Investment Thesis
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.
ASTE 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
ASTE 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
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
ASTE Financial Metrics
ASTE Profitability Ratios
ASTE Balance Sheet & Liquidity
ASTE 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 Growth Metrics (YoY)
ASTE Quarterly 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.
ASTE Capital Allocation
ASTE SEC Filings
Access official SEC EDGAR filings for ASTEC INDUSTRIES INC (CIK: 0000792987)