ARGAN Reports 19.7% YOY Revenue Increase and 8.6x Increase in Net Income for Q2 FY2024
September 13, 2023
☀️Earnings Overview
ARGAN ($NYSE:AGX) reported total revenue of USD 141.3 million for the second quarter of FY2024 ending July 31 2023, representing a 19.7% year-on-year increase. The net income rose to USD 12.8 million from the previous year’s figure of 4.2 million.
Analysis
GoodWhale has conducted an extensive analysis of ARGAN‘s fundamentals. According to the Star Chart, ARGAN is classified as ‘rhino’ which is defined as a company that has achieved moderate revenue or earnings growth. ARGAN has a high health score of 8/10 considering its cashflows and debt; it is capable to sustain future operations in times of crisis. Looking at its fundamental areas, ARGAN is strong in assets, medium in profitability and weak in dividend and growth. Given this profile, ARGAN may be attractive to value or income investors who look for companies with solid financial position and competitive returns. Additionally, investors looking for long-term investment opportunities that can provide stability and consistent returns may also find value in ARGAN. Investors who are eager for growth should take note that ARGAN is relatively weak in dividend and growth. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Argan. More…
| Total Revenues | Net Income | Net Margin |
| 481.68 | 36.27 | 7.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Argan. More…
| Operations | Investing | Financing |
| 8.42 | -63.12 | -82.8 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Argan. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 505.71 | 220.67 | 21.25 |
Key Ratios Snapshot
Some of the financial key ratios for Argan are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 20.7% | 7.9% | 7.5% |
| FCF Margin | ROE | ROA |
| 1.0% | 8.0% | 4.4% |
Peers
Taisei Corp, Enka Insaat Ve Sanayi AS, and Koninklijke Bam Groep NV are all leading competitors in the EPC space.
– Taisei Corp ($TSE:1801)
Taisei Corp is a Japanese construction company with a market cap of 782.86B as of 2022. The company has a Return on Equity of 7.8%. Taisei Corp is involved in the construction of buildings, roads, bridges, and other infrastructure. The company also has a history of working on large-scale projects such as the Tokyo Skytree and the Tokyo Olympics Stadium.
– Enka Insaat Ve Sanayi AS ($OTCPK:EKIVF)
Enka Insaat Ve Sanayi AS is a construction and engineering company based in Turkey. The company has a market cap of 5.85B as of 2022 and a Return on Equity of -2.88%. Enka Insaat Ve Sanayi AS is involved in the construction of buildings, infrastructure, and industrial facilities.
– Koninklijke Bam Groep NV ($LTS:0LNQ)
Koninklijke Bam Groep NV is a leading Dutch construction and engineering company. The company has a market cap of 574.15M as of 2022 and a Return on Equity of 10.57%. Koninklijke Bam Groep NV is a leading provider of construction and engineering services in the Netherlands. The company has a strong focus on sustainable construction and engineering solutions.
Summary
These impressive figures demonstrate ARGAN‘s solid performance and reflect its commitment to driving growth and value for its shareholders. As investors continue to look for high-yield investments, ARGAN stands out as a compelling choice in the market. With the stock currently trading at a discount, investors should consider adding this company to their portfolios.
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