TEREX CORP (TEX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TEX - US8807791038 - Common Stock
49.83 USD
-0.45 (-0.89%)
49.83 USD
0 (0%)
TEX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. TEX has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on TEX.
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.
TEX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TEX has a Return On Assets of 2.53%. This is comparable to the rest of the industry: TEX outperforms 44.62% of its industry peers.
With a Return On Equity value of 7.73%, TEX perfoms like the industry average, outperforming 53.08% of the companies in the same industry.
With a Return On Invested Capital value of 6.84%, TEX perfoms like the industry average, outperforming 51.54% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TEX is significantly above the industry average of 10.46%.
The last Return On Invested Capital (6.84%) for TEX is well below the 3 year average (16.17%), which needs to be investigated, but indicates that TEX had better years and this may not be a problem.
| 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
Looking at the Profit Margin, with a value of 2.92%, TEX is in line with its industry, outperforming 43.85% of the companies in the same industry.
In the last couple of years the Profit Margin of TEX has grown nicely.
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.
The Gross Margin of TEX (18.71%) is worse than 76.15% of its industry peers.
TEX's Gross Margin has been stable in the last couple of years.
| 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
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 a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.31 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 2.31. This is comparable to the rest of the industry: TEX outperforms 41.54% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 9.29, TEX is doing worse than 60.77% 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's Debt to Equity ratio of 1.28 is on the low side compared to the rest of the industry. TEX is outperformed by 82.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 9.29 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.78
WACC8.81%
2.3 Liquidity
TEX has a Current Ratio of 2.15. This indicates that TEX is financially healthy and has no problem in meeting its short term obligations.
TEX has a Current ratio (2.15) which is in line with 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.
Looking at the Quick ratio, with a value of 1.20, TEX is in line with its industry, 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
The earnings per share for TEX have decreased strongly by -45.31% in the last year.
TEX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.10% yearly.
TEX shows a small growth in Revenue. In the last year, the Revenue has grown by 4.60%.
TEX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.33% yearly.
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
The Earnings Per Share is expected to grow by 10.79% on average over the next years. This is quite good.
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.
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
The Price/Earnings ratio is 13.15, which indicates a correct valuation of TEX.
Compared to the rest of the industry, the Price/Earnings ratio of TEX indicates a rather cheap valuation: TEX is cheaper than 90.00% of the companies listed in the same industry.
TEX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.49.
Based on the Price/Forward Earnings ratio of 8.78, the valuation of TEX can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TEX indicates a rather cheap valuation: TEX is cheaper than 96.92% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, TEX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 8.78 |
4.2 Price Multiples
TEX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TEX is cheaper than 80.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TEX indicates a rather cheap valuation: TEX is cheaper than 86.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.71 | ||
| EV/EBITDA | 9.77 |
4.3 Compensation for Growth
TEX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.44
EPS Next 2Y6.15%
EPS Next 3Y10.45%
5. Dividend
5.1 Amount
TEX has a Yearly Dividend Yield of 1.35%.
Compared to an average industry Dividend Yield of 1.84, TEX pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.35, TEX pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
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
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%
49.83
-0.45 (-0.89%)
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 Cap3.27B
Revenue(TTM)5.34B
Net Income(TTM)156.00M
Analysts70.67
Price Target58.04 (16.48%)
Short Float %8.03%
Short Ratio4.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
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)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 8.78 | ||
| P/S | 0.61 | ||
| P/FCF | 11.71 | ||
| P/OCF | 7.93 | ||
| P/B | 1.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.77 |
EPS(TTM)3.79
EY7.61%
EPS(NY)5.68
Fwd EY11.4%
FCF(TTM)4.25
FCFY8.54%
OCF(TTM)6.28
OCFY12.61%
SpS81.48
BVpS30.75
TBVpS-1.83
PEG (NY)N/A
PEG (5Y)1.44
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 | 2.31 |
F-Score4
WACC8.81%
ROIC/WACC0.78
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 7 / 10 to TEREX CORP (TEX). This can be considered as Undervalued.
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 13.15 and the Price/Book (PB) ratio is 1.62.
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%.