For those who appreciate value investing, NYSE:TEX is a compelling option with its solid fundamentals.

Last update: May 27, 2024

TEREX CORP (NYSE:TEX) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NYSE:TEX showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

Assessing Valuation 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 8 for valuation:

Based on the Price/Earnings ratio of 8.08, the valuation of TEX can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of TEX indicates a rather cheap valuation: TEX is cheaper than 93.02% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TEX to the average of the S&P500 Index (28.27), we can say TEX is valued rather cheaply.
TEX is valuated reasonably with a Price/Forward Earnings ratio of 8.29.
TEX's Price/Forward Earnings ratio is rather cheap when compared to the industry. TEX is cheaper than 93.02% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.18, TEX is valued rather cheaply.
TEX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TEX is cheaper than 90.70% 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 81.40% of the companies listed in the same industry.
TEX has an outstanding profitability rating, which may justify a higher PE ratio.

Looking at the Profitability

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 13.67%, TEX belongs to the best of the industry, outperforming 91.47% of the companies in the same industry.
With an excellent Return On Equity value of 29.68%, TEX belongs to the best of the industry, outperforming 91.47% of the companies in the same industry.
With an excellent Return On Invested Capital value of 20.84%, TEX belongs to the best of the industry, outperforming 93.80% 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 10.72%.
The last Return On Invested Capital (20.84%) for TEX is above the 3 year average (17.81%), which is a sign of increasing profitability.
TEX has a better Profit Margin (9.87%) than 72.87% of its industry peers.
In the last couple of years the Profit Margin of TEX has grown nicely.
The Operating Margin of TEX (12.42%) is better than 65.89% of its industry peers.
In the last couple of years the Operating Margin of TEX has grown nicely.

Looking at the Health

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 4.24. This indicates that TEX is financially healthy and has little risk of bankruptcy at the moment.
TEX has a Altman-Z score of 4.24. This is in the better half of the industry: TEX outperforms 71.32% of its industry peers.
TEX has a debt to FCF ratio of 2.64. This is a good value and a sign of high solvency as TEX would need 2.64 years to pay back of all of its debts.
The Debt to FCF ratio of TEX (2.64) is better than 77.52% of its industry peers.
TEX has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
TEX has a Current Ratio of 2.16. This indicates that TEX is financially healthy and has no problem in meeting its short term obligations.

A Closer Look at 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 5 out of 10:

The Earnings Per Share has grown by an impressive 43.81% over the past year.
TEX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.78% yearly.
Looking at the last year, TEX shows a quite strong growth in Revenue. The Revenue has grown by 11.98% in the last 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

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.