Astec Industries Inc (ASTE) stock analysis

P/E above its 5-year median

Astec Industries's P/E of 75.0 is above its own 5-year median of 44.4.

P/E above the industry

Astec Industries's P/E of 75.0 is above the Construction, Mining, and Materials Handling median of 29.1.

EV/EBITDA below its 5-year median

Astec Industries's EV/EBITDA of 11.3 is below its 5-year median of 16.3.

P/B below the industry

Astec Industries's price-to-book of 1.28 is below the Construction, Mining, and Materials Handling median of 1.38.

Trading above fair value

The share price of $37.48 is above our fair value estimate of $33.55.

Margin of safety under 20%

The price is 11.7% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 3.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings growth not accelerating

Net income grew -75.8% over the last twelve months, against a 5-year average of -3.3% a year.

Growing faster than the industry

Revenue grew 13.8% over the last twelve months; the Construction, Mining, and Materials Handling median is 10.4%.

Guidance lowered

Astec Industries lowered its full year 2026 adjusted EBITDA outlook on Aug 5, 2026.

Gross margin slipping

Gross margin was 25.5% over the last twelve months, against 26.9% a year earlier.

Return on equity under 15%

Return on equity was 1.7% over the last twelve months and averaged 2.8% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 2.5%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Astec Industries's return on equity of 1.7% is below the Construction, Mining, and Materials Handling median of 4.5%.

Earnings shrank over 5 years

Net income shrank 3.3% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 0.7% over the last twelve months, against a 5-year average of 1.4%.

Net margin below the industry

Astec Industries's net margin of 0.7% is below the Construction, Mining, and Materials Handling median of 2.6%.

High debt

Debt is 55.4% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 0.3% five years ago to 55.4%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 28.4% of total debt.

Interest not well covered

Operating income covers interest expense 1.7 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 2.31 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.86; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Astec Industries paid dividends worth 1.0% of the share price over the last twelve months.

Yield below Treasuries

The 1.0% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Astec Industries yields 1.0%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Not covered by earnings

Dividends take 103% of net income, leaving little room.

Covered by free cash flow

Dividends take 21.5% of free cash flow.