In a market where value is scarce, NYSE:TEX offers a refreshing opportunity with its solid fundamentals.

Last update: Dec 1, 2023

Consider TEREX CORP (NYSE:TEX) as a top value stock, identified by our stock screening tool. NYSE:TEX shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Evaluating Valuation: 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:

The Price/Earnings ratio is 7.00, which indicates a rather cheap valuation of TEX.
95.42% of the companies in the same industry are more expensive than TEX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.69, TEX is valued rather cheaply.
A Price/Forward Earnings ratio of 6.78 indicates a rather cheap valuation of TEX.
96.95% 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 19.79. TEX is valued rather cheaply when compared to this.
TEX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TEX is cheaper than 90.08% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TEX is valued cheaply inside the industry as 83.97% of the companies are valued more expensively.
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 16.69% in the coming years. This may justify a more expensive valuation.

A Closer Look at Profitability for NYSE:TEX

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:TEX was assigned a score of 7 for profitability:

Looking at the Return On Assets, with a value of 13.97%, TEX belongs to the top of the industry, outperforming 93.89% of the companies in the same industry.
The Return On Equity of TEX (32.31%) is better than 93.13% of its industry peers.
TEX has a Return On Invested Capital of 21.98%. This is amongst the best in the industry. TEX outperforms 94.66% of its industry peers.
The last Return On Invested Capital (21.98%) for TEX is above the 3 year average (11.01%), which is a sign of increasing profitability.
With a decent Profit Margin value of 9.39%, TEX is doing good in the industry, outperforming 73.28% of the companies in the same industry.
TEX's Profit Margin has improved in the last couple of years.
TEX has a better Operating Margin (12.47%) than 68.70% of its industry peers.
TEX's Operating Margin has improved in the last couple of years.

Analyzing Health Metrics

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:TEX has earned a 6 out of 10:

An Altman-Z score of 4.16 indicates that TEX is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.16, TEX is doing good in the industry, outperforming 75.57% of the companies in the same industry.
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 77.10% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that TEX is not too dependend on debt financing.
A Current Ratio of 2.11 indicates that TEX has no problem at all paying its short term obligations.

A Closer Look at Growth for NYSE:TEX

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:TEX has achieved a 6 out of 10:

The Earnings Per Share has grown by an impressive 84.60% 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.
Looking at the last year, TEX shows a very strong growth in Revenue. 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.

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.

Disclaimer

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.