NYSE:TEX: good value for what you're paying.

Last update: Nov 10, 2023

Our stock screening tool has pinpointed TEREX CORP (NYSE:TEX) as an undervalued stock option. NYSE:TEX retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

Deciphering NYSE:TEX's Valuation Rating

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 6.72.
Compared to the rest of the industry, the Price/Earnings ratio of TEX indicates a rather cheap valuation: TEX is cheaper than 95.38% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 23.21. TEX is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 6.51, which indicates a rather cheap valuation of TEX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TEX indicates a rather cheap valuation: TEX is cheaper than 96.15% of the companies listed in the same industry.
TEX is valuated cheaply when we compare the Price/Forward Earnings ratio to 18.62, which is the current average of the S&P500 Index.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TEX indicates a rather cheap valuation: TEX is cheaper than 89.23% of the companies listed in the same industry.
TEX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TEX is cheaper than 84.62% of the companies in the same industry.
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.
A more expensive valuation may be justified as TEX's earnings are expected to grow with 16.69% in the coming years.

Analyzing Profitability Metrics

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:

TEX has a better Return On Assets (13.97%) than 93.85% of its industry peers.
TEX's Return On Equity of 32.31% is amongst the best of the industry. TEX outperforms 93.08% of its industry peers.
With an excellent Return On Invested Capital value of 21.98%, TEX belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
The 3 year average ROIC (11.01%) for TEX is below the current ROIC(21.98%), indicating increased profibility in the last year.
With a decent Profit Margin value of 9.39%, TEX is doing good in the industry, outperforming 73.08% of the companies in the same industry.
TEX's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.47%, TEX is in the better half of the industry, outperforming 67.69% of the companies in the same industry.
In the last couple of years the Operating Margin of TEX has grown nicely.

Looking at the Health

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:

TEX has an Altman-Z score of 4.12. This indicates that TEX is financially healthy and has little risk of bankruptcy at the moment.
TEX's Altman-Z score of 4.12 is fine compared to the rest of the industry. TEX outperforms 76.15% of its industry peers.
TEX has a debt to FCF ratio of 2.19. This is a good value and a sign of high solvency as TEX would need 2.19 years to pay back of all of its debts.
TEX's Debt to FCF ratio of 2.19 is fine compared to the rest of the industry. TEX outperforms 78.46% of its industry peers.
TEX has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
TEX has a Current Ratio of 2.11. This indicates that TEX is financially healthy and has no problem in meeting its short term obligations.

How We Gauge Growth for NYSE:TEX

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 84.60%, 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
TEX shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.82%.
Based on estimates for the next years, TEX will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.40% on average per year.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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For an up to date full fundamental analysis you can check the fundamental report of TEX

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.