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Argan, Inc. (AGX)

Company Dividend Discount ModelIndustry: Engineering & ConstructionSector: Industrials

Valuation Snapshot

Stable Growth$139.52 - $271.83$192.00
Multi-Stage$125.79 - $137.68$131.63
Blended Fair Value$161.81
Current Price$306.21
Upside-47.16%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS3.18%6.04%1.291.040.991.113.331.111.111.101.080.73
YoY Growth--24.42%5.21%-10.90%-66.71%201.18%-0.13%0.60%1.89%47.04%2.09%
Dividend Yield--0.84%1.72%2.43%3.01%6.64%2.94%2.31%2.75%1.58%2.15%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)119.93
(-) Cash Dividends Paid (M)15.25
(=) Cash Retained (M)104.68
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)23.9914.998.99
Cash Retained (M)104.68104.68104.68
(-) Cash Required (M)-23.99-14.99-8.99
(=) Excess Retained (M)80.6989.6995.68
(/) Shares Outstanding (M)14.1314.1314.13
(=) Excess Retained per Share5.716.356.77
LTM Dividend per Share1.081.081.08
(+) Excess Retained per Share5.716.356.77
(=) Adjusted Dividend6.797.427.85
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.04%5.04%6.04%
Fair Value$139.52$192.00$271.83
Upside / Downside-54.44%-37.30%-11.23%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)119.93125.97132.32138.98145.98153.33157.93
Payout Ratio12.72%28.17%43.63%59.09%74.54%90.00%92.50%
Projected Dividends (M)15.2535.4957.7382.12108.82138.00146.08

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.04%5.04%6.04%
Year 1 PV (M)32.2232.5332.84
Year 2 PV (M)47.5848.5049.43
Year 3 PV (M)61.4563.2465.06
Year 4 PV (M)73.9376.8179.78
Year 5 PV (M)85.1289.2993.62
PV of Terminal Value (M)1,477.611,550.011,625.21
Equity Value (M)1,777.911,860.381,945.94
Shares Outstanding (M)14.1314.1314.13
Fair Value$125.79$131.63$137.68
Upside / Downside-58.92%-57.01%-55.04%

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