Argo Prop. (ARGO) AI Stock Analysis

• Market Cap: 2.70B
• Dividend Yield: N/A
• Average Volume (3M): 25.02K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.83
• Revenue Growth: 26.77%
• EPS Growth: N/A
• Country: IL
• Employees: 69
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 208.00
• Shares Outstanding: 21,759,611
• 10 Day Avg. Volume: 27,682
• 30 Day Avg. Volume: 25,023
• PEG Ratio: -0.08
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 13.13
• P/FCF Ratio: 44.38
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: 12,917.00 ▲(4.09% Upside)

Argo Prop.'s overall stock score is driven by its strong financial performance and attractive valuation. The company shows solid revenue growth and profitability, with a low P/E ratio indicating undervaluation. Technical analysis suggests mixed signals with short-term bearish momentum but a longer-term bullish trend. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust market demand and effective sales strategies, supporting long-term business expansion.

Cash Flow Generation

Strong free cash flow growth enhances liquidity and provides flexibility for reinvestment and debt management, bolstering financial stability.

Profitability

High profitability margins reflect efficient operations and strong pricing power, contributing to sustainable financial performance.

Negative Factors

Debt Levels

Moderate leverage may limit financial flexibility and increase risk, necessitating careful debt management to maintain balance sheet health.

Profit Margin Sustainability

Exceptionally high profit margins may face pressure from competitive forces and market changes, challenging long-term sustainability.

Cash Conversion

Low cash conversion ratio suggests inefficiencies in turning income into cash, potentially impacting liquidity and operational flexibility.

Argo Prop. Business Overview & Revenue Model

Company Description

Argo Prop. (ARGO) is a leading player in the property and casualty insurance industry, specializing in providing coverage for businesses and individuals. The company focuses on sectors such as agriculture, transportation, and specialty insurance, offering a range of products that include commercial auto, liability, and property insurance. With a commitment to innovative risk management solutions, Argo Prop. aims to meet the diverse needs of its clients while ensuring sustainable growth in a competitive market.

How the Company Makes Money

Argo Prop. generates revenue primarily through the underwriting of insurance policies. The company collects premiums from its customers in exchange for providing coverage against various risks. Its key revenue streams include commercial property insurance, liability insurance, and specialized coverage for niche markets. Additionally, Argo Prop. may earn investment income from the premiums it holds before claims are paid out. Significant partnerships with brokers and agents enhance its distribution capabilities, allowing the company to reach a broader customer base and increase its policy sales. The company's strategic focus on sectors with high demand for insurance solutions further contributes to its revenue growth.

Argo Prop. Financial Statement Overview

Summary

Argo Prop. exhibits strong revenue growth and profitability, with notable improvements in return on equity and free cash flow generation. However, the company faces potential risks due to fluctuating margins and increasing debt levels. While the financial health appears stable, careful management of leverage and operational efficiency is crucial to sustain growth.

Income Statement

Argo Prop. demonstrates strong revenue growth with a 6.92% increase in TTM. The company maintains a high net profit margin of 113.41% in TTM, indicating robust profitability. However, the EBIT and EBITDA margins are unusually high, suggesting potential accounting anomalies or extraordinary items. Historical data shows consistent revenue growth, but margins have fluctuated significantly, indicating potential volatility in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio of 0.95 in TTM is moderate, indicating a balanced approach to leveraging. Return on equity has improved to 11.46% in TTM, reflecting better utilization of equity. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing. Historical trends show increasing debt levels, which could pose risks if not managed carefully.

Cash Flow

Argo Prop. shows a positive free cash flow growth rate of 10.40% in TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.33, which is relatively low, suggesting potential issues in converting income to cash. The free cash flow to net income ratio is stable at 1.0, indicating that all net income is effectively converted to free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.47M	37.75M	29.38M	22.70M	14.92M	9.74M
Gross Profit	24.60M	22.12M	17.59M	13.34M	9.29M	6.09M
EBITDA	78.04M	52.67M	-43.22M	37.23M	70.72M	27.90M
Net Income	66.61M	35.18M	-43.49M	27.27M	58.83M	22.66M
Balance Sheet
Total Assets	839.37M	839.37M	707.30M	711.53M	536.23M	345.79M
Cash, Cash Equivalents and Short-Term Investments	28.51M	28.51M	12.78M	37.35M	35.08M	37.14M
Total Debt	380.20M	380.20M	348.53M	306.74M	161.89M	99.39M
Total Liabilities	419.95M	419.95M	377.06M	340.24M	194.20M	113.95M
Stockholders Equity	419.42M	419.42M	330.24M	371.29M	342.02M	231.84M
Cash Flow
Free Cash Flow	25.95M	11.17M	12.90M	8.84M	7.45M	4.99M
Operating Cash Flow	25.95M	18.42M	12.90M	8.84M	7.45M	4.99M
Investing Cash Flow	-117.80M	-72.89M	-65.94M	-155.47M	-121.69M	-86.83M
Financing Cash Flow	49.70M	69.16M	37.22M	139.29M	111.26M	95.02M

Argo Prop. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 12410.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ARGO, the sentiment is Neutral. The current price of 12410 is above the 20-day moving average (MA) of 12310.50, above the 50-day MA of 12000.40, and above the 200-day MA of 11327.67, indicating a neutral trend. The MACD of 63.36 indicates Positive momentum. The RSI at 49.03 is Neutral, neither overbought nor oversold. The STOCH value of 42.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:ARGO.

Argo Prop. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LAHAV	69 Neutral	2.09B	14.12	―	2.42%	19.43%	21.77%
ARGO	68 Neutral	2.70B	9.82	―	―	26.77%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
VILR	65 Neutral	3.11B	8.88	―	1.44%	6.14%	40.36%
ELCRE	41 Neutral	2.91B	-19.11	―	―	-4.06%	65.26%