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Argan, Inc. ( Argan ) is primarily an engineering and construction firm that conducts its operations through its wholly-owned subsidiaries across three distinct reportable business segments: Power, Industrial, and Teledata. Argan and these consolidated subsidiaries are hereinafter collectively referred to as the Company.
$644.64
+$14.14 (+2.24%)
Price from 13 days ago
14.26% operating margin is respectable but not wide. ROIC at 27.12%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue grew 8.1%, steady but not accelerating.
At 66x earnings, the current multiple leaves limited room for execution misses or growth deceleration.
66.2x earnings, 22.2x FCF. The market is pricing in years of above-average growth. If that thesis breaks, downside from multiple compression alone could be 30%+. This is a stock where you're paying for the future, not the present.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$945M
▲ +8.1% YoY
Net Income (TTM)
$138M
▲ +61.2% YoY
Op. Margin
14.26%
▲ +4.2pp YoY
ROIC
27.12%
▲ +8.0pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$411M
▲ +155.2% YoY
Op. Cash Flow (TTM)
$415M
▲ +147.5% YoY
Net Debt
-$485M
Net Cash Position
Cash & Equiv.
$491M
5Y CAGR: +19.2%
5Y CAGR: +18.7%
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