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

Last update: Mar 19, 2024

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.

What does the Valuation looks like for NYSE:TEX

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:TEX has received a 8 out of 10:

Based on the Price/Earnings ratio of 7.75, the valuation of TEX can be described as very cheap.
TEX's Price/Earnings ratio is rather cheap when compared to the industry. TEX is cheaper than 95.42% of the companies in the same industry.
TEX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.68.
A Price/Forward Earnings ratio of 8.34 indicates a reasonable valuation of TEX.
Based on the Price/Forward Earnings ratio, TEX is valued cheaply inside the industry as 93.89% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TEX to the average of the S&P500 Index (22.14), we can say TEX is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, TEX is valued cheaply inside the industry as 91.60% of the companies are valued more expensively.
TEX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TEX is cheaper than 85.50% of the companies in the same industry.
TEX has an outstanding profitability rating, which may justify a higher PE ratio.

How do we evaluate the Profitability for 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 8 out of 10:

The Return On Assets of TEX (14.33%) is better than 93.89% of its industry peers.
TEX has a better Return On Equity (30.98%) than 91.60% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.80%, TEX belongs to the top of the industry, outperforming 93.89% of the companies in the same industry.
TEX had an Average Return On Invested Capital over the past 3 years of 17.81%. This is significantly above the industry average of 10.64%.
The last Return On Invested Capital (21.80%) for TEX is above the 3 year average (17.81%), which is a sign of increasing profitability.
The Profit Margin of TEX (10.06%) is better than 76.34% of its industry peers.
In the last couple of years the Profit Margin of TEX has grown nicely.
Looking at the Operating Margin, with a value of 12.36%, TEX is in the better half of the industry, outperforming 66.41% of the companies in the same industry.
TEX's Operating Margin has improved in the last couple of years.

Assessing Health Metrics for NYSE:TEX

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:TEX was assigned a score of 8 for health:

TEX has an Altman-Z score of 4.25. This indicates that TEX is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.25, TEX is doing good in the industry, outperforming 74.05% of the companies in the same industry.
TEX has a debt to FCF ratio of 1.88. This is a very positive value and a sign of high solvency as it would only need 1.88 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.88, TEX belongs to the top of the industry, outperforming 80.15% of the companies in the same industry.
TEX has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
TEX has a Current Ratio of 2.01. This indicates that TEX is financially healthy and has no problem in meeting its short term obligations.
The current and quick ratio evaluation for TEX is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Exploring NYSE:TEX's Growth

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 5 out of 10:

TEX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 74.48%, which is quite impressive.
The Earnings Per Share has been growing by 22.78% on average over the past years. This is a very strong growth
TEX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.61%.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

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.