ARGAN INC (AGX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AGX - US04010E1091 - Common Stock
325.59 USD
+11.69 (+3.72%)
325.59 USD
0 (0%)
Taking everything into account, AGX scores 7 out of 10 in our fundamental rating. AGX was compared to 54 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 showing excellent growth while it is valued at reasonable prices. 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
AGX has a Return On Assets of 11.41%. This is in the better half of the industry: AGX outperforms 79.63% of its industry peers.
The Return On Equity of AGX (28.57%) is better than 77.78% of its industry peers.
AGX has a Return On Invested Capital of 19.85%. This is amongst the best in the industry. AGX outperforms 83.33% of its industry peers.
AGX had an Average Return On Invested Capital over the past 3 years of 12.29%. This is significantly below the industry average of 18.23%.
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
Looking at the Profit Margin, with a value of 13.11%, AGX belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
In the last couple of years the Profit Margin of AGX has grown nicely.
Looking at the Operating Margin, with a value of 13.08%, AGX belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
AGX's Operating Margin has been stable in the last couple of years.
The Gross Margin of AGX (19.20%) is comparable to the rest of the industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AGX is creating value.
AGX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AGX has less shares outstanding
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 6.44 indicates that AGX is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.44, AGX belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
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 | 6.44 |
ROIC/WACC1.86
WACC10.68%
2.3 Liquidity
AGX has a Current Ratio of 1.61. This is a normal value and indicates that AGX is financially healthy and should not expect problems in meeting 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.
The Quick ratio of AGX (1.60) is better than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
AGX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 77.62%, which is quite impressive.
AGX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.55% yearly.
Looking at the last year, AGX shows a quite strong growth in Revenue. The Revenue has grown by 13.49% in the last year.
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
Based on estimates for the next years, AGX will show a very strong growth in Earnings Per Share. The EPS will grow by 26.61% on average per year.
Based on estimates for the next years, AGX will show a quite strong growth in Revenue. The Revenue will grow by 16.35% on average per year.
EPS Next Y29.49%
EPS Next 2Y24.35%
EPS Next 3Y26.61%
EPS Next 5YN/A
Revenue Next Year14.92%
Revenue Next 2Y16.58%
Revenue Next 3Y16.35%
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
The Price/Earnings ratio is 38.35, which means the current valuation is very expensive for AGX.
AGX's Price/Earnings is on the same level as the industry average.
AGX is valuated rather expensively when we compare the Price/Earnings ratio to 26.39, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 34.46, the valuation of AGX can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as AGX.
AGX's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.35 | ||
| Fwd PE | 34.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AGX is valued a bit more expensive than 61.11% of the companies in the same industry.
AGX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AGX is cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.89 | ||
| EV/EBITDA | 28.16 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 26.61% in the coming years.
PEG (NY)1.3
PEG (5Y)N/A
EPS Next 2Y24.35%
EPS Next 3Y26.61%
5. Dividend
5.1 Amount
With a yearly dividend of 0.64%, 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 0.41. AGX pays more dividend than 88.89% of the companies in the same industry.
With a Dividend Yield of 0.64, AGX pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
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
18.60% 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.
DP18.6%
EPS Next 2Y24.35%
EPS Next 3Y26.61%
325.59
+11.69 (+3.72%)
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-11.84%
Market Cap4.50B
Revenue(TTM)915.03M
Net Income(TTM)119.93M
Analysts74.29
Price Target348.64 (7.08%)
Short Float %4.48%
Short Ratio1.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
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)28.86%
PT rev (3m)38.1%
EPS NQ rev (1m)0.89%
EPS NQ rev (3m)-0.96%
EPS NY rev (1m)0%
EPS NY rev (3m)17.09%
Revenue NQ rev (1m)-4.45%
Revenue NQ rev (3m)-9.1%
Revenue NY rev (1m)1.2%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.35 | ||
| Fwd PE | 34.46 | ||
| P/S | 4.91 | ||
| P/FCF | 15.89 | ||
| P/OCF | 15.67 | ||
| P/B | 10.71 | ||
| P/tB | 11.52 | ||
| EV/EBITDA | 28.16 |
EPS(TTM)8.49
EY2.61%
EPS(NY)9.45
Fwd EY2.9%
FCF(TTM)20.49
FCFY6.29%
OCF(TTM)20.78
OCFY6.38%
SpS66.26
BVpS30.39
TBVpS28.25
PEG (NY)1.3
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 | 6.44 |
F-Score7
WACC10.68%
ROIC/WACC1.86
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 Y29.49%
EPS Next 2Y24.35%
EPS Next 3Y26.61%
EPS Next 5YN/A
Revenue 1Y (TTM)13.49%
Revenue growth 3Y19.72%
Revenue growth 5Y29.61%
Sales Q2Q%-2.28%
Revenue Next Year14.92%
Revenue Next 2Y16.58%
Revenue Next 3Y16.35%
Revenue Next 5YN/A
EBIT growth 1Y77.98%
EBIT growth 3Y18.95%
EBIT growth 5YN/A
EBIT Next Year86.72%
EBIT Next 3Y46.61%
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 of ARGAN INC (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 38.35 and the Price/Book (PB) ratio is 10.71.
What is the financial health of ARGAN INC (AGX) stock?
The financial health rating of ARGAN INC (AGX) is 8 / 10.