ASTEC INDUSTRIES INC (ASTE) Stock Fundamental Analysis
NASDAQ:ASTE - Nasdaq - US0462241011 - Common Stock - Currency: USD
Taking everything into account, ASTE scores 4 out of 10 in our fundamental rating. ASTE was compared to 129 industry peers in the Machinery industry. ASTE scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. ASTE has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ASTE was profitable.
In the past year ASTE had a positive cash flow from operations.
Of the past 5 years ASTE 4 years were profitable.
ASTE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.18%, ASTE is doing worse than 66.40% of the companies in the same industry.
With a Return On Equity value of -0.30%, ASTE is not doing good in the industry: 65.60% of the companies in the same industry are doing better.
The Return On Invested Capital of ASTE (5.69%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for ASTE is significantly below the industry average of 11.00%.
The 3 year average ROIC (3.42%) for ASTE is below the current ROIC(5.69%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.18% | ||
| ROE | -0.3% | ||
| ROIC | 5.69% |
ROA(3y)1.71%
ROA(5y)2.69%
ROE(3y)2.62%
ROE(5y)3.77%
ROIC(3y)3.42%
ROIC(5y)3.95%
1.3 Margins
ASTE's Profit Margin has declined in the last couple of years.
The Operating Margin of ASTE (4.38%) is worse than 64.80% of its industry peers.
ASTE's Operating Margin has declined in the last couple of years.
ASTE has a worse Gross Margin (24.50%) than 66.40% of its industry peers.
ASTE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.38% | ||
| PM (TTM) | N/A | ||
| GM | 24.5% |
OM growth 3Y-6.59%
OM growth 5YN/A
PM growth 3Y-18.23%
PM growth 5YN/A
GM growth 3Y1.79%
GM growth 5Y16.35%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ASTE is destroying value.
The number of shares outstanding for ASTE has been increased compared to 1 year ago.
The number of shares outstanding for ASTE has been increased compared to 5 years ago.
ASTE has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.53 indicates that ASTE is not in any danger for bankruptcy at the moment.
ASTE has a Altman-Z score of 3.53. This is comparable to the rest of the industry: ASTE outperforms 57.60% of its industry peers.
The Debt to FCF ratio of ASTE is 14.13, which is on the high side as it means it would take ASTE, 14.13 years of fcf income to pay off all of its debts.
ASTE has a worse Debt to FCF ratio (14.13) than 61.60% of its industry peers.
ASTE has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
ASTE's Debt to Equity ratio of 0.18 is fine compared to the rest of the industry. ASTE outperforms 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 14.13 | ||
| Altman-Z | 3.53 |
ROIC/WACC0.51
WACC11.11%
2.3 Liquidity
ASTE has a Current Ratio of 2.47. This indicates that ASTE is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.47, ASTE is doing good in the industry, outperforming 64.00% of the companies in the same industry.
ASTE has a Quick Ratio of 2.47. This is a bad value and indicates that ASTE is not financially healthy enough and could expect problems in meeting its short term obligations.
ASTE has a Quick ratio of 0.91. This is in the lower half of the industry: ASTE underperforms 72.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
ASTE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.86%.
Measured over the past years, ASTE shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.09% on average per year.
The Revenue has decreased by -5.00% in the past year.
ASTE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.69% yearly.
EPS 1Y (TTM)2.86%
EPS 3Y9.79%
EPS 5Y-1.09%
EPS Q2Q%3200%
Revenue 1Y (TTM)-5%
Revenue growth 3Y9.32%
Revenue growth 5Y2.69%
Sales Q2Q%-3.86%
3.2 Future
ASTE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.65% yearly.
The Revenue is expected to grow by 1.97% on average over the next years.
EPS Next Y-23.69%
EPS Next 2Y-1.31%
EPS Next 3Y5.65%
EPS Next 5YN/A
Revenue Next Year-2.25%
Revenue Next 2Y0.83%
Revenue Next 3Y1.97%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.34 indicates a correct valuation of ASTE.
81.60% of the companies in the same industry are more expensive than ASTE, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ASTE to the average of the S&P500 Index (29.62), we can say ASTE is valued rather cheaply.
ASTE is valuated reasonably with a Price/Forward Earnings ratio of 11.96.
90.40% of the companies in the same industry are more expensive than ASTE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ASTE to the average of the S&P500 Index (22.70), we can say ASTE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.34 | ||
| Fwd PE | 11.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ASTE indicates a somewhat cheap valuation: ASTE is cheaper than 80.00% of the companies listed in the same industry.
ASTE's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. ASTE is more expensive than 64.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 89.41 | ||
| EV/EBITDA | 9.03 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.31%
EPS Next 3Y5.65%
5. Dividend
5.1 Amount
ASTE has a Yearly Dividend Yield of 1.59%.
