TEREX CORP (TEX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TEX - US8807791038 - Common Stock
59.7 USD
+1.04 (+1.77%)
59.7 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TEX. TEX was compared to 132 industry peers in the Machinery industry. Both the profitability and the financial health of TEX get a neutral evaluation. Nothing too spectacular is happening here. TEX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year TEX was profitable.
TEX had a positive operating cash flow in the past year.
Of the past 5 years TEX 4 years were profitable.
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 44.70% of its industry peers.
TEX has a Return On Equity (7.73%) which is in line with its industry peers.
TEX's Return On Invested Capital of 6.84% is in line compared to the rest of the industry. TEX outperforms 51.52% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TEX is significantly above the industry average of 10.22%.
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
TEX has a Profit Margin (2.92%) which is in line with its industry peers.
In the last couple of years the Profit Margin of TEX has grown nicely.
The Operating Margin of TEX (7.32%) is comparable to the rest of the industry.
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 75.76% 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
TEX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
TEX has less shares outstanding than it did 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 2.39. 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 of 2.39. This is comparable to the rest of the industry: TEX outperforms 41.67% 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.
TEX has a Debt to FCF ratio (9.29) which is in line with its industry peers.
A Debt/Equity ratio of 1.28 is on the high side and indicates that TEX has dependencies on debt financing.
TEX has a worse Debt to Equity ratio (1.28) than 81.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 9.29 | ||
| Altman-Z | 2.39 |
ROIC/WACC0.75
WACC9.08%
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 (2.15) which is comparable to the rest of the 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.
TEX has a Quick ratio of 1.20. This is comparable to the rest of the industry: TEX outperforms 50.00% of its industry peers.
| 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.
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.
Looking at the last year, TEX shows a small growth in Revenue. The Revenue has grown by 4.60% in the last year.
Measured over the past years, TEX shows a small growth in Revenue. The Revenue has been growing by 3.33% on average per year.
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.
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-1.97%
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.
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
TEX is valuated correctly with a Price/Earnings ratio of 15.75.
Compared to the rest of the industry, the Price/Earnings ratio of TEX indicates a rather cheap valuation: TEX is cheaper than 86.36% of the companies listed in the same industry.
TEX is valuated rather cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.46, which indicates a very decent valuation of TEX.
Based on the Price/Forward Earnings ratio, TEX is valued cheaply inside the industry as 96.97% of the companies are valued more expensively.
TEX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.75 | ||
| Fwd PE | 10.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TEX is valued a bit cheaper than the industry average as 78.03% of the companies are valued more expensively.
87.12% 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 | 14.03 | ||
| EV/EBITDA | 10.82 |
4.3 Compensation for Growth
The decent profitability rating of TEX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.73
EPS Next 2Y6.4%
EPS Next 3Y10.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.27%, TEX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.85, TEX pays a bit more dividend than its industry peers.
TEX's Dividend Yield is slightly below the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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.
TEX's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP29.49%
EPS Next 2Y6.4%
EPS Next 3Y10.99%
59.7
+1.04 (+1.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners106.62%
Inst Owner Change0%
Ins Owners1.42%
Ins Owner Change-0.15%
Market Cap3.92B
Revenue(TTM)5.34B
Net Income(TTM)156.00M
Analysts70.67
Price Target59.77 (0.12%)
Short Float %10.19%
Short Ratio5.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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)2.81%
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 | 15.75 | ||
| Fwd PE | 10.46 | ||
| P/S | 0.73 | ||
| P/FCF | 14.03 | ||
| P/OCF | 9.5 | ||
| P/B | 1.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.82 |
EPS(TTM)3.79
EY6.35%
EPS(NY)5.71
Fwd EY9.56%
FCF(TTM)4.25
FCFY7.13%
OCF(TTM)6.28
OCFY10.52%
SpS81.48
BVpS30.75
TBVpS-1.83
PEG (NY)N/A
PEG (5Y)1.73
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 | 2.39 |
F-Score4
WACC9.08%
ROIC/WACC0.75
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 15.75 and the Price/Book (PB) ratio is 1.94.
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%.