ASTEC INDUSTRIES INC (ASTE) Stock Fundamental Analysis
USA - NASDAQ:ASTE - US0462241011 - Common Stock
46.19 USD
-1.58 (-3.3%)
46.19 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ASTE. ASTE was compared to 129 industry peers in the Machinery industry. Both the profitability and the financial health of ASTE get a neutral evaluation. Nothing too spectacular is happening here. ASTE may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make ASTE a good candidate for value investing.
1. Profitability
1.1 Basic Checks
ASTE had positive earnings in the past year.
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
The Return On Assets of ASTE (4.31%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 6.80%, ASTE is in line with its industry, outperforming 43.41% of the companies in the same industry.
ASTE's Return On Invested Capital of 9.55% is fine compared to the rest of the industry. ASTE outperforms 67.44% of its industry peers.
ASTE had an Average Return On Invested Capital over the past 3 years of 4.22%. This is significantly below the industry average of 10.01%.
The 3 year average ROIC (4.22%) for ASTE is below the current ROIC(9.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.31% | ||
| ROE | 6.8% | ||
| ROIC | 9.55% |
ROA(3y)1.19%
ROA(5y)2.21%
ROE(3y)1.93%
ROE(5y)3.16%
ROIC(3y)4.22%
ROIC(5y)4.29%
1.3 Margins
ASTE has a Profit Margin (3.50%) which is in line with its industry peers.
In the last couple of years the Profit Margin of ASTE has declined.
Looking at the Operating Margin, with a value of 7.40%, ASTE is in line with its industry, outperforming 46.51% of the companies in the same industry.
ASTE's Operating Margin has improved in the last couple of years.
ASTE has a worse Gross Margin (26.76%) than 61.24% of its industry peers.
In the last couple of years the Gross Margin of ASTE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.4% | ||
| PM (TTM) | 3.5% | ||
| GM | 26.76% |
OM growth 3Y20.97%
OM growth 5Y10.4%
PM growth 3Y-41.22%
PM growth 5Y-29.61%
GM growth 3Y3.08%
GM growth 5Y4.18%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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 worse debt/assets ratio than last year.
2.2 Solvency
ASTE has an Altman-Z score of 4.48. This indicates that ASTE is financially healthy and has little risk of bankruptcy at the moment.
ASTE has a Altman-Z score of 4.48. This is in the better half of the industry: ASTE outperforms 70.54% of its industry peers.
The Debt to FCF ratio of ASTE is 1.25, which is an excellent value as it means it would take ASTE, only 1.25 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.25, ASTE belongs to the top of the industry, outperforming 86.05% of the companies in the same industry.
ASTE has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.14, ASTE is doing good in the industry, outperforming 75.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 4.48 |
ROIC/WACC1
WACC9.56%
2.3 Liquidity
ASTE has a Current Ratio of 2.71. This indicates that ASTE is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.71, ASTE is doing good in the industry, outperforming 72.09% of the companies in the same industry.
A Quick Ratio of 1.08 indicates that ASTE should not have too much problems paying its short term obligations.
The Quick ratio of ASTE (1.08) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.71 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
ASTE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 77.17%, which is quite impressive.
ASTE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.45% yearly.
ASTE shows a small growth in Revenue. In the last year, the Revenue has grown by 1.17%.
The Revenue has been growing slightly by 2.22% on average over the past years.
EPS 1Y (TTM)77.17%
EPS 3Y21.38%
EPS 5Y9.45%
EPS Q2Q%44.26%
Revenue 1Y (TTM)1.17%
Revenue growth 3Y5.95%
Revenue growth 5Y2.22%
Sales Q2Q%-4.4%
3.2 Future
The Earnings Per Share is expected to grow by 15.24% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.33% on average over the next years.
EPS Next Y22.4%
EPS Next 2Y15.24%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.2%
Revenue Next 2Y5.33%
Revenue Next 3YN/A
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.17, the valuation of ASTE can be described as correct.
ASTE's Price/Earnings ratio is rather cheap when compared to the industry. ASTE is cheaper than 83.72% of the companies in the same industry.
ASTE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.40.
ASTE is valuated correctly with a Price/Forward Earnings ratio of 14.20.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ASTE indicates a somewhat cheap valuation: ASTE is cheaper than 75.97% of the companies listed in the same industry.
ASTE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.17 | ||
| Fwd PE | 14.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ASTE is valued cheaper than 83.72% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ASTE is valued cheaply inside the industry as 83.72% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.61 | ||
| EV/EBITDA | 8.8 |
4.3 Compensation for Growth
ASTE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ASTE's earnings are expected to grow with 15.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.63
PEG (5Y)1.5
EPS Next 2Y15.24%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.13%, ASTE has a reasonable but not impressive dividend return.
ASTE's Dividend Yield is a higher than the industry average which is at 1.82.
Compared to an average S&P500 Dividend Yield of 2.38, ASTE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
5.2 History
The dividend of ASTE has a limited annual growth rate of 3.55%.
