ARGAN INC (AGX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AGX - US04010E1091 - Common Stock
313.32 USD
-2.12 (-0.67%)
313.32 USD
0 (0%)
AGX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 54 industry peers in the Construction & Engineering industry. AGX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. AGX is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes AGX very considerable for growth and quality 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.
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
Looking at the Return On Assets, with a value of 11.41%, AGX is in the better half of the industry, outperforming 79.63% of the companies in the same industry.
AGX has a better Return On Equity (28.57%) than 77.78% of its industry peers.
With an excellent Return On Invested Capital value of 19.85%, AGX belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AGX is below the industry average of 16.29%.
The 3 year average ROIC (12.29%) for AGX is below the current ROIC(19.85%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.41% | ||
| ROE | 28.57% | ||
| ROIC | 19.85% |
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's Profit Margin of 13.11% is amongst the best of the industry. AGX outperforms 88.89% of its industry peers.
In the last couple of years the Profit Margin of AGX has grown nicely.
With an excellent Operating Margin value of 13.08%, AGX belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
In the last couple of years the Operating Margin of AGX has remained more or less at the same level.
AGX's Gross Margin of 19.20% is in line compared to the rest of the industry. AGX outperforms 55.56% of its industry peers.
In the last couple of years the Gross Margin of AGX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.08% | ||
| PM (TTM) | 13.11% | ||
| GM | 19.2% |
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.
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 6.28 indicates that AGX is not in any danger for bankruptcy at the moment.
The Altman-Z score of AGX (6.28) is better than 85.19% 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 | 6.28 |
ROIC/WACC1.88
WACC10.58%
2.3 Liquidity
A Current Ratio of 1.61 indicates that AGX should not have too much problems paying its short term obligations.
The Current ratio of AGX (1.61) is better than 79.63% of its industry peers.
A Quick Ratio of 1.60 indicates that AGX should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.60, AGX belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 77.62% over the past year.
The Earnings Per Share has been growing by 36.55% on average over the past years. This is a very strong growth
The Revenue has grown by 13.49% in the past year. This is quite good.
AGX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.61% yearly.
EPS 1Y (TTM)77.62%
EPS 3Y36.55%
EPS 5YN/A
EPS Q2Q%8.5%
Revenue 1Y (TTM)13.49%
Revenue growth 3Y19.72%
Revenue growth 5Y29.61%
Sales Q2Q%-2.28%
3.2 Future
The Earnings Per Share is expected to grow by 25.70% on average over the next years. This is a very strong growth
Based on estimates for the next years, AGX will show a quite strong growth in Revenue. The Revenue will grow by 19.52% on average per year.
EPS Next Y36.6%
EPS Next 2Y25.64%
EPS Next 3Y25.7%
EPS Next 5YN/A
Revenue Next Year11.77%
Revenue Next 2Y19.63%
Revenue Next 3Y19.52%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 36.90, the valuation of AGX can be described as expensive.
AGX's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.51, AGX is valued a bit more expensive.
With a Price/Forward Earnings ratio of 32.48, AGX can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as AGX.
When comparing the Price/Forward Earnings ratio of AGX to the average of the S&P500 Index (23.13), we can say AGX is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.9 | ||
| Fwd PE | 32.48 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AGX indicates a slightly more expensive valuation: AGX is more expensive than 61.11% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, AGX is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.29 | ||
| EV/EBITDA | 26.74 |
4.3 Compensation for Growth
AGX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of AGX may justify a higher PE ratio.
A more expensive valuation may be justified as AGX's earnings are expected to grow with 25.70% in the coming years.
PEG (NY)1.01
PEG (5Y)N/A
EPS Next 2Y25.64%
EPS Next 3Y25.7%
5. Dividend
5.1 Amount
AGX has a yearly dividend return of 0.61%, which is pretty low.
AGX's Dividend Yield is rather good when compared to the industry average which is at 0.41. AGX pays more dividend than 88.89% of the companies in the same industry.
With a Dividend Yield of 0.61, AGX pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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 18.60% 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.
