ARGAN INC (AGX)
US04010E1091 - Common Stock
Taking everything into account, AGX scores 7 out of 10 in our fundamental rating. AGX was compared to 45 industry peers in the Construction & Engineering industry. While AGX has a great health rating, its profitability is only average at the moment. AGX is growing strongly while it is still valued neutral. This is a good combination! These ratings could make AGX a good candidate 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.
Of the past 5 years AGX 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AGX (6.00%) is better than 77.27% of its industry peers.
With a decent Return On Equity value of 14.14%, AGX is doing good in the industry, outperforming 75.00% of the companies in the same industry.
AGX's Return On Invested Capital of 10.18% is fine compared to the rest of the industry. AGX outperforms 77.27% 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 11.39%.
The 3 year average ROIC (10.07%) for AGX is below the current ROIC(10.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6% | ||
| ROE | 14.14% | ||
| ROIC | 10.18% |
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
With a decent Profit Margin value of 6.11%, AGX is doing good in the industry, outperforming 79.55% of the companies in the same industry.
AGX's Profit Margin has declined in the last couple of years.
AGX has a Operating Margin of 6.28%. This is in the better half of the industry: AGX outperforms 61.36% of its industry peers.
In the last couple of years the Operating Margin of AGX has declined.
AGX has a worse Gross Margin (12.89%) than 63.64% of its industry peers.
In the last couple of years the Gross Margin of AGX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.28% | ||
| PM (TTM) | 6.11% | ||
| GM | 12.89% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AGX is destroying value.
The number of shares outstanding for AGX has been reduced compared to 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
AGX has an Altman-Z score of 4.80. This indicates that AGX is financially healthy and has little risk of bankruptcy at the moment.
AGX's Altman-Z score of 4.80 is fine compared to the rest of the industry. AGX outperforms 77.27% 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 | 4.8 |
ROIC/WACC0.98
WACC10.42%
2.3 Liquidity
A Current Ratio of 1.63 indicates that AGX should not have too much problems paying its short term obligations.
The Current ratio of AGX (1.63) is better than 75.00% of its industry peers.
A Quick Ratio of 1.61 indicates that AGX should not have too much problems paying its short term obligations.
AGX's Quick ratio of 1.61 is fine compared to the rest of the industry. AGX outperforms 79.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.61 |
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.
AGX shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.01%.
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)26.01%
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
AGX is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.46% yearly.
EPS Next Y80.45%
EPS Next 2Y46.3%
EPS Next 3Y47.61%
EPS Next 5Y41.33%
Revenue Next Year34.38%
Revenue Next 2Y22.59%
Revenue Next 3Y23.98%
Revenue Next 5Y20.46%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 29.15, which means the current valuation is very expensive for AGX.
AGX's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.73, AGX is valued at the same level.
AGX is valuated quite expensively with a Price/Forward Earnings ratio of 27.24.
AGX's Price/Forward Earnings is on the same level as the industry average.
AGX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.15 | ||
| Fwd PE | 27.24 |
4.2 Price Multiples
AGX's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. AGX is more expensive than 61.36% of the companies in the same industry.
86.36% 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 | 11.2 | ||
| EV/EBITDA | 24.56 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as AGX's earnings are expected to grow with 47.61% in the coming years.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y46.3%
EPS Next 3Y47.61%
5. Dividend
5.1 Amount
AGX has a Yearly Dividend Yield of 1.04%. Purely for dividend investing, there may be better candidates out there.
AGX's Dividend Yield is rather good when compared to the industry average which is at 0.63. AGX pays more dividend than 97.73% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.24, AGX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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
36.85% 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.
DP36.85%
EPS Next 2Y46.3%
EPS Next 3Y47.61%
ARGAN INC
NYSE:AGX (12/20/2024, 8:04:00 PM)
After market: 139.33 0 (0%)139.33
-0.15 (-0.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners80.74%
Inst Owner Change5.8%
Ins Owners4.18%
Ins Owner Change-11.98%
Market Cap1.89B
Analysts80
Price Target79.05 (-43.26%)
Short Float %3.71%
Short Ratio1.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Dividend Growth(5Y)1.97%
DP36.85%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.07%
Min EPS beat(2)10.43%
Max EPS beat(2)33.71%
EPS beat(4)3
Avg EPS beat(4)1.66%
Min EPS beat(4)-55%
Max EPS beat(4)33.71%
EPS beat(8)5
Avg EPS beat(8)-0.79%
EPS beat(12)7
Avg EPS beat(12)4.54%
EPS beat(16)11
Avg EPS beat(16)20.55%
Revenue beat(2)2
Avg Revenue beat(2)19.16%
Min Revenue beat(2)15.86%
Max Revenue beat(2)22.45%
Revenue beat(4)3
Avg Revenue beat(4)9.69%
Min Revenue beat(4)-0.35%
Max Revenue beat(4)22.45%
Revenue beat(8)3
Avg Revenue beat(8)0.8%
Revenue beat(12)4
Avg Revenue beat(12)-0.11%
Revenue beat(16)6
Avg Revenue beat(16)-0.33%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)13%
EPS NY rev (1m)0%
EPS NY rev (3m)8.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.15 | ||
| Fwd PE | 27.24 | ||
| P/S | 2.65 | ||
| P/FCF | 11.2 | ||
| P/OCF | 10.91 | ||
| P/B | 6.14 | ||
| P/tB | 6.81 | ||
| EV/EBITDA | 24.56 |
EPS(TTM)4.78
EY3.43%
EPS(NY)5.12
Fwd EY3.67%
FCF(TTM)12.45
FCFY8.93%
OCF(TTM)12.77
OCFY9.17%
SpS52.5
BVpS22.69
TBVpS20.47
PEG (NY)0.36
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6% | ||
| ROE | 14.14% | ||
| ROCE | 14.38% | ||
| ROIC | 10.18% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 6.28% | ||
| PM (TTM) | 6.11% | ||
| GM | 12.89% | ||
| FCFM | 23.7% |
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-Score6
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 188.95% | ||
| Cap/Sales | 0.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 368.06% | ||
| Profit Quality | 387.98% | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z | 4.8 |
F-Score6
WACC10.42%
ROIC/WACC0.98
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 Y80.45%
EPS Next 2Y46.3%
EPS Next 3Y47.61%
EPS Next 5Y41.33%
Revenue 1Y (TTM)26.01%
Revenue growth 3Y13.49%
Revenue growth 5Y3.52%
Sales Q2Q%56.95%
Revenue Next Year34.38%
Revenue Next 2Y22.59%
Revenue Next 3Y23.98%
Revenue Next 5Y20.46%
EBIT growth 1Y24.74%
EBIT growth 3Y16.6%
EBIT growth 5Y-2.65%
EBIT Next Year103.23%
EBIT Next 3Y36.43%
EBIT Next 5YN/A
FCF growth 1Y320.64%
FCF growth 3Y-13.17%
FCF growth 5YN/A
OCF growth 1Y329.42%
OCF growth 3Y-12.76%
OCF growth 5YN/A