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Astec Industries, Inc. (ASTE)
:ASTE
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Astec
(NASDAQ:ASTE)
67Neutral
Positive Factors
Infrastructure Market
Management highlighted that the infrastructure construction market remains strong with healthy demand for asphalt and concrete plant deliveries.
Negative Factors
Backlog
Backlog declined 23% year/year.
Interest Rates
Higher interest rates continue to impact demand from dealers and contractors in the segment.
Astec (ASTE) vs. S&P 500 (SPY)
Market Cap
$829.15M
Dividend Yield1.46%
Average Volume (3M)180.64K
Price to Earnings (P/E)189.3
Beta (1Y)1.16
Revenue Growth-2.47%
EPS Growth-87.25%
CountryUS
Employees4,322
SectorIndustrials
Sector Strength72
IndustryIndustrial Machinery
Share Statistics
EPS (TTM)0.18
Shares Outstanding22,803,976
10 Day Avg. Volume228,956
30 Day Avg. Volume180,643
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.62
Price to Cash Flow (P/CF)5.60
P/FCF Ratio6.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$41.00Price Target Upside12.76% Upside
Rating ConsensusHold
Number of Analyst Covering1
Astec Business Overview & Revenue Model
Company DescriptionAstec Industries, Inc. (ASTE) is a prominent American manufacturer focused on the infrastructure, mining, and energy sectors. The company designs and manufactures equipment and components used in road building, aggregate processing, oil, gas, and water well drilling, wood processing, and recycling. Astec's core products include hot mix asphalt plants, concrete plants, and their components, as well as rock crushers, conveyors, and asphalt pavers.
How the Company Makes MoneyAstec Industries generates revenue through the sale of its diverse range of equipment and components to customers in the road building, mining, and energy sectors. Its revenue model is predominantly based on direct sales of machinery and equipment, supplemented by aftermarket parts and service offerings. The company also engages in long-term contracts with various construction and infrastructure companies, contributing to a steady income stream. Strategic partnerships and acquisitions further bolster Astec’s market position and revenue potential, allowing it to expand its product portfolio and reach within these critical industries.
Astec Financial Statement Overview
Summary
Astec presents a mixed financial picture. The company shows a stable balance sheet with low leverage but faces challenges in profitability and operational efficiency as seen in income statement margins. Cash flow improvements are positive but need consistency to support profitability growth. Overall, Astec demonstrates financial stability but needs strategic focus on improving profitability and operational metrics.Income Statement
Astec's revenue growth has been inconsistent, with a slight decline in 2024 compared to 2023. The gross profit margin in 2024 stands at 25.1%, which is comparable to previous years but slightly lower than in 2023. Net profit margins have significantly decreased in 2024 to 0.33% from 2.5% in 2023, highlighting profitability challenges. EBIT and EBITDA margins also show a decline in 2024, indicating reduced operational efficiency.65
Positive
Balance Sheet
Astec maintains a solid equity base with a debt-to-equity ratio of 0.19 in 2024, suggesting low financial leverage. The equity ratio remains strong at approximately 61.1%, indicating a stable financial structure. However, the return on equity is low at 0.7% in 2024, reflecting challenges in generating returns for shareholders.70
Positive
Cash Flow
Astec's cash flow position improved with positive free cash flow in 2024 compared to negative in 2023. However, the free cash flow to net income ratio is elevated due to low net income. Operating cash flow to net income also indicates a potential discrepancy in cash flow generation versus reported earnings.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.31B | 1.34B | 1.27B | 1.10B | 1.02B | Gross Profit |
| 327.90M | 330.80M | 264.10M | 251.70M | 240.10M | EBIT |
| 23.20M | 48.60M | 15.90M | 22.10M | 43.00M | EBITDA |
| 51.40M | 77.30M | 71.10M | 61.30M | 76.00M | Net Income Common Stockholders |
| 4.30M | 33.50M | -600.00K | 15.80M | 46.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 90.80M | 68.90M | 69.90M | 143.00M | 162.90M | Total Assets |
| 1.04B | 1.06B | 1.01B | 911.30M | 848.20M | Total Debt |
| 118.30M | 83.10M | 87.70M | 200.00K | 400.00K | Net Debt |
| 30.00M | 23.30M | 21.70M | -134.20M | -158.20M | Total Liabilities |
| 406.00M | 405.60M | 387.50M | 256.50M | 205.20M | Stockholders Equity |
| 637.60M | 653.40M | 626.90M | 654.80M | 643.00M |
| Cash Flow | Free Cash Flow | |||
| 2.50M | -6.30M | -114.60M | -12.70M | 126.10M | Operating Cash Flow |
| 23.00M | 27.80M | -73.90M | 7.40M | 141.50M | Investing Cash Flow |
| -18.00M | -12.90M | -53.20M | -18.40M | -20.90M | Financing Cash Flow |
| 24.40M | -18.30M | 60.10M | -12.10M | -10.40M |
Astec Technical Analysis
Positive
36.36
Price Trends
33.71
Positive
34.47
Positive
32.97
Positive
Market Momentum
0.62
Negative
61.30
Neutral
77.32
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 36.36 is above the 20-day moving average (MA) of 33.92, above the 50-day MA of 33.71, and above the 200-day MA of 32.97, indicating a bullish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 61.30 is Neutral, neither overbought nor oversold. The STOCH value of 77.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASTE.
