ARGAN INC (AGX) Stock Fundamental Analysis
NYSE:AGX - New York Stock Exchange, Inc. - US04010E1091 - Common Stock - Currency: USD
Overall AGX gets a fundamental rating of 7 out of 10. We evaluated AGX against 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 not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make AGX suitable for growth 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.
Of the past 5 years AGX 4 years were profitable.
AGX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.60%, AGX belongs to the top of the industry, outperforming 84.44% of the companies in the same industry.
AGX has a better Return On Equity (20.11%) than 86.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.31%, AGX belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AGX is in line with the industry average of 11.58%.
The last Return On Invested Capital (14.31%) for AGX is above the 3 year average (10.07%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 8.20%, AGX belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
AGX's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 8.34%, AGX is doing good in the industry, outperforming 73.33% of the companies in the same industry.
In the last couple of years the Operating Margin of AGX has declined.
AGX has a Gross Margin (14.51%) 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AGX is still creating some value.
The number of shares outstanding for AGX has been reduced 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
AGX has an Altman-Z score of 4.74. This indicates that AGX is financially healthy and has little risk of bankruptcy at the moment.
AGX's Altman-Z score of 4.74 is fine compared to the rest of the industry. AGX outperforms 75.56% 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 | 4.74 |
ROIC/WACC1.21
WACC11.83%
2.3 Liquidity
A Current Ratio of 1.64 indicates that AGX should not have too much problems paying its short term obligations.
AGX has a better Current ratio (1.64) than 73.33% of its industry peers.
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.
The Quick ratio of AGX (1.64) is better than 75.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 91.20% over the past year.
Measured over the past years, AGX shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.92% on average per year.
The Revenue has grown by 52.83% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 3.52% on average over the past years.
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
The Earnings Per Share is expected to grow by 41.33% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 20.46% on average over the next years. This is a very strong growth
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.19, AGX can be considered very expensive at the moment.
Based on the Price/Earnings ratio, AGX is valued a bit cheaper than the industry average as 62.22% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of AGX to the average of the S&P500 Index (28.36), we can say AGX is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 24.05, the valuation of AGX can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AGX is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 92.49. AGX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.19 | ||
| Fwd PE | 24.05 |
4.2 Price Multiples
AGX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AGX is cheaper than 68.89% of the companies in the same industry.
AGX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AGX is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.45 | ||
| EV/EBITDA | 14.08 |
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.
AGX's earnings are expected to grow with 47.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.24
PEG (5Y)N/A
EPS Next 2Y50.36%
EPS Next 3Y47.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.10%, AGX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.58, AGX pays a better dividend. On top of this AGX pays more dividend than 95.56% of the companies listed in the same industry.
With a Dividend Yield of 1.10, AGX pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
The dividend of AGX has a limited annual growth rate of 1.97%.
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)1.97%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
26.11% 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.
DP26.11%
EPS Next 2Y50.36%
EPS Next 3Y47.61%
ARGAN INC
NYSE:AGX (2/4/2025, 11:16:15 AM)
129.95
-3.75 (-2.8%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners89.41%
Inst Owner Change0.06%
Ins Owners6.78%
Ins Owner Change-4.84%
Market Cap1.76B
Analysts46.67
Price Target153 (17.74%)
Short Float %6.18%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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)3.15%
EPS NQ rev (3m)7.01%
EPS NY rev (1m)0%
EPS NY rev (3m)18.38%
Revenue NQ rev (1m)-6.86%
Revenue NQ rev (3m)10.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)9.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.19 | ||
| Fwd PE | 24.05 | ||
| P/S | 2.19 | ||
| P/FCF | 12.45 | ||
| P/OCF | 11.96 | ||
| P/B | 5.37 | ||
| P/tB | 5.91 | ||
| EV/EBITDA | 14.08 |
EPS(TTM)4.78
EY3.68%
EPS(NY)5.4
Fwd EY4.16%
FCF(TTM)10.44
FCFY8.03%
OCF(TTM)10.87
OCFY8.36%
SpS59.37
BVpS24.21
TBVpS22
PEG (NY)0.24
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 | 4.74 |
F-Score7
WACC11.83%
ROIC/WACC1.21
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 Year138.91%
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