ARGAN INC (AGX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AGX - US04010E1091 - Common Stock
314.09 USD
+4.83 (+1.56%)
314.1 USD
0.01 (0%)
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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. AGX is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, AGX could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
AGX had positive earnings in the past year.
AGX had a positive operating cash flow in the past year.
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 has a Return On Assets of 11.41%. This is in the better half of the industry: AGX outperforms 79.63% of its industry peers.
Looking at the Return On Equity, with a value of 28.57%, AGX is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
AGX's Return On Invested Capital of 19.85% is amongst the best of the industry. AGX outperforms 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 last Return On Invested Capital (19.85%) for AGX is above the 3 year average (12.29%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 13.11%, AGX belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
In the last couple of years the Profit Margin of AGX has grown nicely.
AGX has a Operating Margin of 13.08%. This is amongst the best in the industry. AGX outperforms 85.19% of its industry peers.
In the last couple of years the Operating Margin of AGX has remained more or less at the same level.
With a Gross Margin value of 19.20%, AGX perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
In the last couple of years the Gross Margin of AGX has declined.
| 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.
The number of shares outstanding for AGX has been increased compared to 1 year ago.
The number of shares outstanding for AGX has been reduced compared to 5 years ago.
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
AGX has an Altman-Z score of 6.22. This indicates that AGX is financially healthy and has little risk of bankruptcy at the moment.
AGX's Altman-Z score of 6.22 is amongst the best of the industry. AGX outperforms 83.33% 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 | 6.22 |
ROIC/WACC1.94
WACC10.26%
2.3 Liquidity
A Current Ratio of 1.61 indicates that AGX should not have too much problems paying its short term obligations.
AGX's Current ratio of 1.61 is fine compared to the rest of the industry. AGX outperforms 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.
AGX has a Quick ratio of 1.60. This is amongst the best in the industry. AGX outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
AGX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 77.62%, which is quite impressive.
AGX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.55% yearly.
AGX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.49%.
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)13.49%
Revenue growth 3Y19.72%
Revenue growth 5Y29.61%
Sales Q2Q%-2.28%
3.2 Future
AGX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.80% yearly.
AGX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.97% yearly.
EPS Next Y36.6%
EPS Next 2Y25.64%
EPS Next 3Y25.7%
EPS Next 5Y16.8%
Revenue Next Year11.77%
Revenue Next 2Y19.63%
Revenue Next 3Y19.52%
Revenue Next 5Y13.97%
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 37.00.
Compared to the rest of the industry, the Price/Earnings ratio of AGX is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.30, AGX is valued a bit more expensive.
AGX is valuated quite expensively with a Price/Forward Earnings ratio of 32.56.
AGX's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.04. AGX is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37 | ||
| Fwd PE | 32.56 |
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 indicates a rather cheap valuation: AGX is cheaper than 87.04% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.33 | ||
| EV/EBITDA | 26.26 |
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 25.70% in the coming years.
PEG (NY)1.01
PEG (5Y)N/A
EPS Next 2Y25.64%
EPS Next 3Y25.7%
5. Dividend
5.1 Amount
With a yearly dividend of 0.64%, AGX is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.40, AGX pays a better dividend. On top of this AGX pays more dividend than 88.89% of the companies listed in the same industry.
With a Dividend Yield of 0.64, AGX pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
5.2 History
The dividend of AGX is nicely growing with an annual growth rate of 6.33%!
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 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%
314.09
+4.83 (+1.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners95.08%
Inst Owner Change-0.06%
Ins Owners2.23%
Ins Owner Change-5.37%
Market Cap4.34B
Revenue(TTM)915.03M
Net Income(TTM)119.93M
Analysts74.29
Price Target361.9 (15.22%)
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)3.8%
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 | 37 | ||
| Fwd PE | 32.56 | ||
| P/S | 4.74 | ||
| P/FCF | 15.33 | ||
| P/OCF | 15.11 | ||
| P/B | 10.33 | ||
| P/tB | 11.12 | ||
| EV/EBITDA | 26.26 |
EPS(TTM)8.49
EY2.7%
EPS(NY)9.65
Fwd EY3.07%
FCF(TTM)20.49
FCFY6.52%
OCF(TTM)20.78
OCFY6.62%
SpS66.26
BVpS30.39
TBVpS28.25
PEG (NY)1.01
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 | 6.22 |
F-Score7
WACC10.26%
ROIC/WACC1.94
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 5Y16.8%
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 5Y13.97%
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 37 and the Price/Book (PB) ratio is 10.33.
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.