Argo Group International Holdings, Ltd. (ARGO) Company Bio
Argo Group International Holdings is an international underwriter of specialty insurance and reinsurance products in the property and casualty market. The company was founded in 1986 and is based in Pembroke, Bermuda.
ARGO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Argo Group International Holdings Ltd with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Argo Group International Holdings Ltd ranked in the 30th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Argo Group International Holdings Ltd ended up being:
Argo Group International Holdings Ltd's weighted average cost of capital (WACC) is 12%; for context, that number is higher than 83.52% of tickers in our DCF set.
Argo Group International Holdings Ltd's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -2.7. This coverage rate is greater than that of merely 14.65% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Argo Group International Holdings Ltd experienced a tax rate of about 3% over the past twelve months; relative to its sector (Financial Services), this tax rate is higher than just 22.18% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ARGO, try GSHD, MSCI, BSIG, MA, and SAFT.
The evening of May 6 2019 should have been a nice night out for Mark Watson III and his wife. Mr Watson had led specialist insurer Argo Group for almost two decades, during which time it had built up a market valuation as high as $2.7bn. The activist said the shortfall was partly down to Mr Watson using company money to fund his jet-setting lifestyle.
Argo Group (ARGO) has priced a public offering of 6M depositary shares, each representing a 1/1000th interest in a share of the company’s newly designated 7.00% Resettable Fixed Rate Perpetual Non-Cumulative Preference Shares Series A, having a liquidation preference of $25K/preference share, equivalent to $25/depositary share. The offering is expected...
Argo Group International Holdings Ltd., the Bermuda-based specialty re/insurer, announced an update to senior leadership team responsibilities and the launch of an outside search for a chief financial officer to succeed Jay S. Bullock, who is leaving the company. “Earlier …