TEREX CORP (TEX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TEX - US8807791038 - Common Stock
61.11 USD
+0.4 (+0.66%)
61.11 USD
0 (0%)
Overall TEX gets a fundamental rating of 5 out of 10. We evaluated TEX against 132 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.
- In the past year TEX had a positive cash flow from operations.
- Of the past 5 years TEX 4 years were profitable.
- Each year in the past 5 years TEX had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of TEX (2.53%) is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of 7.73%, TEX is in line with its industry, outperforming 54.55% of the companies in the same industry.
- TEX has a Return On Invested Capital (6.84%) which is in line with its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TEX is significantly above the industry average of 10.24%.
- 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
- The Profit Margin of TEX (2.92%) 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 (7.32%) which is in line with 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 75.00% 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
- The debt/assets ratio for TEX is higher compared to a year ago.
2.2 Solvency
- TEX has an Altman-Z score of 2.42. This is not the best score and indicates that TEX is in the grey zone with still only limited risk for bankruptcy at the moment.
- TEX has a Altman-Z score (2.42) which is comparable to the rest of the industry.
- The Debt to FCF ratio of TEX is 9.29, which is on the high side as it means it would take TEX, 9.29 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 9.29, TEX perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
- TEX has a Debt/Equity ratio of 1.28. This is a high value indicating a heavy dependency on external financing.
- TEX has a Debt to Equity ratio of 1.28. This is amonst the worse of the industry: TEX underperforms 81.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 9.29 | ||
| Altman-Z | 2.42 |
ROIC/WACC0.77
WACC8.87%
2.3 Liquidity
- A Current Ratio of 2.15 indicates that TEX has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 2.15, TEX is in line with its industry, outperforming 56.06% of the companies in the same industry.
- 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 50.00% 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%.
- TEX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.10% yearly.
- The Revenue has been growing slightly by 4.60% in the past year.
- 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
- Based on estimates for the next years, TEX will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.79% on average per year.
- The Revenue is expected to grow by 5.66% on average over the next years.
EPS Next Y-1.97%
EPS Next 2Y6.4%
EPS Next 3Y10.99%
EPS Next 5Y10.79%
Revenue Next Year6.17%
Revenue Next 2Y5.07%
Revenue Next 3Y5.32%
Revenue Next 5Y5.66%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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
- With a Price/Earnings ratio of 16.12, TEX is valued correctly.
- 85.61% of the companies in the same industry are more expensive than TEX, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.54, TEX is valued a bit cheaper.
- TEX is valuated reasonably with a Price/Forward Earnings ratio of 10.71.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TEX indicates a rather cheap valuation: TEX is cheaper than 96.21% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.31. TEX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.12 | ||
| Fwd PE | 10.71 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TEX indicates a somewhat cheap valuation: TEX is cheaper than 78.03% of the companies listed in the same industry.
- TEX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TEX is cheaper than 87.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.37 | ||
| EV/EBITDA | 11.12 |
4.3 Compensation for Growth
- The decent profitability rating of TEX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.77
EPS Next 2Y6.4%
EPS Next 3Y10.99%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.16%, TEX has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.80, TEX pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.92, TEX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
5.2 History
- On average, the dividend of TEX grows each year by 9.24%, 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)9.24%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- 29.49% of the earnings are spent on dividend by TEX. This is a low number and 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 2Y6.4%
EPS Next 3Y10.99%
61.11
+0.4 (+0.66%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)10-30 2025-10-30/bmo
Earnings (Next)02-05 2026-02-05/amc
Inst Owners106.62%
Inst Owner Change-2.19%
Ins Owners1.42%
Ins Owner Change-0.15%
Market Cap4.01B
Revenue(TTM)5.34B
Net Income(TTM)156.00M
Analysts72
Price Target59.77 (-2.19%)
Short Float %10.19%
Short Ratio5.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
Yearly Dividend0.7
Dividend Growth(5Y)9.24%
DP29.49%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
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)2.99%
PT rev (3m)5.48%
EPS NQ rev (1m)1.4%
EPS NQ rev (3m)-16.32%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.73%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)-1.34%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.12 | ||
| Fwd PE | 10.71 | ||
| P/S | 0.75 | ||
| P/FCF | 14.37 | ||
| P/OCF | 9.73 | ||
| P/B | 1.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.12 |
EPS(TTM)3.79
EY6.2%
EPS(NY)5.71
Fwd EY9.34%
FCF(TTM)4.25
FCFY6.96%
OCF(TTM)6.28
OCFY10.28%
SpS81.48
BVpS30.75
TBVpS-1.83
PEG (NY)N/A
PEG (5Y)1.77
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 | 2.42 |
F-Score4
WACC8.87%
ROIC/WACC0.77
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-1.97%
EPS Next 2Y6.4%
EPS Next 3Y10.99%
EPS Next 5Y10.79%
Revenue 1Y (TTM)4.6%
Revenue growth 3Y9.67%
Revenue growth 5Y3.33%
Sales Q2Q%14.44%
Revenue Next Year6.17%
Revenue Next 2Y5.07%
Revenue Next 3Y5.32%
Revenue Next 5Y5.66%
EBIT growth 1Y-33.63%
EBIT growth 3Y16.31%
EBIT growth 5Y9.35%
EBIT Next Year13.86%
EBIT Next 3Y11.1%
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.
What is the valuation status of TEREX CORP (TEX) stock?
ChartMill assigns a valuation rating of 6 / 10 to TEREX CORP (TEX). This can be considered as Fairly Valued.
What is the profitability of TEX stock?
TEREX CORP (TEX) has a profitability rating of 6 / 10.
What are the PE and PB ratios of TEREX CORP (TEX) stock?
The Price/Earnings (PE) ratio for TEREX CORP (TEX) is 16.12 and the Price/Book (PB) ratio is 1.99.
Can you provide the dividend sustainability for TEX stock?
The dividend rating of TEREX CORP (TEX) is 5 / 10 and the dividend payout ratio is 29.49%.