ARGAN INC (AGX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AGX - US04010E1091 - Common Stock
353.5 USD
-10.38 (-2.85%)
352.5 USD
-1 (-0.28%)
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 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.
- 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
- The Return On Assets of AGX (11.41%) is better than 80.00% of its industry peers.
- The Return On Equity of AGX (28.57%) is better than 78.18% of its industry peers.
- The Return On Invested Capital of AGX (19.85%) is better than 85.45% of its industry peers.
- AGX had an Average Return On Invested Capital over the past 3 years of 12.29%. This is below the industry average of 15.97%.
- 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
- The Profit Margin of AGX (13.11%) is better than 89.09% of its industry peers.
- In the last couple of years the Profit Margin of AGX has grown nicely.
- Looking at the Operating Margin, with a value of 13.08%, AGX belongs to the top of the industry, outperforming 85.45% 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 in line with its industry peers.
- 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.
- Compared to 5 years ago, AGX has less shares outstanding
- 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 6.80 indicates that AGX is not in any danger for bankruptcy at the moment.
- AGX has a better Altman-Z score (6.80) than 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 | 6.8 |
ROIC/WACC1.89
WACC10.49%
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.
- Looking at the Current ratio, with a value of 1.61, AGX is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
- A Quick Ratio of 1.60 indicates that AGX should not have too much problems paying its short term obligations.
- AGX's Quick ratio of 1.60 is amongst the best of the industry. AGX outperforms 83.64% 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.
- AGX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.55% yearly.
- Looking at the last year, AGX shows a quite strong growth in Revenue. The Revenue has grown by 13.49% in the last year.
- 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
- Based on estimates for the next years, AGX will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.80% on average per year.
- 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
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
- The Price/Earnings ratio is 41.64, which means the current valuation is very expensive for AGX.
- Compared to the rest of the industry, the Price/Earnings ratio of AGX is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.25. AGX is valued rather expensively when compared to this.
- A Price/Forward Earnings ratio of 36.65 indicates a quite expensive valuation of AGX.
- AGX's Price/Forward Earnings is on the same level as the industry average.
- AGX's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.64 | ||
| Fwd PE | 36.65 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of AGX indicates a rather cheap valuation: AGX is cheaper than 85.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.25 | ||
| EV/EBITDA | 31.4 |
4.3 Compensation for Growth
- AGX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of AGX 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)1.14
PEG (5Y)N/A
EPS Next 2Y25.64%
EPS Next 3Y25.7%
5. Dividend
5.1 Amount
- AGX has a yearly dividend return of 0.53%, which is pretty low.
- AGX's Dividend Yield is rather good when compared to the industry average which is at 0.44. AGX pays more dividend than 89.09% of the companies in the same industry.
- With a Dividend Yield of 0.53, AGX pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
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
- 18.60% of the earnings are spent on dividend by AGX. This is a low number and sustainable payout ratio.
- AGX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP18.6%
EPS Next 2Y25.64%
EPS Next 3Y25.7%
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 41.64 and the Price/Book (PB) ratio is 11.63.
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.