📊 ASTE Key Takeaways
Is Astec Industries Inc. (ASTE) a Good Investment?
ASTEC demonstrates solid revenue growth of 8.1% YoY with improving operational efficiency as evidenced by strong interest coverage (24.4x) and healthy leverage ratios (0.47x D/E). However, profitability metrics remain compressed with modest net margins of 2.8%, weak ROE of 5.7%, and concerning free cash flow conversion of only 1.5%, raising questions about earnings quality and capital efficiency despite recent EPS volatility.
Astec Industries shows improving top-line momentum with 8.1% revenue growth and solid liquidity, but that growth is not yet translating into strong earnings power or cash generation. Profitability remains modest, with a 4.7% operating margin, 2.8% net margin, and only 1.5% free cash flow margin, suggesting the business is financially stable but still in a low-return phase.
Why Buy Astec Industries Inc. Stock? ASTE Key Strengths
- Revenue growth of 8.1% YoY demonstrates market demand and operational scale expansion
- Strong liquidity position with 2.49x current ratio and robust interest coverage of 24.4x indicating low financial distress risk
- Conservative leverage at 0.47x D/E provides debt capacity and financial flexibility for growth investments
- Revenue growth is healthy at 8.1% YoY, indicating demand resilience and operational recovery.
- Balance sheet risk appears manageable with a 2.49x current ratio, 1.07x quick ratio, and debt/equity of 0.47x.
- Interest coverage of 24.4x suggests debt servicing capacity is strong despite meaningful long-term debt.
ASTE Stock Risks: Astec Industries Inc. Investment Risks
- Weak net margin of 2.8% and ROE of only 5.7% suggest poor profitability and capital inefficiency despite revenue growth
- Free cash flow margin of 1.5% is critically low relative to revenue, indicating operational cash generation struggles and potential quality-of-earnings concerns
- Operating margin compression at 4.7% with 26.5% gross margin leaves limited cushion for operational leverage or downturns in construction equipment cycles
- Net income was flat YoY, indicating limited operating leverage despite higher revenue.
- Free cash flow is thin at $20.7M and a 1.5% FCF margin, which weakens growth quality.
- Returns remain subdued with 5.7% ROE and 2.8% ROA, pointing to inefficient capital utilization relative to asset base.
Key Metrics to Watch
- Operating margin expansion trend and gross margin sustainability
- Free cash flow generation and FCF conversion ratio improvements
- Capital expenditure efficiency and return on invested capital trends
- Operating margin expansion
- Free cash flow conversion
Astec Industries Inc. (ASTE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.5% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.49x current ratio provides a solid financial cushion.
ASTE Profit Margin, ROE & Profitability Analysis
ASTE vs Industrial Sector: How Astec Industries Inc. Compares
How Astec Industries Inc. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Astec Industries Inc. Stock Overvalued? ASTE Valuation Analysis 2026
Based on fundamental analysis, Astec Industries Inc. has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Astec Industries Inc. Balance Sheet: ASTE Debt, Cash & Liquidity
ASTE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Astec Industries Inc.'s revenue has grown significantly by 21% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.47 reflects profitable operations.
ASTE Revenue Growth, EPS Growth & YoY Performance
ASTE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $291.4M | -$4.2M | $-0.18 |
| Q2 2025 | $330.3M | -$10.6M | $-0.47 |
| Q1 2025 | $309.2M | $3.4M | $0.15 |
| Q3 2024 | $291.4M | -$6.2M | $-0.27 |
| Q2 2024 | $345.5M | -$10.6M | $-0.47 |
| Q1 2024 | $309.2M | $3.4M | $0.15 |
| Q3 2023 | $303.1M | $700.0K | $0.03 |
| Q2 2023 | $318.2M | $200.0K | $0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Astec Industries Inc. Dividends, Buybacks & Capital Allocation
ASTE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Astec Industries Inc. (CIK: 0000792987)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ASTE
What is the AI rating for ASTE?
Astec Industries Inc. (ASTE) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 69% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ASTE's key strengths?
Claude: Revenue growth of 8.1% YoY demonstrates market demand and operational scale expansion. Strong liquidity position with 2.49x current ratio and robust interest coverage of 24.4x indicating low financial distress risk. ChatGPT: Revenue growth is healthy at 8.1% YoY, indicating demand resilience and operational recovery.. Balance sheet risk appears manageable with a 2.49x current ratio, 1.07x quick ratio, and debt/equity of 0.47x..
What are the risks of investing in ASTE?
Claude: Weak net margin of 2.8% and ROE of only 5.7% suggest poor profitability and capital inefficiency despite revenue growth. Free cash flow margin of 1.5% is critically low relative to revenue, indicating operational cash generation struggles and potential quality-of-earnings concerns. ChatGPT: Net income was flat YoY, indicating limited operating leverage despite higher revenue.. Free cash flow is thin at $20.7M and a 1.5% FCF margin, which weakens growth quality..
What is ASTE's revenue and growth?
Astec Industries Inc. reported revenue of $1.4B.
Does ASTE pay dividends?
Astec Industries Inc. pays dividends, with $11.9M distributed to shareholders in the trailing twelve months.
Where can I find ASTE SEC filings?
Official SEC filings for Astec Industries Inc. (CIK: 0000792987) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ASTE's EPS?
Astec Industries Inc. has a diluted EPS of $1.68.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ASTE a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Astec Industries Inc. has a HOLD rating with 69% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ASTE stock overvalued or undervalued?
Valuation metrics for ASTE: ROE of 5.7% (sector avg: 15%), net margin of 2.8% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy ASTE stock in 2026?
Our dual AI analysis gives Astec Industries Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ASTE's free cash flow?
Astec Industries Inc.'s operating cash flow is $61.4M, with capital expenditures of $40.7M. FCF margin is 1.5%.
How does ASTE compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 2.8% (avg: 10%), ROE 5.7% (avg: 15%), current ratio 2.49 (avg: 1.8).