Don't overlook NYSE:TEX—it's a hidden gem with strong fundamentals and an attractive price tag.

Last update: Jul 8, 2024

Uncover the potential of TEREX CORP (NYSE:TEX) as our stock screener's choice for an undervalued stock. NYSE:TEX maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Deciphering NYSE:TEX's Valuation Rating

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:TEX, the assigned 8 reflects its valuation:

With a Price/Earnings ratio of 7.08, the valuation of TEX can be described as very cheap.
Based on the Price/Earnings ratio, TEX is valued cheaper than 92.91% of the companies in the same industry.
When comparing the Price/Earnings ratio of TEX to the average of the S&P500 Index (28.36), we can say TEX is valued rather cheaply.
A Price/Forward Earnings ratio of 7.31 indicates a rather cheap valuation of TEX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TEX indicates a rather cheap valuation: TEX is cheaper than 92.91% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.19. TEX is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, TEX is valued cheaper than 91.34% 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 82.68% of the companies listed in the same industry.
The excellent profitability rating of TEX may justify a higher PE ratio.

Understanding NYSE:TEX's 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:

Looking at the Return On Assets, with a value of 13.67%, TEX belongs to the top of the industry, outperforming 90.55% of the companies in the same industry.
TEX has a Return On Equity of 29.68%. This is amongst the best in the industry. TEX outperforms 91.34% of its industry peers.
Looking at the Return On Invested Capital, with a value of 20.84%, TEX belongs to the top of the industry, outperforming 93.70% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TEX is significantly above the industry average of 10.80%.
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 Profit Margin of 9.87%. This is in the better half of the industry: TEX outperforms 73.23% of its industry peers.
TEX's Profit Margin has improved in the last couple of years.
TEX's Operating Margin of 12.42% is fine compared to the rest of the industry. TEX outperforms 64.57% of its industry peers.
In the last couple of years the Operating Margin of TEX has grown nicely.

ChartMill's Evaluation of Health

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:

TEX has an Altman-Z score of 4.09. This indicates that TEX is financially healthy and has little risk of bankruptcy at the moment.
TEX's Altman-Z score of 4.09 is fine compared to the rest of the industry. TEX outperforms 69.29% of its industry peers.
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.
With a decent Debt to FCF ratio value of 2.64, TEX is doing good in the industry, outperforming 77.95% of the companies in the same industry.
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

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:TEX has earned a 5 for growth:

The Earnings Per Share has grown by an impressive 43.81% 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 22.78% on average per year.
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.

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

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

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.