Argan, Inc. (NYSE:AGX)

CAPS Rating: 4 out of 5

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All Players

155 Outperform
9 Underperform
 

All-Star Players

32 Outperform
4 Underperform
 

Wall Street

1 Outperform
1 Underperform
 

Top AGX Bull/Bear Pitches

The best Bull and Bear pitches based on recency and number of recommendations.

SaintCroix (98.63)
Submitted February 12, 2018

Found this one with the magic formula screen. The numbers are unreal.$39 a share.And they are holding $31 a share in cash.The market is valuing this business at $8 a share?The stock is almost 50% off its high, mostly because the company has cut its… More

Toffy78 (< 20)
Submitted December 23, 2009

Don't like financials. P/L improved, but I don't think they can keep it up.

AGX VS S&P 500 (SPY)

Recent Community Commentary

Read the most recent pitches from players about AGX.

Recs

0
Member Avatar holdsteady (< 20) Submitted: 8/25/2018 12:18:51 PM : Outperform Start Price: $44.01 AGX Score: -8.48

Argan (NYSE: AGX) has been beaten up recently due to lowering guidance on a weakened backlog – with that said, I believe the drop is a gross overreaction, which has left the stock trading at an incredible value.

How gross is Argan undervalued? Consider this – the company has over $23 in cash per share on their balance sheet, and absolutely no debt. Let’s imagine they do something with that cash (which they should), and buy back as many outstanding shares as they can afford.

Cash: $483.72 million
Price Per Share: $45.89
Shares Purchased: 10.54 million

The company could wipe out two-thirds of their outstanding shares – which means that their Enterprise Value to Earnings multiple is a staggeringly low 2.44x. Future Enterprise Value to Earnings is 4.64x – no matter how you pencil this out, this company is extremely undervalued.

Aside from this, management is well regarded, shareholder friendly, and they have performed well in the industrials space. They have tripled shareholder value over the last 5 years despite dropping over 40% in the past two months.

Why is this security trading at such a low valuation? I believe there are two reasons why investors are missing this:

1) The company is too small for hedge funds to capitalize on this – the company has a $700 million market cap and $207 enterprise value

2) Investors don’t realize the amount of cash this company is sitting on

I haven’t seen a company trading at such an extremely low price in years.

Recs

0
Member Avatar jed71 (99.82) Submitted: 3/29/2018 9:59:49 AM : Outperform Start Price: $41.98 AGX Score: -6.30

I am going to have to agree with other Fools here. This appears to be massively undervalued.

Recs

4
Member Avatar SaintCroix (98.63) Submitted: 2/11/2018 7:34:28 PM : Outperform Start Price: $39.54 AGX Score: +2.38

Found this one with the magic formula screen. The numbers are unreal.

$39 a share.

And they are holding $31 a share in cash.

The market is valuing this business at $8 a share?

The stock is almost 50% off its high, mostly because the company has cut its backlog in half.

January 2016: $1.1 billion in backlog
January 2017: $1 billion in backlog
January 2018: $500 million in backlog

So the near term concern is that the company is finishing up several major contracts, and may or may not have new contracts on the way. But this fear has already been priced into the stock, with a 50% haircut. Surely we're not going to drop below cash value?!

And any good news and this stock is a quick double. Plus it's an excellent way to play the long-term transfer from oil/coal to natural gas and renewables. These guys have profit margins that are 9 times higher than Fluor and 4 times higher than Jacobs. And no debt! You find me an energy stock that is debt-free and I will pay attention. Outperform.

Leaderboard

Find the members with the highest scoring picks in AGX.

Score Leader

kayceygirl

kayceygirl (< 20) Score: +403.76

The Score Leader is the player with the highest score across all their picks in AGX.

Top
Pick
Member Name Member
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
Index
Gain
Score Commentary
kayceygirl < 20 8/16/2010 Outperform 5Y $6.16 +550.45% +146.70% +403.76 1 Comment
RyanOrr85 63.25 10/29/2010 Outperform 1Y $6.76 +492.81% +124.47% +368.34 0 Comment
KL224VT < 20 3/3/2011 Outperform 1Y $7.09 +465.38% +99.54% +365.84 0 Comment
JGreenblattJr 20.19 10/27/2010 Outperform 1Y $6.87 +483.70% +125.41% +358.30 0 Comment
LuckyShad 72.04 12/21/2010 Outperform 1Y $7.13 +462.46% +112.31% +350.15 1 Comment
WeeklyRebalanced 75.36 9/13/2010 Outperform 5Y $6.85 +485.10% +135.74% +349.36 0 Comment
MagicFormula1 38.36 10/26/2010 Outperform 5Y $7.00 +472.89% +123.79% +349.10 0 Comment
dsherid2 44.10 6/2/2011 Outperform 1Y $7.32 +447.55% +101.10% +346.45 0 Comment
FCFTest < 20 11/30/2010 Outperform 5Y $7.10 +465.05% +124.93% +340.12 0 Comment
JGM1 55.41 2/18/2011 Outperform 5Y $7.52 +432.81% +97.49% +335.32 0 Comment

Wall Street

See what the Wall Street professionals think, according to their public statements and filings.

Player Name Player
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
S&P
Gain
Score End Date Commentary
TrackJimCramer 85.28 2/23/2017 Underperform 3W $65.85 -39.12% +12.24% +51.35 0 Comment
TrackJGreenblatt 59.72 2/20/2015 Outperform 1Y $30.73 +30.45% +26.68% +3.77 1 Comment
TrackJGreenblatt 59.72 8/20/2012 8/16/2013 Outperform 1Y $14.61 +165.40% +40.02% +125.38 8/20/2014 @ $38.77 2 Comments
TrackJGreenblatt 59.72 8/16/2010 Outperform 1Y $7.80 +40.51% +10.35% +30.17 8/15/2011 @ $10.96 1 Comment

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