TEREX CORP (TEX)
US8807791038 - Common Stock
TEX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. TEX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. TEX is valued quite cheap, but it does not seem to be growing. These ratings could make TEX a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year TEX was profitable.
In the past year TEX had a positive cash flow from operations.
TEX had positive earnings in 4 of the past 5 years.
Each year in the past 5 years TEX had a positive operating cash flow.
1.2 Ratios
TEX's Return On Assets of 12.27% is amongst the best of the industry. TEX outperforms 86.92% of its industry peers.
TEX has a Return On Equity of 23.71%. This is amongst the best in the industry. TEX outperforms 88.46% of its industry peers.
With an excellent Return On Invested Capital value of 18.09%, TEX belongs to the best of the industry, outperforming 91.54% 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 11.13%.
The 3 year average ROIC (17.81%) for TEX is below the current ROIC(18.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.27% | ||
| ROE | 23.71% | ||
| ROIC | 18.09% |
ROA(3y)10.55%
ROA(5y)6.6%
ROE(3y)25.43%
ROE(5y)16.19%
ROIC(3y)17.81%
ROIC(5y)13.71%
1.3 Margins
TEX has a Profit Margin of 9.08%. This is in the better half of the industry: TEX outperforms 67.69% of its industry peers.
TEX's Profit Margin has improved in the last couple of years.
TEX has a Operating Margin of 11.53%. This is in the better half of the industry: TEX outperforms 60.77% of its industry peers.
In the last couple of years the Operating Margin of TEX has grown nicely.
Looking at the Gross Margin, with a value of 22.18%, TEX is doing worse than 68.46% of the companies in the same industry.
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 | 11.53% | ||
| PM (TTM) | 9.08% | ||
| GM | 22.18% |
OM growth 3Y72.65%
OM growth 5Y5.95%
PM growth 3YN/A
PM growth 5Y31.92%
GM growth 3Y9.22%
GM growth 5Y1.41%
2. Health
2.1 Basic Checks
TEX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for TEX has been reduced compared to 1 year ago.
Compared to 5 years ago, TEX has less shares outstanding
TEX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.03 indicates that TEX is not in any danger for bankruptcy at the moment.
The Altman-Z score of TEX (4.03) is better than 67.69% of its industry peers.
TEX has a debt to FCF ratio of 3.20. This is a good value and a sign of high solvency as TEX would need 3.20 years to pay back of all of its debts.
The Debt to FCF ratio of TEX (3.20) is better than 67.69% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that TEX is not too dependend on debt financing.
TEX has a Debt to Equity ratio of 0.32. This is in the better half of the industry: TEX outperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 4.03 |
ROIC/WACC2.01
WACC9.02%
2.3 Liquidity
TEX has a Current Ratio of 2.39. This indicates that TEX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.39, TEX is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
A Quick Ratio of 1.16 indicates that TEX should not have too much problems paying its short term obligations.
The Quick ratio of TEX (1.16) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
TEX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.98%.
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 decrease in Revenue. The Revenue has decreased by -0.73% in the last year.
Measured over the past years, TEX shows a small growth in Revenue. The Revenue has been growing by 2.66% on average per year.
EPS 1Y (TTM)-1.98%
EPS 3Y298.43%
EPS 5Y22.78%
EPS Q2Q%-25.14%
Revenue 1Y (TTM)-0.73%
Revenue growth 3Y18.75%
Revenue growth 5Y2.66%
Sales Q2Q%-6.05%
3.2 Future
The Earnings Per Share is expected to decrease by -2.42% on average over the next years.
The Revenue is expected to grow by 3.49% on average over the next years.
EPS Next Y-23.92%
EPS Next 2Y-15.04%
EPS Next 3Y-6.21%
EPS Next 5Y-2.42%
Revenue Next Year-0.69%
Revenue Next 2Y2.86%
Revenue Next 3Y3.17%
Revenue Next 5Y3.49%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.50, which indicates a rather cheap valuation of TEX.
97.69% of the companies in the same industry are more expensive than TEX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.20, TEX is valued rather cheaply.
A Price/Forward Earnings ratio of 8.23 indicates a reasonable valuation of TEX.
Based on the Price/Forward Earnings ratio, TEX is valued cheaply inside the industry as 96.15% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.73. TEX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.5 | ||
| Fwd PE | 8.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TEX indicates a rather cheap valuation: TEX is cheaper than 96.92% of the companies listed in the same industry.
83.85% of the companies in the same industry are more expensive than TEX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.35 | ||
| EV/EBITDA | 5.03 |
4.3 Compensation for Growth
TEX has an outstanding profitability rating, which may justify a higher PE ratio.
TEX's earnings are expected to decrease with -6.21% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-15.04%
EPS Next 3Y-6.21%
5. Dividend
5.1 Amount
TEX has a Yearly Dividend Yield of 1.50%.
TEX's Dividend Yield is a higher than the industry average which is at 1.71.
Compared to the average S&P500 Dividend Yield of 2.36, TEX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
5.2 History
On average, the dividend of TEX grows each year by 10.17%, which is quite nice.
