ARGAN INC (AGX)
US04010E1091 - Common Stock
Taking everything into account, AGX scores 6 out of 10 in our fundamental rating. AGX was compared to 40 industry peers in the Construction & Engineering industry. AGX has an excellent financial health rating, but there are some minor concerns on its profitability. AGX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year AGX was profitable.
AGX had a positive operating cash flow in the past year.
Of the past 5 years AGX 4 years were profitable.
Of the past 5 years AGX 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.41%, AGX is in the better half of the industry, outperforming 77.50% of the companies in the same industry.
With a decent Return On Equity value of 11.13%, AGX is doing good in the industry, outperforming 72.50% of the companies in the same industry.
AGX has a Return On Invested Capital of 8.70%. This is in the better half of the industry: AGX outperforms 72.50% of its industry peers.
AGX had an Average Return On Invested Capital over the past 3 years of 10.07%. This is in line with the industry average of 8.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.41% | ||
| ROE | 11.13% | ||
| ROIC | 8.7% |
ROA(3y)6.36%
ROA(5y)2.86%
ROE(3y)11.54%
ROE(5y)5.89%
ROIC(3y)10.07%
ROIC(5y)N/A
1.3 Margins
AGX's Profit Margin of 5.65% is fine compared to the rest of the industry. AGX outperforms 80.00% of its industry peers.
In the last couple of years the Profit Margin of AGX has declined.
The Operating Margin of AGX (6.35%) is better than 67.50% of its industry peers.
In the last couple of years the Operating Margin of AGX has declined.
The Gross Margin of AGX (14.09%) 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 | 6.35% | ||
| PM (TTM) | 5.65% | ||
| GM | 14.09% |
OM growth 3Y2.74%
OM growth 5Y-5.96%
PM growth 3Y-2.52%
PM growth 5Y-12.15%
GM growth 3Y-3.79%
GM growth 5Y-3.77%
2. Health
2.1 Basic Checks
AGX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
AGX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AGX has less shares outstanding
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
AGX has an Altman-Z score of 3.76. This indicates that AGX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of AGX (3.76) is better than 72.50% 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 | 3.76 |
ROIC/WACC0.89
WACC9.78%
2.3 Liquidity
AGX has a Current Ratio of 1.81. 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 better Current ratio (1.81) than 85.00% of its industry peers.
AGX has a Quick Ratio of 1.81. 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 (1.81) is better than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
AGX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.27%.
Measured over the past years, AGX shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.92% on average per year.
AGX shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.97%.
The Revenue has been growing slightly by 3.52% on average over the past years.
EPS 1Y (TTM)1.27%
EPS 3Y16.54%
EPS 5Y-6.92%
EPS growth Q2Q-11%
Revenue 1Y (TTM)25.97%
Revenue growth 3Y13.49%
Revenue growth 5Y3.52%
Revenue growth Q2Q38.51%
3.2 Future
The Earnings Per Share is expected to grow by 28.79% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 11.23% on average over the next years. This is quite good.
EPS Next Y40.3%
EPS Next 2Y28.79%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.9%
Revenue Next 2Y11.23%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AGX is valuated quite expensively with a Price/Earnings ratio of 25.93.
AGX's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 24.92. AGX is around the same levels.
A Price/Forward Earnings ratio of 18.48 indicates a rather expensive valuation of AGX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AGX indicates a somewhat cheap valuation: AGX is cheaper than 65.00% of the companies listed in the same industry.
AGX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.93 | ||
| Fwd PE | 18.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AGX is valued cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AGX is valued cheaper than 95.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.19 | ||
| EV/EBITDA | 4.71 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AGX's earnings are expected to grow with 28.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.64
PEG (5Y)N/A
EPS Next 2Y28.79%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.97%, AGX has a reasonable but not impressive dividend return.
AGX's Dividend Yield is rather good when compared to the industry average which is at 0.86. AGX pays more dividend than 97.50% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, AGX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
5.2 History
The dividend of AGX has a limited annual growth rate of 1.97%.
AGX has been paying a dividend for at least 10 years, so it has a reliable track record.
AGX has decreased its dividend in the last 3 years.
Dividend Growth(5Y)1.97%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
45.34% of the earnings are spent on dividend by AGX. This is a bit on the high side, but may be sustainable.
AGX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP45.34%
EPS Next 2Y28.79%
EPS Next 3YN/A
ARGAN INC
NYSE:AGX (4/26/2024, 7:04:00 PM)
After market: 61.98 0 (0%)61.98
+0.77 (+1.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap820.62M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.93 | ||
| Fwd PE | 18.48 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.64
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.41% | ||
| ROE | 11.13% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.35% | ||
| PM (TTM) | 5.65% | ||
| GM | 14.09% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.81 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)1.27%
EPS 3Y16.54%
EPS 5Y
EPS growth Q2Q
EPS Next Y40.3%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)25.97%
Revenue growth 3Y13.49%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y