Astec (ASTE) AI Stock Analysis

• Market Cap: $1.01B
• Dividend Yield: 1.14%
• Average Volume (3M): 171.49K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 1.51
• Revenue Growth: 6.66%
• EPS Growth: N/A
• Country: US
• Employees: 4,148
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 0.47
• Shares Outstanding: 22,875,841
• 10 Day Avg. Volume: 157,726
• 30 Day Avg. Volume: 171,493
• PEG Ratio: -2.05
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 306.42
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 1.01
• Enterprise Value/Gross Profit: 3.71
• Enterprise Value/Ebitda: 10.59
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 3.03
• Revenue Forecast (FY): $1.38B

• Rating: 66 Neutral
• Price Target: $44.00 ▲(0.00% Upside)

Astec's strong earnings call performance and solid financial fundamentals are the primary drivers of its stock score. However, bearish technical indicators and cash flow challenges temper the overall outlook. The stock is fairly valued, with a reasonable P/E ratio and modest dividend yield.

Positive Factors

Revenue Growth

Astec's strong revenue growth indicates robust demand for its products, enhancing its market position and supporting long-term expansion.

Successful Acquisition Integration

The successful integration of TerraSource boosts Astec's product offerings and operational efficiency, strengthening its competitive edge.

Infrastructure Solutions Segment Growth

Growth in the Infrastructure Solutions segment reflects strong demand for core products, supporting sustained profitability and market leadership.

Negative Factors

Cash Flow Challenges

Declining free cash flow may hinder Astec's ability to invest in growth opportunities and manage financial obligations effectively.

Soft Demand in Certain Segments

Weak demand in specific segments could limit revenue growth and profitability, affecting overall business performance.

Tariff Uncertainty

Tariff uncertainties can disrupt supply chains and increase costs, impacting Astec's operational efficiency and profit margins.

Astec Business Overview & Revenue Model

Company Description

Astec Industries, Inc. (ASTE) is a leading manufacturer of equipment and components used in the construction and maintenance of infrastructure, primarily in the sectors of asphalt, aggregate, and concrete. The company operates through various segments, including Infrastructure Solutions, which focuses on providing machinery for road building and maintenance, and Energy Solutions, which delivers equipment for energy-related applications. Astec's core products include asphalt plants, concrete plants, crushing and screening equipment, and various related parts and services.

How the Company Makes Money

Astec generates revenue primarily through the sale of its equipment and machinery, along with aftermarket parts and services. The company's revenue model is diversified across several key streams, including direct sales of machinery to contractors and construction companies, as well as service contracts and parts sales that provide ongoing support and maintenance for their products. Significant partnerships with major construction firms and infrastructure projects enhance Astec's market presence and contribute to its earnings. Additionally, the company benefits from cyclical demand in the construction industry, which can lead to increased sales during periods of infrastructure development and investment.

Astec Financial Statement Overview

Summary

Astec demonstrates solid financial performance with consistent revenue growth and improved profitability margins. The balance sheet remains strong with manageable leverage and a robust equity base. However, cash flow challenges, particularly in free cash flow generation, highlight areas for improvement.

Income Statement

Astec's income statement shows a solid performance with a consistent revenue growth trend, particularly in the TTM period, where revenue grew by 4.48%. The gross profit margin improved to 26.87% in the TTM, indicating effective cost management. However, the net profit margin remains relatively low at 3.50%, suggesting room for improvement in profitability. The EBIT and EBITDA margins have shown positive trends, reflecting operational efficiency gains.

Balance Sheet

The balance sheet reflects a stable financial position with a moderate debt-to-equity ratio of 0.48 in the TTM, indicating manageable leverage. The return on equity has improved to 7.07%, showcasing enhanced shareholder returns. The equity ratio of 49.60% suggests a strong equity base, providing financial stability. However, the increase in total debt warrants monitoring.

