Argan, Inc.
Argan, Inc. Fundamental Analysis
Argan, Inc. (AGX) shows moderate financial fundamentals with a PE ratio of 53.29, profit margin of 13.11%, and ROE of 31.38%. The company generates $0.9B in annual revenue with strong year-over-year growth of 26.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 92.8/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze AGX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentAGX demonstrates superior asset utilization.
Valuation Score
WeakAGX trades at a premium to fair value.
Growth Score
ModerateAGX shows steady but slowing expansion.
Financial Health Score
ExcellentAGX maintains a strong and stable balance sheet.
Profitability Score
ModerateAGX maintains healthy but balanced margins.
Key Financial Metrics
Is AGX Expensive or Cheap?
P/E Ratio
AGX trades at 53.29 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AGX's PEG of 30.55 indicates potential overvaluation.
Price to Book
The market values Argan, Inc. at 15.23 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 52.07 times EBITDA. This signals the market has high growth expectations.
How Well Does AGX Make Money?
Net Profit Margin
For every $100 in sales, Argan, Inc. keeps $13.11 as profit after all expenses.
Operating Margin
Core operations generate 13.08 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $31.38 in profit for every $100 of shareholder equity.
ROA
Argan, Inc. generates $11.41 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Argan, Inc. generates strong operating cash flow of $287.91M, reflecting robust business health.
Free Cash Flow
Argan, Inc. generates strong free cash flow of $283.86M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $20.46 in free cash annually.
FCF Yield
AGX converts 4.44% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
53.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
30.55
vs 25 benchmark
P/B Ratio
Price to book value ratio
15.23
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.006
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.006
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.61
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.31
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.28
vs 25 benchmark
How AGX Stacks Against Its Sector Peers
| Metric | AGX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 53.29 | 25.83 | Worse (Expensive) |
| ROE | 31.38% | 1278.00% | Weak |
| Net Margin | 13.11% | -43774.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 1.61 | 10.63 | Neutral |
| ROA | 11.41% | -1539613.00% (disorted) | Strong |
AGX outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Argan, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
38.52%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-27.56%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
221.20%
Industry Style: Cyclical, Value, Infrastructure
High Growth