Astec (ASTE) AI Stock Analysis

• Market Cap: $974.13M
• Dividend Yield: 1.22%
• Average Volume (3M): 152.00K
• Price to Earnings (P/E): 64.8
• Beta (1Y): 1.05
• Revenue Growth: 1.99%
• EPS Growth: -39.02%
• Country: US
• Employees: 4,148
• Sector: Industrials
• Sector Strength: 86
• Industry: Agricultural - Machinery
• EPS (TTM): 0.88
• Shares Outstanding: 22,866,970
• 10 Day Avg. Volume: 204,317
• 30 Day Avg. Volume: 151,997
• PEG Ratio: 14.89
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.09
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 2.76
• Enterprise Value/Ebitda: 4.07
• 1Y Price Target: $45.00
• Price Target Upside: 5.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: $47.00 ▲(10.33%Upside)

Astec Industries scores a 70.6, driven by strong financial performance and strategic acquisitions. The company's solid cash flow and balance sheet underpin its financial stability, while technical indicators suggest positive momentum. The high P/E ratio raises valuation concerns, but the positive earnings call and acquisition of TerraSource support a cautiously optimistic outlook.

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 Business Overview & Revenue Model

Company Description

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. 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 Money

Astec generates revenue primarily through the sale of its equipment and machinery solutions to construction and mining companies. The company's key revenue streams include the manufacturing and distribution of asphalt plants, pavers, concrete plants, and rock breaking equipment. Astec also offers equipment financing and leasing options to its clients, which contribute to its earnings. Service and part sales represent additional revenue streams, as the company provides maintenance and parts replacement services for its machinery. Astec's earnings are further boosted by strategic partnerships and acquisitions that expand its product offerings and market reach.

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.

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.

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.

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
EBITDA	65.60M	51.40M	77.30M	71.10M	61.30M	76.00M
Net Income	15.20M	4.30M	33.50M	-600.00K	15.80M	46.00M
Balance Sheet
Total Assets	1.06B	1.04B	1.06B	1.01B	911.30M	848.20M
Cash, Cash Equivalents and Short-Term Investments	95.40M	91.30M	68.90M	69.90M	143.00M	162.90M
Total Debt	107.50M	118.30M	83.10M	87.70M	200.00K	400.00K
Total Liabilities	402.90M	406.00M	405.60M	387.50M	256.50M	205.20M
Stockholders Equity	653.20M	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

• Technical Analysis Sentiment: Positive
• Last Price: 42.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 42.6 is above the 20-day moving average (MA) of 40.62, above the 50-day MA of 39.65, and above the 200-day MA of 35.36, indicating a bullish trend. The MACD of 0.80 indicates Negative momentum. The RSI at 62.53 is Neutral, neither overbought nor oversold. The STOCH value of 89.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASTE.

Astec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASTE	66 Neutral	$974.13M	64.77	2.33%	1.22%	1.99%	-39.02%
Sector *	65 Neutral	$10.81B	15.65	5.50%	1.89%	3.10%	-27.09%
GENC		$221.48M	15.21		―	―	―
OSK	77 Outperform	$8.00B	13.27	15.24%	1.64%	5.95%	-10.59%
HY	74 Outperform	$753.36M	7.58	21.56%	3.38%	-0.32%	-35.10%
SHYF	68 Neutral	$439.02M	972.09	0.18%	1.59%	-4.08%	―
TWI	66 Neutral	$682.91M	―	-2.65%	―	5.64%	-124.05%

Astec Corporate Events

Astec Completes Acquisition of TerraSource Holdings

On July 1, 2025, Astec completed the acquisition of TerraSource Holdings, LLC for $245 million in cash, aiming to enhance its market presence and shareholder value. The acquisition is expected to improve Astec’s profit margins and earnings per share, with anticipated synergies and a proforma net leverage ratio of approximately 2.0x net debt/adjusted EBITDA by 2025.

The most recent analyst rating on (ASTE) stock is a Hold with a $36.00 price target. To see the full list of analyst forecasts on Astec stock, see the ASTE Stock Forecast page.

Astec Announces Q1 Results and TerraSource Acquisition

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.