AGX - Argan: A Natural Acquisition Target
Thesis
On September 18, we wrote an article entitled What is Argan Going to Do with All of That Cash (to see the article click here). This is a brief follow-up article to our overall thesis that Argan is undervalued. On October 22, 2018, Jacobs Engineering (JEC) announced the sale of its energy, chemicals and resources business to Worley Parsons (WYGPY) for $3.3 billion. This deal garnered an 11.5 x trailing twelve-month-adjusted-EBITDA of Jacobs' units. If we apply the same multiple to Argan (AGX), it would equate to a share