ARGAN SA (ARG) AI Stock Analysis

• Market Cap: €1.70B
• Dividend Yield: 5.04%
• Average Volume (3M): 26.17K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.61
• Revenue Growth: 7.53%
• EPS Growth: 189.00%
• Country: FR
• Employees: 28
• Sector: Energy
• Sector Strength: 45
• Industry: REIT - Industrial
• EPS (TTM): 5.32
• Shares Outstanding: 25,737,688
• 10 Day Avg. Volume: 16,527
• 30 Day Avg. Volume: 26,169
• PEG Ratio: -0.21
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.75
• 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: €78.33
• Price Target Upside: 18.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 73 Outperform
• Price Target: €71.00 ▲(7.58%Upside)

The overall stock score reflects ARGAN SA's strong financial performance and attractive valuation, which are offset by neutral technical indicators. The company's resilience and strategic management in overcoming past financial challenges are positive factors, while technical analysis suggests stable but not strong momentum.

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 primarily through the rental income of its logistics properties. The company owns and manages a portfolio of strategically located logistics platforms, which it leases to various tenants, including large retail chains and industrial companies. This rental income forms the core of its revenue model. In addition to rental income, ARGAN SA may also engage in the sale of properties from its portfolio, generating additional capital. The company benefits from long-term lease agreements, often indexed to inflation, ensuring steady and predictable cash flows. Furthermore, ARGAN SA's focus on developing modern, sustainable, and energy-efficient logistics spaces makes its properties attractive to high-quality tenants, enhancing occupancy rates and rental yields.

ARGAN SA Financial Statement Overview

Summary

ARGAN SA presents a positive financial outlook with strong revenue growth, improving profitability, and a stable balance sheet. The company has effectively managed to recover from past financial challenges, displaying resilience and strategic management. Continued focus on debt management and maintaining cash flow strength will be crucial for sustaining growth and profitability in the competitive real estate industry.

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: Positive
• Last Price: 66.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ARG, the sentiment is Positive. The current price of 66 is above the 20-day moving average (MA) of 64.50, above the 50-day MA of 63.80, and above the 200-day MA of 61.52, indicating a bullish trend. The MACD of 0.64 indicates Negative momentum. The RSI at 62.81 is Neutral, neither overbought nor oversold. The STOCH value of 60.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:ARG.

ARGAN SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARG	73 Outperform	€1.70B	5.73	13.30%	5.04%	7.53%	189.00%
Sector *	67 Neutral	$15.28B	9.73	6.25%	5.18%	4.49%	-71.88%
0NEL	―	€997.04M	12.03	10.39%	1.68%	―	―