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Argan (AGX) Intrinsic Value: Projected FCF : $37.81 (As of Apr. 26, 2024)


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What is Argan Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-04-26), Argan's Intrinsic Value: Projected FCF is $37.81. The stock price of Argan is $61.475. Therefore, Argan's Price-to-Intrinsic-Value-Projected-FCF of today is 1.6.

The historical rank and industry rank for Argan's Intrinsic Value: Projected FCF or its related term are showing as below:

AGX' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.54   Med: 0.83   Max: 1.64
Current: 1.63

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Argan was 1.64. The lowest was 0.54. And the median was 0.83.

AGX's Price-to-Projected-FCF is ranked worse than
71.35% of 1138 companies
in the Construction industry
Industry Median: 0.91 vs AGX: 1.63

Argan Intrinsic Value: Projected FCF Historical Data

The historical data trend for Argan's Intrinsic Value: Projected 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 Intrinsic Value: Projected FCF Chart

Argan Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 39.63 39.88 47.49 26.41 37.81

Argan Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Intrinsic Value: Projected 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 26.41 17.98 17.99 25.14 37.81

Competitive Comparison of Argan's Intrinsic Value: Projected FCF

For the Engineering & Construction subindustry, Argan's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-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 Price-to-Projected-FCF Distribution in the Construction Industry

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

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



Argan Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Argan's Free Cash Flow(6 year avg) = $25.07.

Argan's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Jan24)*0.8)/Shares Outstanding (Diluted Average)
=(11.145567245439*25.0704+290.939*0.8)/13.545
=37.81

* 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  (NYSE:AGX) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Argan's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=61.475/37.812848214844
=1.63

* 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 Intrinsic Value: Projected FCF Related Terms

Thank you for viewing the detailed overview of Argan's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Argan (AGX) Business Description

Industry
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