Argan AGX
United StatesIndustrials · Engineering & ConstructionUSD
570.50 USD (+41.1%)
6 analysts
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Argan, Inc. is an engineering and construction company that provides design, construction, and maintenance services primarily for the power generation sector, including natural gas and renewable energy plants.
Key points
from its scores- ✓Strong growth9.6
- ✓Good share-price trend9.4
- ✓Very solid balance sheet8.4
- ✕Little or no dividend4.0
- ✕Demanding valuation4.3
AI analysis
bottom line, main risk, context and newsFundamentals are strong and growth is high, but the valuation already discounts much of the good news.
Argan shows solid financial health with net cash (Net Debt/EBITDA of -5.50) and exceptional return on equity (ROE of 39.85%), although its valuation is demanding (P/E of 31.97) and its dividend yield is low (0.69%).
The main risk is concentration in the power generation sector: a slowdown in energy infrastructure projects or regulatory changes in the sector could significantly impact its order book.
Context and risks
No recent relevant news and no material exposure to current macro factors (rates, oil, tariffs) affecting its construction and engineering business. The rise in long-term US rates is a general market factor, but its balance sheet with net cash isolates it from refinancing pressures.
Is Argan stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 50% above the Industrials median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 32.0 | 25.4 | +26% |
| EV / EBITDA | 25.2 | 14.5 | +74% |
| Price / book | 11.2 | 4.1 | +176% |
| Price / sales | 4.8 | 2.1 | +132% |
Sector: median of the 388 Industrials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 4.3 out of 10 (median for Industrials: 5.0).
Average analyst target: 570.50 USD, +41.1% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 8.0 (sector 5.8), Growth 9.6 (sector 6.6).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Industrials medianValuation
- P/E
- 32.0
- Forward P/E
- 25.1
- EV / EBITDA
- 25.2
- Price / book
- 11.2
- Price / sales
- 4.8
- PEG
- 0.72
- Market cap
- 5.7B USD
- Enterprise value
- 4.7B USD
Profitability
- ROE
- 39.8%
- ROA
- 10.0%
- ROIC (approx.)
- 34.0%
- Gross margin
- 20.7%
- Operating margin
- 14.8%
- Net margin
- 15.1%
- Free cash flow
- 467.8M USD
- FCF yield
- 8.2%
- Cash conversion
- 253%
Solvency
- Total debt
- 10.9M USD
- Net debt
- −1.0B USD
- Cash
- 1.0B USD
- EBITDA
- 185.0M USD
- Net debt / EBITDA
- −5.50
- Debt / equity
- 2.15
- Current ratio
- 1.50
- Quick ratio
- 1.46
Growth
- Revenue growth
- +61.5%
- Earnings growth
- +50.4%
- EPS (TTM)
- 12.65 USD
- EPS (forward)
- 16.11 USD
Dividend
- Dividend yield
- 0.7%
- Payout
- 15.8%
Risk and market
- Beta
- 0.55
- Analyst consensus
- Buy (6)
- Target price
- 570.50 USD
- 52-week range
- 255.60 – 805.75
Recent news
All AGX news →Compare it with its sector
All 388 in Industrials →Frequently asked questions about Argan
Is Argan stock cheap or expensive?
On P/E and EV / EBITDA, it trades 50% above the Industrials median on average. Valuation score: 4.3 out of 10 (median for Industrials: 5.0). Average analyst target: 570.50 USD, +41.1% versus the price. This is not investment advice.
What score does Argan get on MeridIAn Screener?
It scores 7.2 out of 10, rank 115 of 2,130 (better than 93% of the companies analysed). Its strongest category is Growth (9.6) and its weakest, Dividend (4.0). Analysis of 08/10/2026.
What is Argan's P/E ratio?
Its P/E is 32.0: the share price equals 32.0 times earnings per share over the last 12 months. The Industrials median is 25.4. Based on the earnings analysts expect, the forward P/E is 25.1.
How much is Argan worth on the stock market?
Its market capitalisation is 5.7B USD and its enterprise value, debt included, is 4.7B USD.
How much debt does Argan have?
It has more cash than debt: net cash of 1.0B USD.
Does Argan pay a dividend?
Yes: its dividend yield is 0.69% and it pays out 16% of its earnings.
How has Argan stock performed over the last year?
It has risen 58.6% over the last year, excluding dividends. Over the last 52 weeks it has traded between 255.60 and 805.75 USD. Past performance does not guarantee future results.
What do analysts think of Argan?
6 analysts cover it; their average recommendation is “Buy” and their average target is 570.50 USD (+41.1% versus the price). It is an estimate, not market data.