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AGX, Argan Inc.

Construction & Engineering capital-intensive

Argan to allow each to react to its own market conditions independently.

Through the Power segment, we provide a full range of engineering, procurement, construction, commissioning, maintenance, project development, and technical consulting services to the power generation market.

The customers include primarily independent power producers, public utilities, power plant equipment suppliers and other commercial firms with significant power requirements.

Latest annual: FY2026 10-K

AGX · Argan Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2026

$945M

+8.1% YoY · 19% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $1.0B 5-yr avg $671M

Gross margin 21% 5-yr avg 18%

Operating margin 14.9% 5-yr avg 9.7%

ROIC 116% 5-yr avg 45%

Owner-earnings margin 47% 5-yr avg 16%

Free cash flow margin 47% 5-yr avg 16%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What moves the needle: Gross margin has run about 17% and operating margin about 8.7% through the cycle, a thin spread that turns the result on volume and the cost of what it sells far more than on the price it sets. On a spread this thin the operating result swings hard on small moves in cost or volume — it has ranged from −23% to 17% over the years, so the cost line is where the needle moves. The cash cycle has run negative through the cycle (a median of −16 days): the operation is paid before it pays, so working capital releases cash as the business grows rather than tying it up. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has run high across the record (median 29%, above 15% in 7 of 8 years). Owner earnings agree: roughly 19% of revenue reaches owners as cash, though it swings. Whether these returns reflect real pricing power or an accounting artifact is the judgment the 10-K is for.

Every line is arithmetic on the company's filings, shown in full in the sections below.

The record

Ten years of arithmetic, read across the cycle.

