ARGAN INC (AGX) Stock Fundamental Analysis
NYSE:AGX - New York Stock Exchange, Inc. - US04010E1091 - Common Stock - Currency: USD
AGX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 49 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 valued quite expensively, but it does show have an excellent growth rating. These ratings could make AGX a good candidate for growth and quality investing.
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.
Each year in the past 5 years AGX has been profitable.
Of the past 5 years AGX 4 years had a positive operating cash flow.
1.2 Ratios
AGX's Return On Assets of 12.64% is amongst the best of the industry. AGX outperforms 85.71% of its industry peers.
AGX's Return On Equity of 27.52% is fine compared to the rest of the industry. AGX outperforms 79.59% of its industry peers.
AGX has a better Return On Invested Capital (20.53%) than 87.76% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AGX is below the industry average of 16.87%.
The 3 year average ROIC (12.29%) for AGX is below the current ROIC(20.53%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 11.00%, AGX belongs to the best of the industry, outperforming 89.80% of the companies in the same industry.
AGX's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 11.65%, AGX belongs to the best of the industry, outperforming 81.63% 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.
AGX has a Gross Margin (17.57%) which is comparable to the rest of the industry.
AGX's Gross Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, AGX has more shares outstanding
AGX has less shares outstanding than it did 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
AGX has an Altman-Z score of 7.18. This indicates that AGX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.18, AGX belongs to the top of the industry, outperforming 91.84% 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 | 7.18 |
ROIC/WACC1.87
WACC10.99%
2.3 Liquidity
A Current Ratio of 1.75 indicates that AGX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.75, AGX belongs to the top of the industry, outperforming 83.67% of the companies in the same industry.
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.
The Quick ratio of AGX (1.74) is better than 91.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 153.74% over the past year.
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.
Based on estimates for the next years, AGX will show a quite strong growth in Revenue. The Revenue will grow by 16.47% on average per year.
EPS Next Y8.44%
EPS Next 2Y14.06%
EPS Next 3Y17.64%
EPS Next 5YN/A
Revenue Next Year14.2%
Revenue Next 2Y19.28%
Revenue Next 3Y16.47%
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
With a Price/Earnings ratio of 33.53, AGX can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of AGX is on the same level as its industry peers.
AGX is valuated rather expensively when we compare the Price/Earnings ratio to 26.73, which is the current average of the S&P500 Index.
AGX is valuated quite expensively with a Price/Forward Earnings ratio of 30.07.
AGX's Price/Forward Earnings is on the same level as the industry average.
AGX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 34.61, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.53 | ||
| Fwd PE | 30.07 |
4.2 Price Multiples
AGX's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, AGX is valued a bit cheaper than the industry average as 77.55% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.26 | ||
| EV/EBITDA | 20.92 |
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.
AGX's earnings are expected to grow with 17.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.97
PEG (5Y)N/A
EPS Next 2Y14.06%
EPS Next 3Y17.64%
5. Dividend
5.1 Amount
AGX has a yearly dividend return of 0.64%, which is pretty low.
Compared to an average industry Dividend Yield of 1.60, AGX pays a better dividend. On top of this AGX pays more dividend than 89.80% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, AGX's dividend is way lower than the S&P500 average.
| 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
19.29% 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.
DP19.29%
EPS Next 2Y14.06%
EPS Next 3Y17.64%
239.05
+10.97 (+4.81%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners87.01%
Inst Owner Change1.78%
Ins Owners2.56%
Ins Owner Change-10.61%
Market Cap3.26B
Analysts77.14
Price Target232.56 (-2.71%)
Short Float %5.84%
Short Ratio1.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
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)0%
PT rev (3m)52%
EPS NQ rev (1m)11.95%
EPS NQ rev (3m)34.43%
EPS NY rev (1m)0%
EPS NY rev (3m)13.59%
Revenue NQ rev (1m)6.33%
Revenue NQ rev (3m)14.35%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.53 | ||
| Fwd PE | 30.07 | ||
| P/S | 3.58 | ||
| P/FCF | 18.26 | ||
| P/OCF | 17.61 | ||
| P/B | 8.96 | ||
| P/tB | 9.76 | ||
| EV/EBITDA | 20.92 |
EPS(TTM)7.13
EY2.98%
EPS(NY)7.95
Fwd EY3.33%
FCF(TTM)13.09
FCFY5.48%
OCF(TTM)13.58
OCFY5.68%
SpS66.73
BVpS26.68
TBVpS24.5
PEG (NY)3.97
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 | 7.18 |
F-Score8
WACC10.99%
ROIC/WACC1.87
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 Year14.2%
Revenue Next 2Y19.28%
Revenue Next 3Y16.47%
Revenue Next 5YN/A
EBIT growth 1Y169.75%
EBIT growth 3Y18.95%
EBIT growth 5YN/A
EBIT Next Year69.35%
EBIT Next 3Y35.95%
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%