Investment Thesis
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.
AGX 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
AGX 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
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
AGX Financial Metrics
AGX Profitability Ratios
AGX Balance Sheet & Liquidity
AGX 5-Year Financial Trend
5-Year Trend Summary: ARGAN INC's revenue has grown significantly by 81% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.33 reflects profitable operations.
AGX Growth Metrics (YoY)
AGX Quarterly 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.
AGX Capital Allocation
AGX SEC Filings
Access official SEC EDGAR filings for ARGAN INC (CIK: 0000100591)