TEREX CORP (TEX) Stock Fundamental Analysis
NYSE:TEX - New York Stock Exchange, Inc. - US8807791038 - Common Stock - Currency: USD
TEX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. While TEX belongs to the best of the industry regarding profitability, there are concerns on its financial health. TEX scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
TEX had positive earnings in the past year.
TEX had a positive operating cash flow in the past year.
Of the past 5 years TEX 4 years were profitable.
TEX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.85%, TEX is in the better half of the industry, outperforming 62.40% of the companies in the same industry.
With a decent Return On Equity value of 18.30%, TEX is doing good in the industry, outperforming 79.20% of the companies in the same industry.
With a decent Return On Invested Capital value of 9.68%, TEX is doing good in the industry, outperforming 67.20% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TEX is significantly above the industry average of 11.00%.
The last Return On Invested Capital (9.68%) for TEX is well below the 3 year average (16.17%), which needs to be investigated, but indicates that TEX had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.85% | ||
| ROE | 18.3% | ||
| ROIC | 9.68% |
ROA(3y)9.93%
ROA(5y)7.43%
ROE(3y)24.89%
ROE(5y)18.68%
ROIC(3y)16.17%
ROIC(5y)13.18%
1.3 Margins
Looking at the Profit Margin, with a value of 6.54%, TEX is in line with its industry, outperforming 58.40% of the companies in the same industry.
In the last couple of years the Profit Margin of TEX has grown nicely.
Looking at the Operating Margin, with a value of 10.27%, TEX is in line with its industry, outperforming 53.60% of the companies in the same industry.
In the last couple of years the Operating Margin of TEX has grown nicely.
The Gross Margin of TEX (20.82%) is worse than 72.00% of its industry peers.
In the last couple of years the Gross Margin of TEX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.27% | ||
| PM (TTM) | 6.54% | ||
| GM | 20.82% |
OM growth 3Y6.05%
OM growth 5Y5.82%
PM growth 3Y4.76%
PM growth 5Y39.21%
GM growth 3Y2.25%
GM growth 5Y0.42%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TEX is still creating some value.
TEX has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for TEX has been reduced compared to 5 years ago.
The debt/assets ratio for TEX is higher compared to a year ago.
2.2 Solvency
TEX has a debt to FCF ratio of 13.67. This is a negative value and a sign of low solvency as TEX would need 13.67 years to pay back of all of its debts.
TEX's Debt to FCF ratio of 13.67 is on the low side compared to the rest of the industry. TEX is outperformed by 60.80% of its industry peers.
A Debt/Equity ratio of 1.41 is on the high side and indicates that TEX has dependencies on debt financing.
TEX has a Debt to Equity ratio of 1.41. This is amonst the worse of the industry: TEX underperforms 86.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 13.67 | ||
| Altman-Z | N/A |
ROIC/WACC0.95
WACC10.23%
2.3 Liquidity
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.
With a Current ratio value of 2.16, TEX perfoms like the industry average, outperforming 53.60% of the companies in the same industry.
TEX has a Quick Ratio of 2.16. This indicates that TEX is financially healthy and has no problem in meeting its short term obligations.
TEX has a better Quick ratio (2.16) than 78.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 2.16 |
3. Growth
3.1 Past
The earnings per share for TEX have decreased strongly by -33.60% in the last year.
Measured over the past years, TEX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.10% on average per year.
Looking at the last year, TEX shows a decrease in Revenue. The Revenue has decreased by -0.47% in the last year.
The Revenue has been growing slightly by 3.33% on average over the past years.
EPS 1Y (TTM)-33.6%
EPS 3Y18.35%
EPS 5Y9.1%
EPS Q2Q%-101.61%
Revenue 1Y (TTM)-0.47%
Revenue growth 3Y9.67%
Revenue growth 5Y3.33%
Sales Q2Q%1.5%
3.2 Future
Based on estimates for the next years, TEX will show a small growth in Earnings Per Share. The EPS will grow by 7.44% on average per year.
Based on estimates for the next years, TEX will show a small growth in Revenue. The Revenue will grow by 4.56% on average per year.
EPS Next Y-2.32%
EPS Next 2Y4.93%
EPS Next 3Y8.84%
EPS Next 5Y7.44%
Revenue Next Year5.3%
Revenue Next 2Y4.76%
Revenue Next 3Y5.22%
Revenue Next 5Y4.56%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.57 indicates a reasonable valuation of TEX.
TEX's Price/Earnings ratio is rather cheap when compared to the industry. TEX is cheaper than 94.40% of the companies in the same industry.
When comparing the Price/Earnings ratio of TEX to the average of the S&P500 Index (29.63), we can say TEX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.77, the valuation of TEX can be described as reasonable.
TEX's Price/Forward Earnings ratio is rather cheap when compared to the industry. TEX is cheaper than 96.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TEX to the average of the S&P500 Index (22.68), we can say TEX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.57 | ||
| Fwd PE | 8.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TEX is valued cheaply inside the industry as 82.40% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TEX is valued cheaper than 83.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.17 | ||
| EV/EBITDA | 8.58 |
4.3 Compensation for Growth
TEX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.94
EPS Next 2Y4.93%
EPS Next 3Y8.84%
5. Dividend
5.1 Amount
TEX has a Yearly Dividend Yield of 1.49%.
Compared to an average industry Dividend Yield of 1.67, TEX pays a bit more dividend than its industry peers.
