ASTEC INDUSTRIES INC (ASTE) Stock Fundamental Analysis
NASDAQ:ASTE - Nasdaq - US0462241011 - Common Stock - Currency: USD
Overall ASTE gets a fundamental rating of 4 out of 10. We evaluated ASTE against 128 industry peers in the Machinery industry. While ASTE seems to be doing ok healthwise, there are quite some concerns on its profitability. ASTE has a correct valuation and a medium growth rate.
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.
ASTE had positive earnings in 4 of the past 5 years.
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 0.41%, ASTE is doing worse than 67.97% of the companies in the same industry.
With a Return On Equity value of 0.67%, ASTE is not doing good in the industry: 67.19% of the companies in the same industry are doing better.
ASTE has a Return On Invested Capital of 7.21%. This is comparable to the rest of the industry: ASTE outperforms 52.34% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ASTE is significantly below the industry average of 10.67%.
The last Return On Invested Capital (7.21%) for ASTE is above the 3 year average (4.22%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.41% | ||
| ROE | 0.67% | ||
| ROIC | 7.21% |
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 of 0.33%. This is in the lower half of the industry: ASTE underperforms 67.19% of its industry peers.
In the last couple of years the Profit Margin of ASTE has declined.
With a Operating Margin value of 5.49%, ASTE is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of ASTE has grown nicely.
ASTE has a worse Gross Margin (25.15%) than 61.72% of its industry peers.
In the last couple of years the Gross Margin of ASTE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.49% | ||
| PM (TTM) | 0.33% | ||
| GM | 25.15% |
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.
ASTE has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ASTE has more shares outstanding
The debt/assets ratio for ASTE is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.88 indicates that ASTE is not in any danger for bankruptcy at the moment.
ASTE has a Altman-Z score of 3.88. This is in the better half of the industry: ASTE outperforms 66.41% of its industry peers.
ASTE has a debt to FCF ratio of 47.32. This is a negative value and a sign of low solvency as ASTE would need 47.32 years to pay back of all of its debts.
ASTE has a worse Debt to FCF ratio (47.32) than 69.53% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that ASTE is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.19, ASTE is doing good in the industry, outperforming 72.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 47.32 | ||
| Altman-Z | 3.88 |
ROIC/WACC0.7
WACC10.31%
2.3 Liquidity
ASTE has a Current Ratio of 2.66. This indicates that ASTE is financially healthy and has no problem in meeting its short term obligations.
ASTE's Current ratio of 2.66 is fine compared to the rest of the industry. ASTE outperforms 70.31% of its industry peers.
ASTE has a Quick Ratio of 1.10. This is a normal value and indicates that ASTE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.10, ASTE is in line with its industry, outperforming 40.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.66 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
ASTE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.89%.
The Earnings Per Share has been growing by 9.45% on average over the past years. This is quite good.
Looking at the last year, ASTE shows a decrease in Revenue. The Revenue has decreased by -2.47% in the last year.
ASTE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.22% yearly.
EPS 1Y (TTM)-7.89%
EPS 3Y21.38%
EPS 5Y9.45%
EPS Q2Q%32.22%
Revenue 1Y (TTM)-2.47%
Revenue growth 3Y5.95%
Revenue growth 5Y2.22%
Sales Q2Q%6.47%
3.2 Future
Based on estimates for the next years, ASTE will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.42% on average per year.
ASTE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.65% yearly.
EPS Next Y8.66%
EPS Next 2Y15.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.98%
Revenue Next 2Y3.65%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 13.94, ASTE is valued correctly.
ASTE's Price/Earnings ratio is a bit cheaper when compared to the industry. ASTE is cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, ASTE is valued rather cheaply.
A Price/Forward Earnings ratio of 12.83 indicates a correct valuation of ASTE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ASTE indicates a rather cheap valuation: ASTE is cheaper than 80.47% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ASTE to the average of the S&P500 Index (21.08), we can say ASTE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.94 | ||
| Fwd PE | 12.83 |
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 78.91% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ASTE is valued a bit more expensive than 70.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 311.95 | ||
| EV/EBITDA | 8 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ASTE's earnings are expected to grow with 15.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.61
PEG (5Y)1.48
EPS Next 2Y15.42%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.52%, ASTE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.12, ASTE pays a bit more dividend than its industry peers.
