Is ARGAN INC (AGX) Halal?
Shariah Screening — 5 Standards
Based on financial data from January 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 0.0% / 30% | 9.1% / 30% | 4.2% / 30% | 2.63% / 5% | ✓ HALAL |
| DJIM | 0.0% / 33% | 9.1% / 33% | 4.2% / 33% | 2.63% / 5% | ✓ HALAL |
| MSCI | 0.3% / 33% | 62.8% / 33% | 28.7% / 33% | 2.63% / 5% | ✗ NOT HALAL |
| S&P | 0.0% / 33% | 9.1% / 33% | 4.2% / 33% | 2.63% / 5% | ✓ HALAL |
| FTSE | 0.3% / 33% | 62.8% / 33% | 28.7% / 50% | 2.63% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 20.3% | |
| Operating Margin | 18.2% | |
| Net Margin | 14.6% | |
| Return on Equity (ROE) | 33.8% | |
| Return on Assets (ROA) | 8.3% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $168M |
| Free Cash Flow | $161M |
| Total Debt | $3M |
| Debt-to-Equity | 1.4 |
| Current Ratio | 1.6 |
| Total Assets | $836M |
Price & Trading
| Last Close | $410.85 |
| 50-Day MA | $418.29 |
| 200-Day MA | $307.93 |
| Avg Volume | 411K |
| Beta | 0.6 |
|
52-Week Range
$111.16
| |
About ARGAN INC (AGX)
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. It operates through three segments: Power, Industrial, and Teledata. Its Power segment offers engineering, procurement, and construction, as well as designing, building, and commissioning of large-scale energy projects; and design, construction, project management, start-up, and operation, as well as provides technical consulting services; and turbine, boiler, and large rotating equipment. This segment serves independent power producers, public utilities, power plant equipment suppliers, and other commercial firms. The company's Industrial segment provides field services that support new plant construction and additions; maintenance turnarounds; shutdowns and emergency mobilizations for industrial plants; and fabricates, delivers, and installation of metal components, such as piping systems and pressure vessels. Its Teledata segment offers trenchless directional boring and excavation for underground communication and power networks; aerial cabling; high and low voltage electric lines; and private area outdoor lighting systems, as well as installs buried cable. It also provides structured cabling, terminations, and connectivity that offers the physical transport for high-speed data, voice, video, and security networks; and utility construction services and comprehensive technology wiring solutions. This segment serves electricity cooperative, state and federal government agencies, counties and municipalities, and technology-oriented government contracting firms, as well as customers in the mid-Atlantic region of the United States. Argan, Inc. was incorporated in 1961 and is headquartered in Arlington, Virginia.
Purification Calculator
As a halal stock with 2.63% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is ARGAN INC (AGX) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), ARGAN INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is ARGAN INC's debt ratio?
ARGAN INC's debt ratio is 0.0% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 0.3%.
Does ARGAN INC require dividend purification?
Yes, ARGAN INC has an impermissible income ratio of 2.63%, which means 2.63% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are ARGAN INC's key financial metrics?
ARGAN INC has a market capitalization of $7.9B, trailing P/E ratio of 58.1, and revenue of $874M. The company maintains a gross margin of 20.3% and a net margin of 14.6%. Return on equity stands at 33.8%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.