NasdaqGS:ASTE

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

8.1%

ASTE

3.1%

US Machinery

3.9%

US Market


1 Year Return

86.1%

ASTE

15.9%

US Machinery

18.5%

US Market

Return vs Industry: ASTE exceeded the US Machinery industry which returned 14.5% over the past year.

Return vs Market: ASTE exceeded the US Market which returned 17.2% over the past year.


Shareholder returns

ASTEIndustryMarket
7 Day8.1%3.1%3.9%
30 Day2.9%-1.3%-4.3%
90 Day19.2%12.7%8.1%
1 Year88.2%86.1%18.2%15.9%21.2%18.5%
3 Year3.6%0.4%18.9%11.1%38.2%29.0%
5 Year55.4%48.2%90.0%68.5%84.3%63.4%

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?

84.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ASTE ($54.25) is trading above our estimate of fair value ($10.36)

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 (84x) compared to the US Machinery industry average (24.3x).

PE vs Market: ASTE is poor value based on its PE Ratio (84x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: ASTE is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: ASTE is good value based on its PB Ratio (2x) compared to the US Machinery industry average (2.1x).


Next Steps

Future Growth

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

64.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASTE's forecast earnings growth (64.4% per year) is above the savings rate (2.2%).

Earnings vs Market: ASTE's earnings (64.4% per year) are forecast to grow faster than the US market (22.1% per year).

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

Revenue vs Market: ASTE's revenue (5.3% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: ASTE's revenue (5.3% 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


Next Steps

Past Performance

How has Astec Industries performed over the past 5 years?

-34.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ASTE has a large one-off loss of $11.2M impacting its June 30 2020 financial results.

Growing Profit Margin: ASTE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ASTE's earnings have declined by 34.1% per year over the past 5 years.

Accelerating Growth: ASTE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ASTE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Machinery industry (-12.7%).


Return on Equity

High ROE: ASTE's Return on Equity (2.3%) is considered low.


Next Steps

Financial Health

How is Astec Industries's financial position?


Financial Position Analysis

Short Term Liabilities: ASTE's short term assets ($530.4M) exceed its short term liabilities ($144.0M).

Long Term Liabilities: ASTE's short term assets ($530.4M) exceed its long term liabilities ($28.0M).


Debt to Equity History and Analysis

Debt Level: ASTE's debt to equity ratio (0.2%) is considered satisfactory.

Reducing Debt: ASTE's debt to equity ratio has reduced from 1.9% to 0.2% over the past 5 years.

Debt Coverage: ASTE's debt is well covered by operating cash flow (11001.2%).

Interest Coverage: ASTE earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

0.81%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ASTE's dividend (0.81%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.72%).

High Dividend: ASTE's dividend (0.81%) is low compared to the top 25% of dividend payers in the US market (4.89%).


Stability and Growth of Payments

Stable Dividend: ASTE is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: ASTE is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: ASTE is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ASTE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Barry Ruffalo (50 yo)

1.08yrs

Tenure

US$1,729,876

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 ($USD1.73M) is below average for companies of similar size in the US market ($USD4.57M).

Compensation vs Earnings: Insufficient data to compare Barry's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Barry Ruffalo
President1.08yrsUS$1.73m0.024%
$ 289.1k
Rebecca Weyenberg
Chief Financial Officer0.75yrUS$303.41k0.0013%
$ 16.4k
Jeffrey Schwarz
Group President of Aggregate & Mining6.08yrsUS$553.66k0.049%
$ 604.2k
Jaco van der Merwe
Group President of Infrastructure4.08yrsUS$541.57k0.022%
$ 273.9k
J. Barker
Senior Vice President of Innovation1.67yrsUS$532.10kno data
Matt Litchfield
Chief Information Officer1yrno datano data
Stephen Anderson
Senior VP of Administration9.08yrsno data0.017%
$ 210.8k
Gregory Oswald
Senior Vice President of Global Operational Excellence0.92yrno datano data
Timothy Averkamp
Group President of Mobile0.83yrno data0.015%
$ 178.4k

1.1yrs

Average Tenure

53yo

Average Age

Experienced Management: ASTE's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Barry Ruffalo
President1.08yrsUS$1.73m0.024%
$ 289.1k
James Baker
Independent Director10.67yrsUS$135.00k0.050%
$ 612.7k
Mary Howell
Independent Director1.5yrsUS$99.14k0.0087%
$ 106.8k
Charles Potts
Independent Director6.67yrsUS$127.50k0.017%
$ 210.3k
Daniel Frierson
Independent Director26.67yrsUS$132.50k0.035%
$ 434.4k
William Gehl
Independent Chairman of the Board1.67yrsUS$143.12k0.025%
$ 305.7k
William Dorey
Independent Director9.42yrsUS$137.50k0.087%
$ 1.1m
Glen Tellock
Independent Director14.42yrsUS$127.50k0.066%
$ 809.7k
William Sansom
Lead Independent Directorno dataUS$142.50k0.14%
$ 1.8m
William Southern
Independent Director1.92yrsUS$118.74k0.0087%
$ 106.8k
Tracey Cook
Independent Director1.83yrsUS$116.43k0.0087%
$ 106.8k

6.7yrs

Average Tenure

73yo

Average Age

Experienced Board: ASTE's board of directors are considered experienced (6.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ASTE insiders have sold more shares than they have bought 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$1.226b
  • Shares outstanding: 22.60m
  • 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. manufactures and sells equipment and components for the road building, aggregate processing, geothermal, water, oil and gas, and wood processing industries in the United States and i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/30 23:41
End of Day Share Price2020/09/30 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.