📊 AGX Key Takeaways
Is Argan Inc. (AGX) a Good Investment?
Argan demonstrates exceptional financial health with robust revenue growth of 52.5% YoY, exceptional profitability margins (13.0% net margin, 12.8% operating margin), and outstanding capital efficiency (21.1% ROE). The company generates substantial free cash flow ($239.7M, 35.1% FCF margin) with minimal debt and fortress-like balance sheet strength ($306.3M cash, 1.61x current ratio), positioning it for sustained growth and shareholder returns.
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.
Why Buy Argan Inc. Stock? AGX Key Strengths
- Exceptional revenue growth of 52.5% YoY demonstrating strong market demand and business expansion
- Outstanding profitability with 13.0% net margin and 12.8% operating margin well above construction industry averages
- Fortress balance sheet with $306.3M cash, zero long-term debt, and minimal leverage (0.00x debt/equity ratio)
- Exceptional free cash flow generation of $239.7M (35.1% FCF margin) providing flexibility for growth and returns
- Superior capital efficiency with 21.1% ROE and 8.4% ROA indicating effective asset utilization
- Outstanding liquidity with 1.61x current ratio and quick ratio, ensuring financial flexibility
- 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
- Construction sector cyclicality may impact future revenue growth if economic conditions deteriorate
- 52.5% revenue growth rate is unlikely to be sustainable long-term and may normalize
- Significant insider activity (10 Form 4 filings in 90 days) warrants monitoring for potential concerns
- 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 sustainability and pipeline quality in subsequent periods
- Maintenance of operating and net margins as company scales
- Free cash flow generation and capital allocation decisions
- Construction industry demand trends and competitive positioning
- Working capital efficiency as business grows
- Backlog growth and new project awards
- Operating margin and free cash flow conversion
Argan Inc. (AGX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 35.1% 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. appears fundamentally strong 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 |
|---|---|---|---|
| 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 |
| Q2 2024 | $118.1M | $4.2M | $0.30 |
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
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 15, 2026 | 4 | xslF345X06/form4-04152026_110453.xml | View → |
| Apr 10, 2026 | 4 | xslF345X06/form4-04102026_040407.xml | View → |
| Apr 10, 2026 | 4 | xslF345X06/form4-04102026_040405.xml | View → |
| Apr 10, 2026 | 4 | xslF345X06/form4-04102026_040403.xml | View → |
| Apr 10, 2026 | 4 | xslF345X06/form4-04102026_040401.xml | View → |
❓ Frequently Asked Questions about AGX
What is the AI rating for AGX?
Argan Inc. (AGX) has a Combined AI Rating of BUY from Claude (STRONG BUY) and ChatGPT (BUY) with 89% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AGX's key strengths?
Claude: Exceptional revenue growth of 52.5% YoY demonstrating strong market demand and business expansion. Outstanding profitability with 13.0% net margin and 12.8% operating margin well above construction industry averages. 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: Construction sector cyclicality may impact future revenue growth if economic conditions deteriorate. 52.5% revenue growth rate is unlikely to be sustainable long-term and may normalize. 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 $682.6M.
Does AGX pay dividends?
Argan Inc. pays dividends, with $17.3M 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 $6.27.
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 rating reflects both perspectives for balanced insights.
Is AGX a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Argan Inc. has a BUY rating with 89% 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 21.1% (sector avg: 15%), net margin of 13.0% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy AGX stock in 2026?
Our dual AI analysis gives Argan Inc. a combined BUY rating 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 $242.4M, with capital expenditures of $2.7M. FCF margin is 35.1%.
How does AGX compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 13.0% (avg: 10%), ROE 21.1% (avg: 15%), current ratio 1.61 (avg: 1.8).