Argan Story

Are investors happy with Argan (NYSE:AGX) basic indicators?
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Argan income statement, its balance sheet, and the statement of cash flows. Potential Argan investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Argan investors may use each financial statement separately, they are all related. The changes in Argan's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Argan's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages. The goal of Argan fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Argan performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Argan shares is the value that is considered the true value of the share. If the intrinsic value Argan is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Argan. Please read more on our fundamental analysis page.

And What about dividends?

A dividend is the distribution of a portion of Argan earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Argan dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Argan one year expected dividend income is about $1.0 per share. Dividends per Basic Common Share is likely to rise to 1.01 in 2020, whereas Payment of Dividends and Other Cash Distributions is likely to drop (16.9 M) in 2020.

	Last Reported	Projected for 2020
Payment of Dividends and Other Cash Distributions	-15.6 M	-16.9 M
Dividend Yield	0.024	0.0233
Dividends per Basic Common Share	1.00	1.01

Investing in dividend-paying stocks, such as Argan Inc is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Argan must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Argan. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Argan's Liquidity

Argan financial leverage refers to using borrowed capital as a funding source to finance Argan Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Argan financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Argan's total debt and its cash.

How Argan utilizes its cash?

To perform a cash flow analysis of Argan, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Argan is receiving and how much cash it distributes out in a given period. The Argan cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Argan Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Argan reported Net Cash Flow from Operations of 53.56 Million in 2019

Argan Gross Profit

Argan Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Argan previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Argan Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

Argan exotic insider transaction detected

Legal trades by Argan insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:

Argan insider trading alert for general transaction of option to purchase common stock by William Griffin, Gemma Non-Executive Chairman, on 28th of September 2020. This event was filed by Argan Inc with SEC on 2020-09-28. Statement of changes in beneficial ownership - SEC Form 4. William Griffin currently serves as director, vice chairman of gemma power systems and ceo of gemma power systems of Argan Inc [view details]

Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking it down a bit more

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