Is AGX a high-quality business?

AlphaMadera's AlphaQuality grade scores Argan, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how AGX compares to a Buffett-style quality bar.

What is Argan, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to AGX based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes AGX a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

AGX - Argan, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $446.50 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

A- 80.1 / 100 composite

Composite Grade

Composite of six pillars weighted for cyclical & capital-intensive businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

B+ 77.6

5yr Avg ROIC 12.9% 73/100
Operating Margin Trend +1.20 pp/yr 88/100

Capital Efficiency

Weight: 15%

A- 83.0

5yr Avg ROE 14.1% 77/100
5yr Share-Count CAGR -2.8% 94/100

Growth Quality

Weight: 10%

A+ 93.2

5yr Revenue CAGR 16.7% 94/100
5yr EPS CAGR 41.9% 100/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 15%

A- 85.6

5yr FCF Margin 16.0% 84/100
5yr FCF/NI Conversion 1.62x 88/100

Balance Sheet

Weight: 25%

A+ 100.0

Net Debt / EBITDA -6.49x 100/100
Interest Coverage (EBIT/Int) 30.00x 100/100
Altman Z-Score 9.55 100/100

Stability

Weight: 20%

C- 45.0

EPS Volatility (σ/μ) 0.64 19/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 1/5 80/100

5 of 5 gurus held; 2 new buys; 1 added; 2 trimmed; 2 full exits.

Holders: 5
Avg Δ position: +3.4%
New buys: 2
Full exits: 2

Mandel new
Dalio new
Laffont sold -100%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (10%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.