Argan (AGX) AI Stock Analysis

• Market Cap: $2.81B
• Dividend Yield: 0.73%
• Average Volume (3M): 499.71K
• Price to Earnings (P/E): 28.9
• Beta (1Y): 1.04
• Revenue Growth: 45.08%
• EPS Growth: 158.43%
• Country: US
• Employees: 1,595
• Sector: Industrials
• Sector Strength: 86
• Industry: Engineering & Construction
• EPS (TTM): 1.60
• Shares Outstanding: 13,640,813
• 10 Day Avg. Volume: 466,075
• 30 Day Avg. Volume: 499,709
• PEG Ratio: 1.74
• Price to Book (P/B): 8.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.40
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 0.83
• Enterprise Value/Gross Profit: 17.14
• Enterprise Value/Ebitda: 8.74
• 1Y Price Target: $150.00
• Price Target Upside: -28.94% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: $244.00 ▲(15.59%Upside)

Argan's strong financial performance and positive earnings call sentiment are the most significant factors driving its stock score. The technical analysis shows positive momentum, though valuation concerns slightly dampen the overall outlook. The recent board appointment adds a strategic advantage, albeit minor.

Positive Factors

Backlog Growth

Argan's backlog has surpassed $2 billion, an impressive increase from previous figures, indicating a strong position in the market.

Electricity Demand

The company is benefiting from increased electricity demand driven by AI data centers and electric vehicles, boosting growth prospects.

Project Pipeline

Argan's project pipeline is strong, with expectations for several new power plant projects to be awarded, potentially increasing backlog significantly.

Negative Factors

Share Price Valuation

Shares have declined from recent highs and trade at a valuation that does not fully reflect the business's potential.

Tariff Risks

Tariffs pose a potential risk to new project activity, though management considers the risk 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, Inc. generates revenue predominantly through its subsidiaries by providing EPC services to the power generation industry. The company earns money by designing, building, and commissioning power plants, which often involve long-term contracts with utilities and independent power producers. Key revenue streams include project management fees, construction work, and equipment procurement services. Argan's earnings are substantially influenced by the successful acquisition and execution of large-scale power projects, and maintaining partnerships with industry leaders, which help to secure new contracts and ensure steady revenue flows.

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	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	910.16M	874.18M	573.33M	455.04M	509.37M	392.21M
Gross Profit	159.91M	140.99M	80.83M	86.36M	99.73M	62.07M
EBITDA	108.17M	93.86M	38.86M	45.38M	56.65M	27.64M
Net Income	100.13M	85.46M	32.36M	33.10M	38.24M	23.85M
Balance Sheet
Total Assets	792.15M	836.23M	598.23M	489.49M	553.59M	602.63M
Cash, Cash Equivalents and Short-Term Investments	546.46M	525.14M	412.40M	325.46M	440.50M	456.73M
Total Debt	2.68M	5.30M	5.32M	1.57M	3.66M	2.11M
Total Liabilities	428.26M	484.37M	307.29M	208.59M	227.99M	280.22M
Stockholders Equity	363.89M	351.86M	290.94M	280.90M	326.39M	320.67M
Cash Flow
Free Cash Flow	178.53M	161.00M	114.10M	-33.43M	26.99M	172.98M
Operating Cash Flow	185.19M	167.58M	116.86M	-30.06M	28.41M	174.68M
Investing Cash Flow	-166.97M	-193.62M	-67.61M	-63.12M	-7.04M	68.30M
Financing Cash Flow	-38.94M	-26.06M	-26.05M	-82.80M	-34.61M	-45.41M

Argan Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 211.09
• 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 Positive. The current price of 211.09 is below the 20-day moving average (MA) of 216.03, above the 50-day MA of 194.81, and above the 200-day MA of 149.59, indicating a neutral trend. The MACD of 3.53 indicates Positive momentum. The RSI at 52.10 is Neutral, neither overbought nor oversold. The STOCH value of 40.77 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
NVEE	80 Outperform	$1.55B	47.31	3.79%	―	8.65%	-22.72%
PRIM	79 Outperform	$4.43B	21.74	15.30%	0.39%	12.45%	42.45%
AGX	77 Outperform	$2.81B	28.94	30.48%	0.73%	45.08%	158.43%
ECG	71 Outperform	$3.32B	21.88	32.91%	―	11.92%	8.94%
MYRG	70 Neutral	$2.85B	84.15	5.71%	―	-7.33%	-57.86%
TPC	63 Neutral	$2.50B	―	-12.28%	―	8.95%	-41.32%
Sector *	61 Neutral	C$6.56B	9.38	3.44%	2.88%	6.99%	-11.09%

Argan Corporate Events

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.

Argan Appoints Lisa Larroque Alexander to Board

On April 9, 2025, Argan, Inc. announced the appointment of Lisa Larroque Alexander to its Board of Directors. Ms. Alexander, who serves as Senior Vice President at Sempra, brings extensive experience in the energy sector, including expertise in corporate affairs, human resources, and public policy. Her appointment is expected to enhance Argan’s strategic discussions and decision-making as the company continues its growth and expansion in the power industry.