) are up 57.4% year-to-date thanks to solid financial results in
the first two fiscal quarters. The fiscal second quarter report
from mid-September included a sharp year-over-year gain in EPS,
sending shares to a new 52-week high. In addition, this Zacks #1
Rank (Strong Buy) provider of heavy construction services offers
consistent special dividend payouts.
Fiscal 2013 has so far been a strong year for the company. In its
fiscal second-quarter announcement from September 12, earnings per
share of 45 cents soared past last year's 15 cents. Revenue jumped
214% year over year to $82.6 million. The company's prime
subsidiary, Gemma Power Systems, contributed 95% of total revenue,
roughly 2% more than the year-ago contribution.
The company has been regularly paying special cash dividends over
time with increases at regular intervals. Most recently on
September 20, the company's Board of Directors declared 60 cents of
special cash dividends to be paid to shareholders on October 11,
Rising Earnings Estimate
Over the last 60 days, the Zacks Consensus Estimate for fiscal 2013
has increased by 0.6% to $1.63, while the Zacks Consensus Estimate
for fiscal 2014 is up 11.0% to $1.92 per share. These earnings
estimates represent year-over-year growth of 191.1% for fiscal 2013
and 17.8% for fiscal 2014.
Argan, Inc. is currently trading at a price-to-earnings (P/E) ratio
of 11.0, compared with the peer group average of 15.3. On a P/S
basis, shares trade at 1.0x, versus the peer group average of 1.0x.
The company offers a ROE of 15.8% while the peer group average is
In the last two years, Argan, Inc. performed really well, rising
remarkably from an under $10.00 share price to approximately $18.00
per share. Growth prospects appear bright for the stock as can be
deduced from the rising Zacks Consensus Estimates.
Argan, Inc. is based in Rockville, Maryland, and was incorporated
in 1961. It operates in the Industrial Goods sector; focusing
primarily on providing heavy construction services to public
utilities, independent power project owners, municipalities, public
institutions, and private industry. It currently has a market
capitalization of approximately $247 million.
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