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Fundamental analysis: Argan, Inc. (AGX)

Awarener score: 7.5

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Excellent), the business stability (Very poor) and growth (Lacking), and the company's inclination to return cash to the stockholders (Superb).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 3.0

  • Business has been slightly shrinking. It's been below average when measured against peer companies.
  • Argan, Inc. business varies frequently, ups and downs are normal. It's risky. It looks worse than most rivals.

Margins score: 5.0

  • AGX profit margins -on goods and services sold- are usually very poor. They stand somewhat worse than rival companies.
  • Business profit on sales tends to be sufficient. It's below average when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually meagre. They remain lacking compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be hardly sufficient in relation to total revenues. They're still somewhat worse than similar companies.
  • Profits -before income taxes- are usually sufficient considering total sales, and remain almost average when measured against rivals.
  • Total net profit tends to be sufficient when confronted to sales. Company stands almost average when measured against comparable firms.

Growth score: 1.0

  • Argan, Inc. couldn't always profit -on goods and services sold- in the past years. It's been a disappointment compared to competitors.
  • In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
  • In past years, the company couldn't always turn a profit -available to repay debt and purchase properties-, which compares last-in-rank when measured against peer enterprises.
  • In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
  • In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
  • In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
  • The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 9.0

  • AGX managed to pay no income taxes on profits made in the past years, sometimes even got a credit. It's been top-notch against peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 6.5

  • Argan, Inc. usually gets good returns on the resources it controls. It proves almost average when measured against peer firms.
  • The company normally gets sufficient proceeds -on the resources directly invested in the business-. They remain close to average when compared to similar companies.
  • There's usually some profitability -in relation to owned resources-. It ranks almost average when measured against competitors.
  • In the past, got good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's almost average when measured against comparable enterprises.

Usage of Funds score: 5.6

  • AGX usually uses a significant portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is abundant. It stands almost average when measured against rival firms.
  • The company is usually replacing the property, plant, and equipment that gets old, keeping its operating capabilities up to date, which is encouraging in relation to industry peers.
  • In the past twelve months it paid good dividends, considering the current stock price. It came top-notch against competitors.
  • Has increased dividend payments in the past years. Business prospects may have improved. The company has behaved a slight improvement compared to similar firms.
  • The company pays more dividends than genuine funds is usually able to generate, therefore borrowing more funds. Future payments may be at risk, especially if a downturn in business occurs. Sustainability looks worse than most comparable companies.
  • The company usually reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains excellent in relation to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands a slight improvement compared to rivals.
  • The company uses a lot more funds to reward investors than it can genuinely generate, so they're paid out of existing cash or by borrowing money, both of which will eventually reach a limit. Either business improves, or rewards won't keep at current pace. It still looks substantially worse when measured against competitors.

Balance Sheet score: 7.5

  • Argan, Inc. intangible assets (like brands and goodwill) represent a small portion of resources controlled, according to accounting books. It isn't that a significant risk of liquidating them if the company ever gets in financial distress. It happens to be more than average in relation to peer companies.
  • The company has roughly triple short-term resources than short-term obligations. Liquidity concerns are most likely unimportant. It turns to be impressive in relation to similar firms.
  • Almost no resources controlled were provided for with financial debt. Financial strength is great. Company could significantly increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains top-notch against rival firms.
  • A substantial portion of resources controlled are already cash or short-term investments, which is better for liquidity. It looks top tier when measured against rivals.
  • For every dollar of short-term obligations, the company has more than enough dollars in cash and short-term receivables. It's impressive in relation to peer firms.
  • For every dollar of short-term obligations, the company has enough dollars in cash and equivalents, which is top-notch against similar enterprises.
  • Usually, sales are on a month and a half credit. It still ranks more than average in relation to peers.
  • Normally has no inventories. It comes up as impressive in relation to competitors.
  • On average, it takes approximately two months from the purchase to charging customers. It happens to be better than most peers.
  • On average pays suppliers after a month and a half from the purchase. It ranks almost average when measured against industry peers.
  • The company pays its suppliers almost when charging its customers, so there's very little money invested in working capital. It's impressive in relation to similar companies.
  • To what extent normalized EBITDA covers interest expenses is not known. It stands impossible to compare against rival firms.
  • There is insufficient data to conclude on the relationship of EBITDA and debt for this company. It ranks unknown against comparable enterprises.
  • Revenues are huge in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements, allows the company to keep more money to reward stockholders in the long run. It looks excellent in relation to similar firms.
  • Resource exploitation is excellent when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still mediocre against peer companies.

Valuation score: 7.9

  • Argan, Inc. looks cheap in relation to profits and financial position. It happens to be top tier when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a slight improvement compared to peers.
  • In the past twelve months, the company generated excellent free funds in relation to the stock price, which stands top-notch against similar companies.
  • The company usually generates much more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be very interesting. It's still top tier when measured against industry firms.
  • In the past twelve months, the company has significantly rewarded investors, considering both dividends and share on the pie of earnings. It came up impressive in relation to peer ventures.
  • This company is sitting in a mountain of cash. It's very well poised to substantially increase stockholder payments, or to fund new business projects. It looks top-notch against similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is high. Substantial improvement expectations are already in the stock price, which is somewhat risky. It ranks similar to peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a more than one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks in a very weak position compared to rival firms.
  • The relation between the stock price and accounting book value is somewhat high. It's important both to check this metric through time and to compare it with rival companies. The company remains somewhat better than peer firms.
  • In the past twelve months, the operating business earned great money when compared to the current stock price and financial position. It happens to be top tier when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown an excellent earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be undervalued. It's still impressive in relation to peer companies.

Total score: 5.7


AGX logos

Company at a glance: Argan, Inc. (AGX)

Sector, industry: Industrials, Engineering & Construction

Market Cap: 0.53 billions

Revenues TTM: 0.46 billions

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.

Awarener score: 7.5

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Excellent), the business stability (Very poor) and growth (Lacking), and the company's inclination to return cash to the stockholders (Superb).