Argan, Inc.

Argan, Inc.

AGXยทNYSE

$686.37

+3.8%
IndustrialsEngineering & Construction

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. The company operates through Power Industry Services, Industrial Fabrication and Field Services, and Telecommunications Infrastructure Services segments. The Power Industry Services segment offers engineering, procurement, and construction contracting services to the owners of alternative energy facilities, such as biomass plants, wind farms, and solar fields; and design, construction, project management, start-up, and operation services for projects with approximately 15 gigawatts of power-generating capacity. This segment serves independent power project owners, public utilities, power plant equipment suppliers, and energy plant construction companies. The Industrial Fabrication and Field Services segment provides industrial field, and pipe and vessel fabrication services for forest products, industrial gas, fertilizer, and mining companies in southeast region of the United States. The Telecommunications Infrastructure Services segment offers trenchless directional boring and excavation for underground communication and power networks, as well as aerial cabling services; and installs buried cable, high and low voltage electric lines, and private area outdoor lighting systems. It also provides structured cabling, terminations, and connectivity that offers the physical transport for high-speed data, voice, video, and security networks. This segment serves state and local government agencies, regional communications service providers, electric utilities, and other commercial customers, as well as federal government facilities comprising cleared facilities in the mid-Atlantic region of the United States. Argan, Inc. was incorporated in 1961 and is headquartered in Rockville, Maryland.

At a Glance

Live Snapshot
Market Cap$9.58B
EPS10.0000
P/E Ratio68.64
Earnings Date06/03/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is elevated (P/E 68.6).

Valuation inputs: P/E 68.6, earnings yield +1.5%, momentum +3.8%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is strong (ROE +29.8%, ROIC +24.0%).

Profitability stack: net margin +14.6%, ROE +29.8%, ROIC +24.0%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile looks controlled across current risk inputs.

Risk factors: liabilities/assets +61.0%, momentum +3.8%, net margin +14.6%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Argan, Inc. Market vs Earnings Trajectory

AGX ยท NYSE

Loading price and EPS data...

Argan, Inc.

Argan, Inc. Fair Value Envelope

AGX ยท NYSE

Our analysis suggests that AGX has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $686.37, this represents a potential HIDDEN relative to our calculated worth for Argan, Inc..

Intrinsic Value
Current Price: $686.37
3Y+326.0%
5Y+558.0%
10Y+114.0%
3Y+108.0%
5Y+141.0%
10Y+40.0%
3Y+316.0%
5Y+478.0%
10Y+96.0%
3Y-1480.0%
5Y+137.0%
10Y+60.0%
3Y-1329.0%
5Y+138.0%
10Y+60.0%
3Y+142.0%
5Y+97.0%
10Y+84.0%
Argan, Inc.

Argan, Inc. Profit Bridge

AGX ยท NYSE
Revenue944.61M
Cost of Goods Sold (750.93M)
Gross Profit193.68M
Operating Expenses (58.98M)
Operating Income134.70M
Interest Expense (0.00)
Other Income/Expense25.81M
Pretax Income160.51M
Income Tax (22.73M)
Net Income137.77M
Net Income
137.77M

Profitability Analysis

Gross Margin

20.5%

Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.

Operating Margin

14.3%

Acceptable margins but limited operational leverage. Operating expense control is important.

Net Profit Margin

14.6%

Strong net margins indicate efficient operations and favorable tax/interest management.

Effective Tax Rate

14.2%

Below-average tax rate suggests effective tax planning, favorable jurisdictions, or tax credits.

Profitability Insight

Efficient profit conversion: Minimal margin compression from gross to net indicates lean operations and favorable tax/interest environment.

