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

Last update: Aug 28, 2024

Our stock screening tool has identified TEREX CORP (NYSE:TEX) as an undervalued gem with strong fundamentals. NYSE:TEX boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

Understanding NYSE:TEX's Valuation

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:TEX scores a 8 out of 10:

TEX is valuated cheaply with a Price/Earnings ratio of 7.47.
Based on the Price/Earnings ratio, TEX is valued cheaply inside the industry as 93.08% of the companies are valued more expensively.
TEX is valuated cheaply when we compare the Price/Earnings ratio to 30.01, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.94, the valuation of TEX can be described as very cheap.
94.62% of the companies in the same industry are more expensive than TEX, based on the Price/Forward Earnings ratio.
TEX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.67.
93.85% of the companies in the same industry are more expensive than TEX, based on the Enterprise Value to EBITDA ratio.
76.15% of the companies in the same industry are more expensive than TEX, based on the Price/Free Cash Flow ratio.
TEX has an outstanding profitability rating, which may justify a higher PE ratio.

Assessing Profitability for NYSE:TEX

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:TEX was assigned a score of 8 for profitability:

The Return On Assets of TEX (13.10%) is better than 87.69% of its industry peers.
The Return On Equity of TEX (27.16%) is better than 90.00% of its industry peers.
TEX's Return On Invested Capital of 20.02% is amongst the best of the industry. TEX outperforms 93.85% 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 11.19%.
The 3 year average ROIC (17.81%) for TEX is below the current ROIC(20.02%), indicating increased profibility in the last year.
Looking at the Profit Margin, with a value of 9.55%, TEX is in the better half of the industry, outperforming 70.77% of the companies in the same industry.
TEX's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 12.15%, TEX is doing good in the industry, outperforming 62.31% of the companies in the same industry.
TEX's Operating Margin has improved in the last couple of years.

Evaluating Health: NYSE:TEX

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:

An Altman-Z score of 4.18 indicates that TEX is not in any danger for bankruptcy at the moment.
The Altman-Z score of TEX (4.18) is better than 69.23% of its industry peers.
The Debt to FCF ratio of TEX is 3.10, which is a good value as it means it would take TEX, 3.10 years of fcf income to pay off all of its debts.
TEX has a Debt to FCF ratio of 3.10. This is in the better half of the industry: TEX outperforms 69.23% of its industry peers.
TEX has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
TEX has a Current Ratio of 2.21. This indicates that TEX is financially healthy and has no problem in meeting 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 4 out of 10:

TEX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.04%, which is quite good.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

More Decent Value stocks can be found in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of TEX

Disclaimer

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.