Quality Investor

Argan, Inc.

Rank #395Capital Return

AGX · NYSE · Industrials

Argan, Inc. (AGX) — Rank #395 by gross profitability (GP/assets 0.14) · ROE 27.2% · Piotroski F-Score 5 / 9.

As-of 2026-09-29 · CIK 0000100591 · all metrics point-in-time as of the filing date.

About

Argan, Inc., through its subsidiaries, provides engineering, procurement, construction, commissioning, maintenance, project development, and technical consulting services to the power generation market in the United States, Republic of Ireland, and the United Kingdom.

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It operates through three segments: Power, Industrial, and Teledata. Its Power segment offers engineering, procurement, and construction, as well as designing, building, and commissioning of large-scale energy projects; and design, construction, project management, start-up, and operation, as well as provides technical consulting services; and turbine, boiler, and large rotating equipment. This segment serves independent power producers, public utilities, power plant equipment suppliers, and other commercial firms. The company's Industrial segment provides field services that support new plant construction and additions; maintenance turnarounds; shutdowns and emergency mobilizations for industrial plants; and fabricates, delivers, and installation of metal components, such as piping systems and pressure vessels. Its Teledata segment offers trenchless directional boring and excavation for underground communication and power networks; aerial cabling; high and low voltage electric lines; and private area outdoor lighting systems, as well as installs buried cable. It also provides structured cabling, terminations, and connectivity that offers the physical transport for high-speed data, voice, video, and security networks; and utility construction services and comprehensive technology wiring solutions. This segment serves electricity cooperative, state and federal government agencies, counties and municipalities, and technology-oriented government contracting firms, as well as customers in the mid-Atlantic region of the United States. Argan, Inc.

was incorporated in 1961 and is headquartered in Arlington, Virginia.

Industry
Engineering & Construction
Sector
Industrials
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
January 31

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

1,409

Industry

Engineering & Construction

Exchange

NYSE

Signal Flags

3 green
Operating leverage expandingOperating income growing faster than revenue
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak

Quality Profile

Profitability

1/1 pass
GP / assets
0.14
Return on equity
27.2%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.76
Current ratio
1.50×
Net cash
$547.89M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.8%

Growth

2/2 pass
Revenue growth
8.1%
Piotroski F-Score
5 / 9
Share dilution
1.7%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.14

Primary signal (Novy-Marx).

Return on equity

27.2%

Gross margin

20.5%

Revenue growth (YoY)

8.1%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2023202420252026
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

27.6%

Revenue CAGR (5Y)

19.2%

Earnings CAGR (3Y)

60.9%

FCF CAGR (3Y)

—

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.76

Current ratio

1.50×

Quick ratio

0.83×

Net cash

$547.89M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$410.84M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

1.98

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.8%

Stock-based comp intensity.

Dividend safety

Composite score

3.2 / 5

Good
Payout ratio
17.6%5/5 Strong
FCF coverage
16.92×5/5 Strong
Dividend growth streak
3 yr2/5 Fair
Balance-sheet health
D/E 1.76 · IC N/A1/5 Weak

Piotroski F-Score

F-Score

5 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20212026
Hypergrowth
Value
Op. Leverage
Capital Return