ARGAN INC (AGX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AGX - US04010E1091 - Common Stock
356.39 USD
+5.3 (+1.51%)
315 USD
-41.39 (-11.61%)
Overall AGX gets a fundamental rating of 7 out of 10. We evaluated AGX against 55 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 shows excellent growth, but is valued quite expensive already. This makes AGX very considerable 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.
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 87.27% of its industry peers.
AGX has a Return On Equity of 29.81%. This is in the better half of the industry: AGX outperforms 80.00% of its industry peers.
AGX has a better Return On Invested Capital (21.07%) than 85.45% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AGX is significantly below the industry average of 17.30%.
The 3 year average ROIC (12.29%) for AGX is below the current ROIC(21.07%), indicating increased profibility in the last year.
| 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 better Profit Margin (12.73%) than 89.09% of its industry peers.
In the last couple of years the Profit Margin of AGX has grown nicely.
AGX's Operating Margin of 12.75% is amongst the best of the industry. AGX outperforms 87.27% 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 comparable to the rest of the industry.
In the last couple of years the Gross Margin of AGX has declined.
| 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.
AGX has more shares outstanding than it did 1 year ago.
The number of shares outstanding for AGX has been reduced compared to 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 8.52. This indicates that AGX is financially healthy and has little risk of bankruptcy at the moment.
AGX's Altman-Z score of 8.52 is amongst the best of the industry. AGX outperforms 89.09% 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 | 8.52 |
ROIC/WACC2.17
WACC9.72%
2.3 Liquidity
A Current Ratio of 1.71 indicates that AGX should not have too much problems paying its short term obligations.
AGX has a Current ratio of 1.71. This is amongst the best in the industry. AGX outperforms 81.82% 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.
With an excellent Quick ratio value of 1.71, AGX belongs to the best of the industry, outperforming 90.91% 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 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
The Revenue has grown by 52.47% 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)77.62%
EPS 3Y36.55%
EPS 5YN/A
EPS Q2Q%8.5%
Revenue 1Y (TTM)52.47%
Revenue growth 3Y19.72%
Revenue growth 5Y29.61%
Sales Q2Q%-2.28%
3.2 Future
The Earnings Per Share is expected to grow by 26.61% on average over the next years. This is a very strong growth
Based on estimates for the next years, AGX will show a quite strong growth in Revenue. The Revenue will grow by 16.35% on average per year.
EPS Next Y29.49%
EPS Next 2Y24.35%
EPS Next 3Y26.61%
EPS Next 5YN/A
Revenue Next Year14.92%
Revenue Next 2Y16.58%
Revenue Next 3Y16.35%
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
With a Price/Earnings ratio of 41.98, AGX can be considered very expensive at the moment.
AGX's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.41, AGX is valued quite expensively.
AGX is valuated quite expensively with a Price/Forward Earnings ratio of 37.72.
AGX's Price/Forward Earnings ratio is in line with the industry average.
AGX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 35.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.98 | ||
| Fwd PE | 37.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AGX is valued a bit more expensive than 60.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AGX is valued a bit cheaper than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.08 | ||
| EV/EBITDA | 33.62 |
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 26.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.42
PEG (5Y)N/A
EPS Next 2Y24.35%
EPS Next 3Y26.61%
5. Dividend
5.1 Amount
With a yearly dividend of 0.57%, AGX is not a good candidate for dividend investing.
AGX's Dividend Yield is rather good when compared to the industry average which is at 1.67. AGX pays more dividend than 89.09% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, AGX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
5.2 History
The dividend of AGX is nicely growing with an annual growth rate of 6.33%!
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 17.45% 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.
DP17.45%
EPS Next 2Y24.35%
EPS Next 3Y26.61%
356.39
+5.3 (+1.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners89.18%
Inst Owner Change2.33%
Ins Owners2.53%
Ins Owner Change-11.49%
Market Cap4.92B
Revenue(TTM)874.18M
Net Income(TTM)117.20M
Analysts74.29
Price Target321.5 (-9.79%)
Short Float %6.68%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
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)27.35%
PT rev (3m)38.25%
EPS NQ rev (1m)12.92%
EPS NQ rev (3m)22.6%
EPS NY rev (1m)0%
EPS NY rev (3m)17.09%
Revenue NQ rev (1m)3.66%
Revenue NQ rev (3m)5.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.98 | ||
| Fwd PE | 37.72 | ||
| P/S | 5.34 | ||
| P/FCF | 35.08 | ||
| P/OCF | 33.64 | ||
| P/B | 12.52 | ||
| P/tB | 13.54 | ||
| EV/EBITDA | 33.62 |
EPS(TTM)8.49
EY2.38%
EPS(NY)9.45
Fwd EY2.65%
FCF(TTM)10.16
FCFY2.85%
OCF(TTM)10.59
OCFY2.97%
SpS66.68
BVpS28.47
TBVpS26.32
PEG (NY)1.42
PEG (5Y)N/A
Graham Number73.75
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 | 2325.97% | ||
| Cap/Sales | 0.65% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 124.35% | ||
| Profit Quality | 119.7% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 8.52 |
F-Score9
WACC9.72%
ROIC/WACC2.17
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 Y29.49%
EPS Next 2Y24.35%
EPS Next 3Y26.61%
EPS Next 5YN/A
Revenue 1Y (TTM)52.47%
Revenue growth 3Y19.72%
Revenue growth 5Y29.61%
Sales Q2Q%-2.28%
Revenue Next Year14.92%
Revenue Next 2Y16.58%
Revenue Next 3Y16.35%
Revenue Next 5YN/A
EBIT growth 1Y162.16%
EBIT growth 3Y18.95%
EBIT growth 5YN/A
EBIT Next Year80.79%
EBIT Next 3Y46.71%
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 41.98 and the Price/Book (PB) ratio is 12.52.
What is the financial health of ARGAN INC (AGX) stock?
The financial health rating of ARGAN INC (AGX) is 8 / 10.