ARGAN INC (AGX) Stock Fundamental Analysis
NYSE:AGX - New York Stock Exchange, Inc. - US04010E1091 - Common Stock - Currency: USD
Taking everything into account, AGX scores 7 out of 10 in our fundamental rating. AGX was compared to 47 industry peers in the Construction & Engineering industry. AGX is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. AGX is growing strongly while it is still valued neutral. This is a good combination! With these ratings, AGX could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year AGX was profitable.
AGX had a positive operating cash flow in the past year.
AGX had positive earnings in 4 of the past 5 years.
AGX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
AGX's Return On Assets of 8.60% is fine compared to the rest of the industry. AGX outperforms 78.72% of its industry peers.
With a decent Return On Equity value of 20.11%, AGX is doing good in the industry, outperforming 74.47% of the companies in the same industry.
AGX's Return On Invested Capital of 14.31% is amongst the best of the industry. AGX outperforms 85.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AGX is in line with the industry average of 12.03%.
The 3 year average ROIC (10.07%) for AGX is below the current ROIC(14.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.6% | ||
| ROE | 20.11% | ||
| ROIC | 14.31% |
ROA(3y)6.36%
ROA(5y)2.86%
ROE(3y)11.54%
ROE(5y)5.89%
ROIC(3y)10.07%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of AGX (8.20%) is better than 87.23% of its industry peers.
In the last couple of years the Profit Margin of AGX has declined.
The Operating Margin of AGX (8.34%) is better than 72.34% of its industry peers.
In the last couple of years the Operating Margin of AGX has declined.
AGX's Gross Margin of 14.51% is in line compared to the rest of the industry. AGX outperforms 46.81% of its industry peers.
AGX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.34% | ||
| PM (TTM) | 8.2% | ||
| GM | 14.51% |
OM growth 3Y2.74%
OM growth 5Y-5.96%
PM growth 3Y-2.52%
PM growth 5Y-12.15%
GM growth 3Y-3.79%
GM growth 5Y-3.77%
2. Health
2.1 Basic Checks
AGX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
AGX has less shares outstanding than it did 1 year ago.
AGX has less shares outstanding than it did 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
An Altman-Z score of 4.37 indicates that AGX is not in any danger for bankruptcy at the moment.
AGX has a Altman-Z score of 4.37. This is in the better half of the industry: AGX outperforms 74.47% 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 | 4.37 |
ROIC/WACC1.5
WACC9.52%
2.3 Liquidity
A Current Ratio of 1.64 indicates that AGX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.64, AGX is in the better half of the industry, outperforming 74.47% of the companies in the same industry.
AGX has a Quick Ratio of 1.64. This is a normal value and indicates that AGX is financially healthy and should not expect problems in meeting its short term obligations.
AGX has a better Quick ratio (1.64) than 82.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
AGX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 91.20%, which is quite impressive.
AGX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.92% yearly.
The Revenue has grown by 52.83% in the past year. This is a very strong growth!
Measured over the past years, AGX shows a small growth in Revenue. The Revenue has been growing by 3.52% on average per year.
EPS 1Y (TTM)91.2%
EPS 3Y16.54%
EPS 5Y-6.92%
EPS Q2Q%400%
Revenue 1Y (TTM)52.83%
Revenue growth 3Y13.49%
Revenue growth 5Y3.52%
Sales Q2Q%56.95%
3.2 Future
Based on estimates for the next years, AGX will show a very strong growth in Earnings Per Share. The EPS will grow by 41.33% on average per year.
Based on estimates for the next years, AGX will show a very strong growth in Revenue. The Revenue will grow by 20.46% on average per year.
EPS Next Y113.62%
EPS Next 2Y50.36%
EPS Next 3Y47.61%
EPS Next 5Y41.33%
Revenue Next Year47.13%
Revenue Next 2Y25.41%
Revenue Next 3Y23.98%
Revenue Next 5Y20.46%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.81, which indicates a rather expensive current valuation of AGX.
AGX's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of AGX to the average of the S&P500 Index (29.35), we can say AGX is valued inline with the index average.
A Price/Forward Earnings ratio of 21.06 indicates a rather expensive valuation of AGX.
