Argan (ENXTPA:ARG) Valuation Check After Higher Rental Income And Planned 2026 Investments

Argan (ENXTPA:ARG) has reported 2025 rental income of €212.0 million, a 7% increase from 2024, with its warehouse portfolio appraised at €4.1b and around €165 million of investments already lined up for 2026.

See our latest analysis for Argan.

At a share price of €66.0, Argan’s recent 1 month share price return of 3.94% and 1 year total shareholder return of 13.97% suggest momentum has picked up after more muted multi year total shareholder returns.

If Argan’s warehouse income story has your attention, it could be a good moment to widen your watchlist and check out fast growing stocks with high insider ownership.

With the shares up over the past year, trading at €66.0 and sitting at around a 21% discount to both analyst price targets and an intrinsic estimate, you have to ask: is there mispricing here, or is the market already paying up for future growth?

Price-to-Earnings of 5.8x: Is it justified?

At €66.0 per share and a P/E of 5.8x, Argan screens as inexpensive compared to peers that carry far richer earnings multiples.

The P/E ratio compares the current share price with earnings per share, so for a warehouse REIT like Argan it reflects what the market is willing to pay for its current earnings stream.

Here, the company looks priced well below both its peer average P/E of 22.1x and the global Industrial REITs average of 16.8x. This points to a steep earnings discount relative to similar businesses. That gap is also wide versus an estimated fair P/E of 11.7x, a level the market could move towards if sentiment or expectations shift.

Explore the SWS fair ratio for Argan

Result: Price-to-Earnings of 5.8x (UNDERVALUED)

However, you still have to weigh up risks such as recent revenue and net income declines, and the possibility that warehouse values or rental demand could come under pressure.

Find out about the key risks to this Argan narrative.

Another View: What Does The DCF Say?

Our DCF model also points to Argan at €66.0 being undervalued, with an estimated fair value of €83.12. That gap suggests the current price does not fully reflect the company’s projected cash flows, so the key question is whether you agree with those underlying assumptions.

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Argan for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 877 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Argan Narrative

If you see the numbers differently or prefer to lean on your own work, you can pull the data together and build a fresh thesis in minutes, Do it your way.

A great starting point for your Argan research is our analysis highlighting 5 key rewards and 3 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If Argan has sparked your interest, do not stop here. Widen your opportunity set with a few focused stock ideas that could complement your research.

• Spot potential bargains before the crowd by scanning these 877 undervalued stocks based on cash flows that currently look cheap based on their cash flow profiles.
• Explore technology themes by checking out these 25 AI penny stocks positioned around artificial intelligence.
• Add income angles to your watchlist with these 11 dividend stocks with yields > 3% that offer dividend yields above 3%.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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