By analyzing existing technical and fundamental indicators between Argan and Diebold, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Diebold with a short position in Argan. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
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 117.94 percent. This suggests that the company is making $1.18 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.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Argan. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on Argan, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
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. Financial leverage can amplify the potential profits to Argan's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Argan's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Argan's total debt and its cash.
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 Argan's
gross profit and other
fundamental indicators for more details.
What is driving Argan Investor Appetite?
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now take a look at Argan revenue. Based on the latest financial disclosure, Argan Inc reported 483.31
M of revenue. This is 86.19% lower than that of the Industrials sector and 91.4% lower than that of the
Engineering & Construction industry. The revenue for all United States stocks is 94.88% higher than that of Argan. As for Diebold Nixdorf we see revenue of 3.79
B, which is 32.53% lower than that of the Engineering & Construction
| AGX | 483.31 Million | 6.22 |
| Sector | 3.5 Billion | 45.02 |
| DBD | 3.79 Billion | 48.77 |
Our perspective of the current Argan slide
Current risk adjusted performance is at -0.19.
As of the 4th of September, Argan shows the
mean deviation of 1.3, and Risk Adjusted Performance of
(0.19). Argan Inc
technical analysis gives you the methodology to make use of
historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of
historical prices and volume momentum, or the prices will eventually revert. We were able to analyze and collect data for nineteen
technical drivers for Argan Inc, which can be compared to its rivals. Please confirm
Argan Inc variance, as well as the
relationship between the value at risk and
skewness to decide if Argan Inc is priced correctly, providing market reflects its regular price of 32.72 per share. Given that Argan has
jensen alpha of
(0.22), we suggest you to validate Argan Inc's prevailing market performance to make sure the company can sustain itself at a future point.
Our Final Take On Argan
While other companies 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. To conclude, as of the 4th of September 2022, our present 90 days buy-sell recommendation on the company is
Strong Hold. We believe Argan is
undervalued with
very small chance of financial distress for the next two years.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile 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 Vlad Skutelnik do not own shares of Argan Inc. Please refer to our
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