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 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 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
In the past year AGX was profitable.
In the past year AGX had a positive cash flow from operations.
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
With an excellent Return On Assets value of 12.64%, AGX belongs to the best of the industry, outperforming 86.54% of the companies in the same industry.
AGX has a Return On Equity of 27.52%. This is amongst the best in the industry. AGX outperforms 80.77% of its industry peers.
AGX has a better Return On Invested Capital (20.53%) than 88.46% of its industry peers.
AGX had an Average Return On Invested Capital over the past 3 years of 12.29%. This is below the industry average of 16.61%.
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
Looking at the Profit Margin, with a value of 11.00%, AGX belongs to the top of the industry, outperforming 90.38% of the companies in the same industry.
AGX's Profit Margin has improved in the last couple of years.
AGX's Operating Margin of 11.65% is amongst the best of the industry. AGX outperforms 86.54% 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 (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.
AGX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AGX has less shares outstanding
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 6.78. This indicates that AGX is financially healthy and has little risk of bankruptcy at the moment.
AGX's Altman-Z score of 6.78 is amongst the best of the industry. AGX outperforms 84.62% 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 | 6.78 |
ROIC/WACC1.99
WACC10.29%
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.
With an excellent Current ratio value of 1.75, AGX belongs to the best of the industry, outperforming 86.54% of the companies in the same industry.
A Quick Ratio of 1.74 indicates that AGX should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.74, AGX belongs to the top 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
The Earnings Per Share has grown by an impressive 153.74% over the past year.
AGX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.55% yearly.
AGX shows a strong growth in Revenue. In the last year, 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
The Earnings Per Share is expected to grow by 15.33% on average over the next years. This is quite good.
The Revenue is expected to grow by 12.69% on average over the next years. This is quite good.
EPS Next Y-4.54%
EPS Next 2Y9.93%
EPS Next 3Y15.33%
EPS Next 5YN/A
Revenue Next Year13.88%
Revenue Next 2Y16.08%
Revenue Next 3Y12.69%
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.
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
With a Price/Earnings ratio of 29.38, AGX can be considered very expensive at the moment.
AGX's Price/Earnings ratio is a bit cheaper when compared to the industry. AGX is cheaper than 61.54% of the companies in the same industry.
AGX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 28.37, which means the current valuation is very expensive for AGX.
The rest of the industry has a similar Price/Forward Earnings ratio as AGX.
When comparing the Price/Forward Earnings ratio of AGX to the average of the S&P500 Index (22.39), we can say AGX is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.38 | ||
| Fwd PE | 28.37 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AGX.
Based on the Price/Free Cash Flow ratio, AGX is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16 | ||
| EV/EBITDA | 18.36 |
4.3 Compensation for Growth
AGX has a very decent profitability rating, which may justify a higher PE ratio.
AGX's earnings are expected to grow with 15.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.93%
EPS Next 3Y15.33%
5. Dividend
5.1 Amount
AGX has a yearly dividend return of 0.62%, which is pretty low.
AGX's Dividend Yield is rather good when compared to the industry average which is at 1.83. AGX pays more dividend than 88.46% of the companies in the same industry.
With a Dividend Yield of 0.62, AGX pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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 2Y9.93%
EPS Next 3Y15.33%
209.45
-8.52 (-3.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners90.05%
Inst Owner Change-0.19%
Ins Owners6.78%
Ins Owner Change-4.22%
Market Cap2.86B
Analysts76.67
Price Target153 (-26.95%)
Short Float %4.85%
Short Ratio1.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)21.11%
EPS NY rev (1m)0%
EPS NY rev (3m)7.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.38 | ||
| Fwd PE | 28.37 | ||
| P/S | 3.14 | ||
| P/FCF | 16 | ||
| P/OCF | 15.43 | ||
| P/B | 7.85 | ||
| P/tB | 8.55 | ||
| EV/EBITDA | 18.36 |
EPS(TTM)7.13
EY3.4%
EPS(NY)7.38
Fwd EY3.52%
FCF(TTM)13.09
FCFY6.25%
OCF(TTM)13.58
OCFY6.48%
SpS66.73
BVpS26.68
TBVpS24.5
PEG (NY)N/A
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 | 6.78 |
F-Score8
WACC10.29%
ROIC/WACC1.99
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 Y-4.54%
EPS Next 2Y9.93%
EPS Next 3Y15.33%
EPS Next 5YN/A
Revenue 1Y (TTM)45.09%
Revenue growth 3Y19.72%
Revenue growth 5Y29.61%
Sales Q2Q%22.82%
Revenue Next Year13.88%
Revenue Next 2Y16.08%
Revenue Next 3Y12.69%
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%