Education
About Us
Working with TipRanks
Follow Us
Astec (ASTE)
NASDAQ:ASTE
Top Page
Astec
(NASDAQ:ASTE)
Rating:66Neutral
Price Target:―
Positive Factors
Construction Market Demand
Management highlighted that the infrastructure construction market remains strong with healthy demand for asphalt and concrete plant deliveries.
Infrastructure Solutions Performance
Management noted strong demand in Infrastructure Solutions, particularly for asphalt and concrete plants.
Negative Factors
Declining Backlog
Backlog declined 23% year/year.
Domestic Backlog Challenges
Domestic backlog decreased by 26.0% year/year, indicating ongoing challenges.
Interest Rates Impact
Higher interest rates continue to impact demand from dealers and contractors in the segment.
Astec (ASTE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$886.10M
Dividend Yield1.34%
Average Volume (3M)131.00K
Price to Earnings (P/E)58.9
Beta (1Y)1.05
Revenue Growth1.99%
EPS Growth-39.02%
CountryUS
Employees4,148
SectorIndustrials
Sector Strength93
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)0.88
Shares Outstanding22,866,970
10 Day Avg. Volume119,958
30 Day Avg. Volume130,998
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)1.33
Price to Sales (P/S)0.00
P/FCF Ratio12.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$45.00Price Target Upside16.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Astec Business Overview & Revenue Model
Company DescriptionAstec 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. This segment provides its products to asphalt producers, highway and heavy equipment contractors, ready mix concrete producers, contractors in the construction and demolition recycling markets, and governmental agencies. The Materials Solutions segment designs and manufactures crushing equipment, mobile plants, bulk material handling solutions, vibrating equipment, screening equipment, electrical control centers, modular plants and systems, conveying equipment, plant automation products, portable plants, and mineral processing equipment, as well as offers consulting and engineering services. Astec Industries, Inc. was incorporated in 1972 and is headquartered in Chattanooga, Tennessee.
How the Company Makes MoneyAstec Industries generates revenue through the sale of its diverse range of equipment and components to customers in the road building, mining, and energy sectors. Its revenue model is predominantly based on direct sales of machinery and equipment, supplemented by aftermarket parts and service offerings. The company also engages in long-term contracts with various construction and infrastructure companies, contributing to a steady income stream. Strategic partnerships and acquisitions further bolster Astec’s market position and revenue potential, allowing it to expand its product portfolio and reach within these critical industries.
Astec Financial Statement Overview
Summary
Astec demonstrates solid revenue growth and a strong balance sheet with low leverage, underpinning its financial stability. Despite thin profit margins, the company's efficient cash flow management stands out. Improvement in profitability could further enhance its financial health.Income Statement
Astec shows stable revenue growth with a TTM increase compared to the previous year. Gross profit margin is healthy at 25.9% for TTM, indicating efficient cost management. However, net profit margin remains thin at 1.1%, suggesting limited profitability. The EBIT margin of 5.2% and EBITDA margin of 4.4% reflect moderate operational efficiency. Overall, there is room for improvement in profitability.65
Positive
Balance Sheet
The company maintains a strong equity position with an equity ratio of 61.9%, suggesting financial stability. The debt-to-equity ratio is low at 0.15, indicating conservative leverage. ROE stands at 2.3%, which is modest and suggests potential for better returns on equity. Overall, a solid balance sheet with low financial risk.70
Positive
Cash Flow
Astec's free cash flow has rebounded significantly, with a strong growth rate from the previous year. The operating cash flow to net income ratio of 5.96 indicates robust cash generation relative to earnings. Free cash flow to net income ratio is high at 4.99, showing effective cash flow management. Overall, cash flow is a strong point for Astec.72
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.33B | 1.31B | 1.34B | 1.27B | 1.10B | 1.02B | Gross Profit |
| 343.60M | 327.90M | 330.80M | 264.10M | 251.70M | 240.10M | EBIT |
| 69.50M | 23.20M | 48.60M | 15.90M | 22.10M | 43.00M | EBITDA |
| 65.60M | 51.40M | 77.30M | 71.10M | 61.30M | 76.00M | Net Income Common Stockholders |
| 15.20M | 4.30M | 33.50M | -600.00K | 15.80M | 46.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 63.80M | 91.30M | 68.90M | 69.90M | 143.00M | 162.90M | Total Assets |
| 1.12B | 1.04B | 1.06B | 1.01B | 911.30M | 848.20M | Total Debt |
| 134.60M | 118.30M | 83.10M | 87.70M | 200.00K | 400.00K | Net Debt |
| 76.50M | 30.00M | 23.30M | 21.70M | -134.20M | -158.20M | Total Liabilities |
| 472.50M | 406.00M | 405.60M | 387.50M | 256.50M | 205.20M | Stockholders Equity |
| 650.30M | 637.80M | 653.40M | 626.90M | 654.80M | 643.00M |
| Cash Flow | Free Cash Flow | ||||
| 72.00M | 2.50M | -6.30M | -114.60M | -12.70M | 126.10M | Operating Cash Flow |
| 90.60M | 23.00M | 27.80M | -73.90M | 7.40M | 141.50M | Investing Cash Flow |
| -16.30M | -18.00M | -12.90M | -53.20M | -18.40M | -20.90M | Financing Cash Flow |
| -39.00M | 24.40M | -18.30M | 60.10M | -12.10M | -10.40M |
Astec Technical Analysis
Positive
38.75
Price Trends
36.45
Positive
35.07
Positive
34.20
Positive
Market Momentum
1.31
Positive
50.69
Neutral
11.96
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASTE, the sentiment is Positive. The current price of 38.75 is below the 20-day moving average (MA) of 39.42, above the 50-day MA of 36.45, and above the 200-day MA of 34.20, indicating a neutral trend. The MACD of 1.31 indicates Positive momentum. The RSI at 50.69 is Neutral, neither overbought nor oversold. The STOCH value of 11.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASTE.
