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 51 industry peers in the Construction & Engineering industry. AGX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. AGX is valued quite expensive, but it does show an excellent growth. With these ratings, AGX could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
AGX had positive earnings in the past year.
In the past year AGX had a positive cash flow from operations.
AGX had positive earnings in each of the past 5 years.
AGX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
AGX's Return On Assets of 10.22% is amongst the best of the industry. AGX outperforms 80.39% of its industry peers.
With a decent Return On Equity value of 24.29%, AGX is doing good in the industry, outperforming 78.43% of the companies in the same industry.
With an excellent Return On Invested Capital value of 17.69%, AGX belongs to the best of the industry, outperforming 86.27% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AGX is below the industry average of 16.96%.
The 3 year average ROIC (12.29%) for AGX is below the current ROIC(17.69%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.22% | ||
| ROE | 24.29% | ||
| ROIC | 17.69% |
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 9.78% is amongst the best of the industry. AGX outperforms 90.20% of its industry peers.
AGX's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 10.09%, AGX belongs to the best of the industry, outperforming 80.39% of the companies in the same industry.
AGX's Operating Margin has been stable in the last couple of years.
AGX has a Gross Margin (16.13%) which is in line with its industry peers.
AGX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.09% | ||
| PM (TTM) | 9.78% | ||
| GM | 16.13% |
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) just above the Cost of Capital (WACC), AGX is creating some value.
Compared to 1 year ago, AGX has more shares outstanding
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
An Altman-Z score of 5.52 indicates that AGX is not in any danger for bankruptcy at the moment.
AGX has a better Altman-Z score (5.52) than 84.31% 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 | 5.52 |
ROIC/WACC1.69
WACC10.47%
2.3 Liquidity
A Current Ratio of 1.63 indicates that AGX should not have too much problems paying its short term obligations.
AGX's Current ratio of 1.63 is amongst the best of the industry. AGX outperforms 80.39% of its industry peers.
AGX has a Quick Ratio of 1.63. This is a normal value and indicates that AGX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.63, AGX belongs to the top of the industry, outperforming 86.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 155.65% 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.
The Revenue has grown by 52.48% in the past year. This is a very strong growth!
AGX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.61% yearly.
EPS 1Y (TTM)155.65%
EPS 3Y36.55%
EPS 5YN/A
EPS Q2Q%149.44%
Revenue 1Y (TTM)52.48%
Revenue growth 3Y19.72%
Revenue growth 5Y29.61%
Sales Q2Q%41.28%
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 15.33% yearly.
Based on estimates for the next years, AGX will show a quite strong growth in Revenue. The Revenue will grow by 12.69% on average per year.
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
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
Based on the Price/Earnings ratio of 31.59, the valuation of AGX can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as AGX.
The average S&P500 Price/Earnings ratio is at 26.60. AGX is around the same levels.
Based on the Price/Forward Earnings ratio of 33.10, the valuation of AGX can be described as expensive.
AGX's Price/Forward Earnings ratio is in line with the industry average.
AGX's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.59 | ||
| Fwd PE | 33.1 |
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 74.51% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.35 | ||
| EV/EBITDA | 17.93 |
4.3 Compensation for Growth
AGX has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as AGX's earnings are expected to grow with 15.33% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.93%
EPS Next 3Y15.33%
5. Dividend
5.1 Amount
With a yearly dividend of 0.82%, AGX is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.72, AGX pays a better dividend. On top of this AGX pays more dividend than 90.20% of the companies listed in the same industry.
With a Dividend Yield of 0.82, AGX pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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
21.38% of the earnings are spent on dividend by AGX. This is a low number and sustainable payout ratio.
AGX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP21.38%
EPS Next 2Y9.93%
EPS Next 3Y15.33%
NYSE:AGX (5/21/2025, 3:47:51 PM)
193.035
+3.34 (+1.76%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners90.05%
Inst Owner Change0.41%
Ins Owners6.78%
Ins Owner Change-4.22%
Market Cap2.63B
Analysts76.67
Price Target153 (-20.74%)
Short Float %6.42%
Short Ratio2.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
Yearly Dividend1.36
Dividend Growth(5Y)6.33%
DP21.38%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)74.56%
Min EPS beat(2)57.16%
Max EPS beat(2)91.97%
EPS beat(4)4
Avg EPS beat(4)48.32%
Min EPS beat(4)10.43%
Max EPS beat(4)91.97%
EPS beat(8)6
Avg EPS beat(8)15.59%
EPS beat(12)8
Avg EPS beat(12)15.41%
EPS beat(16)11
Avg EPS beat(16)22.69%
Revenue beat(2)2
Avg Revenue beat(2)20.15%
Min Revenue beat(2)16.54%
Max Revenue beat(2)23.76%
Revenue beat(4)4
Avg Revenue beat(4)19.65%
Min Revenue beat(4)15.86%
Max Revenue beat(4)23.76%
Revenue beat(8)5
Avg Revenue beat(8)8.31%
Revenue beat(12)5
Avg Revenue beat(12)3.58%
Revenue beat(16)7
Avg Revenue beat(16)2.67%
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 | 31.59 | ||
| Fwd PE | 33.1 | ||
| P/S | 3.01 | ||
| P/FCF | 16.35 | ||
| P/OCF | 15.71 | ||
| P/B | 7.48 | ||
| P/tB | 8.18 | ||
| EV/EBITDA | 17.93 |
EPS(TTM)6.11
EY3.17%
EPS(NY)5.83
Fwd EY3.02%
FCF(TTM)11.8
FCFY6.11%
OCF(TTM)12.29
OCFY6.36%
SpS64.09
BVpS25.8
TBVpS23.61
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.22% | ||
| ROE | 24.29% | ||
| ROCE | 24.75% | ||
| ROIC | 17.69% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 10.09% | ||
| PM (TTM) | 9.78% | ||
| GM | 16.13% | ||
| FCFM | 18.42% |
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 Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 116.31% | ||
| Cap/Sales | 0.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 178.56% | ||
| Profit Quality | 188.4% | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 5.52 |
F-Score8
WACC10.47%
ROIC/WACC1.69
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)155.65%
EPS 3Y36.55%
EPS 5YN/A
EPS Q2Q%149.44%
EPS Next Y-4.54%
EPS Next 2Y9.93%
EPS Next 3Y15.33%
EPS Next 5YN/A
Revenue 1Y (TTM)52.48%
Revenue growth 3Y19.72%
Revenue growth 5Y29.61%
Sales Q2Q%41.28%
Revenue Next Year13.88%
Revenue Next 2Y16.08%
Revenue Next 3Y12.69%
Revenue Next 5YN/A
EBIT growth 1Y142.4%
EBIT growth 3Y18.95%
EBIT growth 5YN/A
EBIT Next Year38.05%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y41.1%
FCF growth 3Y81.34%
FCF growth 5Y28.2%
OCF growth 1Y43.41%
OCF growth 3Y80.71%
OCF growth 5Y25.61%