Astec Industries Intrinsic Stock Value – ASTEC INDUSTRIES Reports 10.0% Increase in Q2 Revenue of USD 350.0 Million for FY2023
August 7, 2023
☀️Earnings Overview
On August 2 2023, ASTEC INDUSTRIES ($NASDAQ:ASTE) reported total revenue of USD 350.0 million for Q2 of their fiscal year 2023 ending June 30, a year-over-year increase of 10.0%. Net income for the period was reported as USD 13.1 million, compared to the loss of -3.9 million in the same quarter last year.
Analysis – Astec Industries Intrinsic Stock Value
GoodWhale has conducted an analysis of ASTEC INDUSTRIES‘s wellbeing, and has determined that their fair value should be around $63.4. This has been calculated by the company’s proprietary Valuation Line. Currently, ASTEC INDUSTRIES’s stock is being traded at $53.4, which represents a fair price that is undervalued by 15.8%. This makes it an attractive investment opportunity for those looking to add the company to their portfolio. With the knowledge that ASTEC INDUSTRIES is undervalued, investors may be able to capitalize on this discrepancy and add the stock to their portfolios for a potential return. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Astec Industries. More…
| Total Revenues | Net Income | Net Margin |
| 1.36k | 24.9 | 2.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Astec Industries. More…
| Operations | Investing | Financing |
| -34.5 | -13.7 | 41.8 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Astec Industries. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.01k | 362.9 | 27.98 |
Key Ratios Snapshot
Some of the financial key ratios for Astec Industries are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.6% | 54.2% | 3.1% |
| FCF Margin | ROE | ROA |
| -5.4% | 4.1% | 2.6% |
Peers
There is intense competition between Astec Industries Inc and its competitors Terex Corp, Guangxi Liugong Machinery Co Ltd, Volvo AB. All four companies are striving to be the leading manufacturer in the construction and mining equipment industry. This competition is beneficial to consumers as it drives down prices and encourages innovation.
– Terex Corp ($NYSE:TEX)
Terex Corporation is an American manufacturer of lifting and material handling solutions for a variety of industries, including construction, infrastructure, quarrying, recycling, energy, mining, shipping, transportation, refining and utilities. The company’s products and services are used in a variety of applications, including the lifting of construction materials, the loading and unloading of ships, the handling of materials at ports and terminals, and the moving of materials at mines and quarries. Terex Corporation has a market cap of 3.03B as of 2022 and a Return on Equity of 22.39%.
– Guangxi Liugong Machinery Co Ltd ($SZSE:000528)
Guangxi Liugong Machinery Co., Ltd. engages in the research and development, manufacture, and sale of construction machinery and equipment. The company offers excavators, loaders, road rollers, and forklifts. It also provides spare parts and service support for its products. The company was founded in 1958 and is headquartered in Nanning, China.
– Volvo AB ($OTCPK:VLVLY)
Volvo AB is a Swedish multinational manufacturing company headquartered in Gothenburg. Its main businesses are in automotive industry, construction equipment, and marine and industrial engines. In 2019, it was the world’s second largest manufacturer of trucks. Volvo AB has a market cap of 37.02B as of 2022, a Return on Equity of 18.15%. The company has been doing quite well, however its truck sales have been declining in Europe and North America.
Summary
Astec Industries reported strong financial results for the second quarter of FY2023, with total revenue increasing by 10.0% year over year to reach USD 350.0 million. Net income for the period was USD 13.1 million, a significant improvement from the loss of -3.9 million reported in the same period last year. This news has been well-received by investors, as the stock price increased on the day of announcement. As such, Astec Industries seems to be a promising investment opportunity, given its strong financial performance and potential for further growth.
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