Astec Risk Analysis
Astec disclosed 28 risk factors in its most recent earnings report. Astec reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
We may not be able to adequately manage the risks associated with our products and systems, including increased warranty costs. Q4, 2024
Astec Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $886.10M | 58.92 | 2.33% | 1.34% | 1.99% | -39.02% | |
65 Neutral | $4.41B | 12.06 | 5.22% | 249.80% | 4.09% | -12.16% | |
| $197.59M | 12.19 | ― | ― | ― | |||
76 Outperform | $6.29B | 10.44 | 15.24% | 1.93% | 5.95% | -10.59% | |
74 Outperform | $701.12M | 7.05 | 21.56% | 3.54% | -0.32% | -35.10% | |
63 Neutral | $343.45M | 760.47 | 0.18% | 2.04% | -4.08% | ― | |
61 Neutral | $446.57M | ― | -2.65% | ― | 5.64% | -124.05% |
* Industrials Sector Average
Performance Comparison
ASTE
Astec
38.75
6.47
20.04%
GENC
Gencor
13.48
-5.89
-30.41%
OSK
Oshkosh
97.74
-12.58
-11.40%
SHYF
Shyft Group
9.81
-2.53
-20.50%
TWI
Titan International
7.01
-1.25
-15.13%
HY
Hyster-Yale Materials Handling
39.59
-34.35
-46.46%
Astec Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: 10.21%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
Astec Industries reported strong financial results for Q1 2025 with significant improvements in EBITDA and earnings per share. The acquisition of TerraSource is a strategic move expected to enhance the company's Materials Solutions segment. However, challenges such as moderated backlog, high interest rates affecting capital equipment sales, and tariff uncertainties present risks. Overall, the highlights slightly outweigh the lowlights, indicating a cautiously positive outlook.Q1-2025 Updates
Positive Updates
Strong Q1 Financial Performance
Adjusted EBITDA of $35.2 million, an increase of $16.3 million or 86.2% over the first quarter of 2024. Adjusted EBITDA margin increased by 460 basis points to 10.7%. Adjusted earnings per share was $0.88, compared to $0.34 in Q1 2024.
Record Free Cash Flow
Free cash flow of $16.6 million, representing 116% of net income, driven by increased profitability and working capital management.
Acquisition of TerraSource
Astec announced a definitive agreement to acquire TerraSource for $245 million, expected to enhance the Materials Solutions segment and provide EBITDA margin expansion.
Infrastructure Segment Success
Infrastructure Solutions segment experienced strong net sales driven by domestic capital equipment performance, with EBITDA margins positively affected by volume, pricing, and operational excellence initiatives.
Improved Implied Orders
Consolidated implied orders rose on a quarter-over-quarter and sequential basis, with the Infrastructure Solutions segment generating solid numbers and Materials Solutions segment posting an increase for the second consecutive quarter.
Negative Updates
Moderated Backlog
Backlog of $402.6 million moderated sequentially by 4.1%, with softness in demand for mobile paving and forestry units.
Materials Solutions Challenges
Capital equipment sales in the Materials Solutions segment were challenged by high interest rates and dealer inventory destocking, though aftermarket part sales remained stable.
Tariff Uncertainty
Uncertainty surrounding tariffs may impact customer decisions and costs, with potential impacts on margins and sales if not managed proactively.
Company Guidance
During Astec Industries' first quarter 2025 earnings call, the company reported strong financial performance with key metrics indicating substantial growth. Adjusted EBITDA reached $35.2 million, representing an 86.2% increase over the first quarter of 2024, with an adjusted EBITDA margin improvement of 460 basis points to 10.7%. Adjusted earnings per share also showed significant improvement, standing at $0.88 compared to $0.34 in the previous year. Despite a 4.1% sequential moderation in backlog to $402.6 million, the company noted improved implied orders and strong demand in its Infrastructure Solutions segment. The company maintained its full-year 2025 adjusted EBITDA guidance in the range of $105 million to $125 million, excluding the impact of tariffs, and highlighted strong free cash flow generation of $16.6 million, which was 116% of net income. Astec also announced a definitive agreement to acquire TerraSource, a move expected to strengthen its Materials Solutions segment with significant synergies anticipated.Astec Corporate Events
M&A TransactionsFinancial Disclosures
Astec Announces Q1 Results and TerraSource Acquisition
Positive
Apr 29, 2025
On April 29, 2025, Astec Industries announced its first-quarter financial results, reporting net sales of $329.4 million and a net income of $14.3 million. The company also revealed a definitive agreement to acquire TerraSource Holdings, LLC for $245 million, aiming to enhance its market position and expand its product offerings in material processing equipment. This acquisition aligns with Astec’s growth strategy, promising to increase scale, improve margins, and provide accretive earnings from day one.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.