Yahoo Finance Argan Inc (NYSE:AGX): Commentary On Fundamentals
Argan Inc (NYSE:AGX) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of AGX, it is a company that has been able to sustain great financial health, trading at an attractive share price. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Argan here.
Flawless balance sheet and good value
AGX is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that AGX manages its cash and cost levels well, which is a crucial insight into the health of the company. Looking at AGX’s capital structure, the company has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. AGX has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future. AGX’s shares are now trading at a price below its true value based on its PE ratio of 9.79x, compared to the industry and wider stock market ratio, making it a relatively cheap stock compared to its peers.
Next Steps:
For Argan, I’ve put together three important factors you should further research:
Future Outlook: What are well-informed industry analysts predicting for AGX’s future growth? Take a look at our free research report of analyst consensus for AGX’s outlook.
Historical Performance: What has AGX’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AGX? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
