Argan Inc (AGX)
NYSE:AGX
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Argan
(NYSE:AGX)
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Rating:82Outperform
Price Target:
$838.00
▲(40.16% Upside)
Action:Reiterated
Date:04/09/26
AGX scores well primarily due to strong financial performance (profitability and cash flow improvement alongside a debt-free balance sheet) and a positive earnings outlook supported by a large backlog and strong liquidity. Technicals also indicate solid momentum, while the overall score is tempered by a relatively high P/E and project-driven volatility/concentration risks noted by management.
Positive Factors
Debt-free balance sheet
A virtually debt-free balance sheet with rising equity gives durable financial flexibility, reducing refinancing and interest coverage risk. This footing supports bidding on large EPC projects, funds working capital swings, selective M&A and sustained shareholder returns through cycles.
Negative Factors
Backlog concentration
Heavy exposure to natural gas projects (~77% of backlog) creates structural concentration risk as energy transition, policy shifts, or gas-market cycles can reduce future project flow or extend conversion timelines, pressuring long-term demand diversity.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
A virtually debt-free balance sheet with rising equity gives durable financial flexibility, reducing refinancing and interest coverage risk. This footing supports bidding on large EPC projects, funds working capital swings, selective M&A and sustained shareholder returns through cycles.
Read all positive factors
Argan Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyArgan (AGX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.28B
Dividend Yield0.49%
Average Volume (3M)297.96K
Price to Earnings (P/E)24.5
Beta (1Y)1.20
Revenue Growth8.06%
EPS Growth57.80%
CountryUS
Employees1,595
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)9.98
Shares Outstanding13,960,465
10 Day Avg. Volume286,638
30 Day Avg. Volume297,963
Financial Highlights & Ratios
PEG Ratio0.61
Price to Book (P/B)10.43
Price to Sales (P/S)5.11
P/FCF Ratio11.74
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue9.10
Enterprise Value/Gross Profit44.38
Enterprise Value/Ebitda59.48
Forecast
1Y Price Target
$446.50Price Target Upside-25.32% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)9.56
Revenue Forecast (FY)$1.22B
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...
How the Company Makes Money
Argan makes money primarily by performing work on large, project-based contracts for the design and construction of power and energy-related facilities. Its core revenue stream is contract revenue recognized as it executes EPC and construction pro...
Argan Earnings Call Summary
Earnings Call Date:Mar 26, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jun 10, 2026
Earnings Call Sentiment Positive
The call presented strong, broad-based financial and operational performance — record revenue, profit, margins, EBITDA and a materially expanded backlog and liquidity position — alongside disciplined capital returns (dividend increase and buyback). Management acknowledged typical construction-industry risks: quarter-to-quarter margin variability, dependence on gas-fired project demand, workforce capacity constraints and limited control over project start timing. Overall, the positives (record results, backlog growth, cash position, successful project execution) materially outweigh the operational and market risks noted.Positive Updates
Record Revenue and Top-Line Growth
Consolidated revenue reached a record $262.1M in Q4 (up 13% YoY) and a record $944.6M for fiscal 2026 (up 8.1% YoY). Q4 growth was driven by timing of Power projects and ramp-up after Trumbull substantial completion.
Negative Updates
Margin and Results Volatility
Management noted historically lumpy margins (quarterly gross margins ranged ~11.4% to 25%) and cautioned there is uncertainty in where FY2027 gross margin will settle due to project mix, contract type and timing.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Revenue and Top-Line Growth
Consolidated revenue reached a record $262.1M in Q4 (up 13% YoY) and a record $944.6M for fiscal 2026 (up 8.1% YoY). Q4 growth was driven by timing of Power projects and ramp-up after Trumbull substantial completion.
