NYSE:TEX is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Sep 28, 2023

Our stock screening tool has pinpointed TEREX CORP (NYSE:TEX) as an undervalued stock. NYSE:TEX maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Valuation Analysis for NYSE:TEX

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:TEX, the assigned 9 reflects its valuation:

TEX is valuated reasonably with a Price/Earnings ratio of 8.97.
Based on the Price/Earnings ratio, TEX is valued cheaper than 93.02% of the companies in the same industry.
TEX is valuated cheaply when we compare the Price/Earnings ratio to 25.59, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.08, which indicates a very decent valuation of TEX.
Based on the Price/Forward Earnings ratio, TEX is valued cheaply inside the industry as 93.02% of the companies are valued more expensively.
TEX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 18.75.
86.82% of the companies in the same industry are more expensive than TEX, based on the Enterprise Value to EBITDA ratio.
84.50% 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.
A more expensive valuation may be justified as TEX's earnings are expected to grow with 18.38% in the coming years.

Profitability Assessment of NYSE:TEX

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:TEX has achieved a 7:

TEX has a Return On Assets of 13.06%. This is amongst the best in the industry. TEX outperforms 91.47% of its industry peers.
Looking at the Return On Equity, with a value of 31.14%, TEX belongs to the top of the industry, outperforming 93.80% of the companies in the same industry.
The Return On Invested Capital of TEX (21.03%) is better than 94.57% 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.
With a decent Profit Margin value of 8.96%, TEX is doing good in the industry, outperforming 72.09% of the companies in the same industry.
In the last couple of years the Profit Margin of TEX has grown nicely.
With a decent Operating Margin value of 12.04%, TEX is doing good in the industry, outperforming 69.77% of the companies in the same industry.
TEX's Operating Margin has improved in the last couple of years.

How We Gauge Health 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:

An Altman-Z score of 4.23 indicates that TEX is not in any danger for bankruptcy at the moment.
TEX has a Altman-Z score of 4.23. This is in the better half of the industry: TEX outperforms 75.97% 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.
Looking at the Debt to FCF ratio, with a value of 2.73, TEX is in the better half of the industry, outperforming 75.97% of the companies in the same industry.
TEX has a Current Ratio of 2.07. This indicates that TEX is financially healthy and has no problem in meeting its short term obligations.

A Closer Look at Growth for NYSE:TEX

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:TEX boasts a 6 out of 10:

The Earnings Per Share has grown by an impressive 97.58% over the past year.
Measured over the past years, TEX shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.63% on average per year.
TEX shows a strong growth in Revenue. In the last year, 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.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.