Argan (AGX) AI Stock Analysis

• Market Cap: $6.36B
• Dividend Yield: 0.49%
• Average Volume (3M): 420.70K
• Price to Earnings (P/E): 34.4
• Beta (1Y): 1.35
• Revenue Growth: 13.49%
• EPS Growth: 77.73%
• Country: US
• Employees: 1,595
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 2.17
• Shares Outstanding: 13,873,410
• 10 Day Avg. Volume: 446,203
• 30 Day Avg. Volume: 420,702
• PEG Ratio: 0.13
• Price to Book (P/B): 5.23
• Price to Sales (P/S): 2.10
• P/FCF Ratio: 11.43
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 6.62
• Enterprise Value/Gross Profit: 34.46
• Enterprise Value/Ebitda: 46.96
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 9.55
• Revenue Forecast (FY): $1.22B

• Rating: 79 Outperform
• Price Target: $517.00 ▲(11.58% Upside)
• Action: Reiterated Date: 02/13/26
• Date: Action: Reiterated 02/13/26

The score is driven primarily by strong financial performance (high margins, debt-free balance sheet, and strong cash flow improvement) and bullish technical trend/momentum. These strengths are tempered by expensive valuation (high P/E and low yield) and some revenue timing-related softness discussed on the earnings call despite a record backlog.

Positive Factors

Debt-free balance sheet and liquidity

Argan's zero debt posture with substantial cash and net liquidity provides durable financial flexibility to fund multi-year EPC project execution, absorb timing slippages, and pursue selective bids or M&A without increasing leverage, lowering refinancing and solvency risk over the medium term.

Record backlog and project pipeline

A ~$3B backlog representing multiple GW of thermal and renewable projects secures revenue visibility across coming quarters, underpinning stable workload for engineering and construction teams and enabling margin normalization as fixed costs are absorbed by contracted work.

Improving margins and strong cash generation

Sustained margin expansion and a doubling in free cash flow signal better project execution and cost control on EPC contracts; combined with an elevated ROE, these trends support recurring shareholder returns and internal reinvestment capacity over the next several quarters.

Negative Factors

Sharp revenue slowdown in TTM

A pronounced TTM revenue decline suggests uneven project cadence and potential underutilization risk for skilled crews and equipment; prolonged top-line softness could pressure utilization-linked margins and make profitability more dependent on backlog conversion timing.

Volatility in core Power Industry Services

An 8% drop in the primary segment highlights concentration risk and sensitivity to project completions and timing; recurring swings in this core revenue stream can create uneven cash flows and complicate forecasting for an EPC business dependent on a handful of large projects.

Moderate operating cash conversion

An OCF-to-net-income ratio below 1.0 indicates that reported earnings are not fully converting to operating cash each period; in an EPC firm this can reflect timing of billings and receivables and could constrain liquidity for working capital when project schedules shift.

Argan Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Argan generates revenue primarily through its EPC contracts, which involve the construction and development of energy facilities for clients in the public and private sectors. The company earns money by charging fees for its engineering, procurement, and construction services, typically structured as fixed-price contracts or cost-plus contracts. Key revenue streams include project management fees, construction services, and maintenance contracts. Additionally, Argan has established significant partnerships with various energy companies and government agencies, enhancing its market presence and ability to secure large-scale projects. The company also benefits from the increasing demand for renewable energy solutions, positioning it to capitalize on growth opportunities in this sector.

Argan Financial Statement Overview

Summary

Strong overall fundamentals supported by improved profitability (TTM net margin 13.11% and gross margin 19.20%), a very strong balance sheet with no debt (D/E 0.00) and high ROE (31.38%), plus sharp improvement in free cash flow growth (+101.70%). The main offset is a significant slowdown in revenue growth (down 63.6% in the TTM).

Income Statement

Argan's income statement shows strong profitability with a TTM net profit margin of 13.11%, significantly higher than the previous annual report's 9.78%. The gross profit margin has improved to 19.20% in the TTM, indicating efficient cost management. However, the revenue growth rate has declined by 63.6% in the TTM, suggesting potential challenges in revenue generation.

Balance Sheet

The balance sheet is robust, with a low debt-to-equity ratio of 0.00 in the TTM, indicating minimal leverage and financial risk. The return on equity is impressive at 31.38%, reflecting strong profitability relative to shareholder equity. The equity ratio stands at 39.93%, showing a solid equity base.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow growth, up by 101.70% in the TTM. The operating cash flow to net income ratio is 0.46, indicating healthy cash generation relative to net income. The free cash flow to net income ratio is strong at 0.99, suggesting efficient cash conversion.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	915.03M	874.18M	573.33M	455.04M	509.37M	392.21M
Gross Profit	175.69M	140.99M	80.83M	86.36M	99.73M	62.07M
EBITDA	128.94M	93.86M	38.86M	45.38M	56.65M	27.64M
Net Income	119.93M	85.46M	32.36M	33.10M	38.24M	23.85M
Balance Sheet
Total Assets	1.05B	836.23M	598.23M	489.49M	553.59M	602.63M
Cash, Cash Equivalents and Short-Term Investments	726.82M	525.14M	412.40M	325.46M	440.50M	456.73M
Total Debt	2.63M	2.71M	2.73M	1.57M	1.37M	0.00
Total Liabilities	631.16M	484.37M	307.29M	208.59M	227.99M	280.22M
Stockholders Equity	419.71M	351.86M	290.94M	280.90M	326.39M	320.67M
Cash Flow
Free Cash Flow	282.98M	161.00M	114.10M	-33.43M	26.99M	172.98M
Operating Cash Flow	287.01M	167.58M	116.86M	-30.06M	28.41M	174.68M
Investing Cash Flow	-118.16M	-193.62M	-67.61M	-63.12M	-7.04M	68.30M
Financing Cash Flow	-40.90M	-26.06M	-26.05M	-82.80M	-34.61M	-45.41M

Argan Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 463.36
• 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 463.36 is above the 20-day moving average (MA) of 442.19, above the 50-day MA of 388.71, and above the 200-day MA of 294.81, indicating a bullish trend. The MACD of 20.33 indicates Positive momentum. The RSI at 58.61 is Neutral, neither overbought nor oversold. The STOCH value of 73.91 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	79 Outperform	$6.36B	34.44	31.38%	0.49%	13.49%	77.73%
MYRG	76 Outperform	$4.06B	28.92	19.65%	―	-0.64%	168.51%
PRIM	74 Outperform	$7.22B	24.39	17.49%	0.25%	21.45%	67.31%
ECG	72 Outperform	$5.74B	21.65	37.06%	―	28.20%	24.27%
GVA	70 Outperform	$5.25B	26.09	17.58%	0.45%	6.87%	64.56%
TPC	70 Outperform	$3.58B	30.66	6.77%	0.09%	19.22%	78.83%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Argan Corporate Events

Argan Declares Quarterly Cash Dividend of $0.50

On December 11, 2025, Argan, Inc. announced that its Board of Directors declared a regular quarterly cash dividend of $0.50 per share of common stock, payable on January 30, 2026, to stockholders of record as of January 22, 2026. This decision reflects Argan’s commitment to returning value to shareholders and follows a 33% increase in the quarterly dividend in September 2025. The increase in dividends underscores Argan’s success in executing projects and confidence in its project pipeline, amidst a robust demand environment for critical energy infrastructure.

The most recent analyst rating on (AGX) stock is a Buy with a $361.00 price target. To see the full list of analyst forecasts on Argan stock, see the AGX Stock Forecast page.