AGX - Argan's Backlog Exceeds $1B But Market Doesn't Appear To Know It Yet
Argan’s (NYSEMKT:AGX) Gemma Power Systems (NYSE:GPS) segment is currently trading at 1x its expected Net Income over the next 36 months. That’s justifiable if you expect the business to die. It’s unreasonable if it does anything but.
Argan's last reported Backlog was $0.5 billion (4/30/18). Since then, the company has signed a large contract to construct the Chickahominy Power Station, a 1,600 MW state-of-the-art natural gas-fired power plant, in Charles City County, Virginia. This should provide at least $0.8 billion in new backlog and push the grand total above $1.2 billion.