Argan Story

<div class='circular--portrait' style='background:#800000;color: #F8F8FF;font-size:3em;'>AGX</div>
AGX -- USA Stock  

USD 41.79  0.71  1.67%

Argan Asset Turnover is fairly stable at the moment as compared to the past year. Argan reported Asset Turnover of 0.53 in 2019. Current Ratio is likely to rise to 2.99 in 2020, whereas Net Income Per Employee is likely to drop (38 K) in 2020. There are many examples of share prices sliding after an abrupt shift in one of the basic indicators. Let's break down some of Argan's important ratios. We will analyze why Argan investors may still consider a stake in the business. Argan Inc odds of financial distress is under 50 percent. Will the firm investors continue to acquire in October?
Published over three weeks ago
View all stories for Argan | View All Stories
Are investors happy with Argan (NYSE:AGX) basic indicators?
We consider Argan very steady. Argan Inc secures Sharpe Ratio (or Efficiency) of 0.0032, which signifies that the company had 0.0032% of return per unit of standard deviation over the last month. Our philosophy in foreseeing the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Argan Inc, which you can use to evaluate future volatility of the firm. Please confirm Argan Inc risk adjusted performance of 0.0772, and Mean Deviation of 1.8 to double-check if the risk estimate we provide is consistent with the expected return of 0.0081%.
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 ReportedProjected 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

Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Argan is not uncomon. There are few distinct groups of Argan stakehholders that the SEC considers insiders. Investors usually gain information through their work as corporate directors, officers, or employees. If these individuals share the information with a friend, family, or business partner and the person who receives the information exchanges stock in the company, he or shie is also an insider. Let's take a look at how the ownership of Argan is distributed among investors.

Ownership Allocation

Argan Inc retains a total of 15.65 Million outstanding shares. The majority of Argan Inc outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Argan Inc to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Argan. Please pay attention to any change in the institutional holdings of Argan Inc as this could imply that something significant has changed or about to change at the company. Remember, it does not matter who owns the company or if the company is currently losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity.

Insiders
10.34%
Institutions
90.06%
Retail Investors-0.4
Insiders10.34
Institutions90.06

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Argan has an asset utilization ratio of 60.91 percent. This suggests that the company is making $0.61 for each dollar of assets. An increasing asset utilization means that Argan Inc is more efficient with each dollar of assets it utilizes for everyday operations.

Current Assets
406.7 M
Current Assets406.74 Million79.98
Assets Non Current58.62 Million11.53
Goodwill34.66 Million6.82
Tax Assets8.52 Million1.67

Is Argan showing appearance of lower volatility?

The market risk adjusted performance is down to -0.19 as of today. Argan Inc currently demonstrates below-verage downside deviation. It has Information Ratio of 0.04 and Jensen Alpha of 0.15. However, we do advice investors to further question Argan Inc expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

The Bottom Line

When is the right time to buy or sell Argan Inc? Buying stocks such as Argan isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily bases. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither acquire nor exit any shares of Argan at this time. The Argan Inc risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Argan.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Argan Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com