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Argan
(NYSE:AGX)
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Rating:73Outperform
Price Target:
$466.00
▲(2.38% Upside)
Action:Reiterated
Date:08/29/26
AGX scores well overall on strong financial performance (high profitability, very conservative balance sheet with zero debt, and strong recent free cash flow) and a generally positive earnings outlook supported by a large backlog and capital returns. The main offset is weak technicals (price below key moving averages with negative MACD) and a relatively high P/E with a low dividend yield, which collectively temper the near-term risk/reward.
Positive Factors
Backlog and Revenue Visibility
The large backlog and strong project-driven revenue growth provide meaningful forward workload visibility. Continued execution on awarded power and industrial projects can support revenue expansion over the next several quarters.
Negative Factors
Natural Gas Concentration
Heavy dependence on natural-gas power projects concentrates Argan’s backlog in one market segment. Softer renewable demand or changes in project economics, regulation or customer investment priorities could reduce diversification and future award opportunities.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog and Revenue Visibility
The large backlog and strong project-driven revenue growth provide meaningful forward workload visibility. Continued execution on awarded power and industrial projects can support revenue expansion over the next several quarters.
Read all positive factors
Argan Key Performance Indicators (KPIs)
Any
Revenue by Geography
Shows how Argan’s sales are split across regions, highlighting dependence on particular markets for power-plant construction and services. Reveals where growth or slowdown risks lie, and how regional regulation, permitting, or local demand could affect future cash flow.
Shows how Argan’s sales are split across regions, highlighting dependence on particular markets for power-plant construction and services. Reveals where growth or slowdown risks lie, and how regional regulation, permitting, or local demand could affect future cash flow.
Data provided by:
The Fly
The FlyArgan (AGX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.45B
Dividend Yield0.48%
Average Volume (3M)329.46K
Price to Earnings (P/E)35.9
Beta (1Y)1.15
Revenue Growth14.47%
EPS Growth57.43%
CountryUS
Employees1,409
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)11.63
Shares Outstanding14,019,247
10 Day Avg. Volume354,316
30 Day Avg. Volume329,460
Financial Highlights & Ratios
PEG Ratio0.60
Price to Book (P/B)10.43
Price to Sales (P/S)5.11
P/FCF Ratio11.74
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$557.63Price Target Upside22.52% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)11.97
Revenue Forecast (FY)$1.28B
Argan Business Overview & Revenue Model
Company Description
Argan, Inc., operating through its various subsidiaries, offers a comprehensive suite of services to the power generation and renewable energy sectors. These services span engineering, procurement, construction (EPC), commissioning, operations man...
How the Company Makes Money
Argan makes money primarily by contracting to deliver energy and industrial infrastructure projects and recognizing revenue as work is performed under those contracts. Its core revenue stream comes from EPC/project delivery services for power gene...
Argan Earnings Call Summary
Earnings Call Date:Jun 04, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Sep 02, 2026
Earnings Call Sentiment Positive
The call presented strong operational and financial results with substantial revenue growth (50%), large increases in net income (~104%) and adjusted EBITDA (~79%), improved margins, significant cash/investment balances ($974M), and expanded capital return programs. These positives are tempered by a modest sequential backlog decline, concentration in gas-fired projects (79%), lower margins in Industrial and Teledata segments, early-stage project risks, and capacity/training constraints that limit near-term scaling. Overall, the favorable performance and balance sheet strength outweigh the manageable risks and timing issues.Positive Updates
Record Revenue Growth
Revenue of $291.0 million in Q1 FY2027, an increase of 50% from $194.0 million in Q1 FY2026, driven primarily by ramp-up in the Power segment and timing of recently awarded projects.
Negative Updates
Slight Backlog Decline and Timing Risk
Consolidated backlog decreased to $2.8 billion from $2.9 billion quarter-over-quarter. Management noted backlog can fluctuate as projects complete and new awards may lag, creating timing risk between job completion and new contract awards.
Read all updates
Q1-2027 Updates
Positive
Negative
Record Revenue Growth
Revenue of $291.0 million in Q1 FY2027, an increase of 50% from $194.0 million in Q1 FY2026, driven primarily by ramp-up in the Power segment and timing of recently awarded projects.