The record, 2017–2026

realized figures from each filing · older years to the left

2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	2026’26	TTMTTMApr 2026
											Income statement
$675M	$893M	$482M	$239M	$392M	$509M	$455M	$573M	$874M	$945M	$1.0B	RevenueRevenue
22%	17%	17%	−3%	16%	20%	19%	14%	16%	21%	21%	Gross marginGross mgn
5%	5%	8%	18%	10%	9%	10%	8%	6%	6%	6%	SG&A / revenueSG&A/rev
$112M	$107M	$40M	($56M)	$23M	$45M	$42M	$36M	$88M	$135M	$156M	Operating incomeOp. inc.
16.6%	12.0%	8.3%	−23.4%	5.9%	8.7%	9.2%	6.4%	10.1%	14.3%	14.9%	Operating marginOp. mgn
$70M	$72M	$52M	($43M)	$24M	$38M	$33M	$32M	$85M	$138M	$161M	Net incomeNet inc.
35%	36%	-10%	—	4%	23%	25%	34%	23%	14%	13%	Effective tax rateTax rate
											Cash flow & returns
$259M	($73M)	($112M)	$54M	$176M	$28M	($30M)	$117M	$168M	$415M	$493M	Operating cash flowOp. cash
$2M	$3M	$3M	$4M	$4M	$3M	$3M	$2M	$2M	$2M	$2M	DepreciationDeprec.
$184M	($152M)	($169M)	$91M	$146M	($17M)	($70M)	$78M	$76M	$267M	$321M	Working capital & otherWC & other
$3M	$5M	$9M	$7M	$2M	$1M	$3M	$3M	$7M	$4M	$6M	CapexCapex
0.4%	0.5%	1.8%	3.0%	0.4%	0.3%	0.7%	0.5%	0.8%	0.4%	0.6%	Capex / revenueCapex/rev
$257M	($76M)	($116M)	$50M	$174M	$27M	($33M)	$115M	$166M	$413M	$491M	Owner earningsOwner earn.
38.1%	−8.5%	−24.0%	20.9%	44.4%	5.3%	−7.3%	20.0%	19.0%	43.7%	47.1%	Owner earnings marginOE mgn
$256M	($78M)	($121M)	$47M	$174M	$27M	($33M)	$114M	$161M	$411M	$487M	Free cash flowFCF
38.0%	−8.7%	−25.1%	19.5%	44.4%	5.3%	−7.3%	19.9%	18.4%	43.5%	46.7%	Free cash flow marginFCF mgn
—	—	—	—	$47M	$16M	$14M	$15M	$18M	$24M	$26M	Dividends paidDiv. paid
—	—	—	—	—	$20M	$68M	$12M	$2M	$10M	—	BuybacksBuybacks
59%	29%	17%	-26%	—	—	29%	26%	33%	94%	116%	ROICROIC
24%	20%	13%	-13%	7%	12%	12%	11%	24%	30%	34%	Return on equityROE
—	—	—	—	−7%	7%	7%	6%	19%	25%	29%	Retained to equityRetained/eq
											Balance sheet
$167M	$122M	$164M	$167M	$367M	$350M	$325M	$307M	$298M	$491M	$529M	Cash & investmentsCash+inv
$55M	$26M	$36M	$37M	$29M	$27M	$50M	$47M	$176M	$134M	$131M	ReceivablesReceiv.
$102M	$100M	$40M	$35M	$53M	$42M	$56M	$39M	$97M	$108M	$124M	Accounts payablePayables
($47M)	($74M)	($4M)	$2M	($25M)	($15M)	($6M)	$8M	$79M	$26M	$7M	Operating working capitalOper. WC
$588M	$485M	$416M	$422M	$546M	$507M	$439M	$547M	$781M	$1.1B	$1.2B	Current assetsCur. assets
$351M	$183M	$81M	$144M	$276M	$223M	$203M	$302M	$480M	$711M	$795M	Current liabilitiesCur. liab.
1.7×	2.6×	5.1×	2.9×	2.0×	2.3×	2.2×	1.8×	1.6×	1.6×	1.5×	Current ratioCurr. ratio
$35M	$34M	$33M	$28M	$28M	$28M	$28M	$28M	$28M	$28M	$28M	GoodwillGoodwill
$644M	$543M	$477M	$488M	$603M	$554M	$489M	$598M	$836M	$1.2B	$1.3B	Total assetsAssets
($167M)	($122M)	($164M)	($167M)	($367M)	($350M)	($325M)	($307M)	($298M)	($491M)	($529M)	Net debt / (cash)Net debt
$292M	$358M	$395M	$339M	$321M	$326M	$281M	$291M	$352M	$462M	$474M	Shareholders’ equityEquity
0.3%	0.5%	0.3%	0.9%	0.7%	0.7%	0.9%	0.8%	0.5%	0.8%	0.8%	Stock comp / revenueSBC/rev
$2M	$584K	$1M	$5M	—	$8M	—	—	—	—	$8M	Goodwill written downGW imp.
											Per share
15.6M	15.8M	15.7M	15.6M	15.8M	15.9M	14.2M	13.5M	13.9M	14.1M	14.2M	Shares out (diluted)Shares
$43.20	$56.58	$30.72	$15.30	$24.78	$32.01	$32.10	$42.32	$62.86	$66.77	$73.39	Revenue / shareRev/sh
$4.50	$4.56	$3.32	$-2.73	$1.51	$2.40	$2.33	$2.39	$6.15	$9.74	$11.36	EPS (diluted)EPS
$16.45	$-4.79	$-7.38	$3.20	$11.02	$1.70	$-2.36	$8.48	$11.91	$29.18	$34.57	Owner earnings / shareOE/sh
$16.40	$-4.92	$-7.71	$2.98	$11.02	$1.70	$-2.36	$8.42	$11.58	$29.04	$34.30	Free cash flow / shareFCF/sh
—	—	—	—	$2.97	$0.98	$0.98	$1.08	$1.31	$1.72	$1.85	Dividends / shareDiv/sh
$0.18	$0.31	$0.55	$0.45	$0.11	$0.09	$0.24	$0.20	$0.47	$0.27	$0.42	Cap. spending / shareCapex/sh
$18.66	$22.69	$25.14	$21.72	$20.26	$20.51	$19.81	$21.47	$25.30	$32.68	$33.35	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+5.0%/yr	+21.9%/yr
Owner earnings / share	+6.6%/yr	+21.5%/yr
EPS	+9.0%/yr	+45.2%/yr
Dividends / share	−10.4%/yr (5-yr)	−10.4%/yr
Capital spending / share	+4.8%/yr	+20.6%/yr
Book value / share	+6.4%/yr	+10.0%/yr

The record, charted

FY2017–2026

Each measure over its full record; the current point and the worst year marked.

Share count

14Mpeak FY2022

ROIC

94%low FY2020

Gross margin

21%low FY2020

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$413Mowner earningsvs.$138Mnet incomelow FY2019

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2017FY2026

Owner-earnings bridge

FY2022–FY2026cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2026 the business earned $413M of owner earnings, the operating cash left after the $2M it takes just to hold its position. It put $2M more into growth; free cash flow, after that spending, was $411M.

