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ArganLTS:0HHO -1.40%78 Gross Margin % is 21.00% as of Apr. 2026, which is 24% above its 10-year median of 16.92. GuruFocus rates LTS:0HHO with a GF Score™ of 78/100 and a GF Value™ of $182.02 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,725 Construction companies, Argan ranks better than 50.26% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Argan's Gross Profit for the
three
months ended in Apr. 2026 was $61 Mil. Argan's Revenue for the
three
months ended in Apr. 2026 was $291 Mil. Therefore, Argan's Gross Margin % for the quarter that ended in Apr. 2026 was 21.00%.
The historical rank and industry rank for Argan's Gross Margin % or its related term are showing as below:
LTS:0HHO'
s Gross Margin % Range Over the Past 10 Years
Min: -2.85 Med: 16.92 Max: 21.73
Current: 20.92
During the past 13 years, the highestGross Margin % of Argan was 21.73%. The lowest was -2.85%. And the median was 16.92%.
LTS:0HHO's Gross Margin % is ranked better than 50.26% of 1725
companies
in the Construction industry
Industry Median: 20.7
vs LTS:0HHO: 20.92
Argan had a gross margin of 21.00% for the quarter that ended in Apr. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Argan was 1.20% per year.
Argan (LTS:0HHO) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Argan had a gross margin of 21.00% for the quarter that ended in Apr. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Argan Gross Margin % Related Terms
Argan Gross Margin % Historical Data
* Premium members only.
The historical data trend for Argan's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LTS:0HHO vs BLD, ACM, ECG: Gross Margin % Comparison
For the Engineering & Construction subindustry, Argan's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Argan Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Argan's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Argan's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Argan (LTS:0HHO) has a Gross Margin % of 21.00% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Argan and its competitors. This is 24% above median its historical median of 16.92. According to the industry distribution chart, Argan ranks #858 out of 1725 companies in the Construction industry, placing it in the top 49.7%.
Is Argan's Gross Margin % too high?
Argan's current Gross Margin % of 21.00% is 24% above median its 10-year median of 16.92. The Construction industry median Gross Margin % is 20.70. Argan's value of 21.00% is 1.4% above this industry median. Based on the distribution chart, Argan ranks #858 out of 1725 companies in the Construction industry, which is above the industry midpoint. Overall, Argan has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Argan's Gross Margin % compare to BLD and ACM?
According to the Construction industry distribution chart, Argan ranks #858 out of 1725 companies for Gross Margin %. This puts Argan in the upper half of its industry. The industry median Gross Margin % is 20.70. Argan's value of 21.00% is 1.4% above this benchmark. While the company's 10-year median is 16.92 vs. the industry median of 20.70, Argan has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Construction company?
The median Gross Margin % among Construction companies is 20.70, based on 1,725 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Argan's current Gross Margin % of 21.00% is 1.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Argan and its competitors. For the Construction industry, the median Gross Margin % is 20.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Argan's current Gross Margin % is 21.00%, which is 24% above median its own 10-year median of 16.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Argan stock overvalued right now?
Based on GuruFocus' analysis, Argan (LTS:0HHO) is currently considered Significantly Overvalued. The stock's GF Value™ is $182.02, compared to a current price of $595.09 — trading 226.9% above its estimated fair value. The current Gross Margin % is 21.00%, which is 24% above median its 10-year median of 16.92 and 1.4% above the Construction industry median of 20.70. Argan's overall GF Score™ is 78/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Argan (LTS:0HHO), the current Gross Margin % is 21.00% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Argan (LTS:0HHO) Overvalued in 2026?
Based on GuruFocus' analysis, Argan stock appears to be overvalued.
The current stock price of $595.09 is trading 226.9% above its estimated GF Value™ of $182.02.
GuruFocus considers Argan to be Significantly Overvalued.
Key valuation signals for LTS:0HHO:
Gross Margin %: 21.00% (24% above median its 10-year median of 16.92)
GF Value™: $182.02 vs. price of $595.09 (226.9% above fair value)
Industry Position: 1.4% above the Construction median (#858 of 1725)
No single metric tells the full story. See the LTS:0HHO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Argan Inc is a United States-based construction firm that conducts operations through its wholly-owned subsidiaries, GPS, APC, TRC, and SMC. Through GPS and APC it provides a full range of engineering, procurement, construction, commissioning, maintenance, project development and technical consulting services to the power generation market, including the renewable energy sector, for a wide range of customers, including independent power project owners, public utilities, power plant heavy equipment suppliers and other commercial firms with power requirements in the U.S., Ireland and the U.K. It operates in three segments: Power Services, Industrial Services, and Teledata, out of which Power Services derives the majority of revenue.
78GF Score
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