ARGAN SA (ARG) AI Stock Analysis

• Market Cap: €1.63B
• Dividend Yield: 5.22%
• Average Volume (3M): 17.48K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 0.66
• Revenue Growth: 7.53%
• EPS Growth: 189.00%
• Country: FR
• Employees: 28
• Sector: Industrials
• Sector Strength: 72
• Industry: REIT - Industrial
• EPS (TTM): 5.32
• Shares Outstanding: 25,737,688
• 10 Day Avg. Volume: 22,114
• 30 Day Avg. Volume: 17,484
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €77.00
• Price Target Upside: 21.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 72 Outperform
• Price Target: €70.00 ▲(10.76% Upside)

ARGAN SA's strong financial performance and attractive valuation are key strengths, offering potential for growth and income. However, technical indicators suggest caution in the short term, with bearish momentum prevailing.

ARGAN SA Business Overview & Revenue Model

Company Description

Argan SA engages in designing, building, developing, owning, leasing, and managing logistical platforms in France. It is also involved in the development and management of land. The company's real estate property consists of a total area of 806,000 square meters. It serves shippers and logistics companies. The company was founded in 1993 and is based in Neuilly sur Seine, France.

How the Company Makes Money

ARGAN SA generates revenue through several key streams, primarily focusing on contracting services for the construction of power facilities. The company earns significant income from long-term contracts with governmental and private sector clients for the development of energy infrastructure projects. Additionally, ARGAN SA capitalizes on maintenance and operational services for power plants, providing ongoing support and ensuring efficient operations. The company has established strategic partnerships with various stakeholders in the energy sector, which enhances its project pipeline and can lead to lucrative joint ventures. Furthermore, ARGAN SA's investments in renewable energy projects not only diversify its portfolio but also tap into the growing demand for sustainable energy solutions, contributing to its overall revenue growth.

ARGAN SA Financial Statement Overview

Summary

ARGAN SA demonstrates strong financial performance with robust revenue growth and profitability. The company has a stable balance sheet and improving cash flow, indicating resilience and effective management. However, attention to debt levels is necessary.

Income Statement

ARGAN SA's income statement shows strong revenue growth, with a 8.2% increase from 2023 to 2024 and consistent profit margins. The gross profit margin stands at 84%, and the net profit margin has recovered significantly to 102.8% in 2024 after a challenging 2023. The EBIT and EBITDA margins are robust at 77.7% and 123.6%, respectively, reflecting efficient operations. Despite past volatility, the company has shown resilience and potential for stable future performance.

Balance Sheet

The balance sheet is stable with a debt-to-equity ratio of 0.84, indicating a balanced capital structure. The equity ratio is strong at 52.2%, demonstrating a solid equity base. Return on equity has improved significantly to 11% in 2024, highlighting efficient use of equity. However, the company should be cautious about its total debt level, which remains substantial.

Cash Flow

Cash flow analysis reveals a positive trajectory, with free cash flow growth rate improving significantly after a dip in previous years. The operating cash flow to net income ratio is healthy at 0.71, and the free cash flow to net income ratio is strong at 0.71, indicating good cash conversion from profits. Continued focus on maintaining positive free cash flow will be key for future stability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	238.97M	220.78M	197.92M	185.67M	171.04M
Gross Profit	200.89M	180.63M	161.10M	153.63M	138.56M
EBITDA	295.55M	-222.97M	150.25M	147.41M	134.55M
Net Income	245.70M	-263.45M	95.09M	668.11M	278.86M
Balance Sheet
Total Assets	4.26B	4.07B	4.44B	4.50B	3.39B
Cash, Cash Equivalents and Short-Term Investments	85.69M	51.96M	169.25M	523.16M	37.47M
Total Debt	1.87B	2.01B	2.04B	2.21B	1.77B
Total Liabilities	2.00B	2.15B	2.18B	2.34B	1.92B
Stockholders Equity	2.23B	1.89B	2.22B	2.13B	1.48B
Cash Flow
Free Cash Flow	173.52M	186.15M	135.76M	48.20M	-151.06M
Operating Cash Flow	173.68M	186.29M	135.92M	172.19M	132.78M
Investing Cash Flow	-34.77M	-161.19M	-246.29M	-68.95M	-227.86M
Financing Cash Flow	-105.16M	-142.45M	-243.58M	382.49M	115.73M

ARGAN SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 63.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ARG, the sentiment is Negative. The current price of 63.2 is below the 20-day moving average (MA) of 64.09, below the 50-day MA of 65.37, and above the 200-day MA of 61.86, indicating a neutral trend. The MACD of -0.42 indicates Positive momentum. The RSI at 44.25 is Neutral, neither overbought nor oversold. The STOCH value of 18.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:ARG.

ARGAN SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BASS	73 Outperform	€833.64M	9.04	10.04%	2.00%	23.50%	76.81%
ARG	72 Outperform	€1.63B	5.53	13.30%	5.22%	7.53%	189.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%