Argan (AGX) AI Stock Analysis

• Market Cap: $5.46B
• Dividend Yield: 0.41%
• Average Volume (3M): 328.85K
• Price to Earnings (P/E): 47.6
• Beta (1Y): 1.42
• Revenue Growth: 29.16%
• EPS Growth: 163.46%
• Country: US
• Employees: 1,595
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 2.50
• Shares Outstanding: 13,811,575
• 10 Day Avg. Volume: 327,017
• 30 Day Avg. Volume: 328,854
• 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: 0.53
• Enterprise Value/Revenue: 3.14
• Enterprise Value/Gross Profit: 16.71
• Enterprise Value/Ebitda: 22.93
• 1Y Price Target: $349.00
• Price Target Upside: -11.69% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 8.3
• Revenue Forecast (FY): $973.83M

• Rating: 75 Outperform
• Price Target: $391.00 ▼(-1.06% Downside)

Argan's overall stock score reflects strong financial performance and positive earnings call insights, highlighting robust revenue growth and a solid backlog. Technical indicators suggest strong momentum, though caution is warranted due to potential overbought conditions. The high P/E ratio indicates a premium valuation, which could pose risks if growth expectations are not met.

Positive Factors

Strong Financial Performance

Argan's consistent revenue growth and profitability indicate a robust business model and effective market strategy, supporting long-term financial stability.

Record Backlog

A record backlog provides revenue visibility and stability, ensuring a steady stream of future income and reinforcing Argan's market position.

New Major Contract

Securing a major contract for a 1,350 MW power plant enhances Argan's project portfolio and strengthens its presence in the energy sector, supporting long-term growth.

Negative Factors

Decline in Free Cash Flow Growth

A decline in free cash flow growth can limit Argan's ability to invest in new projects or return capital to shareholders, potentially impacting long-term growth.

Increased SG&A Expenses

Rising SG&A expenses can erode profit margins and indicate inefficiencies, which may affect Argan's operational effectiveness and profitability over time.

Industrial Construction Services Revenue Decline

A decline in this segment's revenue suggests potential challenges in market demand or project execution, which could impact Argan's diversification and revenue stability.

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 profitability, supported by a solid balance sheet with low leverage. The decline in free cash flow growth is a concern, but overall cash flow management remains strong. The company's financial statements reflect a well-managed business with a positive outlook, although attention to cash flow trends is advisable.

Income Statement

Argan's income statement shows strong profitability with a TTM gross profit margin of 18.79% and a net profit margin of 12.73%. The company has demonstrated impressive revenue growth of 117.9% in the TTM period, indicating robust business expansion. EBIT and EBITDA margins are healthy at 13.35% and 13.70% respectively, reflecting efficient operations. Overall, the income statement reflects strong growth and profitability, with a positive trajectory.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.006, indicating minimal leverage and financial risk. Return on equity is strong at 32.61%, showcasing effective use of shareholder funds. The equity ratio stands at 44.54%, suggesting a stable financial structure. While the balance sheet is strong, the slight decrease in stockholders' equity over time could be a point of concern.

Cash Flow

Argan's cash flow statement reveals a decline in free cash flow growth by 21.42% in the TTM period, which is a concern. However, the operating cash flow to net income ratio of 1.25 indicates strong cash generation relative to net income. The free cash flow to net income ratio remains high at 95.90%, reflecting efficient cash management. Despite the decline in free cash flow growth, the company maintains strong cash flow ratios.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	920.88M	874.18M	573.33M	455.04M	509.37M	392.21M
Gross Profit	173.07M	140.99M	80.83M	86.36M	99.73M	62.07M
EBITDA	126.13M	93.86M	38.86M	45.38M	56.65M	27.64M
Net Income	117.20M	85.46M	32.36M	33.10M	38.24M	23.85M
Balance Sheet
Total Assets	882.70M	836.23M	598.23M	489.49M	553.59M	602.63M
Cash, Cash Equivalents and Short-Term Investments	572.19M	525.14M	412.40M	325.46M	440.50M	456.73M
Total Debt	2.38M	5.30M	5.32M	1.57M	3.66M	2.11M
Total Liabilities	489.53M	484.37M	307.29M	208.59M	227.99M	280.22M
Stockholders Equity	393.18M	351.86M	290.94M	280.90M	326.39M	320.67M
Cash Flow
Free Cash Flow	140.30M	161.00M	114.10M	-33.43M	26.99M	172.98M
Operating Cash Flow	146.30M	167.58M	116.86M	-30.06M	28.41M	174.68M
Investing Cash Flow	-163.31M	-193.62M	-67.61M	-63.12M	-7.04M	68.30M
Financing Cash Flow	-40.31M	-26.06M	-26.05M	-82.80M	-34.61M	-45.41M

