TEREX CORP (TEX)
US8807791038 - Common Stock
Overall TEX gets a fundamental rating of 7 out of 10. We evaluated TEX against 132 industry peers in the Machinery industry. TEX gets an excellent profitability rating and is at the same time showing great financial health properties. A decent growth rate in combination with a cheap valuation! Better keep an eye on TEX. This makes TEX very considerable for value and quality 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.
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 14.33%, TEX belongs to the top of the industry, outperforming 92.25% of the companies in the same industry.
The Return On Equity of TEX (30.98%) is better than 91.47% of its industry peers.
TEX has a better Return On Invested Capital (21.80%) than 93.80% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TEX is significantly above the industry average of 10.72%.
The 3 year average ROIC (17.81%) for TEX is below the current ROIC(21.80%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.33% | ||
| ROE | 30.98% | ||
| ROIC | 21.8% |
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 10.06%. This is in the better half of the industry: TEX outperforms 75.19% of its industry peers.
In the last couple of years the Profit Margin of TEX has grown nicely.
TEX's Operating Margin of 12.36% is fine compared to the rest of the industry. TEX outperforms 65.89% of its industry peers.
In the last couple of years the Operating Margin of TEX has grown nicely.
The Gross Margin of TEX (22.84%) is worse than 62.79% 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 | 12.36% | ||
| PM (TTM) | 10.06% | ||
| GM | 22.84% |
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.
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 4.27. This indicates that TEX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.27, TEX is in the better half of the industry, outperforming 72.09% of the companies in the same industry.
TEX has a debt to FCF ratio of 1.88. This is a very positive value and a sign of high solvency as it would only need 1.88 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.88, TEX is in the better half of the industry, outperforming 79.84% of the companies in the same industry.
TEX has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TEX (0.37) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.88 | ||
| Altman-Z | 4.27 |
ROIC/WACC2.38
WACC9.16%
2.3 Liquidity
A Current Ratio of 2.01 indicates that TEX has no problem at all paying its short term obligations.
TEX has a Current ratio (2.01) which is in line with its industry peers.
A Quick Ratio of 0.95 indicates that TEX may have some problems paying its short term obligations.
The Quick ratio of TEX (0.95) is worse than 67.44% of its industry peers.
TEX does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 74.48% over the past 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.
The Revenue has grown by 16.61% in the past year. This is quite good.
The Revenue has been growing slightly by 2.66% on average over the past years.
EPS 1Y (TTM)74.48%
EPS 3Y298.43%
EPS 5Y22.78%
EPS growth Q2Q38.81%
Revenue 1Y (TTM)16.61%
Revenue growth 3Y18.75%
Revenue growth 5Y2.66%
Revenue growth Q2Q0.41%
3.2 Future
Based on estimates for the next years, TEX will show a decrease in Earnings Per Share. The EPS will decrease by -3.12% on average per year.
The Revenue is expected to grow by 3.93% on average over the next years.
EPS Next Y-7.05%
EPS Next 2Y-2.7%
EPS Next 3Y0.06%
EPS Next 5Y-3.12%
Revenue Next Year0.23%
Revenue Next 2Y-0.18%
Revenue Next 3Y0.42%
Revenue Next 5Y3.93%
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 7.85, the valuation of TEX can be described as very cheap.
93.02% of the companies in the same industry are more expensive than TEX, based on the Price/Earnings ratio.
TEX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.84.
Based on the Price/Forward Earnings ratio of 8.45, 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 93.80% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.35, TEX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.85 | ||
| Fwd PE | 8.45 |
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 91.47% of the companies listed in the same industry.
86.82% 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 | 12.08 | ||
| EV/EBITDA | 6.15 |
4.3 Compensation for Growth
The excellent profitability rating of TEX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y-2.7%
EPS Next 3Y0.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.14%, TEX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.72, TEX pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.14, TEX pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
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 Years3
Div Non Decr Years3
5.3 Sustainability
TEX pays out 8.34% of its income as dividend. This is a sustainable payout ratio.
DP8.34%
EPS Next 2Y-2.7%
EPS Next 3Y0.06%
TEREX CORP
NYSE:TEX (4/26/2024, 7:19:12 PM)
After market: 59.59 0 (0%)59.59
-0.31 (-0.52%)
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 Cap4.01B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
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)
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Revenue beat(2)
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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 | 7.85 | ||
| Fwd PE | 8.45 | ||
| 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 | 14.33% | ||
| ROE | 30.98% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.36% | ||
| PM (TTM) | 10.06% | ||
| GM | 22.84% | ||
| 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 Turnover1.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.01 | ||
| Quick Ratio | 0.95 | ||
| 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)
Growth
EPS 1Y (TTM)74.48%
EPS 3Y298.43%
EPS 5Y
EPS growth Q2Q
EPS Next Y-7.05%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)16.61%
Revenue growth 3Y18.75%
Revenue growth 5Y
Revenue growth 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