ARGAN INC (AGX) Stock Fundamental Analysis
USA - NYSE:AGX - US04010E1091 - Common Stock
303.2 USD
-7.21 (-2.32%)
290 USD
-13.2 (-4.35%)
AGX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 55 industry peers in the Construction & Engineering industry. AGX gets an excellent profitability rating and is at the same time showing great financial health properties. AGX is growing strongly while it is still valued neutral. This is a good combination! These ratings would make AGX suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year AGX was profitable.
In the past year AGX had a positive cash flow from operations.
AGX had positive earnings in each of the past 5 years.
Of the past 5 years AGX 4 years had a positive operating cash flow.
1.2 Ratios
AGX's Return On Assets of 13.28% is amongst the best of the industry. AGX outperforms 87.27% of its industry peers.
AGX's Return On Equity of 29.81% is fine compared to the rest of the industry. AGX outperforms 80.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.07%, AGX belongs to the top of the industry, outperforming 85.45% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AGX is below the industry average of 17.19%.
The last Return On Invested Capital (21.07%) for AGX is above the 3 year average (12.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.28% | ||
| ROE | 29.81% | ||
| ROIC | 21.07% |
ROA(3y)7.46%
ROA(5y)6.65%
ROE(3y)15.73%
ROE(5y)13.27%
ROIC(3y)12.3%
ROIC(5y)10.65%
1.3 Margins
The Profit Margin of AGX (12.73%) is better than 89.09% of its industry peers.
AGX's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.75%, AGX belongs to the top of the industry, outperforming 87.27% of the companies in the same industry.
In the last couple of years the Operating Margin of AGX has remained more or less at the same level.
Looking at the Gross Margin, with a value of 18.79%, AGX is in line with its industry, outperforming 56.36% of the companies in the same industry.
AGX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.75% | ||
| PM (TTM) | 12.73% | ||
| GM | 18.79% |
OM growth 3Y-0.64%
OM growth 5YN/A
PM growth 3Y9.24%
PM growth 5YN/A
GM growth 3Y-6.25%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AGX is creating value.
AGX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AGX has less shares outstanding
There is no outstanding debt for AGX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 7.74 indicates that AGX is not in any danger for bankruptcy at the moment.
AGX's Altman-Z score of 7.74 is amongst the best of the industry. AGX outperforms 87.27% of its industry peers.
There is no outstanding debt for AGX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 7.74 |
ROIC/WACC2.02
WACC10.44%
2.3 Liquidity
AGX has a Current Ratio of 1.71. This is a normal value and indicates that AGX is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of AGX (1.71) is better than 80.00% of its industry peers.
AGX has a Quick Ratio of 1.71. This is a normal value and indicates that AGX is financially healthy and should not expect problems in meeting its short term obligations.
AGX has a better Quick ratio (1.71) than 89.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
AGX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 161.64%, which is quite impressive.
The Earnings Per Share has been growing by 36.55% on average over the past years. This is a very strong growth
The Revenue has grown by 29.16% in the past year. This is a very strong growth!
Measured over the past years, AGX shows a very strong growth in Revenue. The Revenue has been growing by 29.61% on average per year.
EPS 1Y (TTM)161.64%
EPS 3Y36.55%
EPS 5YN/A
EPS Q2Q%90.84%
Revenue 1Y (TTM)29.16%
Revenue growth 3Y19.72%
Revenue growth 5Y29.61%
Sales Q2Q%4.73%
3.2 Future
Based on estimates for the next years, AGX will show a very strong growth in Earnings Per Share. The EPS will grow by 21.96% on average per year.
Based on estimates for the next years, AGX will show a quite strong growth in Revenue. The Revenue will grow by 16.75% on average per year.
EPS Next Y29.49%
EPS Next 2Y19.18%
EPS Next 3Y21.96%
EPS Next 5YN/A
Revenue Next Year13.56%
Revenue Next 2Y17.14%
Revenue Next 3Y16.76%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 36.44, which means the current valuation is very expensive for AGX.
AGX's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of AGX to the average of the S&P500 Index (26.03), we can say AGX is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 34.93, the valuation of AGX can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AGX is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of AGX to the average of the S&P500 Index (22.27), we can say AGX is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.44 | ||
| Fwd PE | 34.93 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AGX.
AGX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AGX is cheaper than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.85 | ||
| EV/EBITDA | 26.87 |
4.3 Compensation for Growth
AGX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AGX has a very decent profitability rating, which may justify a higher PE ratio.
AGX's earnings are expected to grow with 21.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.24
PEG (5Y)N/A
EPS Next 2Y19.18%
EPS Next 3Y21.96%
5. Dividend
5.1 Amount
AGX has a yearly dividend return of 0.67%, which is pretty low.
Compared to an average industry Dividend Yield of 1.73, AGX pays a better dividend. On top of this AGX pays more dividend than 92.73% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, AGX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
5.2 History
On average, the dividend of AGX grows each year by 6.33%, which is quite nice.
AGX has paid a dividend for at least 10 years, which is a reliable track record.
AGX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)6.33%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
AGX pays out 17.45% of its income as dividend. This is a sustainable payout ratio.
