ARGAN INC (AGX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AGX - US04010E1091 - Common Stock
311.87 USD
-2.11 (-0.67%)
311.87 USD
0 (0%)
AGX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 54 industry peers in the Construction & Engineering industry. Both the health and profitability get an excellent rating, making AGX a very profitable company, without any liquidiy or solvency issues. AGX is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, AGX could be worth investigating further 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.
In the past 5 years AGX has always been profitable.
Of the past 5 years AGX 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AGX (11.41%) is better than 79.63% of its industry peers.
AGX has a Return On Equity of 28.57%. This is in the better half of the industry: AGX outperforms 77.78% of its industry peers.
The Return On Invested Capital of AGX (19.85%) 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 15.99%.
The 3 year average ROIC (12.29%) for AGX is below the current ROIC(19.85%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.41% | ||
| ROE | 28.57% | ||
| ROIC | 19.85% |
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
With an excellent Profit Margin value of 13.11%, AGX belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
AGX's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 13.08%, AGX belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
AGX's Operating Margin has been stable in the last couple of years.
AGX has a Gross Margin (19.20%) which is comparable to the rest of the industry.
AGX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.08% | ||
| PM (TTM) | 13.11% | ||
| GM | 19.2% |
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.
Compared to 1 year ago, AGX has more shares outstanding
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
An Altman-Z score of 6.28 indicates that AGX is not in any danger for bankruptcy at the moment.
AGX's Altman-Z score of 6.28 is amongst the best of the industry. AGX outperforms 85.19% of its industry peers.
AGX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.28 |
ROIC/WACC1.89
WACC10.51%
2.3 Liquidity
AGX has a Current Ratio of 1.61. 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 (1.61) is better than 79.63% of its industry peers.
A Quick Ratio of 1.60 indicates that AGX should not have too much problems paying its short term obligations.
The Quick ratio of AGX (1.60) is better than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 77.62% 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 quite strong growth in Revenue. The Revenue has grown by 13.49% in the last year.
AGX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.61% yearly.
EPS 1Y (TTM)77.62%
EPS 3Y36.55%
EPS 5YN/A
EPS Q2Q%8.5%
Revenue 1Y (TTM)13.49%
Revenue growth 3Y19.72%
Revenue growth 5Y29.61%
Sales Q2Q%-2.28%
3.2 Future
AGX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.70% yearly.
Based on estimates for the next years, AGX will show a quite strong growth in Revenue. The Revenue will grow by 19.52% on average per year.
EPS Next Y36.6%
EPS Next 2Y25.64%
EPS Next 3Y25.7%
EPS Next 5YN/A
Revenue Next Year11.77%
Revenue Next 2Y19.63%
Revenue Next 3Y19.52%
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.
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
A Price/Earnings ratio of 36.73 indicates a quite expensive valuation of AGX.
AGX's Price/Earnings ratio is in line with the industry average.
AGX is valuated rather expensively when we compare the Price/Earnings ratio to 27.00, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 32.33, AGX can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as AGX.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.70, AGX is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.73 | ||
| Fwd PE | 32.33 |
4.2 Price Multiples
AGX's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. AGX is more expensive than 61.11% of the companies in the same industry.
AGX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AGX is cheaper than 85.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.22 | ||
| EV/EBITDA | 26.81 |
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 25.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)1
PEG (5Y)N/A
EPS Next 2Y25.64%
EPS Next 3Y25.7%
5. Dividend
5.1 Amount
AGX has a yearly dividend return of 0.64%, which is pretty low.
AGX's Dividend Yield is rather good when compared to the industry average which is at 0.42. AGX pays more dividend than 88.89% of the companies in the same industry.
With a Dividend Yield of 0.64, AGX pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
5.2 History
On average, the dividend of AGX grows each year by 6.33%, which is quite nice.
AGX has been paying a dividend for at least 10 years, so it has 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 18.60% of its income as dividend. This is a sustainable payout ratio.
