ASTEC INDUSTRIES INC (ASTE)
US0462241011 - Common Stock
Taking everything into account, ASTE scores 4 out of 10 in our fundamental rating. ASTE was compared to 132 industry peers in the Machinery industry. Both the profitability and the financial health of ASTE get a neutral evaluation. Nothing too spectacular is happening here. ASTE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ASTE was profitable.
In the past year ASTE had a positive cash flow from operations.
ASTE had positive earnings in 4 of the past 5 years.
Of the past 5 years ASTE 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.16%, ASTE is in line with its industry, outperforming 45.74% of the companies in the same industry.
ASTE has a Return On Equity (5.13%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 5.57%, ASTE is in line with its industry, outperforming 42.64% of the companies in the same industry.
ASTE had an Average Return On Invested Capital over the past 3 years of 3.42%. This is significantly below the industry average of 10.72%.
The last Return On Invested Capital (5.57%) for ASTE is above the 3 year average (3.42%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.16% | ||
| ROE | 5.13% | ||
| ROIC | 5.57% |
ROA(3y)1.71%
ROA(5y)2.69%
ROE(3y)2.62%
ROE(5y)3.77%
ROIC(3y)3.42%
ROIC(5y)3.95%
1.3 Margins
The Profit Margin of ASTE (2.50%) is comparable to the rest of the industry.
ASTE's Profit Margin has declined in the last couple of years.
ASTE has a Operating Margin of 4.07%. This is in the lower half of the industry: ASTE underperforms 63.57% of its industry peers.
ASTE's Operating Margin has declined in the last couple of years.
ASTE has a Gross Margin (24.72%) which is in line with its industry peers.
ASTE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.07% | ||
| PM (TTM) | 2.5% | ||
| GM | 24.72% |
OM growth 3Y-6.59%
OM growth 5YN/A
PM growth 3Y-18.23%
PM growth 5YN/A
GM growth 3Y1.79%
GM growth 5Y16.35%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ASTE is destroying value.
The number of shares outstanding for ASTE has been increased compared to 1 year ago.
The number of shares outstanding for ASTE has been increased compared to 5 years ago.
ASTE has a better debt/assets ratio than last year.
2.2 Solvency
ASTE has an Altman-Z score of 3.75. This indicates that ASTE is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ASTE (3.75) is better than 64.34% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that ASTE is not too dependend on debt financing.
ASTE has a Debt to Equity ratio of 0.13. This is in the better half of the industry: ASTE outperforms 78.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.75 |
ROIC/WACC0.6
WACC9.31%
2.3 Liquidity
A Current Ratio of 2.41 indicates that ASTE has no problem at all paying its short term obligations.
ASTE has a Current ratio of 2.41. This is in the better half of the industry: ASTE outperforms 62.02% of its industry peers.
A Quick Ratio of 0.88 indicates that ASTE may have some problems paying its short term obligations.
The Quick ratio of ASTE (0.88) is worse than 68.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.41 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 118.03% over the past year.
ASTE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.09% yearly.
ASTE shows a small growth in Revenue. In the last year, the Revenue has grown by 5.00%.
The Revenue has been growing slightly by 2.69% on average over the past years.
EPS 1Y (TTM)118.03%
EPS 3Y9.79%
EPS 5Y-1.09%
EPS growth Q2Q164.71%
Revenue 1Y (TTM)5%
Revenue growth 3Y9.32%
Revenue growth 5Y2.69%
Revenue growth Q2Q-3.63%
3.2 Future
ASTE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.98% yearly.
Based on estimates for the next years, ASTE will show a small growth in Revenue. The Revenue will grow by 1.05% on average per year.
EPS Next Y5.19%
EPS Next 2Y8.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.36%
Revenue Next 2Y1.05%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.17, which indicates a correct valuation of ASTE.
Based on the Price/Earnings ratio, ASTE is valued cheaply inside the industry as 82.17% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.28. ASTE is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 11.57, the valuation of ASTE can be described as reasonable.
Based on the Price/Forward Earnings ratio, ASTE is valued cheaper than 86.05% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.88, ASTE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.17 | ||
| Fwd PE | 11.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ASTE is valued a bit cheaper than the industry average as 77.52% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ASTE does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.34
PEG (5Y)N/A
EPS Next 2Y8.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.54%, ASTE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.73, ASTE pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.41, ASTE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
5.2 History
The dividend of ASTE has a limited annual growth rate of 4.33%.
ASTE has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)4.33%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ASTE pays out 35.22% of its income as dividend. This is a sustainable payout ratio.
ASTE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP35.22%
EPS Next 2Y8.98%
EPS Next 3YN/A
ASTEC INDUSTRIES INC
NASDAQ:ASTE (5/3/2024, 7:00:01 PM)
After market: 32.4164 +0.04 (+0.11%)32.38
-0.78 (-2.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap736.32M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.17 | ||
| Fwd PE | 11.57 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.34
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.16% | ||
| ROE | 5.13% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.07% | ||
| PM (TTM) | 2.5% | ||
| GM | 24.72% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.41 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)118.03%
EPS 3Y9.79%
EPS 5Y
EPS growth Q2Q
EPS Next Y5.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5%
Revenue growth 3Y9.32%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y