Argan, Inc. AGX

Competitive advantage analysis · industrials

Corporate Default
Overall moat score
75/100
Strong

About Argan, Inc.

Argan, Inc., through its subsidiaries, provides engineering, procurement, construction, commissioning, maintenance, project development, and technical consulting services to the power generation market in the United States, Republic of Ireland, and the United Kingdom. Its Power Industry Services segment offers engineering, procurement, and construction, as well as designing, building, and commissioning of large-scale energy projects to the owners of alternative energy … Full AGX analysis →

Competitive advantage assessment

Key strengths

  • Strong Interest Coverage & Conservative Leverage Debt serviceability is strong (score 0.81), with robust interest coverage.
  • Consistent Cash Generation Cash generation is strong and consistent (score 0.99).

Key risks

  • Revenue Volatility Signals Weak Stickiness Revenue volatility is high (stability score 0.32), suggesting weak customer stickiness.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
64

Where AGX ranks in Engineering & Construction

Argan, Inc. ranks #4 of 49 scored companies in Engineering & Construction by moat score — the top 8%. The widest moat in the group is Sterling Infrastructure, Inc. (STRL) at 79/100.

Moat scores for companies ranked near AGX in Engineering & Construction
# Company Moat score Rating
1 Sterling Infrastructure, Inc. STRL 79/100 Strong
2 Exponent, Inc. EXPO 76/100 Strong
3 Comfort Systems USA, Inc. FIX 76/100 Strong
4 Argan, Inc. AGX 75/100 Strong
5 TopBuild Corp. BLD 73/100 Moderate
6 EMCOR Group, Inc. EME 72/100 Moderate
7 IES Holdings, Inc. IESC 72/100 Moderate
8 Stantec Inc STN 71/100 Moderate
9 Everus Construction Group, Inc. ECG 67/100 Moderate

See every General Corporate company ranked by moat score →

How AGX scores on the Corporate Default defenses

Pricing Power

Score 64 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 86 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 72 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 76 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 82 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 75 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding AGX's moat

What is Argan, Inc.'s moat score?

Argan, Inc. (AGX) scores 75 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as strong. It ranks #4 of 49 scored companies in Engineering & Construction, the top 8%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 48 companies in Engineering & Construction. Its strongest defense is Cost Advantage (86/100) and its weakest is Pricing Power (64/100).

How does Argan, Inc. compare with other Engineering & Construction companies?

Argan, Inc. ranks #4 of 49 scored companies in Engineering & Construction by moat score. The widest moat in Engineering & Construction is Sterling Infrastructure, Inc. (STRL) at 79/100. The companies ranked closest are Comfort Systems USA, Inc. (FIX) at 76 just above it and TopBuild Corp. (BLD) at 73 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 48 companies in Engineering & Construction. The defenses are then weighted to produce the overall score out of 100.

Why is Argan, Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Argan, Inc.?

The Corporate Default template measures 6 defenses, and AGX scores: Pricing Power (64), Cost Advantage (86), Customer Stickiness (72), Capital Efficiency (76), Resilience (82), Scale & Market Position (75). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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