Argan (AGX) AI Stock Analysis

• Market Cap: $4.49B
• Dividend Yield: 0.52%
• Average Volume (3M): 334.66K
• Price to Earnings (P/E): 39.1
• Beta (1Y): 1.32
• 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: 289,420
• 30 Day Avg. Volume: 334,662
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.64
• Enterprise Value/Revenue: 3.14
• Enterprise Value/Gross Profit: 16.71
• Enterprise Value/Ebitda: 22.93
• 1Y Price Target: $275.33
• Price Target Upside: -11.58% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $348.00 ▲(11.76% Upside)

Argan's strong financial performance, highlighted by robust revenue growth and profitability, is the primary driver of its stock score. The positive momentum in technical indicators supports a favorable outlook, although the high P/E ratio suggests potential overvaluation. The earnings call further reinforces the company's strong position with a record backlog and strategic focus on shareholder returns. However, the modest dividend yield and challenges in the Industrial Construction Services segment slightly temper the overall score.

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. (AGX) is a leading provider of construction and engineering services primarily focused on the energy sector. The company operates through its subsidiaries, delivering specialized services including power generation, renewable energy, and industrial services. With a commitment to high-quality execution and safety, Argan serves a diverse range of clients, including utilities, independent power producers, and government entities, providing them with innovative solutions that enhance operational efficiency and sustainability.

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 exhibits strong financial health with robust revenue growth, solid profitability margins, and a conservative balance sheet. The income statement reflects a strong growth trajectory, while the balance sheet shows minimal leverage and high equity ownership. Cash flows are strong, with effective cash conversion from operations.

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	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: 311.38
• 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 311.38 is above the 20-day moving average (MA) of 294.26, above the 50-day MA of 266.94, and above the 200-day MA of 198.67, indicating a bullish trend. The MACD of 12.45 indicates Negative momentum. The RSI at 59.19 is Neutral, neither overbought nor oversold. The STOCH value of 73.97 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	77 Outperform	$4.49B	39.10	33.43%	0.52%	29.16%	163.46%
MYRG	74 Outperform	$3.62B	37.72	16.22%	―	-0.64%	168.51%
ECG	74 Outperform	$4.76B	27.76	35.26%	―	28.20%	24.27%
GVA	70 Outperform	$4.50B	34.36	16.87%	0.52%	6.87%	64.56%
PRIM	70 Outperform	$7.04B	25.76	18.56%	0.25%	21.45%	67.31%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TPC	63 Neutral	$3.55B	―	-2.31%	―	19.22%	78.83%

Argan Corporate Events

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.