ASTE has been paying a dividend for at least 10 years, so it has a reliable track record.
ASTE has decreased its dividend recently.
Dividend Growth(5Y)3.55%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
25.93% of the earnings are spent on dividend by ASTE. This is a low number and sustainable payout ratio.
The dividend of ASTE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP25.93%
EPS Next 2Y15.24%
EPS Next 3YN/A
46.19
-1.58 (-3.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners98.01%
Inst Owner Change-0.01%
Ins Owners0.91%
Ins Owner Change1.03%
Market Cap1.06B
Analysts85.71
Price Target48.96 (6%)
Short Float %2.65%
Short Ratio3.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
Yearly Dividend0.52
Dividend Growth(5Y)3.55%
DP25.93%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)71.5%
Min EPS beat(2)55.45%
Max EPS beat(2)87.55%
EPS beat(4)3
Avg EPS beat(4)50.21%
Min EPS beat(4)-1.96%
Max EPS beat(4)87.55%
EPS beat(8)4
Avg EPS beat(8)7.43%
EPS beat(12)6
Avg EPS beat(12)11.33%
EPS beat(16)8
Avg EPS beat(16)11.55%
Revenue beat(2)1
Avg Revenue beat(2)-3.89%
Min Revenue beat(2)-8.58%
Max Revenue beat(2)0.79%
Revenue beat(4)1
Avg Revenue beat(4)-5.43%
Min Revenue beat(4)-8.7%
Max Revenue beat(4)0.79%
Revenue beat(8)2
Avg Revenue beat(8)-5.88%
Revenue beat(12)4
Avg Revenue beat(12)-3.08%
Revenue beat(16)5
Avg Revenue beat(16)-2.5%
PT rev (1m)0%
PT rev (3m)11.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)100%
EPS NY rev (1m)-1.01%
EPS NY rev (3m)21.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)12.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.17 | ||
| Fwd PE | 14.2 | ||
| P/S | 0.81 | ||
| P/FCF | 13.61 | ||
| P/OCF | 11.42 | ||
| P/B | 1.57 | ||
| P/tB | 1.65 | ||
| EV/EBITDA | 8.8 |
EPS(TTM)3.26
EY7.06%
EPS(NY)3.25
Fwd EY7.04%
FCF(TTM)3.39
FCFY7.35%
OCF(TTM)4.04
OCFY8.76%
SpS57.28
BVpS29.51
TBVpS27.94
PEG (NY)0.63
PEG (5Y)1.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.31% | ||
| ROE | 6.8% | ||
| ROCE | 12.27% | ||
| ROIC | 9.55% | ||
| ROICexc | 10.78% | ||
| ROICexgc | 11.35% | ||
| OM | 7.4% | ||
| PM (TTM) | 3.5% | ||
| GM | 26.76% | ||
| FCFM | 5.92% |
ROA(3y)1.19%
ROA(5y)2.21%
ROE(3y)1.93%
ROE(5y)3.16%
ROIC(3y)4.22%
ROIC(5y)4.29%
ROICexc(3y)4.7%
ROICexc(5y)5.1%
ROICexgc(3y)5.08%
ROICexgc(5y)5.67%
ROCE(3y)5.42%
ROCE(5y)5.48%
ROICexcg growth 3Y15.61%
ROICexcg growth 5Y7.82%
ROICexc growth 3Y18.19%
ROICexc growth 5Y8.9%
OM growth 3Y20.97%
OM growth 5Y10.4%
PM growth 3Y-41.22%
PM growth 5Y-29.61%
GM growth 3Y3.08%
GM growth 5Y4.18%
F-Score8
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.25 | ||
| Debt/EBITDA | 0.79 | ||
| Cap/Depr | 57.09% | ||
| Cap/Sales | 1.14% | ||
| Interest Coverage | 11.98 | ||
| Cash Conversion | 75.14% | ||
| Profit Quality | 169.06% | ||
| Current Ratio | 2.71 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 4.48 |
F-Score8
WACC9.56%
ROIC/WACC1
Cap/Depr(3y)118.53%
Cap/Depr(5y)95.88%
Cap/Sales(3y)2.44%
Cap/Sales(5y)2.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)77.17%
EPS 3Y21.38%
EPS 5Y9.45%
EPS Q2Q%44.26%
EPS Next Y22.4%
EPS Next 2Y15.24%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.17%
Revenue growth 3Y5.95%
Revenue growth 5Y2.22%
Sales Q2Q%-4.4%
Revenue Next Year3.2%
Revenue Next 2Y5.33%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y133.17%
EBIT growth 3Y28.17%
EBIT growth 5Y12.85%
EBIT Next Year92.08%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y205.58%
FCF growth 3YN/A
FCF growth 5Y-51.05%
OCF growth 1Y368.12%
OCF growth 3Y45.94%
OCF growth 5Y-27.19%