Reported net income$138M

Owner earnings$413M · 44% of revenue

	FY2026	FY2025	FY2024	FY2023	FY2022
Reported net income	$138M	$85M	$32M	$33M	$38M
Depreciation & amortizationnon-cash charge added back	+$2M	+$2M	+$2M	+$3M	+$3M
Stock-based compensationreal costnon-cash, but a real cost	+$8M	+$4M	+$4M	+$4M	+$3M
Working capital & othertiming of cash in and out, other non-cash items	+$267M	+$76M	+$78M	−$70M	−$17M
Cash from operations	$415M	$168M	$117M	($30M)	$28M
Maintenance capital expenditurethe spending needed just to hold position and volume	−$2M	−$2M	−$2M	−$3M	−$1M
Owner earnings	$413M	$166M	$115M	($33M)	$27M
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	−$2M	−$5M	−$743K	—	—
Free cash flow	$411M	$161M	$114M	($33M)	$27M
Owner-earnings marginowner earnings ÷ revenue	44%	19%	20%	-7%	5%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about $2M, roughly its depreciation, the rate its assets wear out). The other $2M of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows. The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $8M), owner earnings is nearer $405M.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2026 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? —

No meaningful interest burden

Little or no interest expense reported

What this means
Little or no interest expense reported, the business isn't leaning on lenders to operate.
How heavy is the debt, net of cash? +$491M

Net cash, debt-free

Cash $339M + ST investments $152M − debt $0

What this means
Cash and short-term investments exceed every dollar of debt by $491M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? —

Not enough data

What this means
The filing data didn't include the inputs for this check.

Is it a good business?

Return on invested capital —

Not enough data

Industry peers: median 9%

What this means
The filing data didn't include the inputs for this check.
Owner-earnings margin 19%

High through the cycle

10-yr median margin, range -24%–44%; latest $413M = operating cash $415M − maintenance capex $2M

Industry peers: median 3%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 44% of revenue this year, a 19% median across 10 years. Treating stock comp as the real expense it is (less $8M of SBC) leaves $405M.
Are earnings backed by cash? 3.01×

Cash-backed

Cash from ops $415M ÷ net income $138M

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 8%

Reinvests most of it

Dividends + buybacks $34M ÷ Owner Earnings $413M

What this means
Of $413M Owner Earnings, $34M (8%) went back to shareholders, $24M dividends, $10M buybacks. Net of $8M stock comp, the real buyback was about $2M. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 2.03×

Expanding

Capex $4M ÷ depreciation $2M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 0 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Miss

Revenue ≥ $2B · $945M

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Near

Current ratio ≥ 2× · 1.59×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Earnings stability Near

A profit every year (10-yr record) · 1 loss year

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · 6 of 10 yrs

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Near

Earnings +33% over the record · +31%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $6.08/share (latest year $9.83), the averaged base the calculator's gate runs on, and book value is $32.97/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2017–2026

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 9 of 10

What this means
Lost money in 1 year(s), look at what happened there before trusting the average.
Operating margin 12% → 10% (3-yr avg ends)

In the filing’s words The filing attributes gains to higher prices, but the margin in the record has not followed — the claim outruns the result here.

What this means
The recent-years average (10%) sits below the early years (12%), but the latest year (14%) is back near the early level: a cyclical trough dragging the window down, not a one-way slide. The through-cycle median is 9% — read it across the cycle, not on the dip.
Owner earnings growth +14%/yr

What this means
Owner earnings grew about 14% a year over the record.
Worst year 2020 · −23.4% op. margin

What this means
Operations went underwater in 2020, understand why before trusting the good years.
Share count −1.1%/yr

What this means
The share count is shrinking, buybacks are quietly growing your slice of the business.
Dividend record paid

What this means
Paid a dividend in 6 of the years on record.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing Named as a competitive risk

Its FY2026 10-K names artificial intelligence as a competitive threat.

“Finally, our competitors may adopt and implement AI technologies more effectively or rapidly than we do, potentially giving them a competitive advantage.”

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Apr 30, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$1.2B

Cash & short-term investments$529M
Receivables$131M
Other current assets$557M

Current liabilities$795M

Accounts payable$124M
Other current liabilities$671M

Current ratio1.53×all current assets ÷ what's due · Graham looked for 2×

Quick ratio—inventory untagged this quarter, so withheld rather than shown equal to the current ratio

Cash ratio0.67×strictest: cash alone against what's due

Working capital$421Mthe cushion left after near-term bills

Revenue, latest quarter vs. a year ago+50.2%the freshest read on whether the business is still growing

Current ratio, recent quarters1.6× → 1.5×

Deeper floors

Tangible book value$444Mequity stripped of goodwill & intangibles

Net current asset value$403MGraham's net-net: current assets less all liabilities

Debt incl. operating leases$6M$6M of it operating leases

Deferred revenue$566Mcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2017–2026

Over the record, the business generated $1.0B of operating cash; how management split it reads as a cash builder, a large share of cash simply built up on the balance sheet.

