Astec Industries (NasdaqGS:ASTE) - Share price, News & Analysis

ASTE fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	1/6
Financial Health	5/6
Dividends	1/6

ASTE Stock Overview

Rewards

Trading at 6.2% below our estimate of its fair value

Earnings are forecast to grow 69.45% per year

Risk Analysis

Large one-off items impacting financial results

Profit margins (1.2%) are lower than last year (3.4%)

Astec Industries Competitors

Allison Transmission Holdings

NYSE:ALSN

US$3.7b

Terex

NYSE:TEX

US$2.3b

Sandvik

OM:SAND

kr242.1b

Komatsu

TSE:6301

JP¥2.9t

Price History & Performance

Summary of all time highs, changes and price drops for Astec Industries
Historical stock prices
Current Share Price	US$45.73
52 Week High	US$75.00
52 Week Low	US$36.31
Beta	1.3
1 Month Change	15.13%
3 Month Change	-17.32%
1 Year Change	-33.73%
3 Year Change	44.95%
5 Year Change	-18.63%
Change since IPO	1,825.47%

Recent News & Updates

May 06

Astec Industries (NASDAQ:ASTE) Has Re-Affirmed Its Dividend Of US$0.12

Astec Industries, Inc. ( NASDAQ:ASTE ) has announced that it will pay a dividend of US$0.12 per share on the 27th of...

Apr 20

Is Astec Industries (NASDAQ:ASTE) A Risky Investment?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

	ASTE	US Machinery	US Market
7D	10.9%	4.2%	2.7%
1Y	-33.7%	-13.9%	-8.1%

Return vs Industry: ASTE underperformed the US Machinery industry which returned -18.2% over the past year.

Return vs Market: ASTE underperformed the US Market which returned -10.8% over the past year.

Price Volatility

Is ASTE's price volatile compared to industry and market?
ASTE volatility
ASTE Average Weekly Movement	6.1%
Machinery Industry Average Movement	5.6%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

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.

About the Company

Founded	Employees	CEO	Website
1972	4,041	Barry Ruffalo	https://www.astecindustries.com

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. The company operates in two segments, Infrastructure Solutions and Materials Solutions. The Infrastructure Solutions segment offers asphalt plants and related components, heaters, concrete dust control systems, asphalt pavers, vaporizers, concrete material handling systems, screeds, heat recovery units, paste back-fill plants, asphalt storage tanks, hot oil heaters, bagging plants, fuel storage tanks, industrial and asphalt burners and systems, custom batch plants, material transfer vehicles, soil stabilizing-reclaiming machinery, blower trucks and trailers, milling machines, soil remediation plants, wood chippers and grinders, pump trailers, concrete batch plants, control systems, liquid terminals, storage equipment and related parts, construction and retrofits, polymer plants, and concrete mixers, as well as engineering and environmental permitting services.

Astec Industries Fundamentals Summary

How do Astec Industries's earnings and revenue compare to its market cap?
ASTE fundamental statistics
Market Cap	US$1.01b
Earnings (TTM)	US$13.40m
Revenue (TTM)	US$1.10b

78.0x

P/E Ratio

0.9x

P/S Ratio

Is ASTE overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ASTE income statement (TTM)
Revenue	US$1.10b
Cost of Revenue	US$854.40m
Gross Profit	US$249.60m
Other Expenses	US$236.20m
Earnings	US$13.40m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.59
Gross Margin	22.61%
Net Profit Margin	1.21%
Debt/Equity Ratio	0.8%

How did ASTE perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

78%

Payout Ratio

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

6.2%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ASTE ($45.73) is trading below our estimate of fair value ($48.76)

Significantly Below Fair Value: ASTE is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: ASTE is poor value based on its PE Ratio (78x) compared to the US Machinery industry average (21.4x).

PE vs Market: ASTE is poor value based on its PE Ratio (78x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: ASTE is poor value based on its PEG Ratio (1.1x)

Price to Book Ratio

PB vs Industry: ASTE is good value based on its PB Ratio (1.6x) compared to the US Machinery industry average (2.1x).

Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

69.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASTE's forecast earnings growth (69.4% per year) is above the savings rate (1.9%).

Earnings vs Market: ASTE's earnings (69.4% per year) are forecast to grow faster than the US market (12.5% per year).

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

Revenue vs Market: ASTE's revenue (9.6% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: ASTE's revenue (9.6% 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?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

1.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ASTE has a large one-off loss of $5.8M impacting its March 31 2022 financial results.

Growing Profit Margin: ASTE's current net profit margins (1.2%) are lower than last year (3.4%).

Past Earnings Growth Analysis

Earnings Trend: ASTE's earnings have grown by 1.4% per year over the past 5 years.

Accelerating Growth: ASTE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ASTE had negative earnings growth (-61.5%) over the past year, making it difficult to compare to the Machinery industry average (24%).

Return on Equity

High ROE: ASTE's Return on Equity (2.1%) is considered low.

Financial Health

How is Astec Industries's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ASTE's short term assets ($675.7M) exceed its short term liabilities ($256.5M).

Long Term Liabilities: ASTE's short term assets ($675.7M) exceed its long term liabilities ($29.5M).

Debt to Equity History and Analysis

Debt Level: ASTE has more cash than its total debt.

Reducing Debt: ASTE's debt to equity ratio has reduced from 1.1% to 0.8% over the past 5 years.

Debt Coverage: ASTE's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: ASTE's interest payments on its debt are well covered by EBIT (26.9x coverage).

Balance Sheet

Dividend

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

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.05%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ASTE's dividend (1.05%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: ASTE's dividend (1.05%) is low compared to the top 25% of dividend payers in the US market (4.06%).

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 9 years.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (78.1%), ASTE's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: ASTE is paying a dividend but the company has no free cash flows.

Next Steps

Explore strong dividend paying companies in the Capital Goods industry.

Management

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

2.5yrs

Average management tenure

CEO

Barry Ruffalo (51 yo)

2.75yrs

Tenure

US$3,469,725

Compensation

Mr. Barry A. Ruffalo serves as an Independent Director at Masonite International Corporation since July 17, 2021. He serves as President, Chief Executive Officer and Director at Astec Industries, Inc. sinc...

CEO Compensation Analysis

Compensation vs Market: Barry's total compensation ($USD3.47M) is about average for companies of similar size in the US market ($USD3.91M).

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

Leadership Team

Experienced Management: ASTE's management team is considered experienced (2.5 years average tenure).

Board Members

Experienced Board: ASTE's board of directors are considered experienced (8.3 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31