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

Last update: Apr 9, 2024

Discover TEREX CORP (NYSE:TEX)—an undervalued stock our stock screener has picked out. NYSE:TEX demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Evaluating Valuation: 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 8.56, the valuation of TEX can be described as reasonable.
93.08% of the companies in the same industry are more expensive than TEX, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.14. TEX is valued rather cheaply when compared to this.
TEX is valuated reasonably with a Price/Forward Earnings ratio of 9.21.
TEX's Price/Forward Earnings ratio is rather cheap when compared to the industry. TEX is cheaper than 93.08% 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 22.43.
Based on the Enterprise Value to EBITDA ratio, TEX is valued cheaper than 89.23% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TEX indicates a rather cheap valuation: TEX is cheaper than 86.92% of the companies listed in the same industry.
TEX has an outstanding profitability rating, which may justify a higher PE ratio.

Profitability Examination for NYSE:TEX

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:TEX has earned a 8 out of 10:

With an excellent Return On Assets value of 14.33%, TEX belongs to the best of the industry, outperforming 93.08% of the companies in the same industry.
With an excellent Return On Equity value of 30.98%, TEX belongs to the best of the industry, outperforming 91.54% of the companies in the same industry.
TEX's Return On Invested Capital of 21.80% is amongst the best of the industry. TEX outperforms 93.85% of its industry peers.
TEX had an Average Return On Invested Capital over the past 3 years of 17.81%. This is significantly above the industry average of 10.77%.
The 3 year average ROIC (17.81%) for TEX is below the current ROIC(21.80%), indicating increased profibility in the last year.
TEX has a better Profit Margin (10.06%) than 75.38% of its industry peers.
TEX's Profit Margin has improved in the last couple of years.
TEX has a better Operating Margin (12.36%) than 66.15% of its industry peers.
TEX's Operating Margin has improved in the last couple of years.

How We Gauge Health for NYSE:TEX

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:TEX has achieved a 8 out of 10:

An Altman-Z score of 4.37 indicates that TEX is not in any danger for bankruptcy at the moment.
The Altman-Z score of TEX (4.37) is better than 73.08% of its industry peers.
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 is in the better half of the industry, outperforming 80.00% 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.

What does the Growth looks like 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 5 reflects its growth potential:

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.
TEX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.78% yearly.
TEX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.61%.
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

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.