In a market where value is scarce, NYSE:TEX offers a refreshing opportunity with its solid fundamentals.

Last update: Aug 2, 2024

Consider TEREX CORP (NYSE:TEX) as a top value stock, identified by our stock screening tool. NYSE:TEX shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Valuation Assessment of NYSE:TEX

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:TEX has achieved a 8 out of 10:

TEX is valuated cheaply with a Price/Earnings ratio of 7.97.
TEX's Price/Earnings ratio is rather cheap when compared to the industry. TEX is cheaper than 93.80% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.11, TEX is valued rather cheaply.
A Price/Forward Earnings ratio of 8.28 indicates a reasonable valuation of TEX.
Based on the Price/Forward Earnings ratio, TEX is valued cheaper than 94.57% 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 20.79.
TEX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TEX is cheaper than 93.02% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TEX is valued cheaply inside the industry as 80.62% of the companies are valued more expensively.
The excellent profitability rating of TEX may justify a higher PE ratio.

Analyzing Profitability Metrics

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:

With an excellent Return On Assets value of 13.67%, TEX belongs to the best of the industry, outperforming 90.70% of the companies in the same industry.
The Return On Equity of TEX (29.68%) is better than 92.25% of its industry peers.
TEX has a better Return On Invested Capital (20.84%) than 94.57% 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 11.28%.
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.
The Profit Margin of TEX (9.87%) is better than 72.09% 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 63.57% of its industry peers.
In the last couple of years the Operating Margin of TEX has grown nicely.

Health Analysis for NYSE:TEX

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:TEX, the assigned 7 for health provides valuable insights:

An Altman-Z score of 4.19 indicates that TEX is not in any danger for bankruptcy at the moment.
TEX's Altman-Z score of 4.19 is fine compared to the rest of the industry. TEX outperforms 69.77% 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.
TEX's Debt to FCF ratio of 2.64 is fine compared to the rest of the industry. TEX outperforms 76.74% 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.

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:

The Earnings Per Share has grown by an nice 13.04% over the past year.
The Earnings Per Share has been growing by 22.78% on average over the past years. This is a very strong growth
The Revenue has grown by 16.61% in the past year. This is quite good.
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.

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 article should in no way be interpreted as advice. 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.