Is Argan Stock a Good Investment?
Argan Investment Advice | AGX |
- Examine Argan's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Argan's leadership team and their track record. Good management can help Argan navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Construction & Engineering space and any emerging trends that could impact Argan's business and its evolving consumer preferences.
- Compare Argan's performance and market position to its competitors. Analyze how Argan is positioned in terms of product offerings, innovation, and market share.
- Check if Argan pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Argan's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Argan Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Argan Inc is a good investment.
Sell | Buy |
Buy
Market Performance | Solid | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Actively responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Very Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Argan Stock
Researching Argan's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 91.0% of the company shares are held by institutions such as insurance companies. The company last dividend was issued on the 23rd of October 2024. Argan Inc had 1:15 split on the 9th of October 2001.
To determine if Argan is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Argan's research are outlined below:
| Argan Inc appears to be risky and price may revert if volatility continues | |
| Argan Inc is unlikely to experience financial distress in the next 2 years | |
| Argan Inc has a very strong financial position based on the latest SEC filings | |
| Over 91.0% of the company shares are held by institutions such as insurance companies | |
| On 31st of October 2024 Argan paid $ 0.375 per share dividend to its current shareholders | |
| Latest headline from simplywall.st: Argans Returns On Capital Are Heading Higher |
Argan Quarterly Cost Of Revenue |
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Argan uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Argan Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Argan's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 10th of April 2024 Upcoming Quarterly Report | View | |
| 31st of January 2024 Next Fiscal Quarter End | View |
Earnings surprises can significantly impact Argan's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Argan's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2019-04-10 | 2019-01-31 | -0.05 | -0.04 | 0.01 | 20 | ||
2020-06-09 | 2020-04-30 | -0.08 | -0.05 | 0.03 | 37 | ||
2019-09-09 | 2019-07-31 | 0.03 | 0.07 | 0.04 | 133 | ||
2024-06-06 | 2024-04-30 | 0.52 | 0.58 | 0.06 | 11 | ||
2013-04-10 | 2013-01-31 | 0.4 | 0.46 | 0.06 | 15 | ||
2014-04-08 | 2014-01-31 | 0.7 | 0.63 | -0.07 | 10 | ||
2014-06-05 | 2014-04-30 | 0.16 | 0.24 | 0.08 | 50 | ||
2022-09-08 | 2022-07-31 | 0.39 | 0.3 | -0.09 | 23 |
Know Argan's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Argan is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Argan Inc backward and forwards among themselves. Argan's institutional investor refers to the entity that pools money to purchase Argan's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Geode Capital Management, Llc | 2024-09-30 | 287.2 K | Aqr Capital Management Llc | 2024-06-30 | 169.6 K | Arrowstreet Capital Limited Partnership | 2024-06-30 | 167.2 K | Charles Schwab Investment Management Inc | 2024-09-30 | 165.5 K | Wells Fargo & Co | 2024-06-30 | 163.1 K | Royce & Associates, Lp | 2024-09-30 | 131.9 K | Northern Trust Corp | 2024-09-30 | 127 K | Bank Of New York Mellon Corp | 2024-06-30 | 113 K | Millennium Management Llc | 2024-06-30 | 107.8 K | Blackrock Inc | 2024-06-30 | 1.2 M | Vanguard Group Inc | 2024-09-30 | 826.8 K |
Argan's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 2.14 B.Market Cap |
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Argan's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.06 | 0.06 | |
| Return On Capital Employed | 0.12 | 0.09 | |
| Return On Assets | 0.05 | 0.06 | |
| Return On Equity | 0.11 | 0.12 |
Determining Argan's profitability involves analyzing its financial statements and using various financial metrics to determine if Argan is a good buy. For example, gross profit margin measures Argan's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Argan's profitability and make more informed investment decisions.
Argan's Earnings Breakdown by Geography
Please note, the imprecision that can be found in Argan's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Argan Inc. Check Argan's Beneish M Score to see the likelihood of Argan's management manipulating its earnings.
Evaluate Argan's management efficiency
Argan Inc has Return on Asset of 0.0454 % which means that on every $100 spent on assets, it made $0.0454 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.1469 %, implying that it generated $0.1469 on every 100 dollars invested. Argan's management efficiency ratios could be used to measure how well Argan manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Argan's Return On Tangible Assets are fairly stable compared to the past year. Return On Assets is likely to rise to 0.06 in 2024, whereas Return On Capital Employed is likely to drop 0.09 in 2024. At this time, Argan's Total Assets are fairly stable compared to the past year. Non Current Assets Total is likely to rise to about 53.6 M in 2024, whereas Other Current Assets are likely to drop slightly above 8.6 M in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 21.77 | 22.86 | |
| Tangible Book Value Per Share | 19.51 | 20.48 | |
| Enterprise Value Over EBITDA | 10.31 | 10.83 | |
| Price Book Value Ratio | 2.04 | 3.36 | |
| Enterprise Value Multiple | 10.31 | 10.83 | |
| Price Fair Value | 2.04 | 3.36 | |
| Enterprise Value | 4 M | 3.8 M |
At Argan Inc, effective management practices are pivotal to sustaining long-term profitability. We delve into financial metrics and market conditions to provide a comprehensive analysis of the stock's prospects.
