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

Last update: Jun 17, 2024

Our stock screening tool has pinpointed TEREX CORP (NYSE:TEX) as an undervalued stock option. NYSE:TEX retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

How do we evaluate the 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 7.01, the valuation of TEX can be described as very cheap.
94.53% of the companies in the same industry are more expensive than TEX, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TEX to the average of the S&P500 Index (28.42), we can say TEX is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.23, the valuation of TEX can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TEX indicates a rather cheap valuation: TEX is cheaper than 93.75% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.02. TEX is valued rather cheaply when compared to this.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TEX indicates a rather cheap valuation: TEX is cheaper than 92.19% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TEX is valued cheaply inside the industry as 83.59% of the companies are valued more expensively.
The excellent profitability rating of TEX may justify a higher PE ratio.

How do we evaluate the Profitability for NYSE:TEX?

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 8 is a significant indicator of profitability:

TEX's Return On Assets of 13.67% is amongst the best of the industry. TEX outperforms 90.63% of its industry peers.
With an excellent Return On Equity value of 29.68%, TEX belongs to the best of the industry, outperforming 91.41% of the companies in the same industry.
The Return On Invested Capital of TEX (20.84%) is better than 93.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TEX is significantly above the industry average of 10.66%.
The 3 year average ROIC (17.81%) for TEX is below the current ROIC(20.84%), indicating increased profibility in the last year.
With a decent Profit Margin value of 9.87%, TEX is doing good in the industry, outperforming 73.44% 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 12.42%, TEX is in the better half of the industry, outperforming 64.84% of the companies in the same industry.
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 7 out of 10:

An Altman-Z score of 4.08 indicates that TEX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.08, TEX is in the better half of the industry, outperforming 70.31% of the companies in the same industry.
The Debt to FCF ratio of TEX is 2.64, which is a good value as it means it would take TEX, 2.64 years of fcf income to pay off all of its debts.
TEX has a Debt to FCF ratio of 2.64. This is in the better half of the industry: TEX outperforms 78.91% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that TEX is not too dependend on debt financing.
A Current Ratio of 2.16 indicates that TEX has no problem at all paying its short term obligations.

How do we evaluate the Growth for NYSE:TEX?

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:TEX scores a 5 out of 10:

TEX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 43.81%, 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
Looking at the last year, TEX shows a quite strong growth in Revenue. The Revenue has grown by 11.98% in the last year.
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.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Our latest full fundamental report of TEX contains the most current fundamental analsysis.

Keep in mind

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.