| Current Price | $38.24 | Mkt Cap | $519.2M |
|---|---|---|---|
| Open | $38.37 | P/E Ratio | 25.75 |
| Prev. Close | $38.24 | Div. (Yield) | $1.00 (2.6%) |
| Daily Range | $37.96 - $38.59 | Volume | 66,880 |
| 52-Wk Range | $31.26 - $42.15 | Avg. Daily Vol. | 72,698 |
| Current Price | $38.24 | Mkt Cap | $519.2M |
|---|---|---|---|
| Open | $38.37 | P/E Ratio | 25.75 |
| Prev. Close | $38.24 | Div. (Yield) | $1.00 (2.6%) |
| Daily Range | $37.96 - $38.59 | Volume | 66,880 |
| 52-Wk Range | $31.26 - $42.15 | Avg. Daily Vol. | 72,698 |
The best Bull and Bear pitches based on recency and number of recommendations.
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?… More
Don't like financials. P/L improved, but I don't think they can keep it up.
Read the most recent pitches from players about AGX.
Recs
holdsteady
(< 20)
Submitted: 8/25/2018 12:18:51 PM :
Start Price:
$38.51
NYSE:AGX Score:
-52.93
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
jed71
(93.45)
Submitted: 3/29/2018 9:59:49 AM :
Start Price:
$36.73
NYSE:AGX Score:
-51.52
I am going to have to agree with other Fools here. This appears to be massively undervalued.
Recs
TMFSaintCroix
(97.95)
Submitted: 2/11/2018 7:34:28 PM :
Start Price:
$34.60
NYSE:AGX Score:
-40.78
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.
Find the members with the highest scoring picks in AGX.
giftofgod (< 20) Score: +336.03
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 | 63.65 | 8/16/2010 |
|
5Y | $5.39 | +613.48% | +278.70% | +334.78 | 1 Comment | |
| KL224VT | < 20 | 3/3/2011 |
|
1Y | $6.20 | +520.16% | +206.31% | +313.84 | 0 Comment | |
| RyanOrr85 | 78.70 | 10/29/2010 |
|
1Y | $5.92 | +550.26% | +244.58% | +305.68 | 0 Comment | |
| JGreenblattJr | 32.39 | 10/27/2010 |
|
1Y | $6.01 | +540.26% | +246.02% | +294.24 | 0 Comment | |
| dsherid2 | 60.91 | 6/2/2011 |
|
1Y | $6.41 | +500.60% | +208.70% | +291.90 | 0 Comment | |
| LuckyShad | 79.09 | 12/21/2010 |
|
1Y | $6.24 | +516.96% | +225.92% | +291.05 | 1 Comment | |
| MagicFormula1 | 30.67 | 10/26/2010 |
|
5Y | $6.12 | +528.39% | +243.54% | +284.85 | 0 Comment | |
| JGM1 | 27.71 | 2/18/2011 |
|
5Y | $6.58 | +484.42% | +203.17% | +281.25 | 0 Comment | |
| G30A | < 20 | 2/18/2011 |
|
5Y | $6.58 | +484.42% | +203.28% | +281.14 | 0 Comment | |
| FCFTest | < 20 | 11/30/2010 |
|
5Y | $6.21 | +519.80% | +245.28% | +274.51 | 0 Comment |
See what the Wall Street professionals think, according to their public statements and filings.