Dividend Yield 0.0095 | Forward Dividend Yield 0.0095 | Forward Dividend Rate 1.5 | Beta 0.471 |
Basic technical analysis of Argan Stock
As of the 24th of November, Argan shows the mean deviation of 2.82, and Risk Adjusted Performance of 0.2276. 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.Argan's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Argan insiders, such as employees or executives, is commonly permitted as long as it does not rely on Argan's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Argan insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Argan's Outstanding Corporate Bonds
Argan issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Argan Inc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Argan bonds can be classified according to their maturity, which is the date when Argan Inc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| ARES 4125 30 JUN 51 Corp BondUS04018VAA17 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| US040133AA87 Corp BondUS040133AA87 | View | |
| ARES CAPITAL PORATION Corp BondUS04010LBA08 | View | |
| ARES CAPITAL PORATION Corp BondUS04010LBB80 | View | |
| ARCC 32 15 NOV 31 Corp BondUS04010LBC63 | View | |
| ARCC 2875 15 JUN 27 Corp BondUS04010LBD47 | View |
Understand Argan's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Argan's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.2276 | |||
| Market Risk Adjusted Performance | 0.6617 | |||
| Mean Deviation | 2.82 | |||
| Semi Deviation | 2.13 | |||
| Downside Deviation | 2.91 | |||
| Coefficient Of Variation | 349.7 | |||
| Standard Deviation | 4.52 | |||
| Variance | 20.46 | |||
| Information Ratio | 0.257 | |||
| Jensen Alpha | 1.05 | |||
| Total Risk Alpha | 0.5711 | |||
| Sortino Ratio | 0.4001 | |||
| Treynor Ratio | 0.6517 | |||
| Maximum Drawdown | 34.48 | |||
| Value At Risk | (3.41) | |||
| Potential Upside | 7.3 | |||
| Downside Variance | 8.45 | |||
| Semi Variance | 4.53 | |||
| Expected Short fall | (3.57) | |||
| Skewness | 2.49 | |||
| Kurtosis | 13.43 |
| Risk Adjusted Performance | 0.2276 | |||
| Market Risk Adjusted Performance | 0.6617 | |||
| Mean Deviation | 2.82 | |||
| Semi Deviation | 2.13 | |||
| Downside Deviation | 2.91 | |||
| Coefficient Of Variation | 349.7 | |||
| Standard Deviation | 4.52 | |||
| Variance | 20.46 | |||
| Information Ratio | 0.257 | |||
| Jensen Alpha | 1.05 | |||
| Total Risk Alpha | 0.5711 | |||
| Sortino Ratio | 0.4001 | |||
| Treynor Ratio | 0.6517 | |||
| Maximum Drawdown | 34.48 | |||
| Value At Risk | (3.41) | |||
| Potential Upside | 7.3 | |||
| Downside Variance | 8.45 | |||
| Semi Variance | 4.53 | |||
| Expected Short fall | (3.57) | |||
| Skewness | 2.49 | |||
| Kurtosis | 13.43 |
Consider Argan's intraday indicators
Argan intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Argan stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Argan Corporate Filings
13A | 8th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
13A | 6th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
F4 | 1st of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 10th of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
Argan Stock media impact
Far too much social signal, news, headlines, and media speculation about Argan that are available to investors today. That information is available publicly through Argan media outlets and privately through word of mouth or via Argan internal channels. However, regardless of the origin, that massive amount of Argan data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Argan news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Argan relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Argan's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Argan alpha.
Argan Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Argan can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Argan Corporate Directors
| Mano Koilpillai | Independent Director | Profile | |
| William Leimkuhler | Independent Director | Profile | |
| John Jeffrey | Independent Director | Profile | |
| Cynthia Flanders | CFO, Sr. VP, Corporate Secretary and Independent Director | Profile |
Already Invested in Argan Inc?
The danger of trading Argan Inc is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Argan is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Argan. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Argan Inc is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Additional Tools for Argan Stock Analysis
When running Argan's price analysis, check to measure Argan's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Argan is operating at the current time. Most of Argan's value examination focuses on studying past and present price action to predict the probability of Argan's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Argan's price. Additionally, you may evaluate how the addition of Argan to your portfolios can decrease your overall portfolio volatility.