Argan (AGX) AI Stock Analysis

• Market Cap: $2.98B
• Dividend Yield: 0.69%
• Average Volume (3M): 439.69K
• Price to Earnings (P/E): 30.6
• Beta (1Y): 1.02
• Revenue Growth: 45.08%
• EPS Growth: 158.43%
• Country: US
• Employees: 1,595
• Sector: Industrials
• Sector Strength: 85
• Industry: Engineering & Construction
• EPS (TTM): 1.60
• Shares Outstanding: 13,640,813
• 10 Day Avg. Volume: 638,460
• 30 Day Avg. Volume: 439,689
• PEG Ratio: -5.04
• Price to Book (P/B): 1.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -16.42
• Enterprise Value/Market Cap: 0.13
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 2.68
• Enterprise Value/Ebitda: 1.52
• 1Y Price Target: $236.00
• Price Target Upside: 8.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 81 Outperform
• Price Target: $252.00 ▲(15.51%Upside)

Argan's overall stock score is primarily driven by its strong financial performance and positive earnings call insights. Technical indicators suggest a bullish trend, while valuation metrics reflect a relatively high price level. Positive corporate events further support the score.

Positive Factors

Backlog Growth

Argan’s backlog is over $2 billion, up from $1.4 billion at the end of January and $0.8 billion last October.

Electricity Demand

The company is benefiting from an increase in demand for electricity use from AI data centers and EVs, as well as investments to replace aging infrastructure.

Project Pipeline

Management remains bullish on the new project pipeline and expects several new power plant projects to be awarded, potentially increasing backlog significantly.

Negative Factors

Tariff Risks

Tariffs are a potential risk to new project activity, but risks from tariffs are considered low.

Valuation Concerns

The valuation does not fully reflect the potential for an extended cycle and Argan’s strong position with favorable tailwinds from investments.

Argan Business Overview & Revenue Model

Company Description

Argan, Inc. (AGX) is a publicly traded holding company primarily engaged in the engineering, procurement, and construction (EPC) services through its subsidiaries. The company's core focus is on power industry projects, including natural gas-fired power plants and renewable energy facilities. Argan operates through its subsidiaries, such as Gemma Power Systems, which are recognized for their expertise in project management, plant design, and construction services.

How the Company Makes Money

Argan, Inc. generates revenue predominantly through its subsidiaries by providing EPC services to the power generation industry. The company earns money by designing, building, and commissioning power plants, which often involve long-term contracts with utilities and independent power producers. Key revenue streams include project management fees, construction work, and equipment procurement services. Argan's earnings are substantially influenced by the successful acquisition and execution of large-scale power projects, and maintaining partnerships with industry leaders, which help to secure new contracts and ensure steady revenue flows.

Argan Financial Statement Overview

Summary

Argan demonstrates strong financial performance with significant revenue growth, robust profit margins, a debt-free balance sheet, and excellent cash flow generation. These factors indicate a well-managed and financially healthy company.

Income Statement

Argan has demonstrated strong revenue growth, with a 52.4% increase in the latest year. The gross profit margin stands at 16.1%, and the net profit margin is robust at 9.8%. EBIT and EBITDA margins are healthy at 10.1%. This indicates high efficiency and profitability in its operations.

Balance Sheet

Argan maintains a very stable balance sheet, with no total debt and a strong equity position. The equity ratio is 42.1%, which signifies solid financial health and a conservative capital structure. The return on equity is impressive at 24.3%, reflecting strong profitability relative to shareholder equity.

Cash Flow

The company shows excellent cash flow performance, with a free cash flow growth rate of 41.1% and a high operating cash flow to net income ratio of 1.96. The free cash flow to net income ratio is also strong at 1.88, indicating effective cash generation from its operations.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
874.18M	573.33M	455.04M	509.37M	392.21M
	Gross Profit
140.99M	80.83M	86.36M	99.73M	62.07M
	EBIT
88.19M	36.46M	41.67M	44.51M	18.41M
	EBITDA
88.19M	38.86M	45.38M	56.65M	27.64M
	Net Income Common Stockholders
85.46M	32.36M	33.10M	38.24M	23.85M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
145.26M	412.40M	325.46M	440.50M	456.73M
	Total Assets
836.23M	598.23M	489.49M	553.59M	602.63M
	Total Debt
2.71M	5.32M	1.57M	3.66M	2.11M
	Net Debt
-142.55M	-191.71M	-172.38M	-346.82M	-364.56M
	Total Liabilities
484.37M	307.29M	208.59M	227.99M	280.22M
	Stockholders Equity
351.86M	290.94M	280.90M	326.39M	320.67M
Cash Flow		Free Cash Flow
161.00M	114.10M	-33.43M	26.99M	172.98M
	Operating Cash Flow
167.58M	116.86M	-30.06M	28.41M	174.68M
	Investing Cash Flow
-193.62M	-67.61M	-63.12M	-7.04M	68.30M
	Financing Cash Flow
-26.06M	-26.05M	-82.80M	-34.61M	-45.41M

Argan Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 218.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AGX, the sentiment is Positive. The current price of 218.17 is above the 20-day moving average (MA) of 210.75, above the 50-day MA of 175.33, and above the 200-day MA of 141.13, indicating a bullish trend. The MACD of 13.82 indicates Positive momentum. The RSI at 59.49 is Neutral, neither overbought nor oversold. The STOCH value of 43.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AGX.

Argan Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGX	81 Outperform	$2.98B	30.62	30.48%	0.69%	45.08%	158.43%
NVEE	80 Outperform	$1.50B	46.80	3.79%	―	8.65%	-22.72%
PRIM	74 Outperform	$4.01B	19.69	15.30%	0.43%	12.45%	42.45%
MYRG	72 Outperform	$2.54B	75.02	5.71%	―	-7.33%	-57.86%
ECG	71 Outperform	$3.04B	19.99	32.91%	―	11.92%	8.94%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%
TPC	62 Neutral	$2.22B	―	-12.28%	―	8.95%	-41.32%

Argan Corporate Events

Argan Appoints Lisa Larroque Alexander to Board

On April 9, 2025, Argan, Inc. announced the appointment of Lisa Larroque Alexander to its Board of Directors. Ms. Alexander, who serves as Senior Vice President at Sempra, brings extensive experience in the energy sector, including expertise in corporate affairs, human resources, and public policy. Her appointment is expected to enhance Argan’s strategic discussions and decision-making as the company continues its growth and expansion in the power industry.