| 2020 | 2021 (projected) | Long Term Debt to Equity | 0.001031 | 0.001058 | Interest Coverage | 128.86 | 115.25 |
Should you short your Astec (NASDAQ:ASTE) position after the latest surge?
 | By Vlad Skutelnik | Macroaxis Story |
21% of stocks are less volatile than Astec, and 95% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon. While some of us are excited about industrials space, it makes sense to digest Astec Inds in greater detail to make a better estimate of its risk and reward. We will go over odds for Astec Inds to generate above-average margins next week.
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Reviewed by Raphi Shpitalnik
Astec Inds currently holds roughly 112.28 M in cash with 131.57 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 4.97. Volatility is a rate at which the price of Astec Industries or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Astec Industries may increase or decrease. In other words, similar to Astec's beta indicator, it measures the risk of Astec Industries and helps estimate the fluctuations that may happen in a short period of time. So if prices of Astec Industries fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How important is Astec Industries's Liquidity
Astec Industries financial leverage refers to using borrowed capital as a funding source to finance Astec Industries ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Astec Industries financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Astec Industries' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Astec Industries' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Astec Industries's total debt and its cash.
Astec Industries Gross Profit
Astec Industries Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Astec Industries previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Astec Industries Gross Profit growth over the last 10 years. Please check Astec Industries' gross profit and other fundamental indicators for more details.
Astec Industries Volatility Drivers
Astec Industries unsystematic risk is unique to Astec Industries and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Astec Industries you can also buy NikolaCorp. You can also mitigate this risk by investing in the industrials sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Astec Industries important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Astec Industries income statement and balance sheet. Here are more details about Astec volatility.Click cells to compare fundamentals
Detailed Perspective On Astec Industries
The company reported the previous year's revenue of 1.07 B. Net Income was 13.19 M with profit before overhead, payroll, taxes, and interest of 239.41 M.
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