ARGAN SA (ARG) AI Stock Analysis

• Market Cap: €1.60B
• Dividend Yield: 5.29%
• Average Volume (3M): 18.25K
• Price to Earnings (P/E): 6.2
• Beta (1Y): 0.59
• Revenue Growth: 8.24%
• EPS Growth: N/A
• Country: FR
• Employees: 28
• Sector: Energy
• Sector Strength: 72
• Industry: REIT - Industrial
• EPS (TTM): 9.90
• Shares Outstanding: 25,737,688
• 10 Day Avg. Volume: 18,711
• 30 Day Avg. Volume: 18,249
• 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: €67.00
• Price Target Upside: 7.72% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: €70.00 ▲(12.54%Upside)

ARGAN SA scores well due to strong financial performance and attractive valuation metrics. Despite mixed technical signals, the company's solid revenue growth, profitability, and dividend yield provide a favorable investment outlook.

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 leasing of its logistics properties. The company's business model involves acquiring or developing logistics warehouses and subsequently leasing these properties to tenants under long-term agreements. Rental income from these leases forms the core of ARGAN's revenue stream. Additionally, the company may engage in property sales as part of its portfolio management strategy, contributing to its earnings. ARGAN's strategic locations and commitment to sustainable development enhance its attractiveness to potential tenants, supporting occupancy rates and rental income. The company may also benefit from partnerships with logistics operators and retailers, further solidifying its market position.

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
	EBIT
185.72M	-201.17M	150.00M	147.14M	132.21M
	EBITDA
295.55M	-222.97M	150.25M	147.41M	134.55M
	Net Income Common Stockholders
245.70M	-263.45M	95.09M	668.11M	278.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
85.69M	51.96M	169.25M	523.16M	37.47M
	Total Assets
4.26B	4.07B	4.44B	4.50B	3.39B
	Total Debt
1.87B	2.01B	2.04B	2.21B	1.77B
	Net Debt
1.78B	1.96B	1.87B	1.69B	1.73B
	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: 62.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 62.2 is below the 20-day moving average (MA) of 63.13, above the 50-day MA of 61.25, and below the 200-day MA of 62.52, indicating a neutral trend. The MACD of 0.44 indicates Positive momentum. The RSI at 47.48 is Neutral, neither overbought nor oversold. The STOCH value of 24.89 is Neutral, 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
ARG	74 Outperform	€1.60B	6.24	11.94%	5.29%	8.24%	―
Sector *	58 Neutral	$7.56B	3.50	-4.45%	10.15%	0.79%	-49.51%
0NEL		€983.70M	11.87	10.39%	1.71%	―	―