Added to YB: 2025-08-25
Pitch date: 2025-08-21
AGX [neutral]
Argan, Inc.
+45.81%
current return
Author Info
Pound the Rock Investing, written by Adam Wilk, the founder and CIO of Greystone Capital Management, will serve as an ongoing discussion about business, investing and things I find interesting. Sign up for the newsletter.
Company Info
Argan, Inc., through its subsidiaries, provides engineering, procurement, construction, commissioning, maintenance, project development, and technical consulting services to the power generation market in the United States, Republic of Ireland, and the United Kingdom.
Market Cap
$4.4B
Pitch Price
$219.40
Price Target
210.00 (-34%)
Dividend
0.64%
EV/EBITDA
24.23
P/E
36.93
EV/Sales
3.96
Sector
Construction and Engineering
Category
growth
Argan, Inc. (AGX)
$AGX (overvalued): Trading at premium 25x FCF ($214/share), Argan builds critical infrastructure for power, data centers. Strong AI/energy tailwinds, $1.4B backlog (~2x rev), no debt, $546M cash. Base case $140-150/share. Risks: fixed-price EPC execution, customer concentration, accounting concerns (revenue recognition, bloated receivables), project delays.
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