ARGAN INC (AGX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AGX - US04010E1091 - Common Stock
337.9 USD
+12.31 (+3.78%)
337.9 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to AGX. AGX was compared to 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! 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.
AGX had a positive operating cash flow in the past year.
In the past 5 years AGX has always been profitable.
Of the past 5 years AGX 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AGX (11.41%) is better than 79.63% of its industry peers.
Looking at the Return On Equity, with a value of 28.57%, AGX is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
With an excellent Return On Invested Capital value of 19.85%, AGX belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
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
With an excellent Profit Margin value of 13.11%, AGX belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
AGX's Profit Margin has improved in the last couple of years.
AGX has a better Operating Margin (13.08%) than 85.19% of its industry peers.
In the last couple of years the Operating Margin of AGX has remained more or less at the same level.
AGX has a Gross Margin (19.20%) which 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
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 6.60 indicates that AGX is not in any danger for bankruptcy at the moment.
AGX's Altman-Z score of 6.60 is amongst the best of the industry. AGX outperforms 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 | 6.6 |
ROIC/WACC1.86
WACC10.69%
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.
AGX has a better Current ratio (1.61) 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
The Earnings Per Share has grown by an impressive 77.62% 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.
AGX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.49%.
Measured over the past years, AGX shows a very strong growth in Revenue. The Revenue has been growing by 29.61% on average per year.
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
AGX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.61% yearly.
The Revenue is expected to grow by 16.35% on average over the next years. This is quite good.
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
AGX is valuated quite expensively with a Price/Earnings ratio of 39.80.
AGX's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.61, AGX is valued a bit more expensive.
With a Price/Forward Earnings ratio of 35.76, AGX can be considered very expensive at the moment.
AGX's Price/Forward Earnings is on the same level as the industry average.
AGX's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.8 | ||
| Fwd PE | 35.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AGX is valued a bit more expensive than the industry average as 62.96% of the companies are valued more cheaply.
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 | 16.49 | ||
| EV/EBITDA | 29.59 |
4.3 Compensation for Growth
AGX's 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)1.35
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
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 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 2Y24.35%
EPS Next 3Y26.61%
337.9
+12.31 (+3.78%)
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 Cap4.67B
Revenue(TTM)915.03M
Net Income(TTM)119.93M
Analysts74.29
Price Target348.64 (3.18%)
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 | 39.8 | ||
| Fwd PE | 35.76 | ||
| P/S | 5.1 | ||
| P/FCF | 16.49 | ||
| P/OCF | 16.26 | ||
| P/B | 11.12 | ||
| P/tB | 11.96 | ||
| EV/EBITDA | 29.59 |
EPS(TTM)8.49
EY2.51%
EPS(NY)9.45
Fwd EY2.8%
FCF(TTM)20.49
FCFY6.06%
OCF(TTM)20.78
OCFY6.15%
SpS66.26
BVpS30.39
TBVpS28.25
PEG (NY)1.35
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 | 6.6 |
F-Score7
WACC10.69%
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 39.8 and the Price/Book (PB) ratio is 11.12.
What is the financial health of ARGAN INC (AGX) stock?
The financial health rating of ARGAN INC (AGX) is 8 / 10.