TEREX CORP (TEX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TEX - US8807791038 - Common Stock
52.28 USD
-0.77 (-1.45%)
52.28 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TEX. TEX was compared to 130 industry peers in the Machinery industry. TEX has an average financial health and profitability rating. TEX is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years TEX had a positive operating cash flow.
1.2 Ratios
TEX has a Return On Assets of 2.53%. This is comparable to the rest of the industry: TEX outperforms 45.38% of its industry peers.
The Return On Equity of TEX (7.73%) is comparable to the rest of the industry.
TEX has a Return On Invested Capital (6.84%) which is in line with its industry peers.
TEX had an Average Return On Invested Capital over the past 3 years of 16.17%. This is significantly above the industry average of 10.32%.
The 3 year average ROIC (16.17%) for TEX is well above the current ROIC(6.84%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.53% | ||
| ROE | 7.73% | ||
| ROIC | 6.84% |
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
With a Profit Margin value of 2.92%, TEX perfoms like the industry average, outperforming 44.62% of the companies in the same industry.
TEX's Profit Margin has improved in the last couple of years.
TEX has a Operating Margin of 7.32%. This is comparable to the rest of the industry: TEX outperforms 46.15% of its industry peers.
TEX's Operating Margin has improved in the last couple of years.
TEX has a Gross Margin of 18.71%. This is in the lower half of the industry: TEX underperforms 76.92% 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 | 7.32% | ||
| PM (TTM) | 2.92% | ||
| GM | 18.71% |
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 well above the Cost of Capital (WACC), so TEX is creating value.
Compared to 1 year ago, TEX has less shares outstanding
Compared to 5 years ago, TEX has less shares outstanding
The debt/assets ratio for TEX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.34 indicates that TEX is not a great score, but indicates only limited risk for bankruptcy at the moment.
TEX has a Altman-Z score of 2.34. This is comparable to the rest of the industry: TEX outperforms 42.31% of its industry peers.
TEX has a debt to FCF ratio of 9.29. This is a negative value and a sign of low solvency as TEX would need 9.29 years to pay back of all of its debts.
With a Debt to FCF ratio value of 9.29, TEX is not doing good in the industry: 60.77% of the companies in the same industry are doing better.
TEX has a Debt/Equity ratio of 1.28. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.28, TEX is doing worse than 82.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 9.29 | ||
| Altman-Z | 2.34 |
ROIC/WACC0.76
WACC8.98%
2.3 Liquidity
A Current Ratio of 2.15 indicates that TEX has no problem at all paying its short term obligations.
TEX has a Current ratio of 2.15. This is comparable to the rest of the industry: TEX outperforms 55.38% of its industry peers.
TEX has a Quick Ratio of 1.20. This is a normal value and indicates that TEX is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.20, TEX perfoms like the industry average, outperforming 49.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
TEX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -45.31%.
Measured over the past years, TEX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.10% on average per year.
TEX shows a small growth in Revenue. In the last year, the Revenue has grown by 4.60%.
The Revenue has been growing slightly by 3.33% on average over the past years.
EPS 1Y (TTM)-45.31%
EPS 3Y18.35%
EPS 5Y9.1%
EPS Q2Q%14.5%
Revenue 1Y (TTM)4.6%
Revenue growth 3Y9.67%
Revenue growth 5Y3.33%
Sales Q2Q%14.44%
3.2 Future
TEX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.79% yearly.
Based on estimates for the next years, TEX will show a small growth in Revenue. The Revenue will grow by 5.66% on average per year.
EPS Next Y-1.99%
EPS Next 2Y6.15%
EPS Next 3Y10.45%
EPS Next 5Y10.79%
Revenue Next Year6.13%
Revenue Next 2Y5.19%
Revenue Next 3Y5.25%
Revenue Next 5Y5.66%
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.
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
A Price/Earnings ratio of 13.79 indicates a correct valuation of TEX.
88.46% 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 valuation a bit cheaper than the S&P500 average which is at 26.43.
TEX is valuated reasonably with a Price/Forward Earnings ratio of 9.21.
TEX's Price/Forward Earnings ratio is rather cheap when compared to the industry. TEX is cheaper than 96.92% of the companies in the same industry.
TEX is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.66, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.79 | ||
| Fwd PE | 9.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TEX is valued a bit cheaper than 78.46% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TEX is valued cheaply inside the industry as 87.69% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.29 | ||
| EV/EBITDA | 10.15 |
4.3 Compensation for Growth
The decent profitability rating of TEX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.52
EPS Next 2Y6.15%
EPS Next 3Y10.45%
5. Dividend
5.1 Amount
TEX has a Yearly Dividend Yield of 1.29%.
Compared to an average industry Dividend Yield of 1.00, TEX pays a bit more dividend than its industry peers.
TEX's Dividend Yield is slightly below the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
5.2 History
The dividend of TEX is nicely growing with an annual growth rate of 9.24%!
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)9.24%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
TEX pays out 29.49% of its income as dividend. This is a sustainable payout ratio.
