Fundamental analysis: Argo Group International Holdings, Ltd. (ARGO)

Awarener score: 6.3

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Good), the business stability (Average) and growth (Very poor), and the company's inclination to return cash to the stockholders (Excellent).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 4.0

Business has been shrinking at a fast pace. It's been weak when measured against peer companies.
Argo Group International Holdings, Ltd. business trend stability is run-of-the-mill. The higher the stability, the lower the risk. It looks slightly worse than rivals.

Margins score: 4.0

ARGO profit margins -on goods and services sold- are usually destitute. They stand bottom tier against rival companies.
Business profit on sales tends to be hardly sufficient. It's substantially worse when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually meagre. They remain in a weak position compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be meagre in relation to total revenues. They're still mediocre against similar companies.
Profits -before income taxes- are usually hardly sufficient considering total sales, and remain weak when measured against rivals.
Total net profit tends to be hardly sufficient when confronted to sales. Company stands weak when measured against comparable firms.

Growth score: 1.0

Argo Group International Holdings, Ltd. has an unknown gross margin growth, as there is not enough data to analyze. It's been impossible to compare to competitors.
There is not sufficient data to estimate the operating income margin trend, which has been therefore unknown against comparable firms.
In past years, the company couldn't always turn a profit -available to repay debt and purchase properties-, which compares last-in-rank when measured against peer enterprises.
In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 1.0

ARGO had still to pay income taxes, even though in recent past years mostly lost money. It's been bottom tier against peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 4.2

Argo Group International Holdings, Ltd. usually gets low returns on the resources it controls. It proves substantially worse when measured against peer firms.
The company normally gets low proceeds -on the resources directly invested in the business-. They remain in a weak position compared to similar companies.
Profitability -in relation to owned resources- is usually modest. It ranks weak when measured against competitors.
In the past, got low returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's substantially worse when measured against comparable enterprises.

Usage of Funds score: 6.7

ARGO usually uses a modest portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments isn't too high. It stands substantially worse when measured against rival firms.
The company is usually replacing some proportion of the property, plant, and equipment that gets old, saving part of the funds for something else, which is similar to industry peers.
In the past twelve months it paid excellent dividends, considering the current stock price. It came well ranked against competitors.
Has somewhat increased dividend payments in the past years. Business prospects may have improved. The company has behaved rather normal in relation to similar firms.
Dividend payments usually represent a slight portion of genuine funds generation and are most likely safe. Sustainability looks somewhat better than comparable companies.
The company barely enlarges the pool of investors, resulting in slightly more mouths feeding on the pie of profits. It remains lacking compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 8.4

Argo Group International Holdings, Ltd. intangible assets (like brands and goodwill) represent a small portion of resources controlled, according to accounting books. It isn't that a significant risk of liquidating them if the company ever gets in financial distress. It happens to be substantially worse when measured against peer companies.
Current ratio remains a mystery, as there was not sufficient Balance Sheet information. It turns to be unidentifiable against similar firms.
Almost no resources controlled were provided for with financial debt. Financial strength is great. Company could significantly increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains well ranked against rival firms.
Controlled resources might be turned into cash and equivalents neither fast nor too slow. Liquidity and risk might be run-of-the-mill. It looks encouraging in relation to rivals.
Quick ratio is unavailable at this moment, due to lacking data. It's a pity we cannot compare it with peer firms.
A conclusion on cash ratio could not be reached, as we lack inputs, which is unfortunate when trying to measure against similar enterprises.
Usually, sales are mostly on cash. It still ranks encouraging in relation to peers.
Days of inventory outstanding are not known. It comes up as a big question mark against competitors.
We could not gauge the normal operating cycle of the company. It happens to be a mystery against peers.
Unfortunately, we had not enough data to estimate the days of payables outstanding. It ranks unknown against industry peers.
Cash conversion cycle remains unknown, due to not having enough inputs. It's incomparable against similar companies.
To what extent normalized EBITDA covers interest expenses is not known. It stands impossible to compare against rival firms.
There is insufficient data to conclude on the relationship of EBITDA and debt for this company. It ranks unknown against comparable enterprises.
Revenues are huge in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements, allows the company to keep more money to reward stockholders in the long run. It looks close to average when compared to similar firms.
Resource exploitation is excellent when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still top-notch against peer companies.

Valuation score: 6.3

Argo Group International Holdings, Ltd. reported losses, so valuating it in relation to earnings is meaningless. It happens to be last-in-rank when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in good shape compared to peers.
In the past twelve months, the company generated extraordinary free funds in relation to the stock price, which stands better than most similar companies.
The company usually generates plenty more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share looks to be very attractive. It's still encouraging in relation to industry firms.
In the past twelve months, the company has rewarded investors, considering both dividends and share on the pie of earnings. It came up a slight improvement compared to peer ventures.
The company has more cash than debt. It might be poised to increase stockholder payments, or to fund new business projects. It looks somewhat worse than similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation has been negative, as the company lost money. It ranks last-in-rank when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a not far from one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks a slight improvement compared to rival firms.
The relation between the stock price and accounting book value might be more than reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains well ranked against peer firms.
In the past twelve months, the operating business lost significant money. It happens to be substantially worse when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown a somewhat low earnings power ability when measured against the current stock price and financial position. It's still a disappointment compared to peer companies.

Total score: 4.5

Company at a glance: Argo Group International Holdings, Ltd. (ARGO)

Sector, industry: Financial Services, Insurance—Property & Casualty

Market Cap: 1.01 billions

Revenues TTM: 1.75 billions

Argo Group International Holdings, Ltd. underwrites specialty insurance and reinsurance products in the property and casualty markets. The company operates in two segments, U.S. Operations and International Operations. It offers primary and excess specialty casualty, general liability, commercial multi-peril, and workers compensation, as well as product, environmental, and auto liability insurance products; management liability, transaction liability, and errors and omissions liability insurance; primary and excess property, inland marine, and auto physical damage insurance; and surety, animal mortality, and ocean marine insurance products. The company also provides directors and officers liability, errors and omissions liability, and employment practices liability insurance; international casualty and motor treaties insurance; professional indemnity and medical malpractice insurance; direct and facultative excess insurance, North American and international binders, and residential collateral protection for lending institutions; and personal accident, aviation, cargo, yachts, and onshore and offshore marine insurance products. It markets its products through wholesale and retail agents, managing general agents, brokers, and third-party intermediaries. The company was founded in 1948 and is headquartered in Pembroke, Bermuda.