ASTE's Dividend Yield is slightly below the S&P500 average, which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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.
The dividend of ASTE decreased recently.
Dividend Growth(5Y)3.55%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
276.74% of the earnings are spent on dividend by ASTE. This is not a sustainable payout ratio.
The dividend of ASTE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP276.74%
EPS Next 2Y15.42%
EPS Next 3YN/A
34.16
+0.05 (+0.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.19%
Inst Owner Change0.13%
Ins Owners0.86%
Ins Owner Change1.6%
Market Cap779.87M
Analysts82.5
Price Target43.86 (28.4%)
Short Float %1.7%
Short Ratio2.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
Yearly Dividend0.52
Dividend Growth(5Y)3.55%
DP276.74%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)28.93%
Min EPS beat(2)-1.96%
Max EPS beat(2)59.82%
EPS beat(4)1
Avg EPS beat(4)-3.7%
Min EPS beat(4)-58.71%
Max EPS beat(4)59.82%
EPS beat(8)4
Avg EPS beat(8)1.71%
EPS beat(12)5
Avg EPS beat(12)16.88%
EPS beat(16)6
Avg EPS beat(16)-0.76%
Revenue beat(2)0
Avg Revenue beat(2)-6.97%
Min Revenue beat(2)-8.7%
Max Revenue beat(2)-5.23%
Revenue beat(4)1
Avg Revenue beat(4)-5.93%
Min Revenue beat(4)-11.69%
Max Revenue beat(4)1.92%
Revenue beat(8)1
Avg Revenue beat(8)-5.11%
Revenue beat(12)4
Avg Revenue beat(12)-2.37%
Revenue beat(16)4
Avg Revenue beat(16)-3.24%
PT rev (1m)0%
PT rev (3m)1.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.54%
EPS NY rev (1m)2.76%
EPS NY rev (3m)2.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.94 | ||
| Fwd PE | 12.83 | ||
| P/S | 0.6 | ||
| P/FCF | 311.95 | ||
| P/OCF | 33.91 | ||
| P/B | 1.22 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | 8 |
EPS(TTM)2.45
EY7.17%
EPS(NY)2.66
Fwd EY7.79%
FCF(TTM)0.11
FCFY0.32%
OCF(TTM)1.01
OCFY2.95%
SpS57.17
BVpS27.94
TBVpS26.35
PEG (NY)1.61
PEG (5Y)1.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.41% | ||
| ROE | 0.67% | ||
| ROCE | 9.29% | ||
| ROIC | 7.21% | ||
| ROICexc | 8.19% | ||
| ROICexgc | 8.65% | ||
| OM | 5.49% | ||
| PM (TTM) | 0.33% | ||
| GM | 25.15% | ||
| FCFM | 0.19% |
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-Score5
Asset Turnover1.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 47.32 | ||
| Debt/EBITDA | 1.2 | ||
| Cap/Depr | 76.49% | ||
| Cap/Sales | 1.57% | ||
| Interest Coverage | 8.44 | ||
| Cash Conversion | 23.35% | ||
| Profit Quality | 58.14% | ||
| Current Ratio | 2.66 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 3.88 |
F-Score5
WACC10.31%
ROIC/WACC0.7
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)-7.89%
EPS 3Y21.38%
EPS 5Y9.45%
EPS Q2Q%32.22%
EPS Next Y8.66%
EPS Next 2Y15.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.47%
Revenue growth 3Y5.95%
Revenue growth 5Y2.22%
Sales Q2Q%6.47%
Revenue Next Year2.98%
Revenue Next 2Y3.65%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y31.8%
EBIT growth 3Y28.17%
EBIT growth 5Y12.85%
EBIT Next Year65.99%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y139.68%
FCF growth 3YN/A
FCF growth 5Y-51.05%
OCF growth 1Y-17.27%
OCF growth 3Y45.94%
OCF growth 5Y-27.19%