The dividend of TEX is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP29.49%
EPS Next 2Y6.15%
EPS Next 3Y10.45%
52.28
-0.77 (-1.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners106.94%
Inst Owner Change1.9%
Ins Owners1.42%
Ins Owner Change-0.21%
Market Cap3.43B
Revenue(TTM)5.34B
Net Income(TTM)156.00M
Analysts70.67
Price Target58.04 (11.02%)
Short Float %9.35%
Short Ratio4.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
Yearly Dividend0.7
Dividend Growth(5Y)9.24%
DP29.49%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.34%
Min EPS beat(2)5.41%
Max EPS beat(2)23.27%
EPS beat(4)3
Avg EPS beat(4)-1.6%
Min EPS beat(4)-104.14%
Max EPS beat(4)69.03%
EPS beat(8)6
Avg EPS beat(8)5.55%
EPS beat(12)10
Avg EPS beat(12)13.25%
EPS beat(16)14
Avg EPS beat(16)18.8%
Revenue beat(2)1
Avg Revenue beat(2)-0.3%
Min Revenue beat(2)-2.8%
Max Revenue beat(2)2.2%
Revenue beat(4)1
Avg Revenue beat(4)-0.65%
Min Revenue beat(4)-2.8%
Max Revenue beat(4)2.2%
Revenue beat(8)3
Avg Revenue beat(8)-0.14%
Revenue beat(12)7
Avg Revenue beat(12)2.25%
Revenue beat(16)10
Avg Revenue beat(16)2.22%
PT rev (1m)-0.18%
PT rev (3m)3.04%
EPS NQ rev (1m)-2.43%
EPS NQ rev (3m)-17.48%
EPS NY rev (1m)0.42%
EPS NY rev (3m)0.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.79 | ||
| Fwd PE | 9.21 | ||
| P/S | 0.64 | ||
| P/FCF | 12.29 | ||
| P/OCF | 8.32 | ||
| P/B | 1.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.15 |
EPS(TTM)3.79
EY7.25%
EPS(NY)5.68
Fwd EY10.86%
FCF(TTM)4.25
FCFY8.14%
OCF(TTM)6.28
OCFY12.02%
SpS81.48
BVpS30.75
TBVpS-1.83
PEG (NY)N/A
PEG (5Y)1.52
Graham Number51.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.53% | ||
| ROE | 7.73% | ||
| ROCE | 7.99% | ||
| ROIC | 6.84% | ||
| ROICexc | 7.64% | ||
| ROICexgc | 14.91% | ||
| OM | 7.32% | ||
| PM (TTM) | 2.92% | ||
| GM | 18.71% | ||
| FCFM | 5.22% |
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)25.21%
ROICexgc(5y)20.16%
ROCE(3y)18.89%
ROCE(5y)15.4%
ROICexgc growth 3Y1.95%
ROICexgc growth 5Y2.65%
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-Score4
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 9.29 | ||
| Debt/EBITDA | 4.71 | ||
| Cap/Depr | 84.71% | ||
| Cap/Sales | 2.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.18% | ||
| Profit Quality | 178.85% | ||
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 2.34 |
F-Score4
WACC8.98%
ROIC/WACC0.76
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)-45.31%
EPS 3Y18.35%
EPS 5Y9.1%
EPS Q2Q%14.5%
EPS Next Y-1.99%
EPS Next 2Y6.15%
EPS Next 3Y10.45%
EPS Next 5Y10.79%
Revenue 1Y (TTM)4.6%
Revenue growth 3Y9.67%
Revenue growth 5Y3.33%
Sales Q2Q%14.44%
Revenue Next Year6.13%
Revenue Next 2Y5.19%
Revenue Next 3Y5.25%
Revenue Next 5Y5.66%
EBIT growth 1Y-33.63%
EBIT growth 3Y16.31%
EBIT growth 5Y9.35%
EBIT Next Year12.87%
EBIT Next 3Y10.97%
EBIT Next 5Y8.52%
FCF growth 1Y-13.68%
FCF growth 3Y-6.83%
FCF growth 5Y23.99%
OCF growth 1Y-3.2%
OCF growth 3Y3.57%
OCF growth 5Y13.46%
TEREX CORP / TEX FAQ
What is the ChartMill fundamental rating of TEREX CORP (TEX) stock?
ChartMill assigns a fundamental rating of 5 / 10 to TEX.
Can you provide the valuation status for TEREX CORP?
ChartMill assigns a valuation rating of 6 / 10 to TEREX CORP (TEX). This can be considered as Fairly Valued.
How profitable is TEREX CORP (TEX) stock?
TEREX CORP (TEX) has a profitability rating of 6 / 10.
What is the valuation of TEREX CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TEREX CORP (TEX) is 13.79 and the Price/Book (PB) ratio is 1.7.
Is the dividend of TEREX CORP sustainable?
The dividend rating of TEREX CORP (TEX) is 5 / 10 and the dividend payout ratio is 29.49%.