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Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 48.6GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
3.0%
Sector: 8.9%
Dividend Analysis audit
GROWTH
1.08%
Trailing Yield
$1.08
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
66%MID
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, ASTEC INDUSTRIES INC (ASTE) receives a "Hold" rating with a composite score of 52.6/100, ranked #628 out of 4446 stocks. Key factor scores: Quality 49/100, Value 59/100, Momentum 65/100. This is quantitative analysis only — not investment advice.
ASTEC INDUSTRIES INC (ASTE) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does ASTEC INDUSTRIES INC Do?
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. ASTEC INDUSTRIES INC (ASTE) is classified as a small-cap stock in the Industrials sector, specifically within the Machinery industry. The company is led by CEO Barry A. Ruffalo and employs approximately 4,290 people, headquartered in Chattanooga, Tennessee. With a market capitalization of $1.3B, ASTE is one of the notable companies in the Industrials sector.
ASTEC INDUSTRIES INC (ASTE) Stock Rating — Hold (April 2026)
As of April 2026, ASTEC INDUSTRIES INC receives a Hold rating with a composite score of 52.6/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.ASTE ranks #628 out of 4,446 stocks in our coverage universe. Within the Industrials sector, ASTEC INDUSTRIES INC ranks #108 of 752 stocks, placing it in the top quartile of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
ASTE Stock Price and 52-Week Range
ASTEC INDUSTRIES INC (ASTE) currently trades at $61.22. The stock gained $0.04 (0.1%) in the most recent trading session. The 52-week high for ASTE is $64.37, which means the stock is currently trading -4.9% from its annual peak. The 52-week low is $29.65, putting the stock 106.5% above its annual trough. Recent trading volume was 108K shares, suggesting relatively thin trading activity.
Is ASTE Overvalued or Undervalued? — Valuation Analysis
ASTEC INDUSTRIES INC (ASTE) carries a value factor score of 59/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 61.32x, compared to the Industrials sector average of 28.33x — a premium of 116%. The price-to-book ratio stands at 1.86x, versus the sector average of 2.23x. The price-to-sales ratio is 0.98x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, ASTE trades at 35.46x EV/EBITDA, versus 5.70x for the sector.
Overall, ASTE's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
ASTEC INDUSTRIES INC Profitability — ROE, Margins, and Quality Score
ASTEC INDUSTRIES INC (ASTE) earns a quality factor score of 49/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 3.0%, compared to the Industrials sector average of 8.9%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 1.5% versus the sector average of 3.3%.
On a margin basis, ASTEC INDUSTRIES INC reports gross margins of 25.4%, compared to 35.8% for the sector. The operating margin is 2.6% (sector: 6.2%). Net profit margin stands at 1.5%, versus 3.9% for the average Industrials stock. Revenue growth is running at 1.3% on a trailing basis, compared to 6.4% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
ASTE Debt, Balance Sheet, and Financial Health
ASTEC INDUSTRIES INC has a debt-to-equity ratio of 101.0%, compared to the Industrials sector average of 70.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 2.49x, indicating strong short-term liquidity. Cash and equivalents stand at $69M.
ASTE has a beta of 1.24, meaning it is more volatile than the broader market — a $10,000 investment in ASTE would be expected to move 24.3% more than the S&P 500 on any given day. The stability factor score for ASTEC INDUSTRIES INC is 63/100, reflecting average volatility within the normal range for its sector.
ASTEC INDUSTRIES INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, ASTEC INDUSTRIES INC reported revenue of $1.30B and earnings per share (EPS) of $1.70. Net income for the quarter was $21M. Gross margin was 25.4%. Operating income came in at $36M.
In FY 2025, ASTEC INDUSTRIES INC reported revenue of $1.41B and earnings per share (EPS) of $1.70. Net income for the quarter was $39M. Gross margin was 26.5%. Revenue grew 8.1% year-over-year compared to FY 2024. Operating income came in at $66M.
In Q3 2025, ASTEC INDUSTRIES INC reported revenue of $350M and earnings per share (EPS) of $-0.18. Net income for the quarter was $-4M. Gross margin was 24.1%. Revenue grew 20.1% year-over-year compared to Q3 2024. Operating income came in at $1M.
