TEREX CORP (TEX) Stock Fundamental Analysis
NYSE:TEX - New York Stock Exchange, Inc. - US8807791038 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to TEX. TEX was compared to 128 industry peers in the Machinery industry. There are concerns on the financial health of TEX while its profitability can be described as average. TEX is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year TEX was profitable.
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
With a Return On Assets value of 5.85%, TEX perfoms like the industry average, outperforming 59.38% of the companies in the same industry.
TEX has a Return On Equity of 18.30%. This is in the better half of the industry: TEX outperforms 79.69% of its industry peers.
TEX's Return On Invested Capital of 9.68% is fine compared to the rest of the industry. TEX outperforms 64.84% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TEX is significantly above the industry average of 10.70%.
The 3 year average ROIC (16.17%) for TEX is well above the current ROIC(9.68%). The reason for the recent decline needs to be investigated.
| 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
The Profit Margin of TEX (6.54%) is comparable to the rest of the industry.
TEX's Profit Margin has improved in the last couple of years.
TEX has a Operating Margin (10.27%) which is comparable to the rest of the industry.
TEX's Operating Margin has improved in the last couple of years.
TEX has a worse Gross Margin (20.82%) than 71.09% 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.
Compared to 1 year ago, TEX has about the same amount of shares outstanding.
TEX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TEX is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of TEX is 13.67, which is on the high side as it means it would take TEX, 13.67 years of fcf income to pay off 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 62.50% of its industry peers.
TEX has a Debt/Equity ratio of 1.41. This is a high value indicating a heavy dependency on external financing.
TEX has a worse Debt to Equity ratio (1.41) than 82.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 13.67 | ||
| Altman-Z | N/A |
ROIC/WACC1.01
WACC9.62%
2.3 Liquidity
A Current Ratio of 2.16 indicates that TEX has no problem at all paying its short term obligations.
TEX has a Current ratio (2.16) which is comparable to the rest of the 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.
With a decent Quick ratio value of 2.16, TEX is doing good in the industry, outperforming 77.34% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 9.10% on average over the past years. This is quite good.
TEX shows a decrease in Revenue. In the last year, the revenue decreased by -0.47%.
TEX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.33% yearly.
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
TEX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.44% yearly.
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-12.68%
EPS Next 2Y1.79%
EPS Next 3Y7.44%
EPS Next 5Y7.44%
Revenue Next Year3.42%
Revenue Next 2Y3.71%
Revenue Next 3Y4.14%
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.
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
With a Price/Earnings ratio of 6.98, the valuation of TEX can be described as very cheap.
Based on the Price/Earnings ratio, TEX is valued cheaper than 94.53% of the companies in the same industry.
TEX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.88.
The Price/Forward Earnings ratio is 8.00, which indicates a rather cheap valuation of TEX.
Based on the Price/Forward Earnings ratio, TEX is valued cheaply inside the industry as 96.09% of the companies are valued more expensively.
TEX is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.98 | ||
| Fwd PE | 8 |
4.2 Price Multiples
82.03% of the companies in the same industry are more expensive than TEX, based on the Enterprise Value to EBITDA ratio.
TEX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TEX is cheaper than 82.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.34 | ||
| EV/EBITDA | 7.49 |
4.3 Compensation for Growth
The decent profitability rating of TEX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.77
EPS Next 2Y1.79%
EPS Next 3Y7.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.87%, TEX has a reasonable but not impressive dividend return.
The stock price of TEX dropped by -26.80% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
TEX's Dividend Yield is a higher than the industry average which is at 2.04.
Compared to the average S&P500 Dividend Yield of 2.45, TEX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
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 2Y1.79%
EPS Next 3Y7.44%
35.2
-0.41 (-1.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners99.28%
Inst Owner Change-0.91%
Ins Owners1.15%
Ins Owner Change3.11%
Market Cap2.33B
Analysts54
Price Target43.3 (23.01%)
Short Float %8.41%
Short Ratio4.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
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)-18.05%
PT rev (3m)-25.88%
EPS NQ rev (1m)-7.22%
EPS NQ rev (3m)-64.64%
EPS NY rev (1m)-9.37%
EPS NY rev (3m)-19.68%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)-10.38%
Revenue NY rev (1m)-2%
Revenue NY rev (3m)-2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.98 | ||
| Fwd PE | 8 | ||
| P/S | 0.46 | ||
| P/FCF | 12.34 | ||
| P/OCF | 7.16 | ||
| P/B | 1.27 | ||
| P/tB | 1.27 | ||
| EV/EBITDA | 7.49 |
EPS(TTM)5.04
EY14.32%
EPS(NY)4.4
Fwd EY12.5%
FCF(TTM)2.85
FCFY8.1%
OCF(TTM)4.92
OCFY13.97%
SpS77.36
BVpS27.64
TBVpS27.64
PEG (NY)N/A
PEG (5Y)0.77
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
WACC9.62%
ROIC/WACC1.01
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-12.68%
EPS Next 2Y1.79%
EPS Next 3Y7.44%
EPS Next 5Y7.44%
Revenue 1Y (TTM)-0.47%
Revenue growth 3Y9.67%
Revenue growth 5Y3.33%
Sales Q2Q%1.5%
Revenue Next Year3.42%
Revenue Next 2Y3.71%
Revenue Next 3Y4.14%
Revenue Next 5Y4.56%
EBIT growth 1Y-17.3%
EBIT growth 3Y16.31%
EBIT growth 5Y9.35%
EBIT Next Year13.18%
EBIT Next 3Y10.13%
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%