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Argan (AGX) Cyclically Adjusted Price-to-FCF : 17.71 (As of Apr. 27, 2024)


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What is Argan Cyclically Adjusted Price-to-FCF?

As of today (2024-04-27), Argan's current share price is $61.98. Argan's Cyclically Adjusted FCF per Share for the quarter that ended in Jan. 2024 was $3.50. Argan's Cyclically Adjusted Price-to-FCF for today is 17.71.

The historical rank and industry rank for Argan's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

AGX' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 9.62   Med: 14.89   Max: 29.22
Current: 17.5

During the past years, Argan's highest Cyclically Adjusted Price-to-FCF was 29.22. The lowest was 9.62. And the median was 14.89.

AGX's Cyclically Adjusted Price-to-FCF is ranked better than
50.88% of 566 companies
in the Construction industry
Industry Median: 17.73 vs AGX: 17.50

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Argan's adjusted free cash flow per share data for the three months ended in Jan. 2024 was $1.771. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $3.50 for the trailing ten years ended in Jan. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Argan Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Argan's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Argan Cyclically Adjusted Price-to-FCF Chart

Argan Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.62 11.17 10.19 11.35 12.68

Argan Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.35 11.47 9.64 11.57 12.68

Competitive Comparison of Argan's Cyclically Adjusted Price-to-FCF

For the Engineering & Construction subindustry, Argan's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Argan's Cyclically Adjusted Price-to-FCF Distribution in the Construction Industry

For the Construction industry and Industrials sector, Argan's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Argan's Cyclically Adjusted Price-to-FCF falls into.



Argan Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Argan's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=61.98/3.5
=17.71

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Argan's Cyclically Adjusted FCF per Share for the quarter that ended in Jan. 2024 is calculated as:

For example, Argan's adjusted Free Cash Flow per Share data for the three months ended in Jan. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=1.771/129.4194*129.4194
=1.771

Current CPI (Jan. 2024) = 129.4194.

Argan Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201404 2.758 100.023 3.569
201407 2.038 100.520 2.624
201410 0.957 100.176 1.236
201501 0.391 98.604 0.513
201504 -0.235 99.824 -0.305
201507 -1.872 100.691 -2.406
201510 -1.160 100.346 -1.496
201601 0.856 99.957 1.108
201604 2.888 100.947 3.703
201607 4.426 101.524 5.642
201610 4.598 101.988 5.835
201701 4.579 102.456 5.784
201704 2.479 103.167 3.110
201707 -0.464 103.278 -0.581
201710 -3.705 104.070 -4.607
201801 -3.234 104.578 -4.002
201804 -4.128 105.708 -5.054
201807 0.047 106.324 0.057
201810 -2.712 106.695 -3.290
201901 -0.919 106.200 -1.120
201904 -2.462 107.818 -2.955
201907 -1.132 108.250 -1.353
201910 4.209 108.577 5.017
202001 2.361 108.841 2.807
202004 2.525 108.173 3.021
202007 3.944 109.318 4.669
202010 2.487 109.861 2.930
202101 2.084 110.364 2.444
202104 1.034 112.673 1.188
202107 1.857 115.183 2.087
202110 -0.351 116.696 -0.389
202201 -0.864 118.619 -0.943
202204 -2.666 121.978 -2.829
202207 -1.225 125.002 -1.268
202210 -1.315 125.734 -1.354
202301 3.086 126.223 3.164
202304 -0.140 127.992 -0.142
202307 2.615 128.974 2.624
202310 4.174 129.810 4.161
202401 1.771 129.419 1.771

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Argan  (NYSE:AGX) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Argan Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Argan's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Argan (AGX) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Argan Inc (NYSE:AGX) » Definitions » Cyclically Adjusted Price-to-FCF
Traded in Other Exchanges
Address
One Church Street, Suite 201, Rockville, MD, USA, 20850
Argan Inc is a United States-based company that primarily operates in the power industry services segment through its wholly-owned subsidiaries. Gemma Power Systems and affiliates, one of Argan's subsidiaries, contributed almost all Argan's sales. GPS is a contractor that provides a full range of engineering, procurement, and construction services for power-generating projects. GPS' works encompass complete plant design, construction, electrical interconnection, plant testing, and commissioning. Argan also generates a small portion of sales from industrial fabrication and field services, as well as telecommunication infrastructure services. It operates in three segments: Power Services, Industrial Services, and Telecom Services, out of which Power Services derive majority revenue.
Executives
Cynthia Flanders director, officer: SVP & CFO 10006 WILDWOOD ROAD, KENSINGTON MD 20895
Jeffrey John Ronald Jr. director 55 GRANDVIEW CIRCLE, MANHASSET NY 11030
Griffin William F Jr director, officer: VC/CEO of Gemma Power Systems C/O GEMMA POWER SYSTEMS, LLC, 769 HEBRON AVENUE, GLASTONBURY CT 06033
Mitchell W G Champion director NETWORK SOLUTIONS, INC., 3009 RIVER LANE, NEW BERN NC 28562
David Hibbert Watson officer: SVP and CFO C/O ARGAN, INC., ONE CHURCH STREET, SUITE 201, ROCKVILLE MD 20850
Richard H Deily officer: Vice President C/O ARGAN, INC., ONE CHURCH STREET, SUITE 201, ROCKVILLE MD 20850
Peter W Getsinger director 35 SNOW?S POINT, EDGARTOWN MA 02539
James W Quinn director PUROFLOW INCORPORATED, ONE CHURCH STREET SUITE 302, ROCKVILLE MD 20850
Trebilcock Terrance Colin officer: Co-President, Gemma Power Sys. 64 SADDLE RIDGE ROAD, GLASTONBURY CT 06033
Collins Charles Edwin Iv officer: Co-President, Gemma Power Sys. 68 HICKORY DRIVE, SOUTH GLASTONBURY CT 06073
Mano S Koilpillai director 7380 IRA SEARS ROAD, ADAMSTOWN MD 21710
James E Quinn director C/O TIFFANY & CO LEGAL DEPT, 727 FIFTH AVE, NEW YORK NY 10022
Henry A Crumpton director 2101 WILSON BLVD., SUITE 500, ARLINGTON VA 20005
William F. Leimkuhler director 43 SALEM STRAITS RD, DARIEN CT 06820
Rainer H Bosselmann director, officer: Chairman of the Board and CEO PUROFLOW INCORPORATED, ONE CHURCH STREET SUITE 302, ROCKVILLE MD 20850