ARGAN INC (AGX) Stock Fundamental Analysis
USA - NYSE:AGX - US04010E1091 - Common Stock
258.17 USD
-2.39 (-0.92%)
263.16 USD
+4.99 (+1.93%)
Taking everything into account, AGX scores 7 out of 10 in our fundamental rating. AGX was compared to 52 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 valued quite expensive, but it does show an excellent growth. These ratings would make AGX suitable 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.
AGX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
AGX has a better Return On Assets (13.28%) than 88.46% of its industry peers.
The Return On Equity of AGX (29.81%) is better than 78.85% of its industry peers.
AGX has a Return On Invested Capital of 21.07%. This is amongst the best in the industry. AGX outperforms 84.62% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AGX is below the industry average of 17.22%.
The last Return On Invested Capital (21.07%) for AGX is above the 3 year average (12.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.28% | ||
| ROE | 29.81% | ||
| ROIC | 21.07% |
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 12.73%, AGX belongs to the top of the industry, outperforming 88.46% of the companies in the same industry.
AGX's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.75%, AGX belongs to the top of the industry, outperforming 88.46% 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.
The Gross Margin of AGX (18.79%) 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 | 12.75% | ||
| PM (TTM) | 12.73% | ||
| GM | 18.79% |
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.
AGX has more shares outstanding than it did 1 year ago.
The number of shares outstanding for AGX has been reduced compared to 5 years ago.
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
An Altman-Z score of 6.86 indicates that AGX is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.86, AGX belongs to the best of the industry, outperforming 90.38% of the companies in the same industry.
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 | 6.86 |
ROIC/WACC2.06
WACC10.23%
2.3 Liquidity
A Current Ratio of 1.71 indicates that AGX should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.71, AGX is doing good in the industry, outperforming 78.85% of the companies in the same industry.
A Quick Ratio of 1.71 indicates that AGX should not have too much problems paying its short term obligations.
AGX's Quick ratio of 1.71 is amongst the best of the industry. AGX outperforms 88.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
AGX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 161.64%, 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.
The Revenue has grown by 29.16% in the past year. This is a very strong growth!
The Revenue has been growing by 29.61% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)161.64%
EPS 3Y36.55%
EPS 5YN/A
EPS Q2Q%90.84%
Revenue 1Y (TTM)29.16%
Revenue growth 3Y19.72%
Revenue growth 5Y29.61%
Sales Q2Q%4.73%
3.2 Future
AGX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.76% yearly.
AGX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.67% yearly.
EPS Next Y10.59%
EPS Next 2Y17.41%
EPS Next 3Y17.76%
EPS Next 5YN/A
Revenue Next Year15.35%
Revenue Next 2Y18.04%
Revenue Next 3Y16.67%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 31.03 indicates a quite expensive valuation of AGX.
AGX's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of AGX to the average of the S&P500 Index (27.06), we can say AGX is valued inline with the index average.
A Price/Forward Earnings ratio of 30.65 indicates a quite expensive valuation of AGX.
AGX's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of AGX to the average of the S&P500 Index (22.64), we can say AGX is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.03 | ||
| Fwd PE | 30.65 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AGX is on the same level as its industry peers.
AGX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AGX is cheaper than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.41 | ||
| EV/EBITDA | 21.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AGX does not grow enough to justify the current Price/Earnings ratio.
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 17.76% in the coming years.
PEG (NY)2.93
PEG (5Y)N/A
EPS Next 2Y17.41%
EPS Next 3Y17.76%
5. Dividend
5.1 Amount
AGX has a yearly dividend return of 0.77%, which is pretty low.
Compared to an average industry Dividend Yield of 1.54, AGX pays a better dividend. On top of this AGX pays more dividend than 94.23% of the companies listed in the same industry.
With a Dividend Yield of 0.77, AGX pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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
17.45% of the earnings are spent on dividend by AGX. This is a low number and sustainable payout ratio.