AGX's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of AGX to the average of the S&P500 Index (22.10), we can say AGX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.81 | ||
| Fwd PE | 21.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AGX is valued a bit cheaper than the industry average as 74.47% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AGX indicates a somewhat cheap valuation: AGX is cheaper than 74.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.9 | ||
| EV/EBITDA | 10.19 |
4.3 Compensation for Growth
AGX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 47.61% in the coming years.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y50.36%
EPS Next 3Y47.61%
5. Dividend
5.1 Amount
AGX has a Yearly Dividend Yield of 1.29%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of AGX has falen by -22.65%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
AGX's Dividend Yield is rather good when compared to the industry average which is at 2.03. AGX pays more dividend than 95.74% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, AGX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
5.2 History
The dividend of AGX has a limited annual growth rate of 1.97%.
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)1.97%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
AGX pays out 26.11% 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.
DP26.11%
EPS Next 2Y50.36%
EPS Next 3Y47.61%
113.8
-2.48 (-2.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners90.05%
Inst Owner Change4.95%
Ins Owners6.78%
Ins Owner Change-4.84%
Market Cap1.55B
Analysts80
Price Target153 (34.45%)
Short Float %5.08%
Short Ratio1.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
Yearly Dividend1.1
Dividend Growth(5Y)1.97%
DP26.11%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)45.44%
Min EPS beat(2)33.71%
Max EPS beat(2)57.16%
EPS beat(4)4
Avg EPS beat(4)29.7%
Min EPS beat(4)10.43%
Max EPS beat(4)57.16%
EPS beat(8)6
Avg EPS beat(8)9.02%
EPS beat(12)7
Avg EPS beat(12)3.95%
EPS beat(16)11
Avg EPS beat(16)18.59%
Revenue beat(2)2
Avg Revenue beat(2)23.11%
Min Revenue beat(2)22.45%
Max Revenue beat(2)23.76%
Revenue beat(4)4
Avg Revenue beat(4)15.72%
Min Revenue beat(4)0.82%
Max Revenue beat(4)23.76%
Revenue beat(8)4
Avg Revenue beat(8)5.42%
Revenue beat(12)5
Avg Revenue beat(12)2.44%
Revenue beat(16)6
Avg Revenue beat(16)0.67%
PT rev (1m)0%
PT rev (3m)93.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.15%
EPS NY rev (1m)0%
EPS NY rev (3m)18.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)9.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.81 | ||
| Fwd PE | 21.06 | ||
| P/S | 1.92 | ||
| P/FCF | 10.9 | ||
| P/OCF | 10.47 | ||
| P/B | 4.7 | ||
| P/tB | 5.17 | ||
| EV/EBITDA | 10.19 |
EPS(TTM)4.78
EY4.2%
EPS(NY)5.4
Fwd EY4.75%
FCF(TTM)10.44
FCFY9.17%
OCF(TTM)10.87
OCFY9.55%
SpS59.37
BVpS24.21
TBVpS22
PEG (NY)0.21
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.6% | ||
| ROE | 20.11% | ||
| ROCE | 20.21% | ||
| ROIC | 14.31% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 8.34% | ||
| PM (TTM) | 8.2% | ||
| GM | 14.51% | ||
| FCFM | 17.58% |
ROA(3y)6.36%
ROA(5y)2.86%
ROE(3y)11.54%
ROE(5y)5.89%
ROIC(3y)10.07%
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)14.23%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y2.74%
OM growth 5Y-5.96%
PM growth 3Y-2.52%
PM growth 5Y-12.15%
GM growth 3Y-3.79%
GM growth 5Y-3.77%
F-Score7
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 258.47% | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 212.29% | ||
| Profit Quality | 214.38% | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 4.37 |
F-Score7
WACC9.52%
ROIC/WACC1.5
Cap/Depr(3y)79.68%
Cap/Depr(5y)86.07%
Cap/Sales(3y)0.5%
Cap/Sales(5y)0.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)91.2%
EPS 3Y16.54%
EPS 5Y-6.92%
EPS Q2Q%400%
EPS Next Y113.62%
EPS Next 2Y50.36%
EPS Next 3Y47.61%
EPS Next 5Y41.33%
Revenue 1Y (TTM)52.83%
Revenue growth 3Y13.49%
Revenue growth 5Y3.52%
Sales Q2Q%56.95%
Revenue Next Year47.13%
Revenue Next 2Y25.41%
Revenue Next 3Y23.98%
Revenue Next 5Y20.46%
EBIT growth 1Y96.3%
EBIT growth 3Y16.6%
EBIT growth 5Y-2.65%
EBIT Next Year166.85%
EBIT Next 3Y50.68%
EBIT Next 5YN/A
FCF growth 1Y258.88%
FCF growth 3Y-13.17%
FCF growth 5YN/A
OCF growth 1Y270.98%
OCF growth 3Y-12.76%
OCF growth 5YN/A