed investment approach, with a strong balance sheet and no debt, offering fully-franked, sustainable dividends. This announcement reinforces Argo’s commitment to a long-term, proven investment strategy, which may positively impact its market positioning and provide confidence to its stakeholders.

Argo Investments Reports Stable NTA and Share Price Amid Strong Financial Position
Mar 11, 2025

Argo Investments Limited has announced its estimated pre-tax net tangible asset (NTA) backing per share and share price as of the recent market close. The company highlights its diversified, low-cost, and internally managed investment approach, supported by a strong balance sheet with no debt and a commitment to fully-franked, sustainable dividends. This announcement underscores Argo’s long-term investment strategy and its stable financial position, which are crucial for maintaining investor confidence and its competitive standing in the market.

Argo Investments Reports Decline in NTA Amid Market Volatility
Mar 11, 2025

In February 2025, Argo Investments Limited reported a decline in net tangible asset (NTA) backing per share, reflecting broader market trends as Australian shares fell by 3.8% due to geopolitical uncertainties. Despite the challenging environment, Argo’s portfolio saw solid earnings and dividends that exceeded expectations, although some companies faced increased regulatory and political headwinds. The Reserve Bank of Australia’s interest rate cut marked the beginning of a shallow easing cycle, impacting market sentiment. Argo remains cautiously optimistic about the future, maintaining a strong balance sheet with no debt and a diversified investment approach.

Argo Investments Reports Estimated NTA and Highlights Investment Strengths
Mar 3, 2025

Argo Investments Limited reported its estimated pre-tax net tangible asset (NTA) backing per share and share price as of February 28, 2025. The company highlights its diversified, low-cost, and internally managed investment approach, supported by a strong balance sheet with no debt and an experienced management team. This announcement underscores Argo’s commitment to providing fully-franked, sustainable dividends and maintaining a long-term investment strategy, which is likely to reassure its stakeholders and reinforce its position in the market.

Argo Investments Updates Dividend Substitution Share Plan Rules
Feb 25, 2025

Argo Investments Limited has updated the rules for its Dividend Substitution Share Plan (DSSP), allowing eligible shareholders to receive additional shares instead of cash dividends. This plan offers flexibility for shareholders to choose between cash dividends and shares, potentially impacting shareholder investment strategies and the company’s capital management.

Argo Investments Updates Dividend Reinvestment Plan Rules
Feb 25, 2025

Argo Investments Limited has updated its Dividend Reinvestment Plan (DRP) rules, making minor administrative changes. The plan allows eligible shareholders to reinvest their dividends into additional shares, typically at a discount, without incurring brokerage fees. This update may enhance shareholder value by providing a cost-effective way to increase their investment in the company, potentially impacting shareholder engagement and retention.

Argo Investments Updates NTA and Share Price, Reinforces Strong Position
Feb 24, 2025

Argo Investments Limited has announced its estimated pre-tax net tangible asset (NTA) backing per share and the share price as of the market close on Friday. The NTA figures are unaudited and approximate. The company, which is known for its diversified and administratively simple investment approach, operates with a strong balance sheet, no debt, and provides fully-franked, sustainable dividends. This update reflects Argo’s commitment to transparency and highlights its long-term, proven investment strategy, which continues to position the company favorably within the investment sector.

Argo Investments Reports Strong NTA and Highlights Sustainable Growth
Feb 17, 2025

Argo Investments Limited reported its estimated pre-tax net tangible asset (NTA) per share at $10.21 as of February 14, 2025, with a share price of $9.04. The company highlights its diversified, low-cost, and debt-free investment approach, emphasizing its experienced management team and commitment to delivering sustainable, fully-franked dividends, which reinforce its strong market positioning and appeal to shareholders.

Argo Investments Updates on NTA and Market Position
Feb 10, 2025

Argo Investments Limited has released its estimated pre-tax net tangible asset (NTA) backing per share and share price as of Friday’s market close, with the figures being unaudited and approximate. The company emphasizes its diversified, low-cost, and internally managed structure, boasting a strong balance sheet with no debt, an experienced board, and sustainable fully-franked dividends. The announcement underlines Argo’s commitment to a long-term, proven investment approach and highlights its position within the financial market, potentially impacting stakeholder perceptions positively.

Argo Investments Hits Record High NTA, Announces Strong Profits
Feb 10, 2025

Argo Investments Limited reported a record high net tangible asset (NTA) per share of $10.37 as of January 31, reflecting a strong start to the year for the Australian share market, which rose by 4.6% in January. The company announced a half-year profit of $121.2 million and an interim dividend of 17 cents per share, fully franked. This performance underscores Argo’s resilient investment strategy and its capacity to deliver sustainable dividends, benefiting its broad base of 91,200 shareholders.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.