Argan (AGX) Financial Strength : 9 (As of Jan. 2024)

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What is Argan Financial Strength?

Argan has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Argan Inc shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Argan has no long-term debt ⁽¹⁾. Argan's debt to revenue ratio for the quarter that ended in Jan. 2024 was 0.00. As of today, Argan's Altman Z-Score is 3.84.

(1) Note: An indication of "no long-term debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Competitive Comparison of Argan's Financial Strength

For the Engineering & Construction subindustry, Argan's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution in the Construction Industry

For the Construction industry and Industrials sector, Argan's Financial Strength distribution charts can be found below:

* The bar in red indicates where Argan's Financial Strength falls into.

Argan Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Argan's Interest Expense for the months ended in Jan. 2024 was $0.0 Mil. Its Operating Income for the months ended in Jan. 2024 was $11.7 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was $0.0 Mil.

Argan's Interest Coverage for the quarter that ended in Jan. 2024 is

Argan had no long-term debt ⁽¹⁾.

The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Argan Inc has enough cash to cover all of its debt. Its financial situation is stable.

2. Debt to revenue ratio. The lower, the better.

Argan's Debt to Revenue Ratio for the quarter that ended in Jan. 2024 is

Debt to Revenue Ratio	=	Total Debt (Q: Jan. 2024 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(2.726	+	0)	/	658.216
	=	0.00

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Argan has a Z-score of 3.84, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.84 is strong.

* 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) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Argan has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

Argan Financial Strength Related Terms

Thank you for viewing the detailed overview of Argan's Financial Strength 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 » Financial Strength

Comparable Companies

Traded in Other Exchanges

1AW:Germany

Address

One Church Street, Suite 201, Rockville, MD, USA, 20850

Website

https://www.arganinc.com

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