TEREX CORP (TEX)
US8807791038 - Common Stock
TEX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 131 industry peers in the Machinery industry. TEX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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
TEX had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 12.27%, TEX belongs to the top of the industry, outperforming 87.40% of the companies in the same industry.
Looking at the Return On Equity, with a value of 23.71%, TEX belongs to the top of the industry, outperforming 88.19% of the companies in the same industry.
TEX has a better Return On Invested Capital (18.09%) than 92.13% 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 11.01%.
The last Return On Invested Capital (18.09%) for TEX is above the 3 year average (17.81%), which is a sign of increasing profitability.
| 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
The Profit Margin of TEX (9.08%) is better than 68.50% 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 comparable to the rest of the industry: TEX outperforms 59.84% 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 67.72% 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.
TEX has less shares outstanding than it did 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
TEX has an Altman-Z score of 4.18. This indicates that TEX is financially healthy and has little risk of bankruptcy at the moment.
TEX's Altman-Z score of 4.18 is fine compared to the rest of the industry. TEX outperforms 69.29% of its industry peers.
The Debt to FCF ratio of TEX is 3.20, which is a good value as it means it would take TEX, 3.20 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.20, TEX is doing good in the industry, outperforming 66.14% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that TEX is not too dependend on debt financing.
TEX's Debt to Equity ratio of 0.32 is fine compared to the rest of the industry. TEX outperforms 62.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 4.18 |
ROIC/WACC1.98
WACC9.13%
2.3 Liquidity
A Current Ratio of 2.39 indicates that TEX has no problem at all paying 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 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.
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
The earnings per share for TEX have decreased by -1.98% in the last year.
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.
Looking at the last year, TEX shows a decrease in Revenue. The Revenue has decreased by -0.73% in the last year.
TEX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.66% yearly.
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
TEX is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.42% yearly.
The Revenue is expected to grow by 3.49% on average over the next years.
EPS Next Y-23.37%
EPS Next 2Y-14.89%
EPS Next 3Y-6.06%
EPS Next 5Y-2.42%
Revenue Next Year-0.67%
Revenue Next 2Y2.95%
Revenue Next 3Y3.27%
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.
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
TEX is valuated cheaply with a Price/Earnings ratio of 7.63.
Based on the Price/Earnings ratio, TEX is valued cheaper than 96.06% of the companies in the same industry.
TEX is valuated cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.62, the valuation of TEX can be described as very reasonable.
Based on the Price/Forward Earnings ratio, TEX is valued cheaply inside the industry as 95.28% of the companies are valued more expensively.
TEX is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.63 | ||
| Fwd PE | 9.62 |
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 96.85% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TEX indicates a somewhat cheap valuation: TEX is cheaper than 78.74% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.02 | ||
| EV/EBITDA | 5.75 |
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 -6.06% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y-14.89%
EPS Next 3Y-6.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.29%, TEX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.54, TEX pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.29, TEX pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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 Years3
Div Non Decr Years3
5.3 Sustainability
TEX pays out 9.78% of its income as dividend. This is a sustainable payout ratio.
DP9.78%
EPS Next 2Y-14.89%
EPS Next 3Y-6.06%
TEREX CORP
NYSE:TEX (11/21/2024, 8:04:00 PM)
After market: 52.89 0 (0%)52.89
+0.75 (+1.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.53B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.63 | ||
| Fwd PE | 9.62 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.27% | ||
| ROE | 23.71% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.53% | ||
| PM (TTM) | 9.08% | ||
| GM | 22.18% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-1.98%
EPS 3Y298.43%
EPS 5Y
EPS Q2Q%
EPS Next Y-23.37%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.73%
Revenue growth 3Y18.75%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y