Argan, Inc. (AGX)
Industrials · NYQ · US
Fundamentals
Valuation and ratings
Argan, Inc. trades at USD547.51, which is 20% above the USD439.29 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 59 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 52.6 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Argan, Inc.
Argan, Inc., through its subsidiaries, provides engineering, procurement, construction, commissioning, maintenance, project development, and technical consulting services to the power generation market in the United States, Republic of Ireland, and the United Kingdom. It operates through three segments: Power, Industrial, and Teledata. Its Power segment offers engineering, procurement, and construction, as well as designing, building, and commissioning of large-scale energy projects; and design, construction, project management, start-up, and operation, as well as provides technical consulting services; and turbine, boiler, and large rotating equipment. This segment serves independent power producers, public utilities, power plant equipment suppliers, and other commercial firms. The company's Industrial segment provides field services that support new plant construction and additions; maintenance turnarounds; shutdowns and emergency mobilizations for industrial plants; and fabricates, delivers, and installation of metal components, such as piping systems and pressure vessels. Its Teledata segment offers trenchless directional boring and excavation for underground communication and power networks; aerial cabling; high and low voltage electric lines; and private area outdoor lighting systems, as well as installs buried cable. It also provides structured cabling, terminations, and connectivity that offers the physical transport for high-speed data, voice, video, and security networks; and utility construction services and comprehensive technology wiring solutions. This segment serves electricity cooperative, state and federal government agencies, counties and municipalities, and technology-oriented government contracting firms, as well as customers in the mid-Atlantic region of the United States. Argan, Inc. was incorporated in 1961 and is headquartered in Arlington, Virginia.
AGX passes 5 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
12 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Renaissance Technologies, RENAISSANCE TECHNOLOGIES LLC$332.73M · 0.5% of book
- Lee Ainslie, MAVERICK CAPITAL LTD$253.13M · 2.9% of book
- Stephen Mandel, LONE PINE CAPITAL LLC$214.12M · 1.7% of book
- Arrowstreet Capital, ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$71.31M · 0.0% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$58.07M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Argan, Inc. (AGX) undervalued?
Against our discounted cash flow estimate of USD439.29, AGX at USD547.51 is 20% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own AGX?
12 of the institutions we track reported a position in AGX in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is AGX's P/E ratio?
AGX trades at 52.6 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.