ASTE's Dividend Yield is a higher than the industry average which is at 1.66.
ASTE's Dividend Yield is slightly below the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
5.2 History
The dividend of ASTE has a limited annual growth rate of 4.33%.
ASTE has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of ASTE decreased recently.
Dividend Growth(5Y)4.33%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
The earnings of ASTE are negative and hence is the payout ratio. ASTE will probably not be able to sustain this dividend level.
The dividend of ASTE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-621.05%
EPS Next 2Y-1.31%
EPS Next 3Y5.65%
30.98
-1.75 (-5.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.19%
Inst Owner Change-87.73%
Ins Owners0.86%
Ins Owner Change0.32%
Market Cap706.34M
Analysts82.5
Price Target43.35 (39.93%)
Short Float %2.23%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
Yearly Dividend0.52
Dividend Growth(5Y)4.33%
DP-621.05%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.96%
Min EPS beat(2)-13.95%
Max EPS beat(2)-1.96%
EPS beat(4)1
Avg EPS beat(4)-10.45%
Min EPS beat(4)-58.71%
Max EPS beat(4)32.83%
EPS beat(8)3
Avg EPS beat(8)-7.14%
EPS beat(12)4
Avg EPS beat(12)-6.24%
EPS beat(16)6
Avg EPS beat(16)-2.53%
Revenue beat(2)1
Avg Revenue beat(2)-3.39%
Min Revenue beat(2)-8.7%
Max Revenue beat(2)1.92%
Revenue beat(4)1
Avg Revenue beat(4)-5.82%
Min Revenue beat(4)-11.69%
Max Revenue beat(4)1.92%
Revenue beat(8)2
Avg Revenue beat(8)-3.28%
Revenue beat(12)4
Avg Revenue beat(12)-2.1%
Revenue beat(16)4
Avg Revenue beat(16)-3.76%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)3.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.34 | ||
| Fwd PE | 11.96 | ||
| P/S | 0.55 | ||
| P/FCF | 89.41 | ||
| P/OCF | 21.4 | ||
| P/B | 1.12 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 9.03 |
EPS(TTM)2.16
EY6.97%
EPS(NY)2.59
Fwd EY8.36%
FCF(TTM)0.35
FCFY1.12%
OCF(TTM)1.45
OCFY4.67%
SpS56.29
BVpS27.69
TBVpS26
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.18% | ||
| ROE | -0.3% | ||
| ROCE | 7.32% | ||
| ROIC | 5.69% | ||
| ROICexc | 6.15% | ||
| ROICexgc | 6.5% | ||
| OM | 4.38% | ||
| PM (TTM) | N/A | ||
| GM | 24.5% | ||
| FCFM | 0.62% |
ROA(3y)1.71%
ROA(5y)2.69%
ROE(3y)2.62%
ROE(5y)3.77%
ROIC(3y)3.42%
ROIC(5y)3.95%
ROICexc(3y)3.92%
ROICexc(5y)4.69%
ROICexgc(3y)4.35%
ROICexgc(5y)5.27%
ROCE(3y)4.38%
ROCE(5y)5.04%
ROICexcg growth 3Y-9.43%
ROICexcg growth 5YN/A
ROICexc growth 3Y-7.84%
ROICexc growth 5YN/A
OM growth 3Y-6.59%
OM growth 5YN/A
PM growth 3Y-18.23%
PM growth 5YN/A
GM growth 3Y1.79%
GM growth 5Y16.35%
F-Score4
Asset Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 14.13 | ||
| Debt/EBITDA | 1.36 | ||
| Cap/Depr | 96.17% | ||
| Cap/Sales | 1.96% | ||
| Interest Coverage | 6.61 | ||
| Cash Conversion | 40.1% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.47 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 3.53 |
F-Score4
WACC11.11%
ROIC/WACC0.51
Cap/Depr(3y)115.21%
Cap/Depr(5y)98.44%
Cap/Sales(3y)2.52%
Cap/Sales(5y)2.22%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.86%
EPS 3Y9.79%
EPS 5Y-1.09%
EPS Q2Q%3200%
EPS Next Y-23.69%
EPS Next 2Y-1.31%
EPS Next 3Y5.65%
EPS Next 5YN/A
Revenue 1Y (TTM)-5%
Revenue growth 3Y9.32%
Revenue growth 5Y2.69%
Sales Q2Q%-3.86%
Revenue Next Year-2.25%
Revenue Next 2Y0.83%
Revenue Next 3Y1.97%
Revenue Next 5YN/A
EBIT growth 1Y28.02%
EBIT growth 3Y2.11%
EBIT growth 5YN/A
EBIT Next Year14.29%
EBIT Next 3Y14.2%
EBIT Next 5YN/A
FCF growth 1Y106.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y143.03%
OCF growth 3Y-41.87%
OCF growth 5YN/A