The dividend of AGX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP17.45%
EPS Next 2Y17.41%
EPS Next 3Y17.76%
258.17
-2.39 (-0.92%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners87.01%
Inst Owner Change6.46%
Ins Owners2.56%
Ins Owner Change1.06%
Market Cap3.57B
Analysts77.14
Price Target252.45 (-2.22%)
Short Float %5.59%
Short Ratio1.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
Yearly Dividend1.36
Dividend Growth(5Y)6.33%
DP17.45%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)48.13%
Min EPS beat(2)45.34%
Max EPS beat(2)50.93%
EPS beat(4)4
Avg EPS beat(4)61.35%
Min EPS beat(4)45.34%
Max EPS beat(4)91.97%
EPS beat(8)7
Avg EPS beat(8)31.5%
EPS beat(12)9
Avg EPS beat(12)19.92%
EPS beat(16)11
Avg EPS beat(16)18.74%
Revenue beat(2)0
Avg Revenue beat(2)-2.28%
Min Revenue beat(2)-3.52%
Max Revenue beat(2)-1.04%
Revenue beat(4)2
Avg Revenue beat(4)8.94%
Min Revenue beat(4)-3.52%
Max Revenue beat(4)23.76%
Revenue beat(8)5
Avg Revenue beat(8)9.32%
Revenue beat(12)5
Avg Revenue beat(12)3.51%
Revenue beat(16)6
Avg Revenue beat(16)2.15%
PT rev (1m)8.55%
PT rev (3m)8.55%
EPS NQ rev (1m)8.57%
EPS NQ rev (3m)4.62%
EPS NY rev (1m)0%
EPS NY rev (3m)1.98%
Revenue NQ rev (1m)1.86%
Revenue NQ rev (3m)-2.27%
Revenue NY rev (1m)1.01%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.03 | ||
| Fwd PE | 30.65 | ||
| P/S | 3.87 | ||
| P/FCF | 25.41 | ||
| P/OCF | 24.37 | ||
| P/B | 9.07 | ||
| P/tB | 9.81 | ||
| EV/EBITDA | 21.03 |
EPS(TTM)8.32
EY3.22%
EPS(NY)8.42
Fwd EY3.26%
FCF(TTM)10.16
FCFY3.94%
OCF(TTM)10.59
OCFY4.1%
SpS66.68
BVpS28.47
TBVpS26.32
PEG (NY)2.93
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.28% | ||
| ROE | 29.81% | ||
| ROCE | 29.47% | ||
| ROIC | 21.07% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 12.75% | ||
| PM (TTM) | 12.73% | ||
| GM | 18.79% | ||
| FCFM | 15.24% |
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%
ROICexcg growth 3YN/A
ROICexcg 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-Score9
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 97.36% | ||
| Cap/Sales | 0.65% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 118.4% | ||
| Profit Quality | 119.7% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 6.86 |
F-Score9
WACC10.23%
ROIC/WACC2.06
Cap/Depr(3y)90.71%
Cap/Depr(5y)68.33%
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)161.64%
EPS 3Y36.55%
EPS 5YN/A
EPS Q2Q%90.84%
EPS Next Y10.59%
EPS Next 2Y17.41%
EPS Next 3Y17.76%
EPS Next 5YN/A
Revenue 1Y (TTM)29.16%
Revenue growth 3Y19.72%
Revenue growth 5Y29.61%
Sales Q2Q%4.73%
Revenue Next Year15.35%
Revenue Next 2Y18.04%
Revenue Next 3Y16.67%
Revenue Next 5YN/A
EBIT growth 1Y162.16%
EBIT growth 3Y18.95%
EBIT growth 5YN/A
EBIT Next Year69.35%
EBIT Next 3Y39.63%
EBIT Next 5YN/A
FCF growth 1Y144%
FCF growth 3Y81.34%
FCF growth 5Y28.2%
OCF growth 1Y138.66%
OCF growth 3Y80.71%
OCF growth 5Y25.61%