NYSE:TEX, an undervalued stock with good fundamentals.

Last update: Oct 20, 2023

Take a closer look at TEREX CORP (NYSE:TEX), a remarkable value stock uncovered by our stock screener. NYSE:TEX excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

Valuation Examination for NYSE:TEX

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:

TEX is valuated cheaply with a Price/Earnings ratio of 7.35.
Based on the Price/Earnings ratio, TEX is valued cheaply inside the industry as 95.38% of the companies are valued more expensively.
TEX is valuated cheaply when we compare the Price/Earnings ratio to 25.23, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.62, which indicates a rather cheap valuation of TEX.
96.15% of the companies in the same industry are more expensive than TEX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 18.51. TEX is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, TEX is valued cheaply inside the industry as 90.77% of the companies are valued more expensively.
84.62% 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.
TEX has a very decent profitability rating, which 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.

Profitability Assessment of NYSE:TEX

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:TEX scores a 7 out of 10:

With an excellent Return On Assets value of 13.06%, TEX belongs to the best of the industry, outperforming 91.54% of the companies in the same industry.
TEX has a better Return On Equity (31.14%) than 93.85% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.03%, TEX belongs to the top of the industry, outperforming 94.62% of the companies in the same industry.
The last Return On Invested Capital (21.03%) for TEX is above the 3 year average (11.01%), which is a sign of increasing profitability.
Looking at the Profit Margin, with a value of 8.96%, TEX is in the better half of the industry, outperforming 70.77% of the companies in the same industry.
TEX's Profit Margin has improved in the last couple of years.
TEX has a Operating Margin of 12.04%. This is in the better half of the industry: TEX outperforms 68.46% of its industry peers.
In the last couple of years the Operating Margin of TEX has grown nicely.

A Closer Look at Health for NYSE:TEX

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:TEX has received a 6 out of 10:

An Altman-Z score of 4.01 indicates that TEX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.01, TEX is in the better half of the industry, outperforming 74.62% of the companies in the same industry.
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 76.15% of its industry peers.
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.

Looking at the Growth

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:

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.

Our latest full fundamental report of TEX contains the most current fundamental analsysis.

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.