📊 AGX Key Takeaways
Is Argan Inc. (AGX) a Good Investment?
Argan demonstrates fortress-like financial health with minimal debt, $355.8M in cash, and exceptional cash generation (38.1% FCF margin). Strong profitability metrics (15.8% net margin, 15.6% operating margin) and 58.4% EPS growth signal operational excellence in a capital-light model. However, moderate capital efficiency (9.7% ROE, 3.6% ROA) and unknown revenue trajectory prevent a stronger rating.
Argan shows unusually strong fundamentals for an engineering and construction contractor: revenue grew 52.5% year over year, operating margin reached 12.8%, and free cash flow was exceptionally strong at $239.72M. The balance sheet is a major advantage, with $306.29M of cash, no meaningful long-term debt, and solid liquidity, which supports resilience and execution flexibility. The main caution is whether current growth and margins are sustainable given the project-driven nature of the business.
Argan Inc. Key Strengths (AGX)
- Exceptional free cash flow generation of $111M with 38.1% FCF margin, indicating highly efficient operations
- Fortress balance sheet with zero debt (0.00x D/E ratio), 1418.6x interest coverage, and $355.8M cash reserves
- Strong profitability across metrics—15.8% net margin, 15.6% operating margin, and 21.0% gross margin exceed industry norms for construction
- Significant EPS growth of 58.4% YoY demonstrating operational leverage
- Asset-light business model evidenced by minimal CapEx of $2.4M and healthy quick ratio of 1.53x
- Rapid revenue growth with strong operating leverage, as revenue rose 52.5% year over year while diluted EPS increased 157.3%
- Excellent financial health, supported by $306.29M in cash, no meaningful long-term debt, and 1.61x current and quick ratios
- High-quality cash generation, with $242.39M in operating cash flow and $239.72M in free cash flow on minimal capital spending
AGX Stock Risks: Argan Inc. Investment Risks
- Moderate capital efficiency despite strong cash generation—ROE of 9.7% and ROA of 3.6% suggest suboptimal deployment of deployed capital
- Lack of revenue growth visibility (YoY metric unavailable) raises questions about top-line momentum and sustainability
- Cyclical industry exposure—special trade contractors sector vulnerable to economic downturns affecting construction demand
- Large cash accumulation ($355.8M) without clear capital allocation strategy may indicate underutilized capacity or missing growth opportunities
- Data freshness as of 2026-04-30 leaves recent performance trends unclear
- Results may be lumpy because large EPC and construction projects can create volatile revenue, margin, and cash flow timing
- Current profitability may be near a cyclical or contract peak, making margin normalization a risk if project mix changes
- Net income was flat year over year despite sharp revenue growth, which could indicate earnings quality or comparability issues that need monitoring
Key Metrics to Watch
- Revenue growth rate—essential to confirm sustainability of earnings expansion
- Free cash flow conversion—maintain >35% FCF margin to sustain competitive advantage
- Return on Equity trajectory—target improvement from current 9.7% through disciplined capital deployment
- Capital allocation decisions—monitor dividends, buybacks, debt reduction, or M&A use of cash reserves
- Operating margin sustainability—verify 15.6% level holds amid market conditions
- Backlog growth and new project awards
- Operating margin and free cash flow conversion
Argan Inc. (AGX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 38.1% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
AGX Profit Margin, ROE & Profitability Analysis
AGX vs Industrial Sector: How Argan Inc. Compares
How Argan Inc. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Argan Inc. Stock Overvalued? AGX Valuation Analysis 2026
Based on fundamental analysis, Argan Inc. has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Argan Inc. Balance Sheet: AGX Debt, Cash & Liquidity
AGX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Argan Inc.'s revenue has grown significantly by 85% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.39 reflects profitable operations.
AGX Revenue Growth, EPS Growth & YoY Performance
AGX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2027 | $193.7M | $22.6M | $1.60 |
| Q3 2026 | $251.2M | $28.0M | $2.00 |
| Q2 2026 | $227.0M | $18.2M | $1.31 |
| Q1 2026 | $157.7M | $7.9M | $0.58 |
| Q3 2025 | $163.8M | $5.5M | $0.40 |
| Q2 2025 | $141.3M | $12.8M | $0.94 |
| Q1 2025 | $103.7M | $2.1M | $0.16 |
| Q3 2024 | $117.9M | $5.5M | $0.40 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Argan Inc. Dividends, Buybacks & Capital Allocation
AGX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Argan Inc. (CIK: 0000100591)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AGX
What is the AI rating for AGX?
Argan Inc. (AGX) has a Combined AI Grade of A from Claude (A) and ChatGPT (A) with 82% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AGX's key strengths?
Claude: Exceptional free cash flow generation of $111M with 38.1% FCF margin, indicating highly efficient operations. Fortress balance sheet with zero debt (0.00x D/E ratio), 1418.6x interest coverage, and $355.8M cash reserves. ChatGPT: Rapid revenue growth with strong operating leverage, as revenue rose 52.5% year over year while diluted EPS increased 157.3%. Excellent financial health, supported by $306.29M in cash, no meaningful long-term debt, and 1.61x current and quick ratios.
What are the risks of investing in AGX?
Claude: Moderate capital efficiency despite strong cash generation—ROE of 9.7% and ROA of 3.6% suggest suboptimal deployment of deployed capital. Lack of revenue growth visibility (YoY metric unavailable) raises questions about top-line momentum and sustainability. ChatGPT: Results may be lumpy because large EPC and construction projects can create volatile revenue, margin, and cash flow timing. Current profitability may be near a cyclical or contract peak, making margin normalization a risk if project mix changes.
What is AGX's revenue and growth?
Argan Inc. reported revenue of $291.0M.
Does AGX pay dividends?
Argan Inc. pays dividends, with $7.0M distributed to shareholders in the trailing twelve months.
Where can I find AGX SEC filings?
Official SEC filings for Argan Inc. (CIK: 0000100591) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AGX's EPS?
Argan Inc. has a diluted EPS of $3.24.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is AGX's fundamental grade?
Based on our AI fundamental analysis in June 2026, Argan Inc. has a A grade with 82% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is AGX stock overvalued or undervalued?
Valuation metrics for AGX: ROE of 9.7% (sector avg: 15%), net margin of 15.8% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is AGX's AI grade for 2026?
Our dual AI analysis gives Argan Inc. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is AGX's free cash flow?
Argan Inc.'s operating cash flow is $113.4M, with capital expenditures of $2.4M. FCF margin is 38.1%.
How does AGX compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 15.8% (avg: 10%), ROE 9.7% (avg: 15%), current ratio 1.53 (avg: 1.8).