Argan Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 395.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 395.2 is above the 20-day moving average (MA) of 345.99, above the 50-day MA of 306.13, and above the 200-day MA of 215.29, indicating a bullish trend. The MACD of 21.41 indicates Negative momentum. The RSI at 57.37 is Neutral, neither overbought nor oversold. The STOCH value of 75.14 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	75 Outperform	$5.46B	47.56	33.43%	0.41%	29.16%	163.46%
MYRG	74 Outperform	$3.48B	36.24	16.22%	―	-0.64%	168.51%
ECG	73 Outperform	$4.69B	25.96	35.26%	―	28.20%	24.27%
PRIM	71 Outperform	$6.84B	25.01	18.56%	0.25%	21.45%	67.31%
GVA	70 Outperform	$4.30B	28.95	16.87%	0.48%	6.87%	64.56%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TPC	63 Neutral	$3.62B	―	-2.31%	―	19.22%	78.83%

Argan Corporate Events

Argan’s Subsidiary Secures Major Power Plant Contract

Argan, Inc.’s subsidiary, Gemma Power Systems, has secured a contract for an 860 MW natural gas-fired power plant in the ERCOT market, with the project value to be added to the company’s backlog for the quarter ending October 31, 2025. This development signifies a significant addition to Argan’s project portfolio, potentially enhancing its market position and operational scale within the energy sector.

The most recent analyst rating on (AGX) stock is a Buy with a $348.00 price target. To see the full list of analyst forecasts on Argan stock, see the AGX Stock Forecast page.

Argan’s Gemma Power Systems to Build Texas Power Plant

Argan, Inc.’s subsidiary, Gemma Power Systems, has received full notice to proceed with an engineering, procurement, and construction contract for the CPV Basin Ranch Energy Center in Ward County, Texas. The 1,350 MW power plant, featuring GE turbines and potential carbon capture capabilities, is set to begin construction this fall with completion expected in 2028. This project is a significant investment in local power infrastructure, expected to create thousands of jobs during construction and provide long-term benefits to the community by powering 850,000 homes. It underscores Gemma’s expertise in delivering complex power generation facilities and strengthens its partnership with Competitive Power Ventures.

The most recent analyst rating on (AGX) stock is a Buy with a $314.00 price target. To see the full list of analyst forecasts on Argan stock, see the AGX Stock Forecast page.

Argan Announces 33% Increase in Quarterly Dividend

On September 10, 2025, Argan, Inc. announced a 33% increase in its quarterly cash dividend, raising it from $0.375 to $0.50 per common share, payable on October 31, 2025. This marks the third consecutive annual increase, reflecting the company’s strong growth, profitability, and commitment to shareholder value. Argan is optimistic about its future prospects due to a robust pipeline of opportunities and the ongoing demand for reliable energy resources, positioning itself well in the industry with its diverse capabilities and proven track record.

The most recent analyst rating on (AGX) stock is a Buy with a $229.00 price target. To see the full list of analyst forecasts on Argan stock, see the AGX Stock Forecast page.

Argan Inc. Reports Strong Q2 Earnings and Record Backlog

In the latest earnings call, Argan Inc. showcased a robust financial performance, marked by significant revenue growth, a record backlog, and improved gross margins. Despite facing challenges in the Industrial Construction Services segment, the overall sentiment was positive, underscored by a strong cash position and a commitment to returning capital to shareholders.

Argan, Inc. Reports Strong Q2 Fiscal 2026 Results

Argan, Inc. is a company specializing in construction services for the power industry, focusing on engineering, procurement, and construction of power plants and renewable energy facilities.