ASTEC INDUSTRIES INC (ASTE) Stock Fundamental Analysis
NASDAQ:ASTE - Nasdaq - US0462241011 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to ASTE. ASTE was compared to 128 industry peers in the Machinery industry. ASTE has only an average score on both its financial health and profitability. ASTE has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ASTE had positive earnings in the past year.
ASTE had a positive operating cash flow in the past year.
Of the past 5 years ASTE 4 years were profitable.
ASTE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of ASTE (1.44%) is worse than 62.50% of its industry peers.
ASTE's Return On Equity of 2.33% is on the low side compared to the rest of the industry. ASTE is outperformed by 63.28% of its industry peers.
The Return On Invested Capital of ASTE (9.36%) is better than 64.84% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ASTE is significantly below the industry average of 10.31%.
The last Return On Invested Capital (9.36%) for ASTE is above the 3 year average (4.22%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.44% | ||
| ROE | 2.33% | ||
| ROIC | 9.36% |
ROA(3y)1.19%
ROA(5y)2.21%
ROE(3y)1.93%
ROE(5y)3.16%
ROIC(3y)4.22%
ROIC(5y)4.29%
1.3 Margins
The Profit Margin of ASTE (1.15%) is worse than 64.06% of its industry peers.
ASTE's Profit Margin has declined in the last couple of years.
ASTE's Operating Margin of 7.07% is in line compared to the rest of the industry. ASTE outperforms 46.09% of its industry peers.
In the last couple of years the Operating Margin of ASTE has grown nicely.
The Gross Margin of ASTE (25.94%) is comparable to the rest of the industry.
ASTE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.07% | ||
| PM (TTM) | 1.15% | ||
| GM | 25.94% |
OM growth 3Y20.97%
OM growth 5Y10.4%
PM growth 3Y-41.22%
PM growth 5Y-29.61%
GM growth 3Y3.08%
GM growth 5Y4.18%
2. Health
2.1 Basic Checks
ASTE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ASTE has more shares outstanding than it did 1 year ago.
ASTE has more shares outstanding than it did 5 years ago.
ASTE has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.14 indicates that ASTE is not in any danger for bankruptcy at the moment.
ASTE has a Altman-Z score of 4.14. This is in the better half of the industry: ASTE outperforms 67.97% of its industry peers.
ASTE has a debt to FCF ratio of 1.50. This is a very positive value and a sign of high solvency as it would only need 1.50 years to pay back of all of its debts.
ASTE has a better Debt to FCF ratio (1.50) than 81.25% of its industry peers.
ASTE has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
ASTE's Debt to Equity ratio of 0.16 is fine compared to the rest of the industry. ASTE outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.5 | ||
| Altman-Z | 4.14 |
ROIC/WACC0.88
WACC10.66%
2.3 Liquidity
ASTE has a Current Ratio of 2.66. This indicates that ASTE is financially healthy and has no problem in meeting its short term obligations.
ASTE has a better Current ratio (2.66) than 69.53% of its industry peers.
A Quick Ratio of 1.09 indicates that ASTE should not have too much problems paying its short term obligations.
ASTE has a Quick ratio of 1.09. This is comparable to the rest of the industry: ASTE outperforms 40.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.66 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
ASTE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.38%, which is quite impressive.
Measured over the past years, ASTE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.45% on average per year.
ASTE shows a small growth in Revenue. In the last year, the Revenue has grown by 1.99%.
Measured over the past years, ASTE shows a small growth in Revenue. The Revenue has been growing by 2.22% on average per year.
EPS 1Y (TTM)42.38%
EPS 3Y21.38%
EPS 5Y9.45%
EPS Q2Q%158.82%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y5.95%
Revenue growth 5Y2.22%
Sales Q2Q%6.53%
3.2 Future
The Earnings Per Share is expected to grow by 15.15% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.22% on average over the next years.
EPS Next Y0.96%
EPS Next 2Y15.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.46%
Revenue Next 2Y3.22%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.86, which indicates a correct valuation of ASTE.
Based on the Price/Earnings ratio, ASTE is valued cheaper than 85.94% of the companies in the same industry.
ASTE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.91.
The Price/Forward Earnings ratio is 11.83, which indicates a very decent valuation of ASTE.
Based on the Price/Forward Earnings ratio, ASTE is valued cheaply inside the industry as 80.47% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.85. ASTE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.86 | ||
| Fwd PE | 11.83 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ASTE indicates a rather cheap valuation: ASTE is cheaper than 85.16% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ASTE is valued cheaply inside the industry as 85.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.23 | ||
| EV/EBITDA | 7.43 |
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.
ASTE's earnings are expected to grow with 15.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)13.4
PEG (5Y)1.36
EPS Next 2Y15.15%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.23%, ASTE has a reasonable but not impressive dividend return.
ASTE's Dividend Yield is a higher than the industry average which is at 1.83.
Compared to an average S&P500 Dividend Yield of 2.36, ASTE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
5.2 History
The dividend of ASTE has a limited annual growth rate of 3.55%.
ASTE has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of ASTE decreased recently.
