Argan Inc
AGX
Construction - Special Trade Contractors
Mkt Cap
$926.2MPE
28.62Debt
-Cash
$197MEV
-FCF
$114.1MP/E Ratio
28.62Debt
-Cash
$197MEV
-FCF
$114.1MCharts data: {"Earnings":[{"time":"2015-01-30","value":30445000},{"time":"2016-01-30","value":36345000},{"time":"2017-01-30","value":70328000},{"time":"2018-01-30","value":72011000},{"time":"2019-01-30","value":51869000},{"time":"2020-01-30","value":-42689000},{"time":"2021-01-30","value":23811000},{"time":"2022-01-30","value":35706000},{"time":"2023-01-30","value":33098000},{"time":"2024-01-30","value":32358000}],"Sales":[{"time":"2015-01-30","value":383110000},{"time":"2017-01-30","value":675047000},{"time":"2018-01-30","value":892815000},{"time":"2019-01-30","value":482153000},{"time":"2020-01-30","value":238997000},{"time":"2021-01-30","value":392206000},{"time":"2022-01-30","value":509370000},{"time":"2023-01-30","value":455040000},{"time":"2024-01-30","value":573333000}],"Net Margins":[{"time":"2015-01-30","value":0.07946803790034195},{"time":"2017-01-30","value":0.10418237544941315},{"time":"2018-01-30","value":0.08065612696919294},{"time":"2019-01-30","value":0.10757788502819644},{"time":"2020-01-30","value":-0.17861730481972576},{"time":"2021-01-30","value":0.06071044298149442},{"time":"2022-01-30","value":0.07009835679368631},{"time":"2023-01-30","value":0.07273646272855133},{"time":"2024-01-30","value":0.056438404906049365}],"Assets":[{"time":"2015-01-30","value":391193000},{"time":"2016-01-30","value":410902000},{"time":"2017-01-30","value":644247000},{"time":"2018-01-30","value":603393000},{"time":"2019-01-30","value":476648000},{"time":"2020-01-30","value":487540000},{"time":"2021-01-30","value":602630000},{"time":"2022-01-30","value":553585000},{"time":"2023-01-30","value":489487000},{"time":"2024-01-30","value":598229000}],"Stockholders Equity":[{"time":"2015-01-30","value":185472000},{"time":"2016-01-30","value":221855000},{"time":"2017-01-30","value":292569000},{"time":"2018-01-30","value":358128000},{"time":"2019-01-30","value":394568000},{"time":"2020-01-30","value":341030000},{"time":"2021-01-30","value":322408000},{"time":"2022-01-30","value":326392000},{"time":"2023-01-30","value":280897000},{"time":"2024-01-30","value":290939000}],"ROE":[{"time":"2015-01-30","value":0.1641487663906142},{"time":"2016-01-30","value":0.1638232178675261},{"time":"2017-01-30","value":0.24038090159928086},{"time":"2018-01-30","value":0.2010761515435822},{"time":"2019-01-30","value":0.1314576955049573},{"time":"2020-01-30","value":-0.12517667067413424},{"time":"2021-01-30","value":0.07385362646088187},{"time":"2022-01-30","value":0.10939606362901051},{"time":"2023-01-30","value":0.11782966710217624},{"time":"2024-01-30","value":0.11121919027699964}],"ROA":[{"time":"2015-01-30","value":0.1645402652910456},{"time":"2016-01-30","value":0.18375671084589512},{"time":"2017-01-30","value":0.17777653601801793},{"time":"2018-01-30","value":0.18665281168326447},{"time":"2019-01-30","value":0.09906262063409477},{"time":"2020-01-30","value":-0.09797144849653362},{"time":"2021-01-30","value":0.04129399465675456},{"time":"2022-01-30","value":0.08501314161330238},{"time":"2023-01-30","value":0.09397593807394272},{"time":"2024-01-30","value":0.0817964358130415}]}
Argan, Inc., through its subsidiaries, provides engineering, procurement, construction, commissioning, maintenance, project development, technical, and consulting services to the power generation market. 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 16 gigawatts of power-generating capacity. This segment serves independent power project owners, public utilities, power plant equipment suppliers, and other commercial firms. The Industrial Fabrication and Field Services segment provides construction and field services and vessel fabrication services for fertilizer, lithium technology, engineering and construction, forest products, industrial gas, mining, and other 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 electricity cooperative, state and local government agencies, regional communications service providers, and other commercial customers, as well as contractors, other commercial firms, and federal government facilities in the mid-Atlantic region of the United States. Argan, Inc. was incorporated in 1961 and is headquartered in Rockville, Maryland.
DCF
Discounted Cash Flow Valuation of Argan Inc
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $114.1M | $105.7M | $97.95M | $90.75M | $84.08M | $77.9M | $72.17M | $66.87M | $61.95M | $57.4M | $53.18M | $531.8M |
| DCF | $91.93M | $74.06M | $59.67M | $48.07M | $38.73M | $31.2M | $25.14M | $20.25M | $16.32M | $13.15M | $131.5M | |
| Value | $550M | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth -8.1%
Earnings Stability -4%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 01-2016 | 01-2017 | 01-2018 | 01-2019 | 01-2020 | 01-2021 | 01-2022 | 01-2023 | 01-2024 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | - | 10% | 8.1% | 11% | -18% | 6.1% | 7% | 7.3% | 5.6% | 5.6% |
| ROA | 18% | 18% | 19% | 9.9% | -9.8% | 4.1% | 8.5% | 9.4% | 8.2% | 8.2% |
| ROE | 16% | 24% | 20% | 13% | -13% | 7.4% | 11% | 12% | 11% | 11% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +3.15%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +1.45%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +5.05%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +1.52%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +6.98%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +1.9%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 01-2016 | 01-2017 | 01-2018 | 01-2019 | 01-2020 | 01-2021 | 01-2022 | 01-2023 | 01-2024 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | - | - | - | - | - | - | - | - | - | - |
| Debt Equity | - | - | - | - | - | - | - | - | - | - |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 87% | -66% | 88% | 100% | 100% | 100% | -66% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is -.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -.
What is the Graham’s Stability?
Graham’s Stability measure stands at -0.66.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 01-2017 | 01-2019 | 01-2021 | 01-2023 | Trend |
|---|---|---|---|---|---|
| Revenue | -2.3% | 3.5% | 13% | 26% | 4.7% |
| Net Income | -10% | -9% | 11% | -2.2% | -4.2% |
| Stockholders Equity | -0.08% | -5.9% | -3.4% | 3.6% | -4.3% |
| FCF | -11% | - | -13% | - | -360% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +3.52%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +4.72%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is -9.01%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -4.21%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is -5.91%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -4.33%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is -.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -356.35%.