Is ASTE a high-quality business?

AlphaMadera's AlphaQuality grade scores Astec Industries, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how ASTE compares to a Buffett-style quality bar.

What is Astec Industries, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to ASTE based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes ASTE a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

ASTE - Astec Industries, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $36.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

C- 45.7 / 100 composite

Composite Grade

Composite of six pillars weighted for cyclical & capital-intensive businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

D+ 42.9

5yr Avg ROIC 3.8% 29/100
Operating Margin Trend +0.68 pp/yr 76/100

Capital Efficiency

Weight: 15%

D 36.1

5yr Avg ROE 2.7% 24/100
5yr Share-Count CAGR 0.3% 60/100

Growth Quality

Weight: 10%

A- 81.4

5yr Revenue CAGR 6.5% 68/100
5yr EPS CAGR 24.9% 100/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 15%

F 10.5

5yr FCF Margin -1.8% 16/100
5yr FCF/NI Conversion 0.04x 4/100

Balance Sheet

Weight: 25%

C+ 59.0

Net Debt / EBITDA 2.29x 64/100
Interest Coverage (EBIT/Int) 3.87x 54/100
Altman Z-Score 2.47 56/100

Stability

Weight: 20%

C- 47.6

EPS Volatility (σ/μ) 0.49 32/100
Piotroski F-Score 4 44/100
Negative-Revenue Years (5) 1/5 80/100

2 of 2 gurus held; 1 added; 1 trimmed; 2 full exits.

Holders: 2
Avg Δ position: +50.4%
New buys: 0
Full exits: 2

Greenblatt sold -100%
Laffont sold -100%
Wood increased +124%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (10%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.