NasdaqGS:ASTE

Stock Analysis Report

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Market Cap

US$1.4b

Last Updated

2021/07/24 00:40 UTC

Data Sources

Company Financials +

Executive Summary

Astec Industries, Inc. designs, engineers, manufactures, and markets equipment and components used primarily in road building and related construction activities in the United States and internationally. More Details

Rewards

Earnings are forecast to grow 48.24% per year

Earnings grew by 22.3% over the past year

Risk Analysis

No risks detected for ASTE from our risk checks.


Snowflake Analysis

Flawless balance sheet with proven track record.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ASTE's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

1.5%

ASTE

1.6%

US Machinery

2.0%

US Market


1 Year Return

32.5%

ASTE

47.2%

US Machinery

39.1%

US Market

Return vs Industry: ASTE underperformed the US Machinery industry which returned 45.3% over the past year.

Return vs Market: ASTE underperformed the US Market which returned 36.9% over the past year.


Shareholder returns

ASTEIndustryMarket
7 Day1.5%1.6%2.0%
30 Day-1.9%1.1%2.3%
90 Day-23.9%-3.3%3.5%
1 Year33.4%32.5%50.3%47.2%41.3%39.1%
3 Year27.0%23.1%61.3%51.8%64.0%53.8%
5 Year3.1%-1.5%138.0%113.0%123.8%99.0%

Long-Term 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?

38.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ASTE ($59.4) is trading above our estimate of fair value ($54.64)

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


Price To Earnings Ratio

PE vs Industry: ASTE is poor value based on its PE Ratio (38.4x) compared to the US Machinery industry average (33.3x).

PE vs Market: ASTE is poor value based on its PE Ratio (38.4x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: ASTE is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: ASTE is good value based on its PB Ratio (2.1x) compared to the US Machinery industry average (2.9x).


Future Growth

How is Astec Industries forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

48.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASTE's forecast earnings growth (48.2% per year) is above the savings rate (2%).

Earnings vs Market: ASTE's earnings (48.2% per year) are forecast to grow faster than the US market (15.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ASTE's revenue (11.5% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: ASTE's revenue (11.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ASTE's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Astec Industries performed over the past 5 years?

-20.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ASTE has high quality earnings.

Growing Profit Margin: ASTE's current net profit margins (3.4%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: ASTE's earnings have declined by 20.8% per year over the past 5 years.

Accelerating Growth: ASTE's earnings growth over the past year (22.3%) exceeds its 5-year average (-20.8% per year).

Earnings vs Industry: ASTE earnings growth over the past year (22.3%) exceeded the Machinery industry -6.2%.


Return on Equity

High ROE: ASTE's Return on Equity (5.4%) is considered low.


Financial Health

How is Astec Industries's financial position?


Financial Position Analysis

Short Term Liabilities: ASTE's short term assets ($592.0M) exceed its short term liabilities ($185.1M).

Long Term Liabilities: ASTE's short term assets ($592.0M) exceed its long term liabilities ($36.2M).


Debt to Equity History and Analysis

Debt Level: ASTE is debt free.

Reducing Debt: ASTE has no debt compared to 5 years ago when its debt to equity ratio was 1.7%.

Debt Coverage: ASTE has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ASTE has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

0.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ASTE's dividend (0.74%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: ASTE's dividend (0.74%) is low compared to the top 25% of dividend payers in the US market (3.55%).


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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.4%), ASTE's dividend payments are well covered by earnings.


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

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Barry Ruffalo (51 yo)

1.92yrs

Tenure

US$2,678,565

Compensation

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...


CEO Compensation Analysis

Compensation vs Market: Barry's total compensation ($USD2.68M) is about average for companies of similar size in the US market ($USD3.72M).

Compensation vs Earnings: Barry's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ASTE's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: ASTE's board of directors are considered experienced (5.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$1.350b
  • Shares outstanding: 22.73m
  • Website: https://www.astecindustries.com

Number of Employees


Location

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

Listings


Biography

Astec Industries, Inc. designs, engineers, manufactures, and markets equipment and components used primarily in road building and related construction activities in the United States and internationally. T...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/24 00:40
End of Day Share Price2021/07/23 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.