Cash Flow

Astec's cash flow statement reveals challenges with free cash flow, which declined by 29.57% in the TTM. The operating cash flow to net income ratio is relatively low at 0.19, indicating potential issues in converting earnings into cash. However, the free cash flow to net income ratio of 0.93 in the TTM suggests that the company is generating cash relative to its net income, albeit with some volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.37B	1.31B	1.34B	1.27B	1.10B	1.02B
Gross Profit	372.30M	327.90M	331.10M	264.10M	249.50M	237.60M
EBITDA	130.50M	51.40M	115.00M	69.90M	61.30M	76.00M
Net Income	47.90M	4.30M	33.50M	-100.00K	15.80M	46.00M
Balance Sheet
Total Assets	1.35B	1.04B	1.06B	1.01B	905.80M	848.20M
Cash, Cash Equivalents and Short-Term Investments	71.80M	91.30M	68.90M	66.70M	142.70M	162.90M
Total Debt	352.00M	118.30M	83.10M	87.70M	2.90M	2.00M
Total Liabilities	680.00M	406.00M	405.60M	387.50M	254.50M	205.20M
Stockholders Equity	668.90M	637.80M	653.40M	626.90M	650.80M	642.50M
Cash Flow
Free Cash Flow	45.40M	2.50M	-6.30M	-114.60M	-12.70M	126.10M
Operating Cash Flow	61.90M	23.00M	27.80M	-73.90M	7.40M	141.50M
Investing Cash Flow	-264.40M	-18.00M	-12.90M	-53.20M	-18.40M	-20.90M
Financing Cash Flow	217.30M	24.40M	-18.30M	60.10M	-12.10M	-10.40M

Astec Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 44.00
• 50DMA: Negative
• 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 44 is above the 20-day moving average (MA) of 43.67, below the 50-day MA of 45.78, and above the 200-day MA of 40.92, indicating a neutral trend. The MACD of -0.46 indicates Negative momentum. The RSI at 57.25 is Neutral, neither overbought nor oversold. The STOCH value of 87.60 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
CMCO	67 Neutral	$470.57M	120.26	0.44%	1.71%	-2.36%	-73.77%
ASTE	66 Neutral	$1.01B	21.10	7.37%	1.14%	6.66%	―
LNN	64 Neutral	$1.24B	17.26	14.61%	1.23%	11.41%	13.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
WNC	62 Neutral	$355.33M	1.44	84.07%	4.26%	-22.95%	―
TWI	50 Neutral	$515.45M	―	-1.05%	―	-2.75%	22.20%
HY	48 Neutral	$527.59M	201.97	0.51%	4.16%	-8.30%	-98.18%

Astec Corporate Events

Astec Industries Reports Strong Q3 2025 Results

Astec Industries, Inc. is a manufacturer specializing in equipment for asphalt road building, aggregate processing, and concrete production, operating primarily in the infrastructure and materials solutions sectors. The company recently reported its third-quarter 2025 financial results, showcasing a robust performance with significant growth in net sales and adjusted EBITDA. The acquisition of TerraSource Holdings, LLC has contributed positively to the company’s financial outcomes.

Astec Industries Reports Strong Earnings Amid Challenges

Astec Industries’ recent earnings call revealed a generally positive sentiment, underscored by robust financial performance metrics. The company reported significant increases in net sales, EBITDA, and earnings per share, reflecting a strong quarter. The successful integration of TerraSource and growth in the Infrastructure Solutions segment were notable highlights, although challenges such as soft demand in certain segments and ongoing tariff uncertainties were acknowledged.

Astec Industries’ Earnings Call Highlights Growth and Challenges

Astec Industries, Inc. recently held its earnings call, showcasing a positive sentiment overall. The company reported strong financial performance, successful acquisitions, and significant improvements in operational efficiency. Despite some challenges in backlog and market conditions, Astec’s proactive measures and strategic growth initiatives position it well for future success.

Astec Industries Reports Strong Q2 2025 Results

Astec Industries, Inc. is a manufacturer specializing in equipment for asphalt road building, aggregate processing, and concrete production, with operations divided into Infrastructure Solutions and Materials Solutions segments.