The dividend of AGX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP18.6%
EPS Next 2Y25.64%
EPS Next 3Y25.7%
311.87
-2.11 (-0.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners95.08%
Inst Owner Change0%
Ins Owners2.23%
Ins Owner Change-10.02%
Market Cap4.31B
Revenue(TTM)915.03M
Net Income(TTM)119.93M
Analysts74.29
Price Target361.9 (16.04%)
Short Float %4.9%
Short Ratio1.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
Yearly Dividend1.36
Dividend Growth(5Y)6.33%
DP18.6%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)28%
Min EPS beat(2)5.06%
Max EPS beat(2)50.93%
EPS beat(4)4
Avg EPS beat(4)48.32%
Min EPS beat(4)5.06%
Max EPS beat(4)91.97%
EPS beat(8)8
Avg EPS beat(8)39.01%
EPS beat(12)10
Avg EPS beat(12)22.12%
EPS beat(16)11
Avg EPS beat(16)15.04%
Revenue beat(2)0
Avg Revenue beat(2)-4.63%
Min Revenue beat(2)-5.75%
Max Revenue beat(2)-3.52%
Revenue beat(4)1
Avg Revenue beat(4)1.56%
Min Revenue beat(4)-5.75%
Max Revenue beat(4)16.54%
Revenue beat(8)5
Avg Revenue beat(8)8.64%
Revenue beat(12)5
Avg Revenue beat(12)4.13%
Revenue beat(16)6
Avg Revenue beat(16)2.22%
PT rev (1m)12.56%
PT rev (3m)43.35%
EPS NQ rev (1m)-6.94%
EPS NQ rev (3m)-0.96%
EPS NY rev (1m)5.49%
EPS NY rev (3m)5.04%
Revenue NQ rev (1m)-5.79%
Revenue NQ rev (3m)-9.1%
Revenue NY rev (1m)-2.74%
Revenue NY rev (3m)-3.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.73 | ||
| Fwd PE | 32.33 | ||
| P/S | 4.71 | ||
| P/FCF | 15.22 | ||
| P/OCF | 15.01 | ||
| P/B | 10.26 | ||
| P/tB | 11.04 | ||
| EV/EBITDA | 26.81 |
EPS(TTM)8.49
EY2.72%
EPS(NY)9.65
Fwd EY3.09%
FCF(TTM)20.49
FCFY6.57%
OCF(TTM)20.78
OCFY6.66%
SpS66.26
BVpS30.39
TBVpS28.25
PEG (NY)1
PEG (5Y)N/A
Graham Number76.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.41% | ||
| ROE | 28.57% | ||
| ROCE | 27.77% | ||
| ROIC | 19.85% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 13.08% | ||
| PM (TTM) | 13.11% | ||
| GM | 19.2% | ||
| FCFM | 30.93% |
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-Score7
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | -525.65% | ||
| Cap/Sales | 0.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 241.33% | ||
| Profit Quality | 235.95% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 6.28 |
F-Score7
WACC10.51%
ROIC/WACC1.89
Cap/Depr(3y)184.02%
Cap/Depr(5y)124.31%
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)77.62%
EPS 3Y36.55%
EPS 5YN/A
EPS Q2Q%8.5%
EPS Next Y36.6%
EPS Next 2Y25.64%
EPS Next 3Y25.7%
EPS Next 5YN/A
Revenue 1Y (TTM)13.49%
Revenue growth 3Y19.72%
Revenue growth 5Y29.61%
Sales Q2Q%-2.28%
Revenue Next Year11.77%
Revenue Next 2Y19.63%
Revenue Next 3Y19.52%
Revenue Next 5YN/A
EBIT growth 1Y77.98%
EBIT growth 3Y18.95%
EBIT growth 5YN/A
EBIT Next Year96.69%
EBIT Next 3Y46.06%
EBIT Next 5YN/A
FCF growth 1Y114.02%
FCF growth 3Y81.34%
FCF growth 5Y28.2%
OCF growth 1Y112.35%
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 for 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 36.73 and the Price/Book (PB) ratio is 10.26.
What is the expected EPS growth for ARGAN INC (AGX) stock?
The Earnings per Share (EPS) of ARGAN INC (AGX) is expected to grow by 36.6% in the next year.