NYSE:TEX stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Sep 22, 2023

Uncover the potential of TEREX CORP (NYSE:TEX) as our stock screener's choice for an undervalued stock. NYSE:TEX maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Looking at the Valuation

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:TEX has achieved a 9 out of 10:

Based on the Price/Earnings ratio of 8.71, the valuation of TEX can be described as reasonable.
TEX's Price/Earnings ratio is rather cheap when compared to the industry. TEX is cheaper than 93.70% of the companies in the same industry.
When comparing the Price/Earnings ratio of TEX to the average of the S&P500 Index (25.93), we can say TEX is valued rather cheaply.
TEX is valuated cheaply with a Price/Forward Earnings ratio of 7.84.
TEX's Price/Forward Earnings ratio is rather cheap when compared to the industry. TEX is cheaper than 93.70% of the companies in the same industry.
TEX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 19.01.
Based on the Enterprise Value to EBITDA ratio, TEX is valued cheaper than 88.98% of the companies in the same industry.
84.25% of the companies in the same industry are more expensive than TEX, based on the Price/Free Cash Flow ratio.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of TEX may justify a higher PE ratio.
TEX's earnings are expected to grow with 18.38% in the coming years. This may justify a more expensive valuation.

Evaluating Profitability: NYSE:TEX

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:TEX, the assigned 7 is a significant indicator of profitability:

Looking at the Return On Assets, with a value of 13.06%, TEX belongs to the top of the industry, outperforming 91.34% of the companies in the same industry.
TEX has a better Return On Equity (31.14%) than 93.70% of its industry peers.
TEX has a Return On Invested Capital of 21.03%. This is amongst the best in the industry. TEX outperforms 94.49% of its industry peers.
The 3 year average ROIC (11.01%) for TEX is below the current ROIC(21.03%), indicating increased profibility in the last year.
TEX's Profit Margin of 8.96% is fine compared to the rest of the industry. TEX outperforms 72.44% of its industry peers.
In the last couple of years the Profit Margin of TEX has grown nicely.
TEX has a Operating Margin of 12.04%. This is in the better half of the industry: TEX outperforms 69.29% of its industry peers.
TEX's Operating Margin has improved in the last couple of years.

Health Examination for NYSE:TEX

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:TEX has achieved a 6 out of 10:

TEX has an Altman-Z score of 4.19. This indicates that TEX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TEX (4.19) is better than 75.59% of its industry peers.
TEX has a debt to FCF ratio of 2.73. This is a good value and a sign of high solvency as TEX would need 2.73 years to pay back of all of its debts.
TEX's Debt to FCF ratio of 2.73 is fine compared to the rest of the industry. TEX outperforms 75.59% of its industry peers.
A Current Ratio of 2.07 indicates that TEX has no problem at all paying its short term obligations.

Understanding NYSE:TEX's Growth Score

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:TEX has received a 6 out of 10:

TEX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 97.58%, which is quite impressive.
The Earnings Per Share has been growing by 25.63% on average over the past years. This is a very strong growth
Looking at the last year, TEX shows a very strong growth in Revenue. The Revenue has grown by 22.48%.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of TEX for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.