ARGAN INC (AGX) Stock Fundamental Analysis
NYSE:AGX - New York Stock Exchange, Inc. - US04010E1091 - Common Stock - Currency: USD
Overall AGX gets a fundamental rating of 7 out of 10. We evaluated AGX against 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 shows excellent growth, but is valued quite expensive already. With these ratings, AGX could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year AGX was profitable.
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 better Return On Assets (12.64%) than 86.54% of its industry peers.
With an excellent Return On Equity value of 27.52%, AGX belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.
AGX has a better Return On Invested Capital (20.53%) than 88.46% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AGX is below the industry average of 16.67%.
The last Return On Invested Capital (20.53%) for AGX is above the 3 year average (12.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.64% | ||
| ROE | 27.52% | ||
| ROIC | 20.53% |
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 has a Profit Margin of 11.00%. This is amongst the best in the industry. AGX outperforms 90.38% of its industry peers.
In the last couple of years the Profit Margin of AGX has grown nicely.
The Operating Margin of AGX (11.65%) is better than 84.62% of its industry peers.
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 (17.57%) 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 | 11.65% | ||
| PM (TTM) | 11% | ||
| GM | 17.57% |
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.
AGX has less shares outstanding than it did 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 6.83 indicates that AGX is not in any danger for bankruptcy at the moment.
AGX has a Altman-Z score of 6.83. This is amongst the best in the industry. AGX outperforms 86.54% 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 | 6.83 |
ROIC/WACC2.03
WACC10.11%
2.3 Liquidity
AGX has a Current Ratio of 1.75. 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 (1.75) is better than 84.62% of its industry peers.
AGX has a Quick Ratio of 1.74. This is a normal value and indicates that AGX is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.74, AGX belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
AGX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 153.74%, which is quite impressive.
The Earnings Per Share has been growing by 36.55% on average over the past years. This is a very strong growth
Looking at the last year, AGX shows a very strong growth in Revenue. The Revenue has grown by 45.09%.
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)153.74%
EPS 3Y36.55%
EPS 5YN/A
EPS Q2Q%175.86%
Revenue 1Y (TTM)45.09%
Revenue growth 3Y19.72%
Revenue growth 5Y29.61%
Sales Q2Q%22.82%
3.2 Future
Based on estimates for the next years, AGX will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.64% on average per year.
The Revenue is expected to grow by 13.49% on average over the next years. This is quite good.
EPS Next Y8.44%
EPS Next 2Y14.06%
EPS Next 3Y17.64%
EPS Next 5YN/A
Revenue Next Year14.35%
Revenue Next 2Y16.33%
Revenue Next 3Y13.49%
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.
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 30.92.
AGX's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.15. AGX is around the same levels.
Based on the Price/Forward Earnings ratio of 27.74, the valuation of AGX can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as AGX.
The average S&P500 Price/Forward Earnings ratio is at 21.60. AGX is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.92 | ||
| Fwd PE | 27.74 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AGX.
AGX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AGX is cheaper than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.84 | ||
| EV/EBITDA | 18.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 17.64% in the coming years.
PEG (NY)3.66
PEG (5Y)N/A
EPS Next 2Y14.06%
EPS Next 3Y17.64%
5. Dividend
5.1 Amount
AGX has a yearly dividend return of 0.70%, which is pretty low.
AGX's Dividend Yield is rather good when compared to the industry average which is at 1.75. AGX pays more dividend than 90.38% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, AGX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
5.2 History
The dividend of AGX is nicely growing with an annual growth rate of 6.33%!
AGX has been paying a dividend for at least 10 years, so it has 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 19.29% of its income as dividend. This is a sustainable payout ratio.
AGX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP19.29%
EPS Next 2Y14.06%
EPS Next 3Y17.64%
220.48
+0.74 (+0.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners86.34%
Inst Owner Change-0.19%
Ins Owners2.45%
Ins Owner Change-3.69%
Market Cap3.01B
Analysts76.67
Price Target232.56 (5.48%)
Short Float %5.22%
Short Ratio1.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Yearly Dividend1.36
Dividend Growth(5Y)6.33%
DP19.29%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)68.65%
Min EPS beat(2)45.34%
Max EPS beat(2)91.97%
EPS beat(4)4
Avg EPS beat(4)57.04%
Min EPS beat(4)33.71%
Max EPS beat(4)91.97%
EPS beat(8)7
Avg EPS beat(8)28.25%
EPS beat(12)8
Avg EPS beat(12)13.77%
EPS beat(16)11
Avg EPS beat(16)19.75%
Revenue beat(2)1
Avg Revenue beat(2)7.75%
Min Revenue beat(2)-1.04%
Max Revenue beat(2)16.54%
Revenue beat(4)3
Avg Revenue beat(4)15.43%
Min Revenue beat(4)-1.04%
Max Revenue beat(4)23.76%
Revenue beat(8)5
Avg Revenue beat(8)9.7%
Revenue beat(12)5
Avg Revenue beat(12)3.8%
Revenue beat(16)6
Avg Revenue beat(16)2.25%
PT rev (1m)52%
PT rev (3m)52%
EPS NQ rev (1m)20.08%
EPS NQ rev (3m)30.8%
EPS NY rev (1m)13.59%
EPS NY rev (3m)22.62%
Revenue NQ rev (1m)7.55%
Revenue NQ rev (3m)18.51%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)6.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.92 | ||
| Fwd PE | 27.74 | ||
| P/S | 3.3 | ||
| P/FCF | 16.84 | ||
| P/OCF | 16.24 | ||
| P/B | 8.26 | ||
| P/tB | 9 | ||
| EV/EBITDA | 18.67 |
EPS(TTM)7.13
EY3.23%
EPS(NY)7.95
Fwd EY3.61%
FCF(TTM)13.09
FCFY5.94%
OCF(TTM)13.58
OCFY6.16%
SpS66.73
BVpS26.68
TBVpS24.5
PEG (NY)3.66
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.64% | ||
| ROE | 27.52% | ||
| ROCE | 28.72% | ||
| ROIC | 20.53% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 11.65% | ||
| PM (TTM) | 11% | ||
| GM | 17.57% | ||
| FCFM | 19.62% |
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-Score8
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 99.78% | ||
| Cap/Sales | 0.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 164.34% | ||
| Profit Quality | 178.31% | ||
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.74 | ||
| Altman-Z | 6.83 |
F-Score8
WACC10.11%
ROIC/WACC2.03
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)153.74%
EPS 3Y36.55%
EPS 5YN/A
EPS Q2Q%175.86%
EPS Next Y8.44%
EPS Next 2Y14.06%
EPS Next 3Y17.64%
EPS Next 5YN/A
Revenue 1Y (TTM)45.09%
Revenue growth 3Y19.72%
Revenue growth 5Y29.61%
Sales Q2Q%22.82%
Revenue Next Year14.35%
Revenue Next 2Y16.33%
Revenue Next 3Y13.49%
Revenue Next 5YN/A
EBIT growth 1Y169.75%
EBIT growth 3Y18.95%
EBIT growth 5YN/A
EBIT Next Year38.05%
EBIT Next 3Y30%
EBIT Next 5YN/A
FCF growth 1Y3781.2%
FCF growth 3Y81.34%
FCF growth 5Y28.2%
OCF growth 1Y2104.65%
OCF growth 3Y80.71%
OCF growth 5Y25.61%