Argo Group Intrinsic Value – ARGO GROUP Reports Positive Financial Results for FY2023 Q2
August 25, 2023
☀️Earnings Overview
ARGO GROUP ($NYSE:ARGO) reported their financial results for the second quarter of FY2023, ending June 30 2023, on August 7 2023. Total revenue had decreased by 20.0% year over year to USD 363.7 million, while net income had increased by 113.6%.
Price History
On Monday, ARGO GROUP reported positive financial results for the second quarter of fiscal year 2023. The company’s stock opened at $29.7 and closed at $29.8, representing a 0.1% increase from the previous closing price of $29.7. The positive results showed that the company is continuing to remain resilient despite the challenging economic environment. This was a result of the company’s strategic efforts to expand its core businesses and focus on customer growth and engagement. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Argo Group. More…
| Total Revenues | Net Income | Net Margin |
| 1.59k | -200.1 | -10.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Argo Group. More…
| Operations | Investing | Financing |
| 140.9 | -248 | -31.1 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Argo Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.19k | 6.95k | 35.1 |
Key Ratios Snapshot
Some of the financial key ratios for Argo Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -5.2% | – | -12.9% |
| FCF Margin | ROE | ROA |
| 8.4% | -10.4% | -1.6% |
Analysis – Argo Group Intrinsic Value
At Good Whale, we have conducted a comprehensive analysis of ARGO GROUP’s fundamentals. Our proprietary Valuation Line determined that the fair value of ARGO GROUP share is around $41.1. Currently, the stock is trading at $29.8, which implies a 27.4% undervaluation. This makes it an attractive option for investors who are looking to benefit from the stock’s potential upside. Our analysis indicates that ARGO GROUP is significantly undervalued, making it an ideal investment opportunity. More…
Peers
Argo Group International has over 30 operating entities and 3,000 employees. The company underwrites property and casualty insurance in the United States, Europe, and Bermuda. Argo Group International Holdings Ltd’s main competitors are The Hanover Insurance Group Inc, Markel Corp, Talanx AG.
– The Hanover Insurance Group Inc ($NYSE:THG)
Founded in 1852, The Hanover Insurance Group, Inc., is one of the oldest and largest insurance providers in the United States. The company offers a wide range of insurance products, including property and casualty, workers’ compensation, and personal and commercial lines. The Hanover Insurance Group is headquartered in Worcester, Massachusetts, and has approximately 5,000 employees.
– Markel Corp ($NYSE:MKL)
Markle Corporation is a publicly traded company with a market capitalization of $15.52 billion as of 2022. The company has a return on equity of 1.8%. Markle Corporation is a diversified holding company that owns and operates businesses in a variety of industries, including insurance, banking, and real estate. The company’s businesses include The Hartford, a leading provider of insurance and financial services; Citizens Bank, a leading provider of banking and lending services; and Rentschler Field, a world-class sports and entertainment venue.
– Talanx AG ($LTS:0QA8)
Talanx AG, together with its subsidiaries, provides insurance and reinsurance products and services in Germany and internationally. The company operates through Property and Casualty, Life and Health, Corporate Clients, and Specialty segments. It offers a range of primary insurance products, such as motor vehicle, household, and liability insurance for private individuals; and property, casualty, and liability insurance for small and medium-sized enterprises and companies. The company also provides health insurance products; and property, casualty, motor vehicle liability, and other liability insurance for corporate clients. In addition, it offers a range of reinsurance products, such as property and casualty, motor vehicle liability, health, life, and specialty reinsurance. The company was founded in 1999 and is headquartered in Hannover, Germany.
Summary
Investors in ARGO GROUP‘s financial performance in FY2023 Q2 have reason to be encouraged, as despite a 20.0% year-over-year decrease in total revenue to USD 363.7 million, net income had increased by a whopping 113.6%. This demonstrates that the company is taking the right measures to maximize profitability in a challenging market, and investors can expect further gains in the future. Furthermore, with ARGO GROUP’s recent investments in cutting-edge technologies and expansion of their product offerings, the company is well-positioned to achieve even greater successes in the coming years.
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