Astec Risk Analysis
Astec disclosed 28 risk factors in its most recent earnings report. Astec reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Astec Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.68B | 8.20 | 19.13% | 1.67% | -0.47% | -34.74% | |
74 Outperform | $129.06B | 21.66 | 27.91% | 1.23% | -20.93% | -34.33% | |
72 Outperform | $45.95B | 12.06 | 41.27% | 2.14% | 0.14% | 444.36% | |
68 Neutral | $6.26B | 9.50 | 17.34% | 1.95% | 11.36% | 13.78% | |
67 Neutral | $829.15M | 189.27 | 0.67% | 1.46% | -2.47% | -87.25% | |
66 Neutral | $162.39B | 15.65 | 55.36% | 1.60% | -3.36% | 9.59% | |
62 Neutral | $8.16B | 12.85 | 0.64% | 3.04% | 3.83% | -15.83% |
* Industrials Sector Average
Performance Comparison
ASTE
Astec
36.36
-3.41
-8.57%
CAT
Caterpillar
339.77
3.32
0.99%
CMI
Cummins
329.40
64.92
24.55%
DE
Deere
475.50
102.27
27.40%
OSK
Oshkosh
96.25
-17.75
-15.57%
TEX
Terex
40.38
-16.76
-29.33%
Astec Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: 17.06% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Astec Industries' record-breaking financial performance for Q4 2024, driven by strong sales in the Infrastructure Solutions segment and effective operational improvements. However, challenges remain in the Material Solutions segment due to high interest rates and dealer destocking, alongside ongoing manufacturing inefficiencies and inflation impacts. Despite these challenges, the company maintains a positive outlook with a strong balance sheet and growth in orders.Highlights
Record-Breaking Quarterly Financial Performance
Astec Industries reported quarterly records for net sales, adjusted net income, and adjusted EBITDA, with adjusted EBITDA increasing by 47% to $47.9 million in Q4 2024.
Strong Performance in Infrastructure Solutions Segment
Demand for asphalt and concrete plants remained healthy, contributing to strong net sales. Full-year net sales increased by $37 million or 4.6% in this segment.
Operational Excellence and Cost Management
Operational excellence initiatives have shown positive results, helping to mitigate the impact of supply chain challenges. Improved manufacturing efficiencies were noted, with significant reduction in inventory counting days.
Positive Free Cash Flow and Liquidity
Astec generated $32.1 million in free cash flow during Q4 2024, maintaining a strong balance sheet with a total available liquidity of $228.1 million.
Growth in Implied Orders
Implied orders were up slightly year-over-year and showed a strong increase sequentially, with a 12% increase in the Material Solutions segment over Q3 2024.
Lowlights
Challenges in Material Solutions Segment
This segment faced lower capital equipment sales due to high interest rates and dealer destocking, affecting adjusted EBITDA dollars and margins negatively for the quarter and year.
Impact of High Interest Rates
High interest rates have continued to challenge capital equipment sales, especially impacting the Material Solutions segment and mobile equipment sales.
Manufacturing Inefficiencies and Inflation Impact
Full-year earnings were impacted by manufacturing inefficiencies and inflation, which mostly offset favorable pricing and volume mix improvements.
Company Guidance
During the Fourth Quarter and Full Year 2024 Earnings Call for Astec Industries, management provided optimistic guidance for 2025, highlighting several key metrics. The company achieved quarterly records for net sales, adjusted net income, and adjusted EBITDA, with a 47.9% increase in adjusted EBITDA to $47.9 million, and a 360 basis point increase in margin to 13.3% for Q4. Full-year adjusted EBITDA rose slightly by 1.6% to $111.8 million, with margins improving by 40 basis points to 8.6%. For 2025, Astec anticipates adjusted EBITDA between $105 million and $125 million, with operating cash flow expected to range from $110 million to $125 million before capital expenditures. The company also projected capital expenditures between $35 million and $45 million, and adjusted SG&A between $55 million and $65 million per quarter. In terms of seasonality, they expect 40% to 45% of adjusted EBITDA in the first half of the year and 55% to 60% in the second half. The effective tax rate is projected to be between 24% and 26%, with depreciation and amortization ranging from $26 million to $30 million.Astec Corporate Events
Business Operations and Strategy
Astec Launches Executive and Key Employee Severance Plan
Neutral
Dec 19, 2024
Astec Industries, Inc. has introduced a new Executive and Key Employee Severance Plan, aimed at providing financial security to key employees if their employment is involuntarily terminated. The plan offers different tiers of severance benefits based on the circumstances of termination, including cash payments, stock awards, and outplacement services, while requiring participants to adhere to a restrictive covenant agreement to qualify for the benefits.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.