DP18.6%
EPS Next 2Y25.64%
EPS Next 3Y25.7%
313.32
-2.12 (-0.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners94.94%
Inst Owner Change2.33%
Ins Owners2.16%
Ins Owner Change-11.64%
Market Cap4.33B
Revenue(TTM)915.03M
Net Income(TTM)119.93M
Analysts74.29
Price Target361.9 (15.5%)
Short Float %4.9%
Short Ratio1.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
Yearly Dividend1.36
Dividend Growth(5Y)6.33%
DP18.6%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)28%
Min EPS beat(2)5.06%
Max EPS beat(2)50.93%
EPS beat(4)4
Avg EPS beat(4)48.32%
Min EPS beat(4)5.06%
Max EPS beat(4)91.97%
EPS beat(8)8
Avg EPS beat(8)39.01%
EPS beat(12)10
Avg EPS beat(12)22.12%
EPS beat(16)11
Avg EPS beat(16)15.04%
Revenue beat(2)0
Avg Revenue beat(2)-4.63%
Min Revenue beat(2)-5.75%
Max Revenue beat(2)-3.52%
Revenue beat(4)1
Avg Revenue beat(4)1.56%
Min Revenue beat(4)-5.75%
Max Revenue beat(4)16.54%
Revenue beat(8)5
Avg Revenue beat(8)8.64%
Revenue beat(12)5
Avg Revenue beat(12)4.13%
Revenue beat(16)6
Avg Revenue beat(16)2.22%
PT rev (1m)12.56%
PT rev (3m)43.35%
EPS NQ rev (1m)-6.5%
EPS NQ rev (3m)-0.96%
EPS NY rev (1m)5.49%
EPS NY rev (3m)5.04%
Revenue NQ rev (1m)-5.18%
Revenue NQ rev (3m)-9.1%
Revenue NY rev (1m)-1.58%
Revenue NY rev (3m)-3.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.9 | ||
| Fwd PE | 32.48 | ||
| P/S | 4.73 | ||
| P/FCF | 15.29 | ||
| P/OCF | 15.08 | ||
| P/B | 10.31 | ||
| P/tB | 11.09 | ||
| EV/EBITDA | 26.74 |
EPS(TTM)8.49
EY2.71%
EPS(NY)9.65
Fwd EY3.08%
FCF(TTM)20.49
FCFY6.54%
OCF(TTM)20.78
OCFY6.63%
SpS66.26
BVpS30.39
TBVpS28.25
PEG (NY)1.01
PEG (5Y)N/A
Graham Number76.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.41% | ||
| ROE | 28.57% | ||
| ROCE | 27.77% | ||
| ROIC | 19.85% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 13.08% | ||
| PM (TTM) | 13.11% | ||
| GM | 19.2% | ||
| FCFM | 30.93% |
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%
ROICexgc growth 3YN/A
ROICexgc 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-Score7
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | -525.65% | ||
| Cap/Sales | 0.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 241.33% | ||
| Profit Quality | 235.95% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 6.28 |
F-Score7
WACC10.58%
ROIC/WACC1.88
Cap/Depr(3y)184.02%
Cap/Depr(5y)124.31%
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)77.62%
EPS 3Y36.55%
EPS 5YN/A
EPS Q2Q%8.5%
EPS Next Y36.6%
EPS Next 2Y25.64%
EPS Next 3Y25.7%
EPS Next 5YN/A
Revenue 1Y (TTM)13.49%
Revenue growth 3Y19.72%
Revenue growth 5Y29.61%
Sales Q2Q%-2.28%
Revenue Next Year11.77%
Revenue Next 2Y19.63%
Revenue Next 3Y19.52%
Revenue Next 5YN/A
EBIT growth 1Y77.98%
EBIT growth 3Y18.95%
EBIT growth 5YN/A
EBIT Next Year96.69%
EBIT Next 3Y46.06%
EBIT Next 5YN/A
FCF growth 1Y114.02%
FCF growth 3Y81.34%
FCF growth 5Y28.2%
OCF growth 1Y112.35%
OCF growth 3Y80.71%
OCF growth 5Y25.61%
ARGAN INC / AGX FAQ
What is the fundamental rating for AGX stock?
ChartMill assigns a fundamental rating of 7 / 10 to AGX.
What is the valuation status for AGX stock?
ChartMill assigns a valuation rating of 4 / 10 to ARGAN INC (AGX). This can be considered as Fairly Valued.
How profitable is ARGAN INC (AGX) stock?
ARGAN INC (AGX) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for AGX stock?
The Price/Earnings (PE) ratio for ARGAN INC (AGX) is 36.9 and the Price/Book (PB) ratio is 10.31.
What is the expected EPS growth for ARGAN INC (AGX) stock?
The Earnings per Share (EPS) of ARGAN INC (AGX) is expected to grow by 36.6% in the next year.