Argan (AGX) AI Stock Analysis

• Market Cap: $3.06B
• Dividend Yield: 0.67%
• Average Volume (3M): 410.47K
• Price to Earnings (P/E): 31.5
• Beta (1Y): 1.12
• Revenue Growth: 45.08%
• EPS Growth: 158.43%
• Country: US
• Employees: 1,595
• Sector: Industrials
• Sector Strength: 78
• Industry: Engineering & Construction
• EPS (TTM): 1.60
• Shares Outstanding: 13,640,813
• 10 Day Avg. Volume: 409,027
• 30 Day Avg. Volume: 410,470
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.53
• Enterprise Value/Revenue: 1.78
• Enterprise Value/Gross Profit: 10.11
• Enterprise Value/Ebitda: 14.95
• 1Y Price Target: $213.00
• Price Target Upside: -4.91% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 78 Outperform
• Price Target: $269.00 ▲(20.09% Upside)

Argan's overall stock score reflects its strong financial performance and positive earnings call outlook, which are supported by robust growth and a record backlog. Technical indicators show positive momentum, though caution is advised due to high stochastic levels. Valuation is a concern due to the high P/E ratio. The recent contract in Ireland adds a positive strategic dimension.

Positive Factors

Backlog Growth

Argan's backlog has exceeded $2 billion, showcasing a significant increase from $1.4 billion at the end of January and $0.8 billion last October.

Earnings and Margins

Q4 gross margins of 20.5% were significantly above estimates, reflecting good execution and a better mix of high margin projects.

Market Position

AGX is well-positioned to benefit from increasing U.S. energy loads and a predicted buildout of gas power plants, capitalizing on its strong market position.

Negative Factors

Stock Volatility

AGX stock has been volatile within the AI data center theme despite growing visibility into future years.

Tariff Risks

Tariffs pose a potential risk to new project activity, though management considers these risks to be low.

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 construction and engineering services contracts, which involve the design, procurement, and construction of power generation facilities and renewable energy projects. The company's revenue model is largely project-based, relying on fixed-price contracts and time-and-material arrangements. Key revenue streams include the construction of natural gas and solar power plants, as well as maintenance and upgrade services for existing facilities. Additionally, significant partnerships with leading energy companies and government agencies contribute to Argan's earnings by providing access to large-scale projects and enhancing its market presence in the energy sector.

Argan Financial Statement Overview

Summary

Argan demonstrates strong financial health with robust revenue growth and solid profitability margins. The balance sheet is characterized by minimal leverage and a conservative capital structure, and cash flows show effective cash conversion from operations. Attention should be given to fluctuations in non-operational cash flows.

Income Statement

Argan demonstrates robust financial health with strong revenue growth and solid profitability margins. The TTM revenue growth rate is impressive, with a notable increase from the previous year. Gross and net profit margins are healthy at 17.57% and 11.00%, respectively, reflecting efficient cost management. The EBIT margin of 11.65% and EBITDA margin of 11.88% further highlight operational efficiency. Overall, the income statement reflects a strong growth trajectory and profitability.

Balance Sheet

Argan's balance sheet is strong, characterized by a low debt-to-equity ratio of 0.007, indicating minimal leverage and a conservative capital structure. The company maintains a high equity ratio of 45.94%, suggesting a solid financial position and significant asset ownership. Return on equity is also commendable at 27.52%, showcasing efficient utilization of shareholder funds. The stability of Argan's balance sheet provides a buffer against potential risks.

Cash Flow

Argan's cash flow statement reflects robust cash generation capabilities, with free cash flow showing significant growth. The free cash flow to net income ratio is strong, indicating effective conversion of earnings into cash. Operating cash flow surpasses net income, demonstrating the company's ability to generate cash from its core operations. However, fluctuations in investing and financing cash flows may warrant monitoring.

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
EBITDA	93.86M	38.86M	45.38M	56.65M	27.64M
Net Income	85.46M	32.36M	33.10M	38.24M	23.85M
Balance Sheet
Total Assets	836.23M	598.23M	489.49M	553.59M	602.63M
Cash, Cash Equivalents and Short-Term Investments	525.14M	412.40M	325.46M	440.50M	456.73M
Total Debt	5.30M	5.32M	1.57M	3.66M	2.11M
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: Neutral
• Last Price: 223.99
• 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 Neutral. The current price of 223.99 is below the 20-day moving average (MA) of 228.99, above the 50-day MA of 219.89, and above the 200-day MA of 166.54, indicating a neutral trend. The MACD of 3.74 indicates Positive momentum. The RSI at 49.19 is Neutral, neither overbought nor oversold. The STOCH value of 34.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AGX.

Argan Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVEE	80 Outperform	$1.51B	41.26	4.15%	―	8.65%	-22.72%
AGX	78 Outperform	$3.06B	31.52	30.48%	0.67%	45.08%	158.43%
ECG	76 Outperform	$3.84B	23.19	33.00%	―	21.87%	18.56%
PRIM	75 Outperform	$6.00B	25.24	17.01%	0.27%	15.08%	55.10%
MYRG	71 Outperform	$2.82B	37.91	12.56%	―	-3.80%	62.94%
Sector *	63 Neutral	€15.32B	19.86	1.57%	3.12%	4.81%	5.42%
TPC	61 Neutral	$3.02B	―	-10.61%	―	12.03%	-93.60%

Argan Corporate Events

Argan Subsidiary Secures Major Contract in Ireland

Argan, Inc.’s subsidiary, Atlantic Projects Company, has secured a contract with SSE Thermal for engineering, procurement, and construction services at the Platin Power Station in Ireland. This project, which will feature three Siemens Energy SGT-800 turbines, is expected to be completed by 2028 and will enhance Ireland’s power grid with 170 MW of generation capacity during high demand periods. This contract marks a significant milestone for Atlantic Projects Company, reinforcing its partnership with SSE and supporting Ireland’s transition to sustainable energy solutions.

The most recent analyst rating on (AGX) stock is a Buy with a $150.00 price target. To see the full list of analyst forecasts on Argan stock, see the AGX Stock Forecast page.

Argan Holds Annual Meeting, Announces Dividend

On June 17, 2025, Argan, Inc. held its Annual Meeting of Stockholders, where several key resolutions were passed. These included the election of nine board members, advisory votes on executive compensation and its frequency, an amendment to limit personal liability of certain officers, and the ratification of Grant Thornton LLP as the company’s auditors for the fiscal year ending January 31, 2026. Additionally, Argan announced a regular quarterly cash dividend of $0.375 per share, payable on July 31, 2025, to stockholders of record as of July 23, 2025.

The most recent analyst rating on (AGX) stock is a Buy with a $150.00 price target. To see the full list of analyst forecasts on Argan stock, see the AGX Stock Forecast page.