| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 30 | 32.6x | 17.8x | Bottom tier | |
Growth | 91 | 29.0% | 7.1% | Top tier | |
Quality | 88 | 31.9% | 4.5% | Top tier | |
Safety | 68 | — | 2.6x | Top tier | |
Capital Return | 27 | 0.48% | 2.12% | Bottom tier | |
Momentum | 43 | 185.2% | 2.9% | Around median | |
Sentiment | 46 | 3 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Argan, Inc. (AGX) operates in the construction of energy infrastructure, industrial facilities, and telecommunications and data networks through three segments. The Power segment builds natural gas and combined-cycle plants, as well as solar energy, battery storage, biofuel, and biomass projects, while the Industrial segment provides field construction services and manufactures piping systems, pressure vessels, and tanks. The Teledata segment executes power distribution and information, communications, and data network projects for data centers, government sites, and military facilities.
In Q2 fiscal 2027, ended July 31, 2026, revenue increased 62% to a record 384 million dollars, compared with 237.7 million dollars in Q2 fiscal 2026. Gross profit reached 74.2 million dollars at a margin of 19.3%, and record net income totaled 53.3 million dollars, or 3.76 dollars per diluted share, exceeding the analyst estimate of 2.64 dollars. Adjusted EBITDA also reached 70 million dollars at a margin of 18.2%, compared with 38.5 million dollars and a margin of 16.2% in the comparable period.
The Power segment remained the primary driver, generating 301 million dollars, or 78% of Q2 fiscal 2027 revenue, with growth of 53% and a gross margin of 22.4%. The Industrial segment grew 111% to 76 million dollars, equivalent to 20% of revenue, but its margin was limited to 7.3%, while Teledata revenue increased 40% to 7 million dollars, or 2% of the total, at a margin of 16.6%. For the first six months of fiscal 2027, revenue totaled 674.9 million dollars and net income reached 99.4 million dollars, increases of approximately 56.5% and 72%, respectively, from the comparable period.
The analyst consensus rates AGX shares as “Buy,” with an average price target of 559 dollars and a range between 518 and 600 dollars; the average is approximately 31% below the 52-week range high of 805.75 dollars, while the low end of that range is 197 dollars. On September 3, 2026, a price-to-earnings ratio of approximately 31.91 times and a 4.8% decline in the stock following strong results were reported, illustrating that the revaluation was associated with concerns about the valuation premium despite revenue and earnings growth and a backlog of 2.5 billion dollars.
Figures in the text are as of 2026-09-04; the live price is shown at the top of the page.
Argan's revenue increased 62% to 384 million dollars in Q2 fiscal 2027, driven primarily by accelerated activity in Power segment projects. The Power segment grew 53% to 301 million dollars, while the Industrial segment increased 111% to 76 million dollars and Teledata grew 40% to 7 million dollars. This mix resulted in record net income of 53.3 million dollars and diluted earnings of 3.76 dollars per share, compared with the analyst estimate of 2.64 dollars.
Contracted backlog totaled 2.5 billion dollars as of July 31, 2026, down from 2.9 billion dollars at the beginning of fiscal 2027. The backlog includes four gas-fired power plant projects in the United States with total capacity exceeding 4.1 gigawatts, and gas projects represent approximately 80% of it. The projects mentioned include the 1.2-gigawatt SLEC plant, the 1.4-gigawatt CPV project, an 860-megawatt project in Texas, and a 700-megawatt U.S. plant.
The Industrial segment is executing a data center project worth 125 million dollars that the company secured in November 2025 to manufacture thermal expansion and energy storage tanks. Argan is building a second manufacturing facility in North Carolina, which is expected to be completed in Q3 fiscal 2027 and contribute more than 10 million dollars in revenue per quarter after operations begin. The Teledata segment also serves data centers and information networks, while the ValCor acquisition adds a regional customer base of technology, defense, and aerospace companies in New England.
Automated analysis for informational purposes only — not investment advice.
Consolidated gross margin was 19.3% in Q2 fiscal 2027, compared with 21% in Q1 fiscal 2027 and 25% in Q4 fiscal 2026. Management attributed the decline to a shift in power project revenue toward earlier stages of the construction cycle, after prior periods benefited from completing certain projects ahead of schedule. The Industrial segment's margin was also 7.3% because two projects outside the data center business experienced higher estimated costs to complete, and the segment's margin may remain below its historical level for one or two quarters.
Argan completed the acquisition of ValCor Communications at the end of Q2 fiscal 2027 to strengthen the Teledata segment. The acquisition provides a presence in New England and relationships with Fortune 500 customers operating in technology, defense, and aerospace. Management expects the combination of ValCor and organic growth to potentially double Teledata revenue compared with fiscal 2026 and support EBITDA growth during subsequent quarters, while acknowledging risks related to integration and execution.
As of July 31, 2026, Argan held nearly 1 billion dollars in cash and investments, had net liquidity of 440 million dollars, and carried no debt. Net liquidity increased from 421 million dollars as of January 31, 2026 despite returning 51.7 million dollars to shareholders during the first six months of fiscal 2027. The company uses this financial strength to fund hiring, the North Carolina facility, and selective acquisitions, alongside quarterly dividends of 0.50 dollars per share and a 200 million dollar share repurchase authorization through January 31, 2030.