20.50%
Gross Profit Margin
27%
3Y+8.0%
5Y+30.0%
10Y-6.0%
14.26%
Operating Profit Margin
41%
3Y+56.0%
5Y+143.0%
10Y-14.0%
14.59%
Net Profit Margin
49%
3Y+101.0%
5Y+140.0%
10Y+40.0%
29.80%
Return on Equity
23%
3Y+153.0%
5Y+301.0%
10Y+24.0%
11.61%
Return on Assets
14%
3Y+72.0%
5Y+193.0%
10Y+6.0%
23.97%
Return on Invested Capital
27%
3Y+120.0%
5Y+255.0%
10Y-7.0%
AGX

Argan, Inc. Cash Conversion Engine

AGX ยท NYSE
Net Income137.77M
Depreciation & Amortization1.91M
Stock-Based Compensation7.87M
Change in Working Capital257.39M
Others3.49M
Capital Expenditures-3.88M
Free Cash Flow410.84M

Cash Flow Quality Analysis

FCF Conversion Rate

298.2%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

0.9%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

+155.2%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

+$257.39M

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

Cash Flow Quality Insight

Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.

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Argan, Inc. Funding & Solvency Profile

AGX ยท NYSE
Cash & Cash Equivalents339.48M
Net Receivables177.07M
Inventory10.98M
Other Current Assets43.44M
Total Current Assets1 B
Property, Plant & Equipment24.61M
Goodwill & Intangible Assets29.48M
Long-Term Investments1.70M
Other Non-Current Assets-1.70M
Total Non-Current Assets25 M
Total Assets
1.19B

Financial Health Analysis

Current Ratio

1.60x

Strong liquidity. The company has adequate resources to meet short-term liabilities.

Debt-to-Equity Ratio

1.57x

Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.

Working Capital

426 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

95% Current

Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.

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Argan, Inc. Street Expectations Map

AGX ยท NYSE

Wall Street analysts project that AGX stock may decline over the coming 12 months. The consensus 1-year price target stands at 446.50, with estimates ranging from a low of 375.00 to a high of 518.00.

Lowest Target
375.00
-45.36%
Consensus Target
446.50
-34.95%
Highest Target
518.00
-24.53%

The consensus 1-year price target stands at 446.50, with estimates ranging from a low of 375.00 to a high of 518.00.

Analyst Consensus Analysis

Upside Potential

-35.0%

Significant downside risk. Stock trading well above analyst consensus suggests elevated valuation concerns and potential correction.

Analyst Agreement

32.0% spread

Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.

Risk-Reward Profile

0.54x

Unfavorable risk-reward. Downside risk exceeds upside potential. Consider defensive positioning or alternative opportunities.

Analyst Conviction

Low

Bearish or uncertain outlook. Limited upside or poor consensus suggests challenges ahead or fundamental concerns.

Market Sentiment Insight

Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.

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Argan, Inc. Insider Positioning

AGX ยท NYSE

During the last 12 months, insiders have sold $117.95M worth of AGX shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

61.0K

36.77M

Net Activity

-36.8M

-$36.77M

3-6 Months

Bought

0

0.00

Sold

55.8K

20.15M

Net Activity

-20.1M

-$20.15M

6-9 Months

Bought

0

0.00

Sold

112.1K

30.81M

Net Activity

-30.8M

-$30.81M

9-12 Months

Bought

0

0.00

Sold

138.2K

30.23M

Net Activity

-30.2M

-$30.23M

Top Buyers

No buying activity

Top Sellers

1
CCEI

Collins Charles Edwin Iv

Officer: Chief Executive Officer, Gemma

65.3K sharesโ€ข12 transactions

$22.54M

2
LWF

Leimkuhler William F.

Director

62.8K sharesโ€ข10 transactions

$22.06M

3
QJW

Quinn James W

Director

71.0K sharesโ€ข5 transactions

$16.57M

4
WDH

Watson David Hibbert

Director, Officer: President And Ceo

39.9K sharesโ€ข4 transactions

$16.04M

5
FC

Flanders Cynthia

Director

51.0K sharesโ€ข4 transactions

$15.20M

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $117.95M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Recent Trend (3 Months)

$36.77M

Heavy recent selling activity. Recent insider sales notably exceed purchasesโ€”may warrant investigation into company developments.

Insider Participation

High Selling

5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

Insider Activity Insight

Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.

0.14%
Dividend Yield
-13%
3Y-77.0%
5Y-95.0%
10Y-
ย 

agx Dividend History

AGX
10Y CAGR +0%
Latest $0.5
Annual $2.25
Stable dividend payments
Last Period: +0%