Read all positive updates
Company Guidance
Guidance: management expects to add “a handful” of new projects over the next 10–18 months and believes Argan can execute 10–12 jobs simultaneously; current consolidated backlog is $2.8 billion (Power $2.5B, Industrial $225M, Teledata $8M) comprised ~79% natural gas (including four U.S. gas plants totaling >4.1 GW), 13% renewable and 8% industrial. While not providing formal revenue guidance, management said $2 billion of revenue is achievable over time and reiterated a disciplined, selective approach to new awards to capture robust near‑ and midterm demand. Recent operating and balance‑sheet metrics cited to support the outlook include Q1 record revenue $291M (up 50% y/y from $194M), gross profit $61.1M (21% margin), segment gross margins: Power 23.6% / Industrial 11.8% / Teledata 11%, adjusted EBITDA $56.4M (19.4% margin), net income $46.1M ($3.24 diluted), cash & investments $974M, net liquidity $421M, no debt, stockholders’ equity $474M; capital return actions include a $0.50 quarterly dividend ($2.00 annual) and an expanded $200M buyback authorization (extended to Jan 31, 2030; ~$116.7M repurchased to date).Argan Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.04B | 944.61M | 874.18M | 573.33M | 455.04M | 509.37M |
| Gross Profit | 217.93M | 193.68M | 140.99M | 80.83M | 86.36M | 99.73M |
| EBITDA | 187.71M | 162.80M | 116.86M | 51.34M | 49.72M | 56.65M |
| Net Income | 161.29M | 137.77M | 85.46M | 32.36M | 33.10M | 38.24M |
Balance Sheet | ||||||
| Total Assets | 1.29B | 1.19B | 836.23M | 598.23M | 489.49M | 553.59M |
| Cash, Cash Equivalents and Short-Term Investments | 973.55M | 894.98M | 525.14M | 412.40M | 325.46M | 440.50M |
| Total Debt | 0.00 | 6.39M | 2.71M | 2.73M | 1.57M | 1.37M |
| Total Liabilities | 812.93M | 724.09M | 484.37M | 307.29M | 208.59M | 227.99M |
| Stockholders Equity | 473.51M | 462.26M | 351.86M | 290.94M | 280.90M | 326.39M |
Cash Flow | ||||||
| Free Cash Flow | 486.89M | 410.84M | 161.00M | 114.10M | -33.43M | 26.99M |
| Operating Cash Flow | 492.81M | 414.72M | 167.58M | 116.86M | -30.06M | 28.41M |
| Investing Cash Flow | -274.42M | -182.02M | -193.62M | -67.61M | -63.12M | -7.04M |
| Financing Cash Flow | -58.24M | -42.59M | -26.06M | -26.05M | -82.80M | -34.61M |
Argan Technical Analysis
Negative
455.15
Price Trends
613.46
Negative
633.45
Negative
510.33
Negative
Market Momentum
-38.78
Positive
31.91
Neutral
7.37
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AGX, the sentiment is Negative. The current price of 455.15 is below the 20-day moving average (MA) of 548.14, below the 50-day MA of 613.46, and below the 200-day MA of 510.33, indicating a bearish trend. The MACD of -38.78 indicates Positive momentum. The RSI at 31.91 is Neutral, neither overbought nor oversold. The STOCH value of 7.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AGX.
Argan Risk Analysis
Argan disclosed 38 risk factors in its most recent earnings report. Argan reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Argan Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $4.83B | 37.66 | 10.13% | 0.21% | 24.70% | ― | |
73 Outperform | $6.45B | 35.92 | 36.89% | 0.35% | 14.47% | 57.43% | |
72 Outperform | $6.18B | 23.29 | 38.22% | ― | 30.53% | 53.35% | |
64 Neutral | $4.15B | 28.34 | 8.46% | 0.37% | 5.12% | -42.27% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $4.82B | 27.70 | 24.17% | ― | 16.06% | 121.28% | |
57 Neutral | $5.46B | -32.50 | -16.01% | 0.42% | 21.80% | -204.13% |
* Industrials Sector Average
AGX
Argan
417.74
190.61
83.92%
GVA
Granite Construction
122.52
15.23
14.19%
MYRG
MYR Group
294.42
107.15
57.22%
PRIM
Primoris Services
73.12
-45.11
-38.16%
TPC
Tutor Perini
88.84
30.11
51.26%
ECG
Everus Construction Group, Inc.
115.73
37.29
47.54%
Argan Corporate Events
Business Operations and StrategyM&A Transactions
Argan’s SMC Acquires ValCor to Expand New England Presence
Positive
Aug 4, 2026
On August 4, 2026, Argan announced that its wholly owned subsidiary Southern Maryland Cable Inc. completed the acquisition of ValCor Communications, a Connecticut-based provider of installation, maintenance and repair services for information, com...
Executive/Board ChangesDividendsShareholder Meetings
Argan Shareholders Back Board, Maintain Dividend Policy
Positive
Jun 10, 2026
At its 2026 annual meeting held on June 10, 2026, Argan stockholders elected nine directors to serve until the 2027 meeting, approved on an advisory basis the company’s executive compensation and ratified the appointment of Grant Thornton LL...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.