TEX's Dividend Yield is slightly below the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
5.2 History
The dividend of TEX is nicely growing with an annual growth rate of 10.17%!
TEX has been paying a dividend for at least 10 years, so it has a reliable track record.
TEX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)10.17%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
The dividend of TEX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP0%
EPS Next 2Y4.93%
EPS Next 3Y8.84%
43.18
-2.39 (-5.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners99.28%
Inst Owner Change-0.85%
Ins Owners1.15%
Ins Owner Change-1.58%
Market Cap2.87B
Analysts54
Price Target53.24 (23.3%)
Short Float %8.08%
Short Ratio6.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
Yearly Dividend0.65
Dividend Growth(5Y)10.17%
DP0%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-52.53%
Min EPS beat(2)-104.14%
Max EPS beat(2)-0.92%
EPS beat(4)2
Avg EPS beat(4)-21.39%
Min EPS beat(4)-104.14%
Max EPS beat(4)15.63%
EPS beat(8)6
Avg EPS beat(8)5.43%
EPS beat(12)10
Avg EPS beat(12)12.98%
EPS beat(16)13
Avg EPS beat(16)23.78%
Revenue beat(2)1
Avg Revenue beat(2)1.54%
Min Revenue beat(2)-0.16%
Max Revenue beat(2)3.24%
Revenue beat(4)2
Avg Revenue beat(4)0.65%
Min Revenue beat(4)-4.12%
Max Revenue beat(4)3.65%
Revenue beat(8)5
Avg Revenue beat(8)2.48%
Revenue beat(12)8
Avg Revenue beat(12)2.92%
Revenue beat(16)11
Avg Revenue beat(16)2.45%
PT rev (1m)-6.06%
PT rev (3m)-8.03%
EPS NQ rev (1m)-60.86%
EPS NQ rev (3m)-66.48%
EPS NY rev (1m)-10.15%
EPS NY rev (3m)-10.45%
Revenue NQ rev (1m)-9.81%
Revenue NQ rev (3m)-1.1%
Revenue NY rev (1m)-0.84%
Revenue NY rev (3m)-1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.57 | ||
| Fwd PE | 8.77 | ||
| P/S | 0.56 | ||
| P/FCF | 15.17 | ||
| P/OCF | 8.79 | ||
| P/B | 1.57 | ||
| P/tB | 1.57 | ||
| EV/EBITDA | 8.58 |
EPS(TTM)5.04
EY11.67%
EPS(NY)4.92
Fwd EY11.4%
FCF(TTM)2.85
FCFY6.59%
OCF(TTM)4.91
OCFY11.37%
SpS77.22
BVpS27.59
TBVpS27.59
PEG (NY)N/A
PEG (5Y)0.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.85% | ||
| ROE | 18.3% | ||
| ROCE | 11.3% | ||
| ROIC | 9.68% | ||
| ROICexc | 10.56% | ||
| ROICexgc | 10.56% | ||
| OM | 10.27% | ||
| PM (TTM) | 6.54% | ||
| GM | 20.82% | ||
| FCFM | 3.69% |
ROA(3y)9.93%
ROA(5y)7.43%
ROE(3y)24.89%
ROE(5y)18.68%
ROIC(3y)16.17%
ROIC(5y)13.18%
ROICexc(3y)18.69%
ROICexc(5y)15.38%
ROICexgc(3y)21.47%
ROICexgc(5y)17.92%
ROCE(3y)18.89%
ROCE(5y)15.4%
ROICexcg growth 3Y-19.92%
ROICexcg growth 5Y-11.19%
ROICexc growth 3Y-14.65%
ROICexc growth 5Y-8.12%
OM growth 3Y6.05%
OM growth 5Y5.82%
PM growth 3Y4.76%
PM growth 5Y39.21%
GM growth 3Y2.25%
GM growth 5Y0.42%
F-Score3
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 13.67 | ||
| Debt/EBITDA | 4.24 | ||
| Cap/Depr | 167.07% | ||
| Cap/Sales | 2.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 53.58% | ||
| Profit Quality | 56.38% | ||
| Current Ratio | 2.16 | ||
| Quick Ratio | 2.16 | ||
| Altman-Z | N/A |
F-Score3
WACC10.23%
ROIC/WACC0.95
Cap/Depr(3y)208.27%
Cap/Depr(5y)174.7%
Cap/Sales(3y)2.54%
Cap/Sales(5y)2.25%
Profit Quality(3y)57.02%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-33.6%
EPS 3Y18.35%
EPS 5Y9.1%
EPS Q2Q%-101.61%
EPS Next Y-2.32%
EPS Next 2Y4.93%
EPS Next 3Y8.84%
EPS Next 5Y7.44%
Revenue 1Y (TTM)-0.47%
Revenue growth 3Y9.67%
Revenue growth 5Y3.33%
Sales Q2Q%1.5%
Revenue Next Year5.3%
Revenue Next 2Y4.76%
Revenue Next 3Y5.22%
Revenue Next 5Y4.56%
EBIT growth 1Y-17.3%
EBIT growth 3Y16.31%
EBIT growth 5Y9.35%
EBIT Next Year16.14%
EBIT Next 3Y12.14%
EBIT Next 5Y2.33%
FCF growth 1Y-43.09%
FCF growth 3Y-6.83%
FCF growth 5Y23.99%
OCF growth 1Y-29.02%
OCF growth 3Y3.57%
OCF growth 5Y13.46%