Argan Story

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AGX -- USA Stock  

USD 44.92  0.39  0.88%

Argan Asset Turnover is fairly stable at the moment as compared to the past year. Argan reported Asset Turnover of 0.50 in 2019. Dividends per Basic Common Share is likely to rise to 1.01 in 2020, whereas Net Income Per Employee is likely to drop (38 K) in 2020. The fundamental goal of this short article is to break down our forecasting of Argan for investors. We will try to forecast Argan outlook for October.
Published over three months ago
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Is there a reason to exit Argan (NYSE:AGX) and short Goldfield?
Argan is FAIRLY VALUED at 43.44 per share with modest projections ahead. 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.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Argan Inc. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Argan

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Argan's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Argan in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Argan. Your research has to be compared to or analyzed against Argan's peers to derive any actionable benefits. When done correctly, Argan's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Argan Inc.

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 48.21 Million in 2020

Acquisition by Mano Koilpillai of 10000 shares of Argan subject to Rule 16b-3

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 grant of stock option to purchase common stock by Mano Koilpillai, the corporate stakeholder, on 16th of December 2020. This event was filed by Argan Inc with SEC on 2020-12-16. Statement of changes in beneficial ownership - SEC Form 4 [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

The current indifference towards the small price fluctuations of Argan Inc could raise concerns from investors as the firm it trading at a share price of 42.36 on slow start in volume. The company executives did not add any value to Argan investors in August. However, most investors can still diversify their portfolios with Argan Inc to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.27. The current volatility is consistent with the ongoing market swings in August 2020 as well as with Argan unsystematic, company-specific events.

Margin Breakdown

Operating Margin(23.98)
EBITDA Margin(18.52)
Gross Margin(2.93)
Profit Margin(18.33)

Will Argan slide impact its fundamentals?

Standard deviation is down to 2.54. It may suggest a possible volatility slide. Argan Inc exhibits very low volatility with skewness of 1.38 and kurtosis of 6.6. However, we advise investors to further study Argan Inc technical indicators to make sure all market info is available and is reliable.

Our Conclusion on Argan

While many of the other players in the engineering & construction industry are either recovering or due for a correction, Argan may not be as strong as the others in terms of longer-term growth potentials. The bottom line, as of the 12th of September 2020, our analysis shows that Argan slowly supersedes the market. The company is fairly valued and projects close to average probability of financial unrest for the next 2 years. Our concluding 30 days buy-hold-sell recommendation on the company is Strong Hold.

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.

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