• In recent months, Argan reported a record project backlog of about US$3.00 billion, fueled by rising power infrastructure work for AI companies and data centers, alongside higher gross margins and a stronger balance sheet.
• At the same time, insider share sales and a 33% dividend increase have put additional focus on how Argan is managing growth and capital returns.
• We’ll now examine how Argan’s record construction backlog tied to AI-driven power demand may reshape the company’s overall investment narrative.

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What Is Argan's Investment Narrative?

To own Argan today, you have to believe its US$3.00 billion AI and data center‑driven backlog can be converted into profitable projects without major execution missteps or contract risk. The recent price surge, extended valuation multiples and insider sales by two directors now sit in sharper tension with that belief, especially as the stock trades a little above consensus targets and community fair values. At the same time, the 33% dividend hike and steady buyback authorization signal management’s confidence in cash generation and balance sheet strength, which remains a key short term catalyst alongside new EPC wins in power‑hungry regions like ERCOT. Overall, the latest news mainly sharpens existing questions around how sustainable Argan’s growth and capital returns will be, rather than changing the story outright.

Yet beneath the record backlog, one risk in particular deserves closer attention.

Argan's share price has been on the slide but might be dropping deeper into value territory. Find out whether it's a bargain at this price.

Exploring Other Perspectives

Ten fair value estimates from the Simply Wall St Community span roughly US$181,000 to US$361,000 per share, showing just how far apart individual views can be. Against that backdrop, Argan’s rich earnings multiple and AI‑linked power project exposure give you several different angles to weigh before deciding how much of your portfolio, if any, belongs in this story.

Explore 10 other fair value estimates on Argan - why the stock might be worth as much as $361.00!

Build Your Own Argan Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Argan research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Argan research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Argan's overall financial health at a glance.

No Opportunity In Argan?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.