Reinvested$43M · 4%
Dividends$134M · 13%
Buybacks$112M · 11%
Retained (debt / cash)$712M · 71%

Returned to owners$246M
25% of the owner earnings the business produced over the span, $134M as dividends and $112M as buybacks.
Source of fundingOperating cash
Operating cash covered reinvestment and returns; over the span cash and short-term investments rose $361M.
Average price paid for buybacks$41.72
Across the years where the filing reports a share count, 3M shares were bought for $112M, about $41.72 each. Year to year the price paid ranged from $36.77 (2023) to $152.66 (2026); its heaviest year, 2023, paid $36.77 ($68M).
Net change in share count−9.1%
The diluted count fell from 16M to 14M, so the buybacks outran the stock issued to staff.
Dividend record$1.72/sh
Paid in 6 of the years on record, the per-share dividend shrinking about 10% a year. It was cut at least once along the way.
Return on what it retained82%
Of the earnings it kept rather than paid out ($256M over the span), annual owner earnings (first three years vs last three) grew $209M, so each retained $1 added about 0.82 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2022	Mr. Watson	$1.9M	$2.0M	$27M
2023	Mr. Watson	$1.9M	$2.2M	($33M)
2023	Mr. Watson	$1.4M	$1.6M	($33M)
2024	Mr. Watson	$1.9M	$1.9M	$115M
2025	Mr. Watson	$2.3M	$10.9M	$166M
2026	Mr. Watson	$2.7M	$21.9M	$413M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership3%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
CEO pay ratio27:1
What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.
Stock-based compensation$8M
The slice of the business handed to employees in shares this year, 1% of revenue, equal to 6% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Argan Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2017–2026.

2 of the 5 tests turned up something to look into; the other 3 came back clean.

Look hereDid receivables and inventory outpace sales?8% → 13% of sales
Receivables and inventory grew from $55M to $131M while revenue grew 54%: working capital is climbing faster than sales (8% of revenue then, 13% now). That can mean customers paying slower, stock building up, or revenue pulled forward. The filing's cash-flow and receivables notes say which.
Look hereAre "one-time" charges a yearly habit?5 of 10 years
Management took an impairment or write-down in 5 of the last 10 years, $25M in all. Taken across the majority of the record, the "one-time" label is wearing thin — ask whether these are past deals coming due rather than genuinely isolated events. Read it beside the goodwill the company still carries.

And these came back clean

Is it less profitable than it was?
Did the share count rise anyway?
Did reported profit become cash?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2026

read the 10-K →

How much of the revenue rides on one buyer?
≈$240M · 23% of revenue on the largest customer (TTM)
“For Fiscal 2026, our most significant customer relationships included three Power segment customers, which accounted for approximately 23%, 16% and 11% of consolidated revenues.”verify →
Which reported numbers are a judgment call?
Management names Revenue recognition as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Construction & Engineering

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
BLDTopBuild	$5.4B	28%	13.4%	12%	9%
IESCIES Holdings Inc.	$3.4B	19%	4.0%	17%	3%
LGNLegence Corp.	$2.6B	21%	2.4%	—	1%
AMRCAmeresco Inc.	$1.8B	19%	6.1%	8%	-10%
AGXArgan Inc.	$945M	17%	8.9%	29%	19%
MTRXMatrix Service Company	$769M	6%	-3.7%	-14%	2%
LMBLimbach Holdings Inc.	$647M	18%	2.9%	10%	6%
BBCPConcrete Pumping Holdings Inc.	$356M	37%	12.6%	6%	11%
Group median	—	19%	5.1%	10%	4%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Argan Inc. has delivered.

Argan Inc.’s latest year runs above its own through-cycle margin — the reported figure may flatter a peak. So the tool opens on the through-cycle base, Graham’s averaging cutting both ways; clear the toggle below to read the latest year exactly as reported.

Today’s price $

Through the cycle, Argan Inc. earns about $184M on its 19.5% median owner-earnings margin. This year’s 43.7% margin runs above that; the reported figure may flatter a peak you'd be paying on. Normalize, below, values the price on that through-cycle figure rather than the latest year. It comes pre-checked here for that reason, the same rule that already normalizes a trough; clear it to price the year as filed.

Base Normalize · through-cycle ($184M) Net of stock comp (−$9M) Steady-state · maintenance capex ($491M)

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The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’17→’26+14%/yr

Owner-earnings yield—

P/E (3-yr earnings ’24–’26)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $487M on 14M shares outstanding, per the 10-Q cover, as of 2026-05-29; net cash $529M. The base opens on the through-cycle figure (the latest year sits above the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. Capex ($6M) runs well above depreciation ($2M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $491M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh AGX against another business →

Cite: Owner Scorecard, "Argan Inc. (AGX), the owner's record," https://ownerscorecard.com/c/AGX, data as of 2026-07-09.

Manual order: ← AGO its page in the Manual AGYS →

Industry order: ← ACM the Construction & Engineering chapter AMRC →