Should I Buy Argan Inc. (AGX)? Finance YouTuber Analysis

The YouTuber recommends Argan, highlighting its subsidiary Gemma Power Systems, which builds natural gas power plants specifically for data centers. The company boasts an exceptionally high free cash flow margin (40%+) and a $3 billion backlog, ensuring revenue visibility. Argan also has no debt, which is rare for a capital-intensive construction business, making it a well-run company in a high-demand market.

“Most companies would love to have like a 10% free cash flow margin. These guys have a 40some percent. So for every dollar of revenue about 40 cents just turns into cash that they don't need.”

The YouTuber suggests avoiding Argan Inc., noting its share price has gone 'absolutely vertical' despite historically cyclical revenue that hasn't grown for four to five quarters. He finds its 69 P/E and 60 forward P/E to be an example of construction stocks with even minor data center exposure seeing inflated price multiples and insane buying.

“Once again, you can see that it share price has just gone absolutely vertical. is trading for a 69 price to earnings ratio now a 60 forward PE and if we take a look at its revenue you can see that it's been extremely cyclical historically and it actually hasn't grown for about four to five quarters now.”