ARGAN INC (AGX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AGX - US04010E1091 - Common Stock
395.2 USD
+14.58 (+3.83%)
396 USD
+0.8 (+0.2%)
Overall AGX gets a fundamental rating of 7 out of 10. We evaluated AGX against 55 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. This makes AGX very considerable 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.
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
With an excellent Return On Assets value of 13.28%, AGX belongs to the best of the industry, outperforming 87.27% of the companies in the same industry.
The Return On Equity of AGX (29.81%) is better than 80.00% of its industry peers.
With an excellent Return On Invested Capital value of 21.07%, AGX belongs to the best of the industry, outperforming 85.45% of the companies in the same industry.
AGX had an Average Return On Invested Capital over the past 3 years of 12.29%. This is below the industry average of 17.27%.
The 3 year average ROIC (12.29%) for AGX is below the current ROIC(21.07%), indicating increased profibility in the last year.
| 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
AGX's Profit Margin of 12.73% is amongst the best of the industry. AGX outperforms 89.09% of its industry peers.
In the last couple of years the Profit Margin of AGX has grown nicely.
Looking at the Operating Margin, with a value of 12.75%, AGX belongs to the top of the industry, outperforming 87.27% 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 of 18.79%. This is comparable to the rest of the industry: AGX outperforms 54.55% of its industry peers.
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.
The number of shares outstanding for AGX has been increased compared to 1 year ago.
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
An Altman-Z score of 8.93 indicates that AGX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.93, AGX belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
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 | 8.93 |
ROIC/WACC2.01
WACC10.47%
2.3 Liquidity
AGX has a Current Ratio of 1.71. 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 1.71. This is amongst the best in the industry. AGX outperforms 81.82% of its industry peers.
A Quick Ratio of 1.71 indicates that AGX should not have too much problems paying its short term obligations.
The Quick ratio of AGX (1.71) is better than 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 161.64% 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.
Looking at the last year, AGX shows a very strong growth in Revenue. The Revenue has grown by 29.16%.
AGX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.61% yearly.
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
Based on estimates for the next years, AGX will show a very strong growth in Earnings Per Share. The EPS will grow by 25.26% on average per year.
The Revenue is expected to grow by 19.07% on average over the next years. This is quite good.
EPS Next Y29.49%
EPS Next 2Y19.18%
EPS Next 3Y25.26%
EPS Next 5YN/A
Revenue Next Year13.56%
Revenue Next 2Y17.14%
Revenue Next 3Y19.07%
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
AGX is valuated quite expensively with a Price/Earnings ratio of 47.50.
AGX's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of AGX to the average of the S&P500 Index (26.15), we can say AGX is valued expensively.
A Price/Forward Earnings ratio of 45.53 indicates a quite expensive valuation of 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 (36.12), we can say AGX is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.5 | ||
| Fwd PE | 45.53 |
4.2 Price Multiples
63.64% of the companies in the same industry are cheaper than AGX, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as AGX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.9 | ||
| EV/EBITDA | 36.46 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of AGX may justify a higher PE ratio.
A more expensive valuation may be justified as AGX's earnings are expected to grow with 25.26% in the coming years.
PEG (NY)1.61
PEG (5Y)N/A
EPS Next 2Y19.18%
EPS Next 3Y25.26%
5. Dividend
5.1 Amount
AGX has a yearly dividend return of 0.57%, which is pretty low.
Compared to an average industry Dividend Yield of 1.73, AGX pays a better dividend. On top of this AGX pays more dividend than 89.09% of the companies listed in the same industry.
With a Dividend Yield of 0.57, AGX pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
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 2Y19.18%
EPS Next 3Y25.26%
395.2
+14.58 (+3.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners89.18%
Inst Owner Change2.33%
Ins Owners2.53%
Ins Owner Change-11.49%
Market Cap5.46B
Revenue(TTM)920.88M
Net Income(TTM)117.20M
Analysts74.29
Price Target321.5 (-18.65%)
Short Float %5.65%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
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)27.35%
PT rev (3m)38.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.57%
EPS NY rev (1m)0%
EPS NY rev (3m)17.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.5 | ||
| Fwd PE | 45.53 | ||
| P/S | 5.93 | ||
| P/FCF | 38.9 | ||
| P/OCF | 37.31 | ||
| P/B | 13.88 | ||
| P/tB | 15.01 | ||
| EV/EBITDA | 36.46 |
EPS(TTM)8.32
EY2.11%
EPS(NY)8.68
Fwd EY2.2%
FCF(TTM)10.16
FCFY2.57%
OCF(TTM)10.59
OCFY2.68%
SpS66.68
BVpS28.47
TBVpS26.32
PEG (NY)1.61
PEG (5Y)N/A
Graham Number73
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%
ROICexgc growth 3YN/A
ROICexgc 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 | 2325.97% | ||
| Cap/Sales | 0.65% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 124.35% | ||
| Profit Quality | 119.7% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 8.93 |
F-Score9
WACC10.47%
ROIC/WACC2.01
Cap/Depr(3y)184.02%
Cap/Depr(5y)124.31%
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 Y29.49%
EPS Next 2Y19.18%
EPS Next 3Y25.26%
EPS Next 5YN/A
Revenue 1Y (TTM)29.16%
Revenue growth 3Y19.72%
Revenue growth 5Y29.61%
Sales Q2Q%4.73%
Revenue Next Year13.56%
Revenue Next 2Y17.14%
Revenue Next 3Y19.07%
Revenue Next 5YN/A
EBIT growth 1Y162.16%
EBIT growth 3Y18.95%
EBIT growth 5YN/A
EBIT Next Year80.79%
EBIT Next 3Y48.94%
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%
ARGAN INC / AGX FAQ
What is the fundamental rating for AGX stock?
ChartMill assigns a fundamental rating of 7 / 10 to AGX.
What is the valuation status of ARGAN INC (AGX) stock?
ChartMill assigns a valuation rating of 2 / 10 to ARGAN INC (AGX). This can be considered as Overvalued.
How profitable is ARGAN INC (AGX) stock?
ARGAN INC (AGX) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for AGX stock?
The Price/Earnings (PE) ratio for ARGAN INC (AGX) is 47.5 and the Price/Book (PB) ratio is 13.88.
What is the financial health of ARGAN INC (AGX) stock?
The financial health rating of ARGAN INC (AGX) is 8 / 10.