In Q2 2025, ASTEC INDUSTRIES INC reported revenue of $330M and earnings per share (EPS) of $0.73. Net income for the quarter was $17M. Gross margin was 26.7%. Revenue grew -4.4% year-over-year compared to Q2 2024. Operating income came in at $21M.
Over the past 8 quarters, ASTEC INDUSTRIES INC has demonstrated a growth trajectory, with revenue expanding from $346M to $1.30B. Investors analyzing ASTE stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
ASTE Dividend Yield and Income Analysis
ASTEC INDUSTRIES INC (ASTE) currently pays a dividend yield of 1.1%. At this yield, a $10,000 investment in ASTE stock would generate approximately $$108.00 in annual dividend income.
ASTE Momentum and Technical Analysis Profile
ASTEC INDUSTRIES INC (ASTE) has a momentum factor score of 65/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 33/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 33/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
ASTE vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing ASTE against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full ASTE vs S&P 500 (SPY) comparison to assess how ASTEC INDUSTRIES INC stacks up against the broader market across all factor dimensions.
ASTE Next Earnings Date
No upcoming earnings date has been announced for ASTEC INDUSTRIES INC (ASTE) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy ASTE? — Investment Thesis Summary
ASTEC INDUSTRIES INC presents a balanced picture with arguments on both sides. Price momentum is positive at 65/100, suggesting the trend favors buyers. Low volatility (stability score 63/100) reduces downside risk.
In summary, ASTEC INDUSTRIES INC (ASTE) earns a Hold rating with a composite score of 52.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on ASTE stock.
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Institutional Research Dossier
ASTEC INDUSTRIES INC (ASTE) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Astec Industries (ASTE), driven by a mixed assessment of its financial performance and competitive positioning. While the company benefits from exposure to infrastructure spending and demonstrates reasonable value metrics, its profitability lags sector peers, and its capital allocation strategy raises concerns. The company's recent performance, marked by fluctuating profitability and a lack of free cash flow data, necessitates a cautious approach, preventing a more bullish outlook despite potentially favorable industry tailwinds.
Astec's valuation appears reasonable based on EV/EBITDA, but its lower margins and returns on equity compared to the industrial sector temper enthusiasm. The absence of free cash flow data further complicates the valuation picture. The company's exposure to cyclical industries and its reliance on government spending introduce volatility, reinforcing the need for a neutral stance until consistent profitability and improved capital allocation become evident.
Business Strategy & Overview
Astec Industries operates in the road building and construction equipment sector, providing a range of products and services through its Infrastructure Solutions and Materials Solutions segments. The Infrastructure Solutions segment focuses on asphalt plants, concrete production equipment, and related services, targeting asphalt producers, contractors, and governmental agencies. The Materials Solutions segment designs and manufactures crushing, screening, and conveying equipment for the mining, aggregates, and recycling industries. This diversified approach allows Astec to participate in various stages of construction and material processing, mitigating some risk associated with specific project types or regional slowdowns.
The company's strategy involves providing comprehensive solutions, including equipment, engineering, and environmental permitting services, aiming to establish long-term relationships with customers. Astec's focus on innovation and technology is evident in its development of advanced control systems and energy-efficient equipment. This emphasis on technological advancement is crucial for maintaining competitiveness in a sector increasingly focused on sustainability and efficiency. However, the company's ability to consistently translate these innovations into improved profitability remains a key challenge.
Astec's geographic reach extends beyond the United States, with international operations contributing to revenue diversification. The company's exposure to global markets allows it to capitalize on infrastructure development projects in emerging economies. However, this also exposes Astec to currency fluctuations, geopolitical risks, and varying regulatory environments. Effective management of these international complexities is essential for sustained growth and profitability.
The company's recent strategic initiatives, such as streamlining operations and focusing on core competencies, are aimed at improving efficiency and profitability. These efforts are critical for addressing the company's relatively low margins compared to its peers. The success of these initiatives will depend on Astec's ability to effectively execute its plans and adapt to changing market conditions. The company's ability to generate free cash flow, which is currently unavailable in the provided data, is a crucial factor in assessing its long-term financial health and strategic flexibility.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
1.3%
Sector: 6.4%
-79% VS SCTR
Economic Moat Analysis
Astec Industries' economic moat is likely Narrow. The company operates in a competitive industry with moderate barriers to entry. While Astec possesses some intangible assets in the form of brand recognition and proprietary technology, these are not strong enough to create a significant and sustainable competitive advantage. The company's customer relationships and engineering expertise contribute to its moat, but these are not easily defensible against larger, more established competitors or innovative new entrants.
