ARGAN INC (AGX) Stock Fundamental Analysis
USA - NYSE:AGX - US04010E1091 - Common Stock
238.6 USD
+8.29 (+3.6%)
We assign a fundamental rating of 7 out of 10 to AGX. AGX was compared to 52 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. 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.
In the past year AGX had a positive cash flow from operations.
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
AGX's Return On Assets of 13.28% is amongst the best of the industry. AGX outperforms 88.46% of its industry peers.
Looking at the Return On Equity, with a value of 29.81%, AGX is in the better half of the industry, outperforming 78.85% of the companies in the same industry.
The Return On Invested Capital of AGX (21.07%) is better than 84.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AGX is below the industry average of 17.22%.
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 better Profit Margin (12.73%) than 88.46% of its industry peers.
AGX's Profit Margin has improved in the last couple of years.
AGX's Operating Margin of 12.75% is amongst the best of the industry. AGX outperforms 88.46% of its industry peers.
AGX's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 18.79%, AGX is in line with its industry, outperforming 55.77% 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 | 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.
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 6.39 indicates that AGX is not in any danger for bankruptcy at the moment.
AGX's Altman-Z score of 6.39 is amongst the best of the industry. AGX outperforms 84.62% 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 | 6.39 |
ROIC/WACC2.11
WACC9.97%
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.
The Current ratio of AGX (1.71) is better than 78.85% 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.
The Quick ratio of AGX (1.71) is better than 88.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
AGX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 161.64%, which is quite impressive.
Measured over the past years, AGX shows a very strong growth in Earnings Per Share. The EPS has been growing by 36.55% on average per year.
AGX shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.16%.
The Revenue has been growing by 29.61% on average over the past years. This is a very strong growth!
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 17.76% on average per year.
AGX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.67% yearly.
EPS Next Y10.59%
EPS Next 2Y17.41%
EPS Next 3Y17.76%
EPS Next 5YN/A
Revenue Next Year15.35%
Revenue Next 2Y18.04%
Revenue Next 3Y16.67%
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
Based on the Price/Earnings ratio of 28.68, the valuation of AGX can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of AGX indicates a somewhat cheap valuation: AGX is cheaper than 65.38% of the companies listed in the same industry.
AGX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 28.33, the valuation of AGX can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as AGX.
The average S&P500 Price/Forward Earnings ratio is at 22.73. AGX is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.68 | ||
| Fwd PE | 28.33 |
4.2 Price Multiples
AGX's Enterprise Value to EBITDA is on the same level as the industry average.
67.31% of the companies in the same industry are more expensive than AGX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.49 | ||
| EV/EBITDA | 17.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AGX does not grow enough to justify the current Price/Earnings ratio.
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 17.76% in the coming years.
PEG (NY)2.71
PEG (5Y)N/A
EPS Next 2Y17.41%
EPS Next 3Y17.76%
5. Dividend
5.1 Amount
With a yearly dividend of 0.86%, AGX is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.57, AGX pays a better dividend. On top of this AGX pays more dividend than 96.15% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, AGX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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 17.45% of its income as dividend. This is a sustainable payout ratio.
AGX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP17.45%
EPS Next 2Y17.41%
EPS Next 3Y17.76%
NYSE:AGX (9/15/2025, 3:54:08 PM)
238.6
+8.29 (+3.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners87.01%
Inst Owner Change6.46%
Ins Owners2.56%
Ins Owner Change-10.48%
Market Cap3.30B
Analysts77.14
Price Target252.45 (5.8%)
Short Float %5.7%
Short Ratio1.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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)65%
EPS NQ rev (1m)8.57%
EPS NQ rev (3m)4.62%
EPS NY rev (1m)1.98%
EPS NY rev (3m)15.84%
Revenue NQ rev (1m)1.86%
Revenue NQ rev (3m)-2.27%
Revenue NY rev (1m)1.01%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.68 | ||
| Fwd PE | 28.33 | ||
| P/S | 3.58 | ||
| P/FCF | 23.49 | ||
| P/OCF | 22.52 | ||
| P/B | 8.38 | ||
| P/tB | 9.06 | ||
| EV/EBITDA | 17.92 |
EPS(TTM)8.32
EY3.49%
EPS(NY)8.42
Fwd EY3.53%
FCF(TTM)10.16
FCFY4.26%
OCF(TTM)10.59
OCFY4.44%
SpS66.68
BVpS28.47
TBVpS26.32
PEG (NY)2.71
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 | 6.39 |
F-Score9
WACC9.97%
ROIC/WACC2.11
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 Y10.59%
EPS Next 2Y17.41%
EPS Next 3Y17.76%
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 3Y16.67%
Revenue Next 5YN/A
EBIT growth 1Y162.16%
EBIT growth 3Y18.95%
EBIT growth 5YN/A
EBIT Next Year69.35%
EBIT Next 3Y39.63%
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%