ARGAN INC (AGX) Stock Fundamental Analysis
USA - NYSE:AGX - US04010E1091 - Common Stock
296.39 USD
-16.11 (-5.16%)
298.1 USD
+1.71 (+0.58%)
We assign a fundamental rating of 7 out of 10 to AGX. AGX was compared to 54 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 shows excellent growth, but is valued quite expensive already. These ratings could make AGX a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year AGX was profitable.
AGX had a positive operating cash flow in the past year.
Each year in the past 5 years AGX has been profitable.
AGX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of AGX (13.28%) is better than 87.04% of its industry peers.
The Return On Equity of AGX (29.81%) is better than 79.63% of its industry peers.
The Return On Invested Capital of AGX (21.07%) is better than 85.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AGX is below the industry average of 17.10%.
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
AGX has a Profit Margin of 12.73%. This is amongst the best in the industry. AGX outperforms 88.89% of its industry peers.
In the last couple of years the Profit Margin of AGX has grown nicely.
AGX has a better Operating Margin (12.75%) than 88.89% of its industry peers.
In the last couple of years the Operating Margin of AGX has remained more or less at the same level.
AGX has a Gross Margin (18.79%) which is in line with its industry peers.
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
AGX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for AGX has been increased compared to 1 year ago.
AGX has less shares outstanding than it did 5 years ago.
AGX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
AGX has an Altman-Z score of 7.78. This indicates that AGX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of AGX (7.78) is better than 90.74% 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 | 7.78 |
ROIC/WACC1.87
WACC11.27%
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.
With a decent Current ratio value of 1.71, AGX is doing good in the industry, outperforming 79.63% of the companies in the same industry.
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.
With an excellent Quick ratio value of 1.71, AGX belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 161.64% over the past year.
The Earnings Per Share has been growing by 36.55% on average over the past years. This is a very strong growth
Looking at the last year, AGX shows a very strong growth in Revenue. The Revenue has grown by 29.16%.
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 quite strong growth in Earnings Per Share. The EPS will grow by 18.03% on average per year.
AGX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.91% yearly.
EPS Next Y30.04%
EPS Next 2Y18.42%
EPS Next 3Y18.03%
EPS Next 5YN/A
Revenue Next Year15.35%
Revenue Next 2Y18.04%
Revenue Next 3Y18.91%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
AGX is valuated quite expensively with a Price/Earnings ratio of 35.62.
AGX's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.31. AGX is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 34.59 indicates a quite expensive valuation of AGX.
The rest of the industry has a similar Price/Forward Earnings ratio as AGX.
When comparing the Price/Forward Earnings ratio of AGX to the average of the S&P500 Index (22.85), we can say AGX is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.62 | ||
| Fwd PE | 34.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AGX is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AGX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.17 | ||
| EV/EBITDA | 27.11 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as AGX's earnings are expected to grow with 18.03% in the coming years.
PEG (NY)1.19
PEG (5Y)N/A
EPS Next 2Y18.42%
EPS Next 3Y18.03%
5. Dividend
5.1 Amount
With a yearly dividend of 0.74%, AGX is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.66, AGX pays a better dividend. On top of this AGX pays more dividend than 94.44% of the companies listed in the same industry.
With a Dividend Yield of 0.74, AGX pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
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
17.45% of the earnings are spent on dividend by AGX. This is a low number and sustainable payout ratio.
The dividend of AGX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP17.45%
EPS Next 2Y18.42%
EPS Next 3Y18.03%
296.39
-16.11 (-5.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners89.18%
Inst Owner Change0%
Ins Owners2.53%
Ins Owner Change-3.98%
Market Cap4.09B
Analysts74.29
Price Target252.45 (-14.83%)
Short Float %5.54%
Short Ratio1.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
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)8.55%
PT rev (3m)8.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.62%
EPS NY rev (1m)17.59%
EPS NY rev (3m)19.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.62 | ||
| Fwd PE | 34.59 | ||
| P/S | 4.44 | ||
| P/FCF | 29.17 | ||
| P/OCF | 27.98 | ||
| P/B | 10.41 | ||
| P/tB | 11.26 | ||
| EV/EBITDA | 27.11 |
EPS(TTM)8.32
EY2.81%
EPS(NY)8.57
Fwd EY2.89%
FCF(TTM)10.16
FCFY3.43%
OCF(TTM)10.59
OCFY3.57%
SpS66.68
BVpS28.47
TBVpS26.32
PEG (NY)1.19
PEG (5Y)N/A
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%
ROICexcg growth 3YN/A
ROICexcg 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 | 7.78 |
F-Score9
WACC11.27%
ROIC/WACC1.87
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 Y30.04%
EPS Next 2Y18.42%
EPS Next 3Y18.03%
EPS Next 5YN/A
Revenue 1Y (TTM)29.16%
Revenue growth 3Y19.72%
Revenue growth 5Y29.61%
Sales Q2Q%4.73%
Revenue Next Year15.35%
Revenue Next 2Y18.04%
Revenue Next 3Y18.91%
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%