Astec IndustriesSTU:AI2 +3.80%84 Operating Margin % is 2.25% as of Mar. 2026, which is 44% below its 10-year median of 4.02. GuruFocus rates STU:AI2 with a GF Score™ of 84/100 and a GF Value™ of €39.43. The stock has 5 warning signs investors should review. Among 209 Farm & Heavy Construction Machinery companies, Astec Industries ranks worse than 70.33% on this metric.
Astec Industries Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Astec Industries's Operating Margin % or its related term are showing as below:
STU:AI2'
s Operating Margin % Range Over the Past 10 Years
Min: -6.26 Med: 4.02 Max: 7.6
Current: 3.65
STU:AI2's Operating Margin % is ranked worse than 70.33% of 209
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 6.78
vs STU:AI2: 3.65
Astec Industries's 5-Year Average Operating Margin % Growth Rate was 9.10% per year.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Astec Industries Operating Margin % Related Terms
Astec Industries Operating Margin % Historical Data
* Premium members only.
The historical data trend for Astec Industries's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:AI2 vs LNN, AEBI, HY: Operating Margin % Comparison
For the Farm & Heavy Construction Machinery subindustry, Astec Industries's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Astec Industries Operating Margin % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Astec Industries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Astec Industries's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Astec Industries's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Astec Industries (STU:AI2) has a Operating Margin % of 2.25% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Astec Industries and its competitors. This is 44% below median its historical median of 4.02. According to the industry distribution chart, Astec Industries ranks #147 out of 209 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 70.3%.
Is Astec Industries' Operating Margin % too high?
Astec Industries' current Operating Margin % of 2.25% is 44% below median its 10-year median of 4.02. The Farm & Heavy Construction Machinery industry median Operating Margin % is 6.78. Astec Industries' value of 2.25% is 66.8% below this industry median. Based on the distribution chart, Astec Industries ranks #147 out of 209 companies in the Farm & Heavy Construction Machinery industry, which is below the industry midpoint. Overall, Astec Industries has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does Astec Industries' Operating Margin % compare to LNN and AEBI?
According to the Farm & Heavy Construction Machinery industry distribution chart, Astec Industries ranks #147 out of 209 companies for Operating Margin %. This places Astec Industries in the lower half of its industry. The industry median Operating Margin % is 6.78. Astec Industries' value of 2.25% is 66.8% below this benchmark. While the company's 10-year median is 4.02 vs. the industry median of 6.78, Astec Industries has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Farm & Heavy Construction Machinery company?
The median Operating Margin % among Farm & Heavy Construction Machinery companies is 6.78, based on 209 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Astec Industries's current Operating Margin % of 2.25% is 66.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Astec Industries and its competitors. For the Farm & Heavy Construction Machinery industry, the median Operating Margin % is 6.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Astec Industries's current Operating Margin % is 2.25%, which is 44% below median its own 10-year median of 4.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Astec Industries stock overvalued right now?
Astec Industries (STU:AI2) has a current Operating Margin % of 2.25%. The stock's GF Value™ is €39.43, compared to a current price of €49.20 — trading 24.8% above its estimated fair value. The current Operating Margin % is 2.25%, which is 44% below median its 10-year median of 4.02 and 66.8% below the Farm & Heavy Construction Machinery industry median of 6.78. Astec Industries' overall GF Score™ is 84/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Astec Industries (STU:AI2), the current Operating Margin % is 2.25% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Astec Industries (STU:AI2) Overvalued in 2026?
Based on GuruFocus' analysis, Astec Industries stock appears to be overvalued.
The current stock price of €49.20 is trading 24.8% above its estimated GF Value™ of €39.43.
Key valuation signals for STU:AI2:
Operating Margin %: 2.25% (44% below median its 10-year median of 4.02)
GF Value™: €39.43 vs. price of €49.20 (24.8% above fair value)
Industry Position: 66.8% below the Farm & Heavy Construction Machinery median (#147 of 209)
No single metric tells the full story. See the STU:AI2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Astec Industries Inc designs and manufactures equipment and components used in road construction and other development activities. Its products are used through the entire process of building roads, from mining and crushing materials to creating the road surface. The company manufactures a line of plants, pavers, vehicles, and machines to mix and transform materials into construction components. The company has two operating segments: infrastructure solutions generating maximum revenue and materials solutions. The majority of sales are derived from the United States. Its customers are asphalt producers, highway and heavy equipment contractors, ready mix concrete producers, demolition recycling markets, sand and gravel producers, open mine operators, quarry operators, and others.
84GF Score
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