NasdaqGS:ASTE

Stock Analysis Report

Executive Summary

Astec Industries, Inc. designs, engineers, manufactures, and markets equipment and components for the road building, aggregate processing, geothermal, water, oil and gas, and wood processing industries in the United States and internationally.

Snowflake

Fundamentals

Excellent balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Astec Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ASTE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.2%

ASTE

-1.4%

US Machinery

0.2%

US Market


1 Year Return

9.1%

ASTE

13.5%

US Machinery

12.2%

US Market

Return vs Industry: ASTE underperformed the US Machinery industry which returned 13.5% over the past year.

Return vs Market: ASTE underperformed the US Market which returned 12.2% over the past year.


Shareholder returns

ASTEIndustryMarket
7 Day-1.2%-1.4%0.2%
30 Day22.3%7.5%3.5%
90 Day32.9%15.1%6.3%
1 Year10.5%9.1%15.7%13.5%14.7%12.2%
3 Year-41.0%-42.6%46.1%36.9%47.8%38.3%
5 Year0.6%-4.0%59.8%40.4%62.1%44.1%

Price Volatility Vs. Market

How volatile is Astec Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Astec Industries undervalued compared to its fair value and its price relative to the market?

1.38x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: ASTE ($37.69) is trading above our estimate of fair value ($17.83)

Significantly Below Fair Value: ASTE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ASTE is unprofitable, so we can't compare its PE Ratio to the Machinery industry average.

PE vs Market: ASTE is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ASTE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ASTE is good value based on its PB Ratio (1.4x) compared to the US Machinery industry average (2.4x).


Next Steps

Future Growth

How is Astec Industries forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

18.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASTE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: ASTE is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ASTE's is expected to become profitable in the next 3 years.

Revenue vs Market: ASTE's revenue is expected to decline over the next 3 years (-0.4% per year).

High Growth Revenue: ASTE's revenue is forecast to decline over the next 3 years (-0.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ASTE's Return on Equity is forecast to be low in 3 years time (4.9%).


Next Steps

Past Performance

How has Astec Industries performed over the past 5 years?

-39.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ASTE has large one-off items impacting its financial results.

Growing Profit Margin: ASTE's current net profit margins (-0.5%) are lower than last year (-0.2%).


Past Earnings Growth Analysis

Earnings Trend: ASTE is unprofitable, and losses have increased over the past 5 years at a rate of -39% per year.

Accelerating Growth: Unable to compare ASTE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ASTE is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (13.5%).


Return on Equity

High ROE: ASTE has a negative Return on Equity (-1.06%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Astec Industries's financial position?


Financial Position Analysis

Short Term Liabilities: ASTE's short term assets ($529.9M) exceeds its short term liabilities ($173.1M)

Long Term Liabilities: ASTE's short term assets (529.9M) exceeds its long term liabilities (25.0M)


Debt to Equity History and Analysis

Debt Level: ASTE's debt to equity ratio (0.1%) is considered satisfactory

Reducing Debt: ASTE's debt to equity ratio has reduced from 1.4% to 0.1% over the past 5 years.

Debt Coverage: ASTE's debt is well covered by operating cash flow (8135.1%).

Interest Coverage: Insufficient data to determine if ASTE's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: ASTE has a high level of physical assets or inventory.

Debt Coverage by Assets: ASTE's debt is covered by short term assets (assets are 575.3x debt).


Next Steps

Dividend

What is Astec Industries's current dividend yield, its reliability and sustainability?

1.17%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%1.4%markettop25%3.6%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: ASTE's dividend (1.17%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: ASTE's dividend (1.17%) is low compared to the top 25% of dividend payers in the US market (3.65%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ASTE has been paying a dividend for less than 10 years.

Growing Dividend: ASTE's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: ASTE is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Astec Industries's salary, the management and board of directors tenure and is there insider trading?

