Argo Prop. (ARGO) AI Stock Analysis

• Market Cap: ₪2.70B
• Dividend Yield: N/A
• Average Volume (3M): 25.02K
• Price to Earnings (P/E): 10.3
• 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): N/A
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: 14,933.00 ▲(15.76% 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

Niche underwriting & distribution

Focus on niche commercial lines and established broker/agent distribution supports durable, recurring premium flows and customer retention. Specialization enhances pricing power and underwriting expertise, helping sustain margins and competitive positioning across economic cycles.

High operating profitability

Sustained high gross and operating margins reflect disciplined underwriting and expense control, indicating competitive advantage in risk selection. Strong margins provide internal capital for reserve building and investments, improving long-term resilience versus peers.

Robust free cash flow generation

Positive FCF growth and FCF fully covering reported net income show genuine cash generation capacity. This underpins durable ability to fund claims, service debt, and invest in growth without relying solely on external financing, enhancing financial flexibility.

Negative Factors

Moderate leverage

Leverage near parity with equity constrains balance sheet flexibility and raises sensitivity to interest rates or underwriting shocks. Elevated debt limits capacity to absorb large catastrophe losses or pursue opportunistic investments without additional capital issuance.

Weak operating cash conversion

Low conversion of net income into operating cash suggests earnings may rely on non-cash items or timing differences (reserves, premium recognition). Over the medium term, this can pressure liquidity and raise questions about the sustainability of reported profitability under stress.

Potentially unsustainable net margin

An unusually high net margin often signals one-off gains, reserve releases, or accounting effects rather than recurring underwriting strength. If these items reverse, earnings and internal capital generation could decline materially, increasing earnings volatility and planning uncertainty.

Argo Prop. Business Overview & Revenue Model

Company Description

ARGO Properties N.V. owns and manages real estate properties focusing on multi-family and commercial properties in Berlin, Leipzig, Dresden, and Magdeburg. The company was founded in 2018 and is based in Amsterdam, the Netherlands.

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. demonstrates strong revenue growth and profitability, with impressive net profit margins. The balance sheet shows moderate leverage, which is manageable but could be optimized further. Cash flow generation is solid, with positive free cash flow growth. Overall, the company is in a strong financial position, but attention should be paid to maintaining sustainable profit margins and managing debt levels.

Income Statement

Argo Prop. has shown a strong revenue growth rate of 7.38% in the TTM, indicating positive momentum. The gross profit margin is healthy at 55.04%, although it has decreased slightly from previous years. The net profit margin is exceptionally high at 113.41%, driven by substantial net income, but this may not be sustainable long-term. EBIT and EBITDA margins are also strong, suggesting efficient operations.

Balance Sheet

The company's debt-to-equity ratio is 0.95, indicating moderate leverage, which is manageable but higher than in previous years. Return on equity is solid at 11.46%, reflecting effective use of equity to generate profits. The equity ratio stands at 49.97%, showing a balanced capital structure, though there is room for improvement in reducing debt levels.

Cash Flow

Free cash flow has grown by 12.37% in the TTM, a positive sign for liquidity. The operating cash flow to net income ratio is 0.33, which is relatively low, suggesting that not all net income is being converted into cash. However, the free cash flow to net income ratio is 1.0, indicating that free cash flow is fully covering net income, which is a positive indicator.

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: 12900.00
• 50DMA: Negative
• 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 12900 is below the 20-day moving average (MA) of 13415.00, below the 50-day MA of 12984.20, and above the 200-day MA of 11765.65, indicating a neutral trend. The MACD of -114.21 indicates Positive momentum. The RSI at 43.43 is Neutral, neither overbought nor oversold. The STOCH value of 24.41 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	75 Outperform	₪2.67B	10.82	―	2.26%	19.43%	21.77%
ARGO	68 Neutral	₪2.70B	10.27	―	―	26.77%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
VILR	65 Neutral	₪3.36B	9.60	―	1.40%	6.14%	40.36%
ELCRE	49 Neutral	₪3.65B	-24.57	―	―	-4.06%	65.26%