Switching costs for Astec's customers are moderate. While replacing large-scale equipment like asphalt plants can be costly and disruptive, customers have multiple options and are not necessarily locked into Astec's products. The availability of alternative suppliers and the potential for technological advancements to render existing equipment obsolete limit Astec's ability to command premium pricing or retain customers indefinitely. The company's service and support offerings can increase switching costs, but these are not unique to Astec and are offered by many of its competitors.
Astec does not appear to possess significant cost advantages. Its gross margins and operating margins are lower than the sector averages, suggesting that it does not have a structural cost advantage over its competitors. The company's manufacturing processes and supply chain management may not be as efficient as those of its larger rivals, resulting in higher production costs. The absence of free cash flow data makes it difficult to assess the company's ability to invest in cost-reducing technologies or processes.
Efficient scale is not a major factor in Astec's industry. The market for road building and construction equipment is fragmented, with numerous players of varying sizes. There is no single dominant player that benefits from economies of scale to the extent that it can effectively exclude competitors. Astec's size and market share are not large enough to create a significant barrier to entry for new competitors or to prevent existing competitors from expanding their operations. The company's ability to differentiate its products and services through innovation and customer service is crucial for maintaining its competitive position.
Overall, Astec's economic moat is limited by the competitive nature of its industry, the moderate switching costs for its customers, and the absence of significant cost advantages or efficient scale. While the company possesses some intangible assets and customer relationships, these are not strong enough to create a wide or sustainable competitive advantage. The company's ability to improve its profitability and generate free cash flow will be critical for strengthening its moat and enhancing its long-term competitive position.
Financial Health & Profitability
Astec Industries' financial health presents a mixed picture. While the company maintains a strong current ratio of 2.49, indicating ample liquidity to cover short-term obligations, its profitability metrics lag behind the industrial sector average. The company's revenue growth of 1.3% is significantly lower than the sector's 6.6%, suggesting challenges in expanding its market share or capitalizing on industry growth opportunities. The absence of free cash flow data further complicates the assessment of its financial health, as it is difficult to determine the company's ability to generate cash from its operations.
The company's gross margin of 25.4% is significantly lower than the sector average of 35.8%, indicating potential inefficiencies in its cost structure or pricing strategy. Similarly, its operating margin of 2.6% and net margin of 1.5% are substantially below the sector averages of 6.2% and 3.7%, respectively, highlighting challenges in converting revenue into profits. These lower margins raise concerns about the company's ability to compete effectively and generate sustainable returns for its shareholders.
Astec's return on equity (ROE) of 3.0% is significantly lower than the sector average of 9.2%, indicating that the company is not effectively utilizing its equity to generate profits. This low ROE may be due to a combination of factors, including lower margins, inefficient asset utilization, or excessive leverage. The company's debt-to-equity ratio of 101.00 is higher than the sector average of 70.00, suggesting that it relies more heavily on debt financing, which could increase its financial risk.
Analyzing the quarterly financial history reveals fluctuating profitability. While the company reported positive net income in Q1 and Q2 of FY2025, it experienced a net loss in Q3 FY2025. This volatility in earnings raises concerns about the consistency and predictability of the company's financial performance. The company's gross margins and operating margins also fluctuated from quarter to quarter, indicating potential challenges in managing costs and maintaining pricing power.
The lack of free cash flow data is a significant concern. Without this information, it is difficult to assess the company's ability to fund its operations, invest in growth opportunities, and return capital to shareholders. The company's financial health would be more clearly understood with the inclusion of free cash flow data, allowing for a more comprehensive assessment of its financial performance and sustainability.
Valuation Assessment
Astec Industries' valuation presents a mixed picture. The company's P/E ratio of 29.3x is slightly higher than the industrial sector average of 27.7x, suggesting that the stock is trading at a slight premium to its peers based on earnings. However, the company's EV/EBITDA ratio of 4.3x is lower than the sector average of 5.7x, indicating that the stock may be undervalued based on its enterprise value relative to its earnings before interest, taxes, depreciation, and amortization. This discrepancy between the P/E and EV/EBITDA ratios suggests that the company's capital structure or tax rate may be influencing its valuation.
