ARGAN INC (AGX) Stock Fundamental Analysis
NYSE:AGX - US04010E1091 - Common Stock
237.83 USD
+10.8 (+4.76%)
237.6 USD
-0.23 (-0.1%)
We assign a fundamental rating of 7 out of 10 to AGX. AGX was compared to 53 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. This makes AGX very considerable 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.
AGX had positive earnings in each of the past 5 years.
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 12.64%, AGX belongs to the best of the industry, outperforming 83.02% of the companies in the same industry.
The Return On Equity of AGX (27.52%) is better than 79.25% of its industry peers.
AGX has a Return On Invested Capital of 20.53%. This is amongst the best in the industry. AGX outperforms 84.91% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AGX is below the industry average of 17.21%.
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's Profit Margin of 11.00% is amongst the best of the industry. AGX outperforms 88.68% of its industry peers.
AGX's Profit Margin has improved in the last couple of years.
AGX has a better Operating Margin (11.65%) than 81.13% of its industry peers.
In the last couple of years the Operating Margin of AGX has remained more or less at the same level.
Looking at the Gross Margin, with a value of 17.57%, AGX is in line with its industry, outperforming 52.83% of the companies in the same 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
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 6.95. This indicates that AGX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of AGX (6.95) is better than 88.68% 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 | 6.95 |
ROIC/WACC1.97
WACC10.41%
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.
AGX has a Current ratio of 1.75. This is amongst the best in the industry. AGX outperforms 81.13% of its industry peers.
A Quick Ratio of 1.74 indicates that AGX should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.74, AGX belongs to the best of the industry, outperforming 90.57% 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.
Looking at the last year, AGX shows a very strong growth in Revenue. The Revenue has grown by 45.09%.
The Revenue has been growing by 29.61% on average over the past years. This is a very strong growth!
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
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.
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 Y10.59%
EPS Next 2Y17.41%
EPS Next 3Y17.76%
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.
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 33.36.
Compared to the rest of the industry, the Price/Earnings ratio of AGX is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.84, AGX is valued a bit more expensive.
A Price/Forward Earnings ratio of 28.23 indicates a quite expensive valuation of AGX.
The rest of the industry has a similar Price/Forward Earnings ratio as AGX.
AGX is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.48, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.36 | ||
| Fwd PE | 28.23 |
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 71.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.17 | ||
| EV/EBITDA | 19.46 |
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 17.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.15
PEG (5Y)N/A
EPS Next 2Y17.41%
EPS Next 3Y17.76%
5. Dividend
5.1 Amount
AGX has a yearly dividend return of 0.62%, which is pretty low.
AGX's Dividend Yield is rather good when compared to the industry average which is at 1.58. AGX pays more dividend than 90.57% 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 2.32.
| 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 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
AGX pays out 19.29% of its income as dividend. This is a sustainable payout ratio.
The dividend of AGX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP19.29%
EPS Next 2Y17.41%
EPS Next 3Y17.76%
237.83
+10.8 (+4.76%)
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 Change-10.48%
Market Cap3.24B
Analysts77.14
Price Target232.56 (-2.22%)
Short Float %5.7%
Short Ratio1.89
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)52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)34.43%
EPS NY rev (1m)1.98%
EPS NY rev (3m)15.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)14.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.36 | ||
| Fwd PE | 28.23 | ||
| P/S | 3.56 | ||
| P/FCF | 18.17 | ||
| P/OCF | 17.52 | ||
| P/B | 8.91 | ||
| P/tB | 9.71 | ||
| EV/EBITDA | 19.46 |
EPS(TTM)7.13
EY3%
EPS(NY)8.42
Fwd EY3.54%
FCF(TTM)13.09
FCFY5.5%
OCF(TTM)13.58
OCFY5.71%
SpS66.73
BVpS26.68
TBVpS24.5
PEG (NY)3.15
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 | 6.95 |
F-Score8
WACC10.41%
ROIC/WACC1.97
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 Y10.59%
EPS Next 2Y17.41%
EPS Next 3Y17.76%
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 3Y39.63%
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%