Astec Industries Inc. Common Stock (ASTE)

FairStock Score: 36/100 — MIXED

Key Financials

Strengths

• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics

Concerns

• Trades significantly above Graham Number ($34) with negative 77% margin of safety—limited downside protection

AI Analysis

Astec Industries Inc. Common Stock is a micro-cap industrials company valued at $1.4 billion. The business generates $1.4 billion in annual revenue with a 0.9% net margin. From a quality standpoint, Astec shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 2.6 in the grey zone. On valuation, the stock is trading at a premium 35.3x earnings, with trades above its Graham Number with a negative 77% margin. Growth dynamics show revenue growing at 11.6% and profit growth of -43.1%. Our composite FairStock Score of 36/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 35x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer