Is Astec Industries (NASDAQ:ASTE) Using Too Much Debt?
Is Astec Industries (NASDAQ:ASTE) Using Too Much Debt?
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that 'Volatility is far from synonymous with risk.' So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is. As with many other companies Astec Industries, Inc. (NASDAQ:ASTE) makes use of debt. But the more important question is: how much risk is that debt creating?
作爲投資者,有些人認爲波動性而不是債務是評估風險的最佳方式,但禾倫·巴菲特曾經說過: 「波動性遠非風險的同義詞。」 因此,明智的資金都知道,債務——通常與破產有關——是評估公司風險的非常重要的因素。與許多其他公司一樣,Astec Industries, Inc. (納斯達克:ASTE) 也利用債務,但更重要的問題是:這些債務造成了多大的風險?
When Is Debt Dangerous?
債務何時有危險?
Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. By replacing dilution, though, debt can be an extremely good tool for businesses that need capital to invest in growth at high rates of return. When we examine debt levels, we first consider both cash and debt levels, together.
當企業無法通過自由現金流或以優惠價格籌集資本來輕鬆履行債務時,債務和其他負債將成爲其風險所在。在最糟糕的情況下,如果公司無法償還其債權人,它可能會破產。然而,一種更常見(但仍然痛苦的)情況是,它不得不以低價募集新的股本資本,從而永久性地稀釋股東。然而,通過替代稀釋,債務可以成爲需要資本以高回報率投資於增長的企業的一種極好工具。當我們檢查債務水平時,首先需要考慮現金和債務水平。
What Is Astec Industries's Debt?
Astec Industries是什麼債務?
As you can see below, at the end of March 2024, Astec Industries had US$134.6m of debt, up from US$76.0m a year ago. Click the image for more detail. However, it does have US$63.8m in cash offsetting this, leading to net debt of about US$70.8m.
如下所示,截至2024年3月底,Astec Industries的負債總額爲1.346億美元,高於一年前的0.76億美元。點擊圖像以了解更多詳情。但是,它有6380萬美元的現金抵消了這筆債務,導致淨債務約爲7080萬美元。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240804/0-9a538a9c863b123a720187a55bc0fb4d-0-385b97da32e3ad31027986be07ee88a3.png/big)
How Strong Is Astec Industries' Balance Sheet?
Astec Industries的資產負債表有多強?
Zooming in on the latest balance sheet data, we can see that Astec Industries had liabilities of US$310.4m due within 12 months and liabilities of US$162.1m due beyond that. On the other hand, it had cash of US$63.8m and US$192.0m worth of receivables due within a year. So it has liabilities totalling US$216.7m more than its cash and near-term receivables, combined.
仔細觀察最新的資產負債表數據,我們可以看到Astec Industries有3.104億美元的短期應付債務和1.621億美元的長期應付債務。另一方面,它有6,380萬美元的現金和1.92億美元的應收賬款到期時間爲一年。因此,它的總負債超過現金和短期應收賬款的21,670萬美元。
Astec Industries has a market capitalization of US$730.1m, so it could very likely raise cash to ameliorate its balance sheet, if the need arose. However, it is still worthwhile taking a close look at its ability to pay off debt.
Astec Industries的市值爲7,301萬美元,因此,如果有需要,它很可能籌集資金以改善其資產負債表。然而,仔細研究其償還債務的能力仍然是值得的。
We use two main ratios to inform us about debt levels relative to earnings. The first is net debt divided by earnings before interest, tax, depreciation, and amortization (EBITDA), while the second is how many times its earnings before interest and tax (EBIT) covers its interest expense (or its interest cover, for short). The advantage of this approach is that we take into account both the absolute quantum of debt (with net debt to EBITDA) and the actual interest expenses associated with that debt (with its interest cover ratio).
BJ批發俱樂部控股公司的淨債務只有EBITDA的0.62倍。而其EBIT輕鬆覆蓋其利息費用,比例爲12.6倍。因此,我們對其超級保守的債務使用感到相當放心。雖然BJ批發俱樂部控股公司在EBIT方面沒有取得太多進展,但至少其盈利保持穩定。當分析債務水平時,資產負債表是顯然的切入點。但歸根結底,企業未來的盈利能力將決定BJ批發俱樂部控股公司能否隨着時間的推移加強資產負債表。因此,如果你要關注未來,可以查看一下這份免費的分析報告,了解分析師的盈利預測。
Astec Industries's net debt is only 0.70 times its EBITDA. And its EBIT covers its interest expense a whopping 10.1 times over. So you could argue it is no more threatened by its debt than an elephant is by a mouse. Another good sign is that Astec Industries has been able to increase its EBIT by 23% in twelve months, making it easier to pay down debt. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately the future profitability of the business will decide if Astec Industries can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
Astec Industries的淨債務僅爲EBITDA的0.70倍。其EBIT超過利息支出10.1倍。因此,你可以說它受到的債務威脅不比大象受到老鼠的威脅。另一個好跡象是,Astec Industries已經成功增加了23%的EBITDA,使其更容易償還債務。在分析債務水平時,資產負債表是明顯的起點。但是,最終業務未來的盈利能力將決定Astec Industries能否隨着時間的推移加強其資產負債表。因此,如果您想了解專業人士的想法,您可能會發現這篇有關分析師利潤預測的免費報告很有趣。
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. So the logical step is to look at the proportion of that EBIT that is matched by actual free cash flow. Over the last three years, Astec Industries saw substantial negative free cash flow, in total. While investors are no doubt expecting a reversal of that situation in due course, it clearly does mean its use of debt is more risky.
最後,業務需要有自由現金流才能償還債務;會計利潤不足以支撐這一點。因此,邏輯的步驟是查看與實際自由現金流相匹配的EBIT的比例。在過去三年中,Astec Industries的自由現金流總額相當驚人地爲負。儘管投資者無疑期望在未來扭轉這種情況,但這確實意味着其債務使用更具風險性。
Our View
我們的觀點
Based on what we've seen Astec Industries is not finding it easy, given its conversion of EBIT to free cash flow, but the other factors we considered give us cause to be optimistic. There's no doubt that its ability to to grow its EBIT is pretty flash. Looking at all this data makes us feel a little cautious about Astec Industries's debt levels. While debt does have its upside in higher potential returns, we think shareholders should definitely consider how debt levels might make the stock more risky. There's no doubt that we learn most about debt from the balance sheet. But ultimately, every company can contain risks that exist outside of the balance sheet. These risks can be hard to spot. Every company has them, and we've spotted 2 warning signs for Astec Industries you should know about.
基於我們所看到的,如果考慮到EBIT和實際自由現金流的轉換,則Astec Industries並不容易,但是我們考慮的其他因素讓我們有理由持樂觀態度。其能夠增長的EBIT相當亮眼。看到所有這些數據,我們對Astec Industries的債務水平感到有些謹慎。雖然債務確實在潛在收益方面有優勢,但我們認爲股東們應該考慮債務水平可能使股票更具風險。毫無疑問,資產負債表是了解債務的最佳途徑。但是,最終,每個公司都可能存在負債表之外的風險。這些風險可能難以發現。每個公司都有它們,我們已經發現Astec Industries存在2個警告跡象,您應該了解。
If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.
如果您有興趣投資能夠在不負債的情況下增長利潤的企業,請查看這份免費列表,其中列出了在資產負債表上擁有淨現金的成長型企業。
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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.
對本文有任何反饋?對內容有任何疑慮?請直接與我們聯繫。或者,發送電子郵件至editorial-team@simplywallst.com。
這篇文章是Simply Wall St的一般性文章。我們根據歷史數據和分析師預測提供評論,只使用公正的方法論,我們的文章並不意味着提供任何金融建議。文章不構成買賣任何股票的建議,也不考慮您的目標或您的財務狀況。我們的目標是帶給您基本數據驅動的長期關注分析。請注意,我們的分析可能不考慮最新的價格敏感公司公告或定性材料。Simply Wall St沒有任何股票頭寸。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
對本文有任何反饋?對內容有任何疑慮?請直接與我們聯繫。或者,發送電子郵件至editorial-team@simplywallst.com。