ARGAN INC (AGX)
US04010E1091 - Common Stock
Taking everything into account, AGX scores 6 out of 10 in our fundamental rating. AGX was compared to 43 industry peers in the Construction & Engineering industry. While AGX has a great health rating, its profitability is only average at the moment. AGX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year AGX was profitable.
In the past year AGX had a positive cash flow from operations.
AGX had positive earnings in 4 of the past 5 years.
AGX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of AGX (5.41%) is better than 81.40% of its industry peers.
AGX has a Return On Equity of 11.13%. This is in the better half of the industry: AGX outperforms 62.79% of its industry peers.
AGX has a Return On Invested Capital of 8.70%. This is in the better half of the industry: AGX outperforms 74.42% 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 8.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.41% | ||
| ROE | 11.13% | ||
| ROIC | 8.7% |
ROA(3y)6.36%
ROA(5y)2.86%
ROE(3y)11.54%
ROE(5y)5.89%
ROIC(3y)10.07%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 5.65%, AGX is in the better half of the industry, outperforming 76.74% of the companies in the same industry.
In the last couple of years the Profit Margin of AGX has declined.
AGX's Operating Margin of 6.35% is fine compared to the rest of the industry. AGX outperforms 62.79% of its industry peers.
AGX's Operating Margin has declined in the last couple of years.
AGX's Gross Margin of 14.09% is in line compared to the rest of the industry. AGX outperforms 46.51% of its industry peers.
In the last couple of years the Gross Margin of AGX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.35% | ||
| PM (TTM) | 5.65% | ||
| GM | 14.09% |
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) just above the Cost of Capital (WACC), AGX is creating some value.
AGX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AGX has less shares outstanding
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 3.88. This indicates that AGX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of AGX (3.88) is better than 72.09% 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 | 3.88 |
ROIC/WACC0.92
WACC9.5%
2.3 Liquidity
AGX has a Current Ratio of 1.81. 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 Current ratio of 1.81. This is amongst the best in the industry. AGX outperforms 83.72% of its industry peers.
A Quick Ratio of 1.81 indicates that AGX should not have too much problems paying its short term obligations.
AGX has a Quick ratio of 1.81. This is amongst the best in the industry. AGX outperforms 90.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.27% 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 25.97%.
AGX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.52% yearly.
EPS 1Y (TTM)1.27%
EPS 3Y16.54%
EPS 5Y-6.92%
EPS growth Q2Q-11%
Revenue 1Y (TTM)25.97%
Revenue growth 3Y13.49%
Revenue growth 5Y3.52%
Revenue growth Q2Q38.51%
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 28.79% on average per year.
AGX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.23% yearly.
EPS Next Y40.3%
EPS Next 2Y28.79%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.9%
Revenue Next 2Y11.23%
Revenue Next 3YN/A
Revenue Next 5YN/A
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
AGX is valuated quite expensively with a Price/Earnings ratio of 27.59.
Compared to the rest of the industry, the Price/Earnings ratio of AGX indicates a somewhat cheap valuation: AGX is cheaper than 60.47% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AGX to the average of the S&P500 Index (28.60), we can say AGX is valued inline with the index average.
AGX is valuated rather expensively with a Price/Forward Earnings ratio of 19.66.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AGX is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of AGX to the average of the S&P500 Index (20.15), we can say AGX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.59 | ||
| Fwd PE | 19.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AGX is valued cheaply inside the industry as 97.67% of the companies are valued more expensively.
95.35% 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 | 7.65 | ||
| EV/EBITDA | 6.32 |
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.
AGX's earnings are expected to grow with 28.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.68
PEG (5Y)N/A
EPS Next 2Y28.79%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.81%, AGX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.89, AGX pays a better dividend. On top of this AGX pays more dividend than 95.35% of the companies listed in the same industry.
AGX's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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 decreased its dividend in the last 3 years.
Dividend Growth(5Y)1.97%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
45.34% of the earnings are spent on dividend by AGX. This is a bit on the high side, but may be sustainable.
AGX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP45.34%
EPS Next 2Y28.79%
EPS Next 3YN/A
ARGAN INC
NYSE:AGX (5/17/2024, 7:04:00 PM)
After market: 65.94 0 (0%)65.94
-0.38 (-0.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap873.05M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.59 | ||
| Fwd PE | 19.66 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.68
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.41% | ||
| ROE | 11.13% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.35% | ||
| PM (TTM) | 5.65% | ||
| GM | 14.09% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.81 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)1.27%
EPS 3Y16.54%
EPS 5Y
EPS growth Q2Q
EPS Next Y40.3%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)25.97%
Revenue growth 3Y13.49%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y