3 models fit Astec Industries Inc. Common Stock and they disagree: 1 of 3 land within 15% of the average.
Two or more of our models back this value.
Large discount(i)
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, and Graham number.
ACCE opinionAstec Industries Inc. Common Stock (ASTE)
Fair value (3 models)
$53.49
ACCE price target
$43.00
Rating
Undervalued
Horizon
12 months
Fair value published on 16 Oct 2026, 00:00 CEST; previously $54.56 since 11 Oct 2026, 00:00 CEST.
ACCE price target published on 13 Oct 2026, 00:00 CEST.
Rating published on 21 Oct 2026, 11:06 CEST.
Price used: $38.45 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, EV/EBITDA comparison, Graham number, and P/E comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
28.1% below
+39.1% to fair value
ACCE score
45
out of 100
Analysts
100% buy
2 covering
P/E
45.2x
forward 9.8x
1-year return
-20.1%
Dividend yield
1.34%
Astec Industries Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Astec Industries makes asphalt and concrete plants, aggregate processing equipment, and underground horizontal directional drilling rigs, with a sizeable aftermarket parts business behind the equipment. The competitive position rests on installed-base service revenue and a long-established name in plant engineering, though the company runs thin margins for a capital equipment maker, with a 26.2% gross margin and 6.3% operating margin. Revenue growth of 23.6% is the headline, and the bet is that infrastructure spending and a recovering construction cycle keep order books full while cost discipline lifts profitability. The stock looks cheap on forward earnings at 9.8x against a trailing P/E of 45.8, a gap that signals earnings are expected to rebound sharply, but the 2.9% ROE shows that little of that growth has yet reached shareholders. The score of 47/100 and the absence of any index membership suggest the market is not yet pricing in a clean recovery, so this is worth a deeper look mainly to test whether margin expansion is real.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Earnings falling despite sales growth
Revenue grew 23.6% year over year, yet earnings fell 37.5%. Net margin is just 1.3% and operating margin 6.3%, so the top-line growth is not reaching the bottom line.
moderate
Score down sharply in 90 days
The ACCE score dropped 13 points, from 58 to 45, over 90 days. The margin pillar scores 17 of 100, the weakest of the four components.
moderate
Thin return on equity
ROE is 2.9% with debt to equity at 0.51. Free cash flow of $22M on an $880M market cap gives little cushion if earnings stay weak.
AI research notes
AI-assisted·How I use AIWritten Oct 20, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue grew 23.6% year over year, well ahead of its 6.6% average annual pace over five years.
At 9.8 times forward earnings, the stock trades far below the sector median of 23.8 times.
Why it could disappoint
Net margin of 1.3% and return on equity of 2.9% leave little profit for shareholders from each dollar of sales.
Last quarter's earnings per share missed expectations by 10.5%, with $0.94 reported against $1.05 expected.
The stock trades 28.1% below the model fair value of $53.49, yet its 45.0 times trailing earnings and 2.4% free cash flow yield keep valuation demanding on reported results.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 4, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where ASTE's valuation models land
Price
$38.45
Model fair value
$53.49
Model range
$33.70 to $76.54
Fair value $53.49
Price $38.45
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
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