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 52 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 growing strongly while it is still valued neutral. This is a good 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.
In the past year AGX had a positive cash flow from operations.
AGX had positive earnings in each of the past 5 years.
AGX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 12.64%, AGX belongs to the best of the industry, outperforming 86.54% of the companies in the same industry.
AGX has a better Return On Equity (27.52%) than 80.77% of its industry peers.
AGX's Return On Invested Capital of 20.53% is amongst the best of the industry. AGX outperforms 88.46% 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 16.67%.
The 3 year average ROIC (12.29%) for AGX is below the current ROIC(20.53%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.64% | ||
| ROE | 27.52% | ||
| ROIC | 20.53% |
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 11.00%, AGX belongs to the top of the industry, outperforming 90.38% of the companies in the same industry.
AGX's Profit Margin has improved in the last couple of years.
The Operating Margin of AGX (11.65%) is better than 84.62% of its industry peers.
In the last couple of years the Operating Margin of AGX has remained more or less at the same level.
The Gross Margin of AGX (17.57%) is comparable to the rest of the industry.
AGX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.65% | ||
| PM (TTM) | 11% | ||
| GM | 17.57% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AGX 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.
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 6.49. This indicates that AGX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of AGX (6.49) is better than 86.54% 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 | 6.49 |
ROIC/WACC1.98
WACC10.35%
2.3 Liquidity
A Current Ratio of 1.75 indicates that AGX should not have too much problems paying its short term obligations.
AGX's Current ratio of 1.75 is amongst the best of the industry. AGX outperforms 84.62% of its industry peers.
AGX has a Quick Ratio of 1.74. 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 (1.74) than 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 153.74% over the past year.
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.
Looking at the last year, AGX shows a very strong growth in Revenue. The Revenue has grown by 45.09%.
The Revenue has been growing by 29.61% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)153.74%
EPS 3Y36.55%
EPS 5YN/A
EPS Q2Q%175.86%
Revenue 1Y (TTM)45.09%
Revenue growth 3Y19.72%
Revenue growth 5Y29.61%
Sales Q2Q%22.82%
3.2 Future
The Earnings Per Share is expected to grow by 17.64% on average over the next years. This is quite good.
The Revenue is expected to grow by 13.49% on average over the next years. This is quite good.
EPS Next Y8.44%
EPS Next 2Y14.06%
EPS Next 3Y17.64%
EPS Next 5YN/A
Revenue Next Year14.35%
Revenue Next 2Y16.33%
Revenue Next 3Y13.49%
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
A Price/Earnings ratio of 28.41 indicates a quite expensive valuation of AGX.
Compared to the rest of the industry, the Price/Earnings ratio of AGX indicates a somewhat cheap valuation: AGX is cheaper than 61.54% 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.
A Price/Forward Earnings ratio of 25.48 indicates a quite expensive valuation of AGX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AGX is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, AGX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.41 | ||
| Fwd PE | 25.48 |
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.
AGX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AGX is cheaper than 82.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.47 | ||
| EV/EBITDA | 16.5 |
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 17.64% in the coming years.
PEG (NY)3.37
PEG (5Y)N/A
EPS Next 2Y14.06%
EPS Next 3Y17.64%
5. Dividend
5.1 Amount
With a yearly dividend of 0.71%, AGX is not a good candidate for dividend investing.
AGX's Dividend Yield is rather good when compared to the industry average which is at 1.70. AGX pays more dividend than 90.38% of the companies in the same industry.
With a Dividend Yield of 0.71, AGX pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
5.2 History
On average, the dividend of AGX grows each year by 6.33%, which is quite nice.
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 19.29% 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.
DP19.29%
EPS Next 2Y14.06%
EPS Next 3Y17.64%
202.53
-6.97 (-3.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners86.34%
Inst Owner Change0%
Ins Owners2.45%
Ins Owner Change-5.96%
Market Cap2.76B
Analysts76.67
Price Target232.56 (14.83%)
Short Float %5.22%
Short Ratio1.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
Yearly Dividend1.36
Dividend Growth(5Y)6.33%
DP19.29%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)68.65%
Min EPS beat(2)45.34%
Max EPS beat(2)91.97%
EPS beat(4)4
Avg EPS beat(4)57.04%
Min EPS beat(4)33.71%
Max EPS beat(4)91.97%
EPS beat(8)7
Avg EPS beat(8)28.25%
EPS beat(12)8
Avg EPS beat(12)13.77%
EPS beat(16)11
Avg EPS beat(16)19.75%
Revenue beat(2)1
Avg Revenue beat(2)7.75%
Min Revenue beat(2)-1.04%
Max Revenue beat(2)16.54%
Revenue beat(4)3
Avg Revenue beat(4)15.43%
Min Revenue beat(4)-1.04%
Max Revenue beat(4)23.76%
Revenue beat(8)5
Avg Revenue beat(8)9.7%
Revenue beat(12)5
Avg Revenue beat(12)3.8%
Revenue beat(16)6
Avg Revenue beat(16)2.25%
PT rev (1m)52%
PT rev (3m)52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)30.8%
EPS NY rev (1m)13.59%
EPS NY rev (3m)22.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)18.51%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)4.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.41 | ||
| Fwd PE | 25.48 | ||
| P/S | 3.04 | ||
| P/FCF | 15.47 | ||
| P/OCF | 14.92 | ||
| P/B | 7.59 | ||
| P/tB | 8.27 | ||
| EV/EBITDA | 16.5 |
EPS(TTM)7.13
EY3.52%
EPS(NY)7.95
Fwd EY3.92%
FCF(TTM)13.09
FCFY6.46%
OCF(TTM)13.58
OCFY6.7%
SpS66.73
BVpS26.68
TBVpS24.5
PEG (NY)3.37
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.64% | ||
| ROE | 27.52% | ||
| ROCE | 28.72% | ||
| ROIC | 20.53% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 11.65% | ||
| PM (TTM) | 11% | ||
| GM | 17.57% | ||
| FCFM | 19.62% |
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-Score8
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 99.78% | ||
| Cap/Sales | 0.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 164.34% | ||
| Profit Quality | 178.31% | ||
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.74 | ||
| Altman-Z | 6.49 |
F-Score8
WACC10.35%
ROIC/WACC1.98
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)153.74%
EPS 3Y36.55%
EPS 5YN/A
EPS Q2Q%175.86%
EPS Next Y8.44%
EPS Next 2Y14.06%
EPS Next 3Y17.64%
EPS Next 5YN/A
Revenue 1Y (TTM)45.09%
Revenue growth 3Y19.72%
Revenue growth 5Y29.61%
Sales Q2Q%22.82%
Revenue Next Year14.35%
Revenue Next 2Y16.33%
Revenue Next 3Y13.49%
Revenue Next 5YN/A
EBIT growth 1Y169.75%
EBIT growth 3Y18.95%
EBIT growth 5YN/A
EBIT Next Year38.05%
EBIT Next 3Y30%
EBIT Next 5YN/A
FCF growth 1Y3781.2%
FCF growth 3Y81.34%
FCF growth 5Y28.2%
OCF growth 1Y2104.65%
OCF growth 3Y80.71%
OCF growth 5Y25.61%