Argan stock had a great day in the market on Wednesday March 28. Shares jumped 17.28% and closed the day at $44.8. They're now trading 38.38% below their 52-week high of $72.7.
With yesterday's big gain, Argan now has a market cap of $697 million. That makes it a small cap company.
The business operates in the engineering and construction industry and employs 1,286 people. Its shares trade primarily on the New York stock exchange.
Argan has 15.55 million shares outstanding and 514,188 traded hands for the day. That's above the average 30-day volume of 161,645 shares.
Over the last five years, Argan's revenue is up by 375.89%. You can see this growth in annual revenue chart below...
In the last year alone, Argan's revenue has grown by 63.34%. That's a solid sign for Argan stock owners.
We like to invest in companies that grow their sales. A growing top line is a sign of a healthy business.
For now, Argan will continue to pull in revenue. So let's take a closer look at the company's total financial health. And the best way to do that is by looking at its balance sheet... Argan's cash comes in at $523 million and the company's debt is $0 million...
Argan's cash pile is large and the company is financially sound for now. It can take on new projects.
To determine the value of Argan stock let's look at a few key metrics…
Price-to-Earnings (P/E): This ratio comes in at 8.28 for Argan. That's a reasonable level. A high P/E ratio shows that investors are already expecting high earnings growth.
Price-to-Book (P/B): This ratio is a cornerstone for value investors. A lower number here indicates a better value play. And at 2, Argan looks reasonable… but P/B varies greatly based on the industry.
These two metrics are a great place to start when valuing a company... but your analysis should go much deeper...