Astec (ASTE) AI Stock Analysis

• Market Cap: $1.09B
• Dividend Yield: 1.09%
• Average Volume (3M): 190.66K
• Price to Earnings (P/E): 23.9
• Beta (1Y): 1.12
• Revenue Growth: 1.17%
• EPS Growth: N/A
• Country: US
• Employees: 4,148
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 0.88
• Shares Outstanding: 22,874,714
• 10 Day Avg. Volume: 198,031
• 30 Day Avg. Volume: 190,664
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 0.74
• Enterprise Value/Gross Profit: 2.76
• Enterprise Value/Ebitda: 9.64
• 1Y Price Target: $50.00
• Price Target Upside: 4.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: $50.00 ▲(4.78% Upside)

Astec's overall stock score reflects a stable financial position with strong technical momentum and positive earnings call highlights. The successful integration of the TerraSource acquisition and improved operational metrics are significant strengths. However, challenges in revenue growth, profitability margins, and valuation concerns moderate the score.

Positive Factors

Successful Acquisition

The TerraSource acquisition enhances Astec's market presence and is expected to improve profit margins and earnings, contributing to long-term growth.

Improved Operational Efficiency

Increased EBITDA margins indicate better operational efficiency, which can lead to sustained profitability and competitive advantage over time.

Positive Free Cash Flow

Consistent positive free cash flow enhances financial flexibility, allowing for strategic investments and debt reduction, supporting long-term stability.

Negative Factors

Decline in Equipment Sales

Declining equipment sales in key segments can impact revenue growth and market share, posing challenges to long-term profitability.

External Market Challenges

External market challenges, like high interest rates, can constrain growth and profitability, affecting the company's ability to expand and invest.

Decreased Backlog

A declining backlog suggests potential future revenue shortfalls, which could hinder the company's ability to maintain consistent growth.

Astec Business Overview & Revenue Model

Company Description

Astec Industries, Inc. (ASTE) is a leading manufacturer of specialized equipment for the infrastructure and construction industries. The company operates in various sectors, including asphalt, concrete, and aggregate production. Astec's core products encompass a wide range of machinery, such as asphalt plants, concrete plants, and crushing equipment, which are designed to enhance productivity and efficiency in construction-related activities.

How the Company Makes Money

Astec generates revenue primarily through the sale of its machinery and equipment to contractors and construction companies engaged in road building, site development, and other infrastructure projects. The company's revenue model is supported by several key streams: direct sales of equipment, aftermarket parts and services, and equipment rentals. Additionally, Astec benefits from significant partnerships with distributors and dealers, which help expand its market reach. The company also sees revenue from international markets, tapping into the growing demand for infrastructure development worldwide.

Astec Financial Statement Overview

Summary

Astec demonstrates a stable financial position with strengths in balance sheet management and improving operational efficiency. However, challenges remain in revenue growth and profitability margins. The company should focus on enhancing revenue streams and maintaining cash flow improvements to ensure long-term financial health.

Income Statement

Astec's income statement shows a mixed performance. The company has maintained a stable gross profit margin around 25%, indicating consistent cost management. However, the net profit margin is low at 1.15% TTM, reflecting challenges in converting revenue into profit. Revenue growth has been negative recently, with a decline of 1.15% TTM, which is a concern for future profitability. EBIT and EBITDA margins have shown slight improvement, suggesting better operational efficiency.

Balance Sheet

Astec's balance sheet is relatively strong with a low debt-to-equity ratio of 0.16 TTM, indicating conservative leverage. The return on equity has improved to 7.07% TTM, showing better utilization of shareholder funds. The equity ratio is healthy, reflecting a solid capital structure. However, the company should focus on maintaining this stability amidst fluctuating revenue.

Cash Flow

The cash flow statement reveals a positive trend in free cash flow growth at 13.19% TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.33 TTM, suggesting moderate cash conversion efficiency. However, the free cash flow to net income ratio at 0.79 TTM indicates room for improvement in cash profitability. Overall, cash flow management is improving but still requires attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.31B	1.31B	1.34B	1.27B	1.10B	1.02B
Gross Profit	350.40M	327.90M	330.80M	264.10M	251.70M	240.10M
EBITDA	100.30M	51.40M	77.30M	71.10M	61.30M	76.00M
Net Income	45.90M	4.30M	33.50M	-600.00K	15.80M	46.00M
Balance Sheet
Total Assets	1.07B	1.04B	1.06B	1.01B	911.30M	848.20M
Cash, Cash Equivalents and Short-Term Investments	91.60M	91.30M	68.90M	69.90M	143.00M	162.90M
Total Debt	96.80M	118.30M	83.10M	87.70M	200.00K	400.00K
Total Liabilities	390.50M	406.00M	405.60M	387.50M	256.50M	205.20M
Stockholders Equity	674.90M	637.80M	653.40M	626.90M	654.80M	643.00M
Cash Flow
Free Cash Flow	81.50M	2.50M	-6.30M	-114.60M	-12.70M	126.10M
Operating Cash Flow	92.50M	23.00M	27.80M	-73.90M	7.40M	141.50M
Investing Cash Flow	-13.10M	-18.00M	-12.90M	-53.20M	-18.40M	-20.90M
Financing Cash Flow	-25.10M	24.40M	-18.30M	60.10M	-12.10M	-10.40M

Astec Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 47.72
• 50DMA: Positive
• 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 47.72 is above the 20-day moving average (MA) of 47.05, above the 50-day MA of 44.24, and above the 200-day MA of 38.22, indicating a bullish trend. The MACD of 0.84 indicates Positive momentum. The RSI at 56.64 is Neutral, neither overbought nor oversold. The STOCH value of 38.39 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	78 Outperform	$8.32B	13.04	14.60%	1.53%	0.41%	-3.90%
ASTE	71 Outperform	$1.09B	23.91	7.02%	1.09%	1.17%	―
HY	61 Neutral	$658.19M	29.81	4.08%	3.82%	-7.11%	-87.41%
TWI	58 Neutral	$491.35M	-24.44	-3.87%	―	-1.29%	-171.86%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.