Argan (AGX) AI Stock Analysis

• Market Cap: $3.60B
• Dividend Yield: 0.58%
• Average Volume (3M): 380.44K
• Price to Earnings (P/E): 31.4
• Beta (1Y): 1.21
• 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: 342,872
• 30 Day Avg. Volume: 380,439
• 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: 0.80
• Enterprise Value/Revenue: 3.14
• Enterprise Value/Gross Profit: 16.71
• Enterprise Value/Ebitda: 22.93
• 1Y Price Target: $243.50
• Price Target Upside: -5.68% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: $229.00 ▼(-11.30% Downside)

Argan's strong financial performance and positive earnings call are the most significant factors driving the stock score. While technical analysis indicates a positive trend, valuation concerns due to a high P/E ratio and modest dividend yield slightly offset the overall score. The company's robust backlog and commitment to shareholder returns further support a positive outlook.

Positive Factors

Strong Financial Performance

Consistent revenue growth and record net income indicate robust financial health and effective business operations, supporting long-term stability.

Record Backlog

A record backlog ensures future revenue streams and reflects strong demand for Argan's services, enhancing market position and growth prospects.

Strong Cash Position

A strong cash position with no debt provides financial flexibility, enabling strategic investments and resilience against economic fluctuations.

Negative Factors

Decline in Free Cash Flow Growth

A decline in free cash flow growth could limit the company's ability to fund new projects and return capital to shareholders, affecting long-term growth.

Industrial Construction Services Revenue Decline

A decline in this segment's revenue suggests potential challenges in project timing and contract awards, impacting overall revenue diversification.

Increased SG&A Expenses

Rising SG&A expenses can pressure profit margins and reduce operational efficiency, potentially affecting long-term profitability.

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 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: 258.17
• 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 258.17 is above the 20-day moving average (MA) of 239.79, above the 50-day MA of 232.06, and above the 200-day MA of 179.32, indicating a bullish trend. The MACD of 10.58 indicates Negative momentum. The RSI at 64.32 is Neutral, neither overbought nor oversold. The STOCH value of 78.59 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
ECG	78 Outperform	4.25B	25.67	33.94%	―	21.87%	18.56%
PRIM	77 Outperform	7.21B	29.47	12.83%	0.22%	15.08%	55.10%
AGX	75 Outperform	$3.60B	31.36	33.43%	0.58%	29.16%	163.46%
GVA	74 Outperform	4.77B	36.32	12.45%	0.48%	7.18%	77.84%
MYRG	71 Outperform	3.08B	41.48	5.04%	―	-3.80%	62.94%
TPC	63 Neutral	3.41B	-25.51	-11.16%	―	12.03%	-93.60%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Argan Corporate Events

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.