NYSE:AGX

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$693.1m

Last Updated

2021/07/27 00:48 UTC

Data Sources

Company Financials +

Executive Summary

Argan, Inc., through its subsidiaries, provides engineering, procurement, construction, commissioning, operations management, maintenance, project development, technical, and consulting services to the power generation and renewable energy markets. More Details


Snowflake Analysis

Flawless balance sheet with high growth potential.


Similar Companies

Share Price & News

How has Argan's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AGX is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: AGX's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-1.6%

AGX

4.3%

US Construction

3.3%

US Market


1 Year Return

-1.3%

AGX

84.7%

US Construction

37.8%

US Market

Return vs Industry: AGX underperformed the US Construction industry which returned 87.9% over the past year.

Return vs Market: AGX underperformed the US Market which returned 39.1% over the past year.


Shareholder returns

AGXIndustryMarket
7 Day-1.6%4.3%3.3%
30 Day-8.3%-4.0%1.1%
90 Day-11.1%-6.9%2.9%
1 Year3.1%-1.3%85.3%84.7%39.9%37.8%
3 Year27.9%14.3%51.9%49.2%65.8%55.4%
5 Year10.0%-6.1%75.5%69.5%124.3%99.4%

Long-Term Price Volatility Vs. Market

How volatile is Argan's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Argan undervalued compared to its fair value and its price relative to the market?

19.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AGX ($43.95) is trading above our estimate of fair value ($37.97)

Significantly Below Fair Value: AGX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AGX is good value based on its PE Ratio (19.5x) compared to the US Construction industry average (23.4x).

PE vs Market: AGX is poor value based on its PE Ratio (19.5x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: AGX is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: AGX is good value based on its PB Ratio (2.1x) compared to the US Construction industry average (2.4x).


Future Growth

How is Argan forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

42.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AGX's forecast earnings growth (42% per year) is above the savings rate (2%).

Earnings vs Market: AGX's earnings (42% per year) are forecast to grow faster than the US market (15% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AGX's revenue (33.4% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: AGX's revenue (33.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AGX's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Argan performed over the past 5 years?

-37.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AGX has high quality earnings.

Growing Profit Margin: AGX became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AGX's earnings have declined by 37.1% per year over the past 5 years.

Accelerating Growth: AGX has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AGX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Construction industry (26.7%).


Return on Equity

High ROE: AGX's Return on Equity (10.7%) is considered low.


Financial Health

How is Argan's financial position?


Financial Position Analysis

Short Term Liabilities: AGX's short term assets ($559.0M) exceed its short term liabilities ($283.1M).

Long Term Liabilities: AGX's short term assets ($559.0M) exceed its long term liabilities ($4.1M).


Debt to Equity History and Analysis

Debt Level: AGX is debt free.

Reducing Debt: AGX had no debt 5 years ago.

Debt Coverage: AGX has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: AGX has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Argan current dividend yield, its reliability and sustainability?

2.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AGX's dividend (2.28%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: AGX's dividend (2.28%) is low compared to the top 25% of dividend payers in the US market (3.56%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, AGX has been paying a dividend for less than 10 years.

Growing Dividend: AGX's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.3%), AGX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.8yrs

Average board tenure


CEO

Rainer Bosselmann (78 yo)

17.75yrs

Tenure

US$1,027,895

Compensation

Mr. Rainer H. Bosselmann has been the Chief Executive Officer and President of Argan, Inc. since October 2003 and has been its Chairman since May 2003. He served as Vice Chairman of the Board of Argan Inc....


CEO Compensation Analysis

Compensation vs Market: Rainer's total compensation ($USD1.03M) is below average for companies of similar size in the US market ($USD2.44M).

Compensation vs Earnings: Rainer's compensation has been consistent with company performance over the past year.


Board Members

Experienced Board: AGX's board of directors are seasoned and experienced ( 10.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Argan, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Argan, Inc.
  • Ticker: AGX
  • Exchange: NYSE
  • Founded: 1961
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: US$693.067m
  • Shares outstanding: 15.77m
  • Website: https://www.arganinc.com

Number of Employees


Location

  • Argan, Inc.
  • One Church Street
  • Suite 201
  • Rockville
  • Maryland
  • 20850
  • United States

Listings


Biography

Argan, Inc., through its subsidiaries, provides engineering, procurement, construction, commissioning, operations management, maintenance, project development, technical, and consulting services to the pow...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/27 00:48
End of Day Share Price2021/07/26 00:00
Earnings2021/04/30
Annual Earnings2021/01/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.