TEX has paid a dividend for at least 10 years, which is 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
TEX pays out 9.78% of its income as dividend. This is a sustainable payout ratio.
DP9.78%
EPS Next 2Y-15.04%
EPS Next 3Y-6.21%
TEREX CORP
NYSE:TEX (12/20/2024, 8:04:00 PM)
After market: 45.07 0 (0%)45.07
-0.13 (-0.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners101.7%
Inst Owner Change-1.77%
Ins Owners1.08%
Ins Owner Change-1.55%
Market Cap3.01B
Analysts54
Price Target58.42 (29.62%)
Short Float %7.58%
Short Ratio6.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
Dividend Growth(5Y)10.17%
DP9.78%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.46%
Min EPS beat(2)-0.92%
Max EPS beat(2)3.85%
EPS beat(4)3
Avg EPS beat(4)12.7%
Min EPS beat(4)-0.92%
Max EPS beat(4)32.23%
EPS beat(8)7
Avg EPS beat(8)20.68%
EPS beat(12)11
Avg EPS beat(12)25.6%
EPS beat(16)14
Avg EPS beat(16)82.45%
Revenue beat(2)1
Avg Revenue beat(2)-0.44%
Min Revenue beat(2)-4.12%
Max Revenue beat(2)3.24%
Revenue beat(4)2
Avg Revenue beat(4)0.36%
Min Revenue beat(4)-4.12%
Max Revenue beat(4)3.65%
Revenue beat(8)6
Avg Revenue beat(8)3.7%
Revenue beat(12)9
Avg Revenue beat(12)3.17%
Revenue beat(16)12
Avg Revenue beat(16)2.63%
PT rev (1m)-2.1%
PT rev (3m)-10.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-50.77%
EPS NY rev (1m)-0.72%
EPS NY rev (3m)-20.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.5 | ||
| Fwd PE | 8.23 | ||
| P/S | 0.59 | ||
| P/FCF | 15.35 | ||
| P/OCF | 8.86 | ||
| P/B | 1.54 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 5.03 |
EPS(TTM)6.93
EY15.38%
EPS(NY)5.48
Fwd EY12.16%
FCF(TTM)2.94
FCFY6.51%
OCF(TTM)5.09
OCFY11.28%
SpS76.48
BVpS29.3
TBVpS24.58
PEG (NY)N/A
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.27% | ||
| ROE | 23.71% | ||
| ROCE | 21.15% | ||
| ROIC | 18.09% | ||
| ROICexc | 20.7% | ||
| ROICexgc | 23.78% | ||
| OM | 11.53% | ||
| PM (TTM) | 9.08% | ||
| GM | 22.18% | ||
| FCFM | 3.84% |
ROA(3y)10.55%
ROA(5y)6.6%
ROE(3y)25.43%
ROE(5y)16.19%
ROIC(3y)17.81%
ROIC(5y)13.71%
ROICexc(3y)20.8%
ROICexc(5y)16.47%
ROICexgc(3y)24.77%
ROICexgc(5y)19.61%
ROCE(3y)20.83%
ROCE(5y)16.04%
ROICexcg growth 3Y86.19%
ROICexcg growth 5Y6.78%
ROICexc growth 3Y88.17%
ROICexc growth 5Y6.71%
OM growth 3Y72.65%
OM growth 5Y5.95%
PM growth 3YN/A
PM growth 5Y31.92%
GM growth 3Y9.22%
GM growth 5Y1.41%
F-Score5
Asset Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.2 | ||
| Debt/EBITDA | 0.96 | ||
| Cap/Depr | 224.03% | ||
| Cap/Sales | 2.81% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 52.01% | ||
| Profit Quality | 42.25% | ||
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 4.03 |
F-Score5
WACC9.02%
ROIC/WACC2.01
Cap/Depr(3y)192.22%
Cap/Depr(5y)185.2%
Cap/Sales(3y)2.16%
Cap/Sales(5y)2.22%
Profit Quality(3y)73.48%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1.98%
EPS 3Y298.43%
EPS 5Y22.78%
EPS Q2Q%-25.14%
EPS Next Y-23.92%
EPS Next 2Y-15.04%
EPS Next 3Y-6.21%
EPS Next 5Y-2.42%
Revenue 1Y (TTM)-0.73%
Revenue growth 3Y18.75%
Revenue growth 5Y2.66%
Sales Q2Q%-6.05%
Revenue Next Year-0.69%
Revenue Next 2Y2.86%
Revenue Next 3Y3.17%
Revenue Next 5Y3.49%
EBIT growth 1Y-8.18%
EBIT growth 3Y105.02%
EBIT growth 5Y8.77%
EBIT Next Year-1.71%
EBIT Next 3Y4.61%
EBIT Next 5Y-0.54%
FCF growth 1Y688.89%
FCF growth 3Y27.32%
FCF growth 5YN/A
OCF growth 1Y362.18%
OCF growth 3Y26.78%
OCF growth 5Y37.28%