• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Astec Industries (ASTE) Valuation Check After Q1 Revenue Strength And Profit Margin Miss

    Simply Wall St·05/11/2026 16:47:11
    Listen to the news

    Astec Industries (ASTE) just reported first quarter 2026 results that combined strong revenue and backlog with weaker profit margins, as cost inflation, product mix, and higher tariffs and trade show spending reduced earnings.

    See our latest analysis for Astec Industries.

    Astec Industries' 1 day share price return of 0.64% comes after the Q1 miss on profit. The 7 day and 30 day share price returns are down 13.34% and 12.87%. By contrast, the year to date share price return of 19.52% and 1 year total shareholder return of 29.55% still point to positive momentum compared with its weaker 5 year total shareholder return, which is down 19.80%.

    If earnings volatility has you reassessing construction and infrastructure exposure, this can be a good moment to look across related equipment suppliers and check out 36 power grid technology and infrastructure stocks

    With Astec trading at $53.34 alongside an analyst price target of $71.00 and only a modest intrinsic discount, the key question is simple: are you looking at hidden value here, or is the market already pricing in future growth?

    Most Popular Narrative: 25.7% Undervalued

    Astec's most followed narrative pegs fair value at $71.75, well above the last close at $53.34, so the current price sits well below that framework.

    Continued execution of operational excellence initiatives, manufacturing footprint optimization, procurement improvements, and Lean practices are driving material margin expansion and are expected to further improve EBITDA and net margins going forward.

    Read the complete narrative.

    Want to see what sits behind that margin story and the $71.75 fair value? Revenue assumptions, earnings compounding, and valuation multiples all pull in the same direction.

    Result: Fair Value of $71.75 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, that upside story can fray if Astec’s heavy reliance on U.S. infrastructure funding or its TerraSource integration plans hit bumps and margin progress stalls.

    Find out about the key risks to this Astec Industries narrative.

    Another Angle on Valuation

    The fair value narrative has Astec trading about 3.1% below an estimated $55.03 future cash flow value, so the SWS DCF model also lands in the undervalued camp, just with a much tighter margin of safety. Which version of "undervalued" feels more realistic to you?

    Look into how the SWS DCF model arrives at its fair value.

    ASTE Discounted Cash Flow as at May 2026
    ASTE Discounted Cash Flow as at May 2026

    Next Steps

    Mixed messages on value and risk so far? Take a closer look at the numbers, weigh both sides, and shape your own view with 4 key rewards and 2 important warning signs

    Looking for more investment ideas?

    If Astec has you thinking harder about risk and reward, now is the time to broaden your watchlist so you are not relying on a single story.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.