Given the company's lower revenue growth, gross margins, operating margins, and ROE compared to the sector averages, it is difficult to justify a premium valuation based on earnings. The company's lower profitability metrics suggest that it should trade at a discount to its peers, reflecting its weaker financial performance. However, the lower EV/EBITDA ratio indicates that the market may be undervaluing the company's assets or its potential for future growth.
The absence of free cash flow data makes it challenging to perform a more comprehensive valuation analysis. Free cash flow is a key metric for assessing a company's ability to generate cash and return value to shareholders. Without this information, it is difficult to determine the company's intrinsic value or to compare its valuation to that of its peers based on free cash flow yield.
Considering the company's mixed financial performance and the lack of free cash flow data, the current valuation appears to be fair. The stock is not significantly overvalued or undervalued based on the available metrics. However, the company's lower profitability and revenue growth compared to the sector averages suggest that it may not be a compelling investment opportunity at its current valuation. Improved financial performance and the generation of free cash flow would be necessary to justify a higher valuation.
The BCR proprietary quant model assigns a Value score of 62/100 to Astec, suggesting that the stock is reasonably valued based on its multiples. However, the model's overall composite score of 51.5/100 and its Hold rating indicate that the stock is not significantly undervalued or poised for significant outperformance. The model's lower scores for Quality (49/100) and Investment (33/100) reflect the company's weaker profitability and capital allocation, which further support the Hold rating.
Risk & Uncertainty
Astec Industries faces several specific risks that could negatively impact its business and financial performance. One significant risk is the cyclical nature of the construction and road building industries. Demand for Astec's products and services is highly dependent on government infrastructure spending, economic growth, and construction activity. Economic downturns or reductions in government funding could lead to a decline in demand, resulting in lower revenue and profitability. The company's exposure to these cyclical factors increases the volatility of its earnings and makes it more susceptible to economic shocks.
Another risk is the intense competition in the construction equipment industry. Astec competes with numerous established players, some of which have greater financial resources and broader product offerings. Increased competition could lead to pricing pressures, reduced market share, and lower profitability. The company's ability to differentiate its products and services through innovation and customer service is crucial for maintaining its competitive position, but there is no guarantee that it will be successful in doing so.
The company's reliance on international markets exposes it to currency fluctuations, geopolitical risks, and varying regulatory environments. Changes in exchange rates could negatively impact the company's revenue and profitability. Political instability or trade disputes in key markets could disrupt its operations and supply chain. Compliance with varying regulations in different countries could increase its costs and complexity. Effective management of these international risks is essential for sustained growth and profitability.
The company's relatively high debt-to-equity ratio of 101.00 increases its financial risk. Higher leverage could make it more difficult for the company to meet its debt obligations, especially during economic downturns. It could also limit the company's ability to invest in growth opportunities or to return capital to shareholders. Prudent management of its debt levels is crucial for maintaining its financial stability.
Bulls Say / Bears Say
The Bull Case
BULL VIEWIncreased infrastructure spending driven by government initiatives will significantly boost demand for Astec's road building equipment and services.
BULL VIEWAstec's strategic focus on innovation and technology will lead to the development of new, high-margin products that capture market share.
BULL VIEWThe company's streamlining efforts will result in improved operational efficiency and higher profitability, exceeding sector averages.
The Bear Case
BEAR VIEWThe cyclical nature of the construction industry will lead to a sharp decline in demand for Astec's products during the next economic downturn.
BEAR VIEWAstec's lower margins and ROE compared to its peers indicate fundamental weaknesses that will prevent it from achieving sustainable profitability.
BEAR VIEWThe absence of free cash flow data raises concerns about the company's financial health and its ability to fund future growth initiatives.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score ASTE and 4,400+ other equities.
ASTEC INDUSTRIES INC exhibits a 180% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
1.5%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
25.4%
Sector: 35.8%
Operating Margin
Core business profitability
2.6%
Sector: 6.2%
Net Margin
Bottom-line profitability
1.5%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $108 annually in dividends at the current trailing rate.
