NYSE:AGX

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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 +/- 5% a week.

Volatility Over Time: AGX's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

2.5%

AGX

0.04%

US Construction

0.7%

US Market


1 Year Return

37.7%

AGX

21.6%

US Construction

22.2%

US Market

Return vs Industry: AGX exceeded the US Construction industry which returned 21.4% over the past year.

Return vs Market: AGX exceeded the US Market which returned 22.7% over the past year.


Shareholder returns

AGXIndustryMarket
7 Day2.5%0.04%0.7%
30 Day14.4%12.3%11.8%
90 Day12.4%25.2%8.6%
1 Year44.0%37.7%22.3%21.6%25.0%22.2%
3 Year-8.8%-16.5%17.4%15.1%49.4%39.5%
5 Year51.1%34.0%67.8%62.1%100.2%78.1%

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?

5.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AGX ($48.04) is trading below our estimate of fair value ($50.73)

Significantly Below Fair Value: AGX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AGX is unprofitable, so we can't compare its PE Ratio to the US Construction industry average.

PE vs Market: AGX is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AGX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AGX's PB Ratio (2.3x) is in line with the US Construction industry average.


Next Steps

Future Growth

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

88.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AGX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: AGX is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AGX's is expected to become profitable in the next 3 years.

Revenue vs Market: AGX's revenue (49.7% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: AGX's revenue (49.7% 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


Next Steps

Past Performance

How has Argan performed over the past 5 years?

-31.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AGX is currently unprofitable.

Growing Profit Margin: AGX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AGX is unprofitable, and losses have increased over the past 5 years at a rate of 31.1% per year.

Accelerating Growth: Unable to compare AGX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AGX is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (15.3%).


Return on Equity

High ROE: AGX has a negative Return on Equity (-2.15%), as it is currently unprofitable.


Next Steps

Financial Health

How is Argan's financial position?


Financial Position Analysis

Short Term Liabilities: AGX's short term assets ($503.5M) exceed its short term liabilities ($233.4M).

Long Term Liabilities: AGX's short term assets ($503.5M) exceed its long term liabilities ($3.5M).


Debt to Equity History and Analysis

Debt Level: AGX is debt free.

Reducing Debt: AGX has no debt compared to 5 years ago when its debt to equity ratio was 0.7%.

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


Next Steps

Dividend

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

2.08%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AGX's dividend (2.08%) is higher than the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: AGX's dividend (2.08%) is low compared to the top 25% of dividend payers in the US market (4.14%).


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 8 years.


Current Payout to Shareholders

Dividend Coverage: AGX is paying a dividend but the company is unprofitable.


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?

10.2yrs

Average board tenure


CEO

Rainer Bosselmann (77 yo)

17.17yrs

Tenure

US$1,338,525

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 ($USD1.34M) is below average for companies of similar size in the US market ($USD2.60M).

Compensation vs Earnings: Rainer's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Rainer Bosselmann
Chairman17.17yrsUS$1.34m2.09%
$ 15.5m
William Leimkuhler
Independent Director13.5yrsUS$104.10k0.20%
$ 1.5m
James Quinn
Lead Independent Directorno dataUS$101.60k0.41%
$ 3.1m
W. G. Mitchell
Independent Director17.17yrsUS$100.40k0.23%
$ 1.7m
Peter Getsinger
Independent Director6.08yrsUS$106.90k0.079%
$ 587.6k
William Griffin
Director8.67yrsUS$3.03m1.35%
$ 10.0m
Cynthia Flanders
Independent Director11.67yrsUS$105.65k0.096%
$ 710.8k
John Jeffrey
Independent Director3.5yrsUS$106.60k0.038%
$ 284.3k
Mano Koilpillai
Independent Director1.25yrsUS$170.93kno data

10.2yrs

Average Tenure

66yo

Average Age

Experienced Board: AGX's board of directors are seasoned and experienced ( 10.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: AGX insiders have sold more shares than they have bought 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$742.600m
  • Shares outstanding: 15.67m
  • Website: https://www.arganinc.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AGXNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 1975
1AWDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1975
0HHOLSE (London Stock Exchange)YesCommon StockGBUSDFeb 1975

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 Analysis2020/12/02 23:10
End of Day Share Price2020/12/02 00:00
Earnings2020/07/31
Annual Earnings2020/01/31


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.