5.6yrs

Average management tenure


CEO

Barry Ruffalo (49yo)

0.3yrs

Tenure

0

Mr. Barry A. Ruffalo serves as President, Chief Executive Officer and Director at Astec Industries, Inc. since August 12, 2019. He had been Group President of Engineered Support Structures for Valmont Indu ...


Management Age and Tenure

5.6yrs

Average Tenure

55yo

Average Age

Experienced Management: ASTE's management team is seasoned and experienced (5.6 years average tenure).


Board Age and Tenure

7.2yrs

Average Tenure

72.5yo

Average Age

Experienced Board: ASTE's board of directors are considered experienced (7.2 years average tenure).


Insider Trading

Insider Buying: ASTE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$61,04803 Sep 19
Stephen Anderson
EntityIndividual
Role
Chief Administrative Officer
VP of Administration
Shares2,200
Max PriceUS$27.75
BuyUS$56,00023 Aug 19
Jaco van der Merwe
EntityIndividual
Role
Senior Key Executive
Group President of Infrastructure & Energy
Shares2,000
Max PriceUS$28.00
BuyUS$65,50009 May 19
Jaco van der Merwe
EntityIndividual
Role
Senior Key Executive
Group President of Infrastructure & Energy
Shares2,000
Max PriceUS$32.75

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Tom Kruger (61yo)

    Managing Director of Osborn Engineered Products SA (PTY) Ltd

    • Tenure: 14.8yrs
  • Rick Dorris (58yo)

    COO & Executive VP

    • Tenure: 5.8yrs
    • Compensation: US$554.88k
  • David Silvious (51yo)

    CFO, VP & Treasurer

    • Tenure: 8.3yrs
    • Compensation: US$400.38k
  • Steve Anderson (55yo)

    VP of Administration

    • Tenure: 8.3yrs
  • Barry Ruffalo (49yo)

    President

    • Tenure: 0.3yrs
  • Robin Leffew (57yo)

    Corporate Controller

    • Tenure: 8.3yrs
  • Jeff Schwarz (52yo)

    Group President of Aggregate & Mining

    • Tenure: 5.3yrs
    • Compensation: US$532.66k
  • Jaco van der Merwe (46yo)

    Group President of Infrastructure & Energy

    • Tenure: 3.3yrs
    • Compensation: US$447.36k
  • J. Barker (55yo)

    Senior Vice President of Engineering

    • Tenure: 0.8yrs
  • Matt Litchfield

    Chief Information Officer

    • Tenure: 0.08yrs

Board Members

  • Jim Baker (73yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$135.00k
  • Charles Potts (75yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$127.50k
  • Dan Frierson (77yo)

    Independent Director

    • Tenure: 25.8yrs
    • Compensation: US$132.50k
  • Bill Gehl (72yo)

    Independent Chairman of the Board

    • Tenure: 0.8yrs
    • Compensation: US$127.50k
  • William Dorey (74yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$137.50k
  • Glen Tellock (58yo)

    Independent Director

    • Tenure: 13.6yrs
    • Compensation: US$127.50k
  • Bill Sansom (77yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$142.50k
  • Brad Southern (59yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$816.00
  • Barry Ruffalo (49yo)

    President

    • Tenure: 0.3yrs
  • Tracey Cook (51yo)

    Independent Director

    • Tenure: 1yrs

Company Information

Astec Industries, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Astec Industries, Inc.
  • Ticker: ASTE
  • Exchange: NasdaqGS
  • Founded: 1972
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: US$864.878m
  • Shares outstanding: 22.55m
  • Website: https://www.astecindustries.com

Number of Employees


Location

  • Astec Industries, Inc.
  • 1725 Shepherd Road
  • Chattanooga
  • Tennessee
  • 37421
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ASTENasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJun 1986
AI2DB (Deutsche Boerse AG)YesCommon SharesDEEURJun 1986

Biography

Astec Industries, Inc. designs, engineers, manufactures, and markets equipment and components for the road building, aggregate processing, geothermal, water, oil and gas, and wood processing industries in  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 23:31
End of Day Share Price2019/11/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.