Argo Group Story

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ARGO -- USA Stock  

USD 33.56  1.00  2.89%

Argo Group Enterprise Value over EBIT is quite stable at the moment as compared to the past year. The company's current value of Enterprise Value over EBIT is estimated at 89.55. Enterprise Value over EBITDA is projected to rise to 49.63 this year, although the value of Average Assets will most likely fall to about 9.7 B. One of the important factors of profitable assets selection is to know the future growth potential of an asset before buying its shares. This post will outline Argo Group. We will look into reasons why it is still very possible for the company to generate above-average returns. Argo Group International probability of financial unrest is over 53 percent. Will institutional investors continue to be optimistic, or should we expect a sell-off in September?
Published over a month ago
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Should you pay attention to changing Argo Group (NYSE:ARGO) fundamentals?
We consider Argo Group not too volatile. Argo Group Internati secures Sharpe Ratio (or Efficiency) of 0.0286, which signifies that the company had 0.0286% of return per unit of standard deviation over the last month. Our philosophy in foreseeing the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Argo Group International, which you can use to evaluate future volatility of the firm. Please confirm Argo Group Internati mean deviation of 3.37, and Risk Adjusted Performance of (0.005269) to double-check if the risk estimate we provide is consistent with the expected return of 0.12%.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Argo Group income statement, its balance sheet, and the statement of cash flows. Potential Argo Group investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Argo Group investors may use each financial statement separately, they are all related. The changes in Argo Group's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Argo Group's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages. The goal of Argo Group fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Argo Group performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Argo Group shares is the value that is considered the true value of the share. If the intrinsic value Argo Group is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Argo Group. Please read more on our fundamental analysis page.

What is Argo Group Asset Breakdown?

Argo Group International reports assets on its Balance Sheet. It represents the amount of Argo Group resources that either has an existing economic value or will provide some form of benefits in the future. To get a better handle on how balance sheet or income statements item affect Argo Group volatility, please check the breakdown of all its fundamentals

Are Argo Group Earnings Expected to grow?

The future earnings power of Argo Group involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Argo Group factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Argo Group stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Argo Group expected earnings.

And What about dividends?

A dividend is the distribution of a portion of Argo Group earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Argo Group dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Argo Group one year expected dividend income is about $0.81 per share.
The value of Payment of Dividends and Other Cash Distributions is expected to slide to about (44.2 M). The value of Dividend Yield is estimated to slide to 0.0188.
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-43.1 M-44.2 M
Dividend Yield 0.019  0.0188 
Dividends per Basic Common Share 1.24  1.04 
Investing in dividend-paying stocks, such as Argo Group International is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Argo Group must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Argo Group. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

Argo Group Gross Profit

Argo Group Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Argo Group previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Argo Group Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

Purchase by Kevin Rehnberg of 32000 shares of Argo Group

Legal trades by Argo Group insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Argo Group insider trading alert for perchase of common stock by Kevin Rehnberg, Chief Executive Officer, on 18th of August 2020. This event was filed by Argo Group International with SEC on 2020-08-18. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Argo Group Indicators

Many companies such as Argo Group have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. Let's take a look at how the ownership of Argo Group is distributed among investors.

Ownership Allocation

Argo Group Internati retains a total of 34.64 Million outstanding shares. The majority of Argo Group International outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Argo Group Internati to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Argo Group. Please pay attention to any change in the institutional holdings of Argo Group International as this could imply that something significant has changed or about to change at the company. Remember, it does not matter who owns the company or if the company is currently losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity.

Institutions
94.19%
Retail Investors2.01
Insiders3.8
Institutions94.19

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Argo Group has an asset utilization ratio of 68.39 percent. This suggests that the company is making $0.68 for each dollar of assets. An increasing asset utilization means that Argo Group International is more efficient with each dollar of assets it utilizes for everyday operations.

Goodwill
274.7 M
Goodwill274.73 Million97.45
Tax Assets7.2 Million2.55

Will price continue to thrive in September 2020?

Latest total risk alpha is at -0.5. Argo Group International exhibits very low volatility with skewness of 0.14 and kurtosis of 0.0. However, we advise investors to further study Argo Group International technical indicators to make sure all market info is available and is reliable.

Our Final Take On Argo Group

Whereas few other entities within the insurance?property & casualty industry are still a little expensive, even after the recent corrections, Argo Group may offer a potential longer-term growth to institutional investors. To conclude, as of the 2nd of August 2020, our concluding 30 days 'Buy-vs-Sell' recommendation on the company is Strong Sell. However, we believe Argo Group is fairly valued with average odds of financial distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Argo Group International. Please refer to our Terms of Use for any information regarding our disclosure principles.

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