Dividend Growth(5Y)3.55%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
78.29% of the earnings are spent on dividend by ASTE. This is not a sustainable payout ratio.
ASTE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP78.29%
EPS Next 2Y15.15%
EPS Next 3YN/A
NASDAQ:ASTE (5/23/2025, 9:47:33 AM)
38.44
-0.77 (-1.96%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.19%
Inst Owner Change-1.99%
Ins Owners0.86%
Ins Owner Change2.38%
Market Cap879.12M
Analysts82.5
Price Target43.86 (14.1%)
Short Float %1.1%
Short Ratio1.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
Yearly Dividend0.52
Dividend Growth(5Y)3.55%
DP78.29%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)73.69%
Min EPS beat(2)59.82%
Max EPS beat(2)87.55%
EPS beat(4)2
Avg EPS beat(4)32.86%
Min EPS beat(4)-13.95%
Max EPS beat(4)87.55%
EPS beat(8)4
Avg EPS beat(8)3.8%
EPS beat(12)5
Avg EPS beat(12)1.35%
EPS beat(16)7
Avg EPS beat(16)7.93%
Revenue beat(2)1
Avg Revenue beat(2)-2.22%
Min Revenue beat(2)-5.23%
Max Revenue beat(2)0.79%
Revenue beat(4)2
Avg Revenue beat(4)-2.81%
Min Revenue beat(4)-8.7%
Max Revenue beat(4)1.92%
Revenue beat(8)2
Avg Revenue beat(8)-5%
Revenue beat(12)5
Avg Revenue beat(12)-2.28%
Revenue beat(16)5
Avg Revenue beat(16)-2.53%
PT rev (1m)0%
PT rev (3m)1.18%
EPS NQ rev (1m)-1.64%
EPS NQ rev (3m)-4%
EPS NY rev (1m)-7.09%
EPS NY rev (3m)-4.53%
Revenue NQ rev (1m)2.77%
Revenue NQ rev (3m)2.77%
Revenue NY rev (1m)-0.51%
Revenue NY rev (3m)-1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.86 | ||
| Fwd PE | 11.83 | ||
| P/S | 0.66 | ||
| P/FCF | 12.23 | ||
| P/OCF | 9.71 | ||
| P/B | 1.35 | ||
| P/tB | 1.42 | ||
| EV/EBITDA | 7.43 |
EPS(TTM)2.99
EY7.78%
EPS(NY)3.25
Fwd EY8.45%
FCF(TTM)3.14
FCFY8.18%
OCF(TTM)3.96
OCFY10.29%
SpS57.95
BVpS28.56
TBVpS27
PEG (NY)13.4
PEG (5Y)1.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.44% | ||
| ROE | 2.33% | ||
| ROCE | 12.03% | ||
| ROIC | 9.36% | ||
| ROICexc | 10.65% | ||
| ROICexgc | 11.22% | ||
| OM | 7.07% | ||
| PM (TTM) | 1.15% | ||
| GM | 25.94% | ||
| FCFM | 5.43% |
ROA(3y)1.19%
ROA(5y)2.21%
ROE(3y)1.93%
ROE(5y)3.16%
ROIC(3y)4.22%
ROIC(5y)4.29%
ROICexc(3y)4.7%
ROICexc(5y)5.1%
ROICexgc(3y)5.08%
ROICexgc(5y)5.67%
ROCE(3y)5.42%
ROCE(5y)5.48%
ROICexcg growth 3Y15.61%
ROICexcg growth 5Y7.82%
ROICexc growth 3Y18.19%
ROICexc growth 5Y8.9%
OM growth 3Y20.97%
OM growth 5Y10.4%
PM growth 3Y-41.22%
PM growth 5Y-29.61%
GM growth 3Y3.08%
GM growth 5Y4.18%
F-Score7
Asset Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.5 | ||
| Debt/EBITDA | 0.89 | ||
| Cap/Depr | 69.66% | ||
| Cap/Sales | 1.4% | ||
| Interest Coverage | 10.65 | ||
| Cash Conversion | 75.17% | ||
| Profit Quality | 473.03% | ||
| Current Ratio | 2.66 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 4.14 |
F-Score7
WACC10.66%
ROIC/WACC0.88
Cap/Depr(3y)118.53%
Cap/Depr(5y)95.88%
Cap/Sales(3y)2.44%
Cap/Sales(5y)2.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)42.38%
EPS 3Y21.38%
EPS 5Y9.45%
EPS Q2Q%158.82%
EPS Next Y0.96%
EPS Next 2Y15.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.99%
Revenue growth 3Y5.95%
Revenue growth 5Y2.22%
Sales Q2Q%6.53%
Revenue Next Year2.46%
Revenue Next 2Y3.22%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y142.75%
EBIT growth 3Y28.17%
EBIT growth 5Y12.85%
EBIT Next Year65.99%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y159.62%
FCF growth 3YN/A
FCF growth 5Y-51.05%
OCF growth 1Y208.38%
OCF growth 3Y45.94%
OCF growth 5Y-27.19%