| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 67.80 | 3 |
| Intrinsic value (DCF) | 24.11 | -63 |
| Graham-Dodd Method | 93.10 | 41 |
| Graham Formula | 140.00 | 113 |
Argan SA is a leading French real estate company specializing in the design, construction, development, leasing, and management of logistics platforms across France. Founded in 1993 and headquartered in Neuilly sur Seine, the company owns and manages a substantial portfolio of logistics properties totaling 806,000 square meters, catering primarily to shippers and logistics firms. Operating in the Real Estate - General sector, Argan SA plays a pivotal role in France's logistics real estate market, benefiting from the growing demand for warehousing and distribution centers driven by e-commerce and supply chain optimization. The company's focus on high-quality, strategically located logistical assets positions it as a key player in the European logistics real estate landscape. With a market capitalization of approximately €1.57 billion, Argan SA combines stable rental income with long-term asset appreciation potential, making it an attractive investment in the industrial real estate segment.
Argan SA presents a compelling investment case due to its strong position in the French logistics real estate market, a sector benefiting from sustained e-commerce growth and supply chain modernization. The company's robust financials, including a net income of €245.7 million and an EPS of €10.27, underscore its profitability. A dividend yield of approximately 3.15% adds income appeal. However, investors should note the high total debt of €1.87 billion, which could pose risks in a rising interest rate environment. The stock's beta of 0.799 suggests lower volatility compared to the broader market, appealing to risk-averse investors. Overall, Argan SA is well-positioned to capitalize on logistics real estate demand, but leverage and macroeconomic conditions warrant monitoring.
Argan SA's competitive advantage lies in its specialized focus on logistics real estate in France, a niche with high barriers to entry due to land scarcity and regulatory complexities. The company's extensive portfolio of 806,000 square meters provides scale benefits and recurring rental income. Its strategic locations near major transport hubs enhance tenant retention and rental premiums. Compared to diversified real estate players, Argan's pure-play logistics focus allows for deeper market expertise and operational efficiency. However, the company faces competition from larger European logistics REITs with international footprints, which may offer diversification benefits. Argan's high debt load (€1.87 billion) could limit flexibility compared to less leveraged peers. The company's development capabilities provide an edge in asset customization for tenants, but reliance on the French market exposes it to regional economic fluctuations. Its moderate beta suggests resilience but may lag during broad real estate rallies.