Argan: Favorable Supply/Demand Environment And Improved Capital Allocation

Ron and Patty Thomas Argan, Inc. (NYSE:AGX) primarily generates revenue by providing EPC services to the power generation sector. The company generally posts lumpy revenue and earnings as their business consists of large projects that don't lead to meaningful recurring revenue. Argan must continually replenish its backlog in order to maintain earnings over time. Earnings like this that are not recurring in nature are generally considered lower quality and command less interest from investors. Not only are t ...