Astec (ASTE) AI Stock Analysis

• Market Cap: $927.94M
• Dividend Yield: 1.28%
• Average Volume (3M): 169.43K
• Price to Earnings (P/E): 61.7
• Beta (1Y): 1.02
• Revenue Growth: 1.99%
• EPS Growth: -39.02%
• Country: US
• Employees: 4,148
• Sector: Industrials
• Sector Strength: 94
• Industry: Agricultural - Machinery
• EPS (TTM): 0.88
• Shares Outstanding: 22,866,970
• 10 Day Avg. Volume: 144,046
• 30 Day Avg. Volume: 169,431
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $45.00
• Price Target Upside: 10.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: $42.00 ▲(3.50%Upside)

Astec Industries' overall score reflects strong financial stability and positive developments from the TerraSource acquisition. However, high valuation and technical indicators suggest caution. The company's profitability needs improvement to fully capitalize on its financial strength.

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. (ASTE) is a leading manufacturer of specialized equipment for the asphalt road building, aggregate processing, and concrete production industries. The company operates through various segments, including Infrastructure Solutions and Materials Solutions, providing innovative machinery and services to enhance productivity, efficiency, and safety in construction and mining projects worldwide.

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 maintains 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
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Astec Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.58
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 40.58 is above the 20-day moving average (MA) of 40.36, above the 50-day MA of 40.24, and above the 200-day MA of 35.99, indicating a neutral trend. The MACD of -0.26 indicates Positive momentum. The RSI at 51.18 is Neutral, neither overbought nor oversold. The STOCH value of 69.67 is Neutral, 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
OSK	77 Outperform	$8.34B	13.83	15.24%	1.50%	5.95%	-10.59%
HY	74 Outperform	$769.83M	7.74	21.56%	3.24%	-0.32%	-35.10%
TWI	65 Neutral	$607.10M	―	-2.65%	―	5.64%	-124.05%
ASTE	63 Neutral	$927.94M	61.70	2.33%	1.28%	1.99%	-39.02%
Sector *	61 Neutral	C$6.52B	7.65	2.76%	2.58%	6.48%	-23.55%

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.