Read all positive updates
Company Guidance
Management gave directional rather than numeric FY‑27 guidance, saying they expect to add “a handful” of new projects over the next 8–20 months and remain confident they can execute 10–12 jobs simultaneously (currently 9 underway: 7 thermal, 2 renewable). They pointed to a strong backlog and balance sheet — backlog >$2.9 billion after adding $2.5 billion of new contract value in FY‑26 (backlog ~77% natural gas / 14% renewable / 9% industrial; includes three U.S. gas plants totaling >3.4 GW) that will convert to revenue over the next 3+ years — and emphasized liquidity and capital allocation: $895 million of cash and investments, net liquidity $421 million, no debt, continued shareholder returns (quarterly dividend $0.50 / $2.00 annual run rate; $150 million repurchase authorization; ~$114 million returned since Nov 2021; $43 million returned in FY‑26), continued investment in people and selective M&A; they declined to give firm FY‑27 gross‑margin guidance, saying it’s too early but they are encouraged by the backlog composition and execution trends.Argan Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
81
Very Positive
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 944.61M | 874.18M | 573.33M | 455.04M | 509.37M |
| Gross Profit | 193.68M | 140.99M | 80.83M | 86.36M | 99.73M |
| EBITDA | 136.99M | 93.86M | 38.86M | 45.38M | 56.65M |
| Net Income | 137.77M | 85.46M | 32.36M | 33.10M | 38.24M |
Balance Sheet | |||||
| Total Assets | 1.19B | 836.23M | 598.23M | 489.49M | 553.59M |
| Cash, Cash Equivalents and Short-Term Investments | 894.98M | 525.14M | 412.40M | 325.46M | 440.50M |
| Total Debt | 6.39M | 2.71M | 2.73M | 1.57M | 1.37M |
| Total Liabilities | 724.09M | 484.37M | 307.29M | 208.59M | 227.99M |
| Stockholders Equity | 462.26M | 351.86M | 290.94M | 280.90M | 326.39M |
Cash Flow | |||||
| Free Cash Flow | 410.84M | 161.00M | 114.10M | -33.43M | 26.99M |
| Operating Cash Flow | 414.72M | 167.58M | 116.86M | -30.06M | 28.41M |
| Investing Cash Flow | -182.02M | -193.62M | -67.61M | -63.12M | -7.04M |
| Financing Cash Flow | -42.59M | -26.06M | -26.05M | -82.80M | -34.61M |
Argan Technical Analysis
Positive
597.88
Price Trends
590.72
Positive
483.95
Positive
383.41
Positive
Market Momentum
26.80
Positive
47.09
Neutral
36.42
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 597.88 is below the 20-day moving average (MA) of 681.11, above the 50-day MA of 590.72, and above the 200-day MA of 383.41, indicating a neutral trend. The MACD of 26.80 indicates Positive momentum. The RSI at 47.09 is Neutral, neither overbought nor oversold. The STOCH value of 36.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AGX.
Argan Risk Analysis
Argan disclosed 38 risk factors in its most recent earnings report. Argan reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Argan Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $9.28B | 24.50 | 33.62% | 0.49% | 8.06% | 57.80% | |
81 Outperform | $7.58B | 25.85 | 37.17% | ― | 29.70% | 46.91% | |
80 Outperform | $7.01B | 23.43 | 22.14% | ― | 13.14% | 317.43% | |
73 Outperform | $3.97B | 39.60 | 6.50% | 0.09% | 25.67% | ― | |
72 Outperform | $6.01B | -31.29 | 16.70% | 0.45% | 14.93% | 49.81% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $5.89B | 111.18 | 15.21% | 0.25% | 13.40% | 19.67% |
* Industrials Sector Average
AGX
Argan
639.58
450.97
239.10%
GVA
Granite Construction
132.46
45.88
52.99%
MYRG
MYR Group
440.68
276.63
168.63%
PRIM
Primoris Services
104.70
30.11
40.37%
TPC
Tutor Perini
74.91
38.59
106.27%
ECG
Everus Construction Group, Inc.
146.26
87.28
147.98%
Argan Corporate Events
Stock BuybackDividends
Argan Expands Share Buyback and Maintains Quarterly Dividend
Positive
Apr 8, 2026
On April 8, 2026, Argan, Inc. announced that its board declared a regular quarterly cash dividend of $0.50 per common share, payable on April 30, 2026 to shareholders of record as of April 22, 2026. The move signals an ongoing return of capital to...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.