TEREX CORP (TEX) Stock Fundamental Analysis
NYSE:TEX - New York Stock Exchange, Inc. - US8807791038 - Common Stock
Taking everything into account, TEX scores 6 out of 10 in our fundamental rating. TEX was compared to 131 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 cheap, but on the other hand it scores bad on growth. These ratings could make TEX a good candidate for value investing.
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.
TEX had positive earnings in 4 of the past 5 years.
TEX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TEX has a better Return On Assets (12.27%) than 86.61% of its industry peers.
With an excellent Return On Equity value of 23.71%, TEX belongs to the best of the industry, outperforming 88.98% of the companies in the same industry.
With an excellent Return On Invested Capital value of 18.09%, TEX belongs to the best of the industry, outperforming 91.34% 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 11.19%.
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 66.14% of its industry peers.
In the last couple of years the Profit Margin of TEX has grown nicely.
TEX has a Operating Margin (11.53%) which is comparable to the rest of the industry.
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 70.08% of the companies in the same industry.
TEX's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TEX is creating value.
The number of shares outstanding for TEX has been reduced compared to 1 year ago.
TEX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TEX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.11 indicates that TEX is not in any danger for bankruptcy at the moment.
TEX has a better Altman-Z score (4.11) than 62.20% 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 66.14% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that TEX is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.32, TEX is in the better half of the industry, outperforming 62.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 4.11 |
ROIC/WACC1.89
WACC9.57%
2.3 Liquidity
A Current Ratio of 2.39 indicates that TEX has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.39, TEX is doing good in the industry, outperforming 62.20% 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.
TEX has a Quick ratio of 1.16. This is comparable to the rest of the industry: TEX outperforms 44.09% of its industry peers.
| 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%.
TEX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.78% yearly.
TEX shows a decrease in Revenue. In the last year, the revenue decreased by -0.73%.
The Revenue has been growing slightly by 2.66% on average over the past years.
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.
TEX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.49% yearly.
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 2Y2.7%
Revenue Next 3Y3.04%
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
Based on the Price/Earnings ratio of 7.05, the valuation of TEX can be described as very cheap.
Based on the Price/Earnings ratio, TEX is valued cheaply inside the industry as 96.85% of the companies are valued more expensively.
TEX is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.92, the valuation of TEX can be described as very reasonable.
TEX's Price/Forward Earnings ratio is rather cheap when compared to the industry. TEX is cheaper than 96.06% of the companies in the same industry.
TEX is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.05 | ||
| Fwd PE | 8.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TEX is valued cheaply inside the industry as 96.06% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TEX is valued cheaply inside the industry as 82.68% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.65 | ||
| EV/EBITDA | 5.42 |
4.3 Compensation for Growth
TEX has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as TEX's earnings are expected to decrease with -6.21% in the coming years.
PEG (NY)N/A
PEG (5Y)0.31
EPS Next 2Y-15.04%
EPS Next 3Y-6.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.43%, TEX has a reasonable but not impressive dividend return.
TEX's Dividend Yield is a higher than the industry average which is at 1.65.
Compared to the average S&P500 Dividend Yield of 2.28, TEX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
5.2 History
The dividend of TEX is nicely growing with an annual growth rate of 10.17%!
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 (1/21/2025, 8:04:00 PM)
After market: 48.022 -0.86 (-1.76%)48.88
+1.67 (+3.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners101.7%
Inst Owner Change-0.01%
Ins Owners1.08%
Ins Owner Change-1.53%
Market Cap3.27B
Analysts54
Price Target58.42 (19.52%)
Short Float %7.78%
Short Ratio6.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
Yearly Dividend0.65
Dividend Growth(5Y)10.17%
DP9.78%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
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)0%
PT rev (3m)-2.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-50.77%
EPS NY rev (1m)0%
EPS NY rev (3m)-20.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.05 | ||
| Fwd PE | 8.92 | ||
| P/S | 0.64 | ||
| P/FCF | 16.65 | ||
| P/OCF | 9.61 | ||
| P/B | 1.67 | ||
| P/tB | 1.99 | ||
| EV/EBITDA | 5.42 |
EPS(TTM)6.93
EY14.18%
EPS(NY)5.48
Fwd EY11.21%
FCF(TTM)2.94
FCFY6.01%
OCF(TTM)5.09
OCFY10.4%
SpS76.48
BVpS29.3
TBVpS24.58
PEG (NY)N/A
PEG (5Y)0.31
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 | 4.11 |
F-Score5
WACC9.57%
ROIC/WACC1.89
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 2Y2.7%
Revenue Next 3Y3.04%
Revenue Next 5Y3.49%
EBIT growth 1Y-8.18%
EBIT growth 3Y105.02%
EBIT growth 5Y8.77%
EBIT Next Year-1.92%
EBIT Next 3Y3.55%
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%