Astec Industries' Surge Was Well-Deserved, And More Upside Is Warranted

Daniel JonesInvesting Group LeaderFollow5ShareSavePlay(11min)CommentsSummaryAstec Industries remains a soft ‘buy’ after a 63.5% gain since April 2023, supported by attractive valuation and acquisition-driven growth.Recent results show Q3 revenue up 20.1% to $350.1M, with EBITDA rising to $27.1M, though much of the growth is acquisition-related.Organic growth stands at 5.9%, but backlog contraction and macro headwinds suggest near-term softness, partially offset by infrastructure spending tailwinds.ASTE trades at the lowest price-to-operating-cash-flow among peers, with 2025 EBITDA guided to $132–$142M, and further impact expected from the CWMF acquisition.Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More » Michael H/DigitalVision via Getty Images One of my more successful calls over the last year has been Astec Industries (ASTE). For those not familiar with the business, it operates as a producer, seller, and servicer of equipment that's dedicated mostly to the asphalt and concrete road-buildingThis article was written byDaniel Jones36.62K FollowersFollowDaniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.