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Fundamental analysis: Astec Industries, Inc. (ASTE)

Awarener score: 5.4

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Very good) and growth (Very poor), and the company's inclination to return cash to the stockholders (Good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.0

  • Business has been shrinking at a fast pace. It's been last-in-rank when measured against peer companies.
  • Astec Industries, Inc. business trend stability is very good. The higher the stability, the lower the risk. It looks better than most rivals.

Margins score: 4.7

  • ASTE profit margins -on goods and services sold- are usually meagre. They stand slightly worse than rival companies.
  • Business profit on sales tends to be hardly sufficient. It's below average when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually meagre. They remain lacking compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be hardly sufficient in relation to total revenues. They're still mediocre against similar companies.
  • Profits -before income taxes- are usually hardly sufficient considering total sales, and remain below average when measured against rivals.
  • Total net profit tends to be hardly sufficient when confronted to sales. Company stands below average when measured against comparable firms.

Growth score: 2.6

  • Astec Industries, Inc. profit -on goods and services sold- has been growing at a low pace. It's been rather normal in relation to competitors.
  • In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a very good pace, which compares last-in-rank when measured against peer enterprises.
  • In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
  • In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
  • In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
  • The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 7.3

  • ASTE managed to get a credit on income taxes in the past years, even though it earned money. It's been top-notch against peers.
  • Research and development expenses hardly consume a portion of revenues. It's great when measured against competitors.
  • Business has been shrinking, despite research and development efforts. It stands a disappointment compared to rival companies.

Profitability score: 5.0

  • Astec Industries, Inc. usually gets hardly sufficient returns on the resources it controls. It proves weak when measured against peer firms.
  • The company normally gets hardly sufficient proceeds -on the resources directly invested in the business-. They remain in a very weak position compared to similar companies.
  • Profitability -in relation to owned resources- is usually modest. It ranks below average when measured against competitors.
  • In the past, got barely sufficient returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's weak when measured against comparable enterprises.

Usage of Funds score: 5.0

  • ASTE usually uses a very large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is heavy. It stands weak when measured against rival firms.
  • The company is usually replacing most of the property, plant, and equipment that gets old, and saving a little funds for something else, which is below average when measured against industry peers.
  • In the past twelve months it paid somewhat low dividends, considering the current stock price. It came mediocre against competitors.
  • In recent years, has slightly cut back dividend payments. The company has behaved a disappointment compared to similar firms.
  • The company usually uses a portion of genuine funds generated to pay dividends. Dividend payments should be safe, unless business prospects are challenged. Sustainability looks worse than most comparable companies.
  • The company usually neither enlarges nor reduces the pool of investors, resulting in approximately the same mouths feeding on the pie of profits. It remains rather normal in relation to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands a slight improvement compared to rivals.
  • We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 5.3

  • Astec Industries, Inc. intangible assets (like brands and goodwill) represent a small portion of resources controlled, according to accounting books. It isn't that a significant risk of liquidating them if the company ever gets in financial distress. It happens to be top tier when measured against peer companies.
  • The company has roughly triple short-term resources than short-term obligations. Liquidity concerns are most likely unimportant. It turns to be rather normal in relation to similar firms.
  • Almost no resources controlled were provided for with financial debt. Financial strength is great. Company could significantly increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains top-notch against rival firms.
  • Most controlled resources can be made into cash reasonably quick, which is good for liquidity and risk. It looks similar to rivals.
  • For every dollar of short-term obligations, the company has almost another of cash and short-term receivables. It's close to average when compared to peer firms.
  • For every dollar of short-term obligations, the company has few cents of cash and equivalents, which is slightly better than similar enterprises.
  • Usually, sales are on a two-months credit. It still ranks encouraging in relation to peers.
  • Normally has approximately five months of sales worth in inventory. It comes up as in a weak position compared to competitors.
  • On average, it takes higher than six months from the purchase to charging customers. It happens to be slightly worse than peers.
  • On average pays suppliers after a month and a half from the purchase. It ranks weak when measured against industry peers.
  • The company pays its suppliers six months or more before charging its customers, so there's abundant money invested in working capital. It's lacking compared to similar companies.
  • Net interest expenses consume a significant portion of usual business earnings, but are mostly bearable. It stands slightly better than rival firms.
  • Business earnings have usually been great when measured against loans taken. Debt might be repaid almost as soon as desired. It ranks top tier when measured against comparable enterprises.
  • Revenues are quite good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks lacking compared to similar firms.
  • Resource exploitation is excellent when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still slightly better than peer companies.

Valuation score: 5.5

  • Astec Industries, Inc. profits are really small compared to market valuation, market valuation doesn't rely on current earnings. It happens to be weak when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in good shape compared to peers.
  • In the past twelve months, the company neither generated nor consumed funds. Whatever funds it could generate, it reinvested in the business, which stands mediocre against similar companies.
  • The company usually generates somewhat more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be reasonable. It's still weak when measured against industry firms.
  • In the past twelve months, the company has barely rewarded investors, considering both dividends and share on the pie of earnings. It came up rather normal in relation to peer ventures.
  • The company has more cash than debt. It might be poised to increase stockholder payments, or to fund new business projects. It looks somewhat better than similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is huge, as profits were extremely low in relative terms. It ranks substantially worse when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a not far from one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks lacking compared to rival firms.
  • The relation between the stock price and accounting book value might be reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains somewhat better than peer firms.
  • In the past twelve months, the operating business lost some money. It happens to be weak when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a mediocre earnings power ability when measured against the current stock price and financial position. It's still lacking compared to peer companies.

Total score: 5.0


ASTE logos

Company at a glance: Astec Industries, Inc. (ASTE)

Sector, industry: Industrials, Farm & Heavy Construction Machinery

Market Cap: 0.76 billions

Revenues TTM: 1.14 billions

Astec Industries, Inc. designs, engineers, manufactures, and markets equipment and components used primarily in road building and related construction activities in the United States and internationally. The company operates in two segments, Infrastructure Solutions and Materials Solutions. The Infrastructure Solutions segment offers asphalt plants and related components, heaters, concrete dust control systems, asphalt pavers, vaporizers, concrete material handling systems, screeds, heat recovery units, paste back-fill plants, asphalt storage tanks, hot oil heaters, bagging plants, fuel storage tanks, industrial and asphalt burners and systems, custom batch plants, material transfer vehicles, soil stabilizing-reclaiming machinery, blower trucks and trailers, milling machines, soil remediation plants, wood chippers and grinders, pump trailers, concrete batch plants, control systems, liquid terminals, storage equipment and related parts, construction and retrofits, polymer plants, and concrete mixers, as well as engineering and environmental permitting services. This segment provides its products to asphalt producers, highway and heavy equipment contractors, ready mix concrete producers, contractors in the construction and demolition recycling markets, and governmental agencies. The Materials Solutions segment designs and manufactures crushing equipment, mobile plants, bulk material handling solutions, vibrating equipment, screening equipment, electrical control centers, modular plants and systems, conveying equipment, plant automation products, portable plants, and mineral processing equipment, as well as offers consulting and engineering services. Astec Industries, Inc. was incorporated in 1972 and is headquartered in Chattanooga, Tennessee.

Awarener score: 5.4

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Very good) and growth (Very poor), and the company's inclination to return cash to the stockholders (Good).