AGX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP17.45%
EPS Next 2Y19.18%
EPS Next 3Y21.96%
303.2
-7.21 (-2.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners89.18%
Inst Owner Change2.05%
Ins Owners2.53%
Ins Owner Change-11.49%
Market Cap4.19B
Revenue(TTM)920.88M
Net Income(TTM)117.20M
Analysts74.29
Price Target270.56 (-10.77%)
Short Float %5.18%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend1.36
Dividend Growth(5Y)6.33%
DP17.45%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)48.13%
Min EPS beat(2)45.34%
Max EPS beat(2)50.93%
EPS beat(4)4
Avg EPS beat(4)61.35%
Min EPS beat(4)45.34%
Max EPS beat(4)91.97%
EPS beat(8)7
Avg EPS beat(8)31.5%
EPS beat(12)9
Avg EPS beat(12)19.92%
EPS beat(16)11
Avg EPS beat(16)18.74%
Revenue beat(2)0
Avg Revenue beat(2)-2.28%
Min Revenue beat(2)-3.52%
Max Revenue beat(2)-1.04%
Revenue beat(4)2
Avg Revenue beat(4)8.94%
Min Revenue beat(4)-3.52%
Max Revenue beat(4)23.76%
Revenue beat(8)5
Avg Revenue beat(8)9.32%
Revenue beat(12)5
Avg Revenue beat(12)3.51%
Revenue beat(16)6
Avg Revenue beat(16)2.15%
PT rev (1m)7.17%
PT rev (3m)16.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.57%
EPS NY rev (1m)-0.42%
EPS NY rev (3m)19.41%
Revenue NQ rev (1m)-0.52%
Revenue NQ rev (3m)1.33%
Revenue NY rev (1m)-1.55%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.44 | ||
| Fwd PE | 34.93 | ||
| P/S | 4.55 | ||
| P/FCF | 29.85 | ||
| P/OCF | 28.62 | ||
| P/B | 10.65 | ||
| P/tB | 11.52 | ||
| EV/EBITDA | 26.87 |
EPS(TTM)8.32
EY2.74%
EPS(NY)8.68
Fwd EY2.86%
FCF(TTM)10.16
FCFY3.35%
OCF(TTM)10.59
OCFY3.49%
SpS66.68
BVpS28.47
TBVpS26.32
PEG (NY)1.24
PEG (5Y)N/A
Graham Number73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.28% | ||
| ROE | 29.81% | ||
| ROCE | 29.47% | ||
| ROIC | 21.07% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 12.75% | ||
| PM (TTM) | 12.73% | ||
| GM | 18.79% | ||
| FCFM | 15.24% |
ROA(3y)7.46%
ROA(5y)6.65%
ROE(3y)15.73%
ROE(5y)13.27%
ROIC(3y)12.3%
ROIC(5y)10.65%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)17.2%
ROCE(5y)14.9%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-0.64%
OM growth 5YN/A
PM growth 3Y9.24%
PM growth 5YN/A
GM growth 3Y-6.25%
GM growth 5YN/A
F-Score9
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 97.36% | ||
| Cap/Sales | 0.65% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 118.4% | ||
| Profit Quality | 119.7% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 7.74 |
F-Score9
WACC10.44%
ROIC/WACC2.02
Cap/Depr(3y)90.71%
Cap/Depr(5y)68.33%
Cap/Sales(3y)0.66%
Cap/Sales(5y)0.54%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)161.64%
EPS 3Y36.55%
EPS 5YN/A
EPS Q2Q%90.84%
EPS Next Y29.49%
EPS Next 2Y19.18%
EPS Next 3Y21.96%
EPS Next 5YN/A
Revenue 1Y (TTM)29.16%
Revenue growth 3Y19.72%
Revenue growth 5Y29.61%
Sales Q2Q%4.73%
Revenue Next Year13.56%
Revenue Next 2Y17.14%
Revenue Next 3Y16.76%
Revenue Next 5YN/A
EBIT growth 1Y162.16%
EBIT growth 3Y18.95%
EBIT growth 5YN/A
EBIT Next Year80.79%
EBIT Next 3Y40.69%
EBIT Next 5YN/A
FCF growth 1Y144%
FCF growth 3Y81.34%
FCF growth 5Y28.2%
OCF growth 1Y138.66%
OCF growth 3Y80.71%
OCF growth 5Y25.61%
ARGAN INC / AGX FAQ
What is the fundamental rating for AGX stock?
ChartMill assigns a fundamental rating of 7 / 10 to AGX.
What is the valuation status of ARGAN INC (AGX) stock?
ChartMill assigns a valuation rating of 4 / 10 to ARGAN INC (AGX). This can be considered as Fairly Valued.
How profitable is ARGAN INC (AGX) stock?
ARGAN INC (AGX) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for AGX stock?
The Price/Earnings (PE) ratio for ARGAN INC (AGX) is 36.44 and the Price/Book (PB) ratio is 10.65.
What is the financial health of ARGAN INC (AGX) stock?
The financial health rating of ARGAN INC (AGX) is 8 / 10.