NYSE:TEX is probably undervalued for the fundamentals it is displaying.

Last update: Jan 15, 2024

Discover TEREX CORP (NYSE:TEX), an undervalued stock highlighted by our stock screener. NYSE:TEX showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Assessing Valuation Metrics for NYSE:TEX

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:TEX has earned a 9 for valuation:

Based on the Price/Earnings ratio of 8.09, the valuation of TEX can be described as reasonable.
Based on the Price/Earnings ratio, TEX is valued cheaply inside the industry as 93.85% of the companies are valued more expensively.
TEX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.82.
TEX is valuated cheaply with a Price/Forward Earnings ratio of 7.92.
TEX's Price/Forward Earnings ratio is rather cheap when compared to the industry. TEX is cheaper than 93.85% 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 20.77.
TEX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TEX is cheaper than 88.46% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TEX is valued cheaper than 84.62% of the companies in the same industry.
TEX's 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 16.86% in the coming years.

Exploring NYSE:TEX's Profitability

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:

The Return On Assets of TEX (13.97%) is better than 93.85% of its industry peers.
Looking at the Return On Equity, with a value of 32.31%, TEX belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
TEX's Return On Invested Capital of 21.98% is amongst the best of the industry. TEX outperforms 94.62% of its industry peers.
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 72.31% 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.

Health Assessment of NYSE:TEX

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:TEX has earned a 7 out of 10:

TEX has an Altman-Z score of 4.31. This indicates that TEX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TEX (4.31) is better than 74.62% of its industry peers.
The Debt to FCF ratio of TEX is 2.19, which is a good value as it means it would take TEX, 2.19 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.19, TEX is in the better half of the industry, outperforming 78.46% of the companies in the same industry.
A Debt/Equity ratio of 0.47 indicates that TEX is not too dependend on debt financing.
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 do we evaluate the Growth for NYSE:TEX?

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:TEX, the assigned 6 reflects its growth potential:

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.
TEX shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.82%.
The Earnings Per Share is expected to grow by 8.98% on average over the next years. This is quite good.
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.

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.