TEREX CORP (TEX) Stock Fundamental Analysis
NYSE:TEX - US8807791038 - Common Stock
49.455 USD
-0.48 (-0.97%)
Taking everything into account, TEX scores 5 out of 10 in our fundamental rating. TEX was compared to 128 industry peers in the Machinery industry. While TEX is still in line with the averages on profitability rating, there are concerns on its financial health. 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 (2.91%) which is comparable to the rest of the industry.
TEX's Return On Equity of 9.11% is in line compared to the rest of the industry. TEX outperforms 53.13% of its industry peers.
TEX has a Return On Invested Capital (6.57%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for TEX is significantly above the industry average of 9.99%.
The last Return On Invested Capital (6.57%) 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 | 2.91% | ||
| ROE | 9.11% | ||
| ROIC | 6.57% |
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 (3.46%) which is comparable to the rest of the industry.
TEX's Profit Margin has improved in the last couple of years.
The Operating Margin of TEX (7.22%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TEX has grown nicely.
The Gross Margin of TEX (18.63%) is worse than 75.00% of its industry peers.
TEX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.22% | ||
| PM (TTM) | 3.46% | ||
| GM | 18.63% |
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 just above the Cost of Capital (WACC), so TEX is still creating some value.
TEX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TEX has less shares outstanding
Compared to 1 year ago, TEX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.24 indicates that TEX is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.24, TEX is doing worse than 60.16% of the companies in the same industry.
The Debt to FCF ratio of TEX is 10.96, which is on the high side as it means it would take TEX, 10.96 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 10.96, TEX is not doing good in the industry: 61.72% of the companies in the same industry are doing better.
TEX has a Debt/Equity ratio of 1.31. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.31, TEX is doing worse than 82.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 10.96 | ||
| Altman-Z | 2.24 |
ROIC/WACC0.68
WACC9.6%
2.3 Liquidity
TEX has a Current Ratio of 2.08. This indicates that TEX is financially healthy and has no problem in meeting its short term obligations.
TEX has a Current ratio (2.08) which is comparable to the rest of the industry.
TEX has a Quick Ratio of 1.11. This is a normal value and indicates that TEX is financially healthy and should not expect problems in meeting its short term obligations.
TEX's Quick ratio of 1.11 is in line compared to the rest of the industry. TEX outperforms 42.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The earnings per share for TEX have decreased strongly by -51.15% in the last year.
The Earnings Per Share has been growing by 9.10% on average over the past years. This is quite good.
Looking at the last year, TEX shows a decrease in Revenue. The Revenue has decreased by -0.35% in the last year.
TEX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.33% yearly.
EPS 1Y (TTM)-51.15%
EPS 3Y18.35%
EPS 5Y9.1%
EPS Q2Q%-31.02%
Revenue 1Y (TTM)-0.35%
Revenue growth 3Y9.67%
Revenue growth 5Y3.33%
Sales Q2Q%7.62%
3.2 Future
Based on estimates for the next years, TEX will show a small growth in Earnings Per Share. The EPS will grow by 7.44% on average per year.
Based on estimates for the next years, TEX will show a small growth in Revenue. The Revenue will grow by 4.56% on average per year.
EPS Next Y-2.7%
EPS Next 2Y6.46%
EPS Next 3Y10.14%
EPS Next 5Y7.44%
Revenue Next Year6.62%
Revenue Next 2Y5.48%
Revenue Next 3Y5.2%
Revenue Next 5Y4.56%
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
Based on the Price/Earnings ratio of 13.74, the valuation of TEX can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of TEX indicates a rather cheap valuation: TEX is cheaper than 87.50% of the companies listed in the same industry.
TEX is valuated rather cheaply when we compare the Price/Earnings ratio to 27.13, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.66, the valuation of TEX can be described as very reasonable.
96.09% of the companies in the same industry are more expensive than TEX, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TEX to the average of the S&P500 Index (22.76), we can say TEX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.74 | ||
| Fwd PE | 8.66 |
4.2 Price Multiples
TEX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TEX is cheaper than 74.22% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TEX is valued cheaply inside the industry as 84.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.71 | ||
| EV/EBITDA | 10.9 |
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)1.51
EPS Next 2Y6.46%
EPS Next 3Y10.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.30%, TEX has a reasonable but not impressive dividend return.
TEX's Dividend Yield is a higher than the industry average which is at 1.78.
With a Dividend Yield of 1.30, TEX pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
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 25.25% of its income as dividend. This is a sustainable payout ratio.
The dividend of TEX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP25.25%
EPS Next 2Y6.46%
EPS Next 3Y10.14%
NYSE:TEX (9/2/2025, 9:56:07 AM)
49.455
-0.48 (-0.97%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners103.81%
Inst Owner Change0.76%
Ins Owners1.43%
Ins Owner Change5.31%
Market Cap3.24B
Analysts67.5
Price Target56.33 (13.9%)
Short Float %5.62%
Short Ratio4.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
Yearly Dividend0.7
Dividend Growth(5Y)9.24%
DP25.25%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)37.22%
Min EPS beat(2)5.41%
Max EPS beat(2)69.03%
EPS beat(4)2
Avg EPS beat(4)-7.65%
Min EPS beat(4)-104.14%
Max EPS beat(4)69.03%
EPS beat(8)6
Avg EPS beat(8)2.76%
EPS beat(12)10
Avg EPS beat(12)12.48%
EPS beat(16)13
Avg EPS beat(16)16.86%
Revenue beat(2)1
Avg Revenue beat(2)0.18%
Min Revenue beat(2)-1.84%
Max Revenue beat(2)2.2%
Revenue beat(4)2
Avg Revenue beat(4)0.86%
Min Revenue beat(4)-1.84%
Max Revenue beat(4)3.24%
Revenue beat(8)4
Avg Revenue beat(8)0.35%
Revenue beat(12)8
Avg Revenue beat(12)2.77%
Revenue beat(16)10
Avg Revenue beat(16)2.23%
PT rev (1m)6.71%
PT rev (3m)28.57%
EPS NQ rev (1m)-12.68%
EPS NQ rev (3m)-22.11%
EPS NY rev (1m)2.83%
EPS NY rev (3m)4.56%
Revenue NQ rev (1m)1.71%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)2.51%
Revenue NY rev (3m)2.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.74 | ||
| Fwd PE | 8.66 | ||
| P/S | 0.63 | ||
| P/FCF | 13.71 | ||
| P/OCF | 8.67 | ||
| P/B | 1.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.9 |
EPS(TTM)3.6
EY7.28%
EPS(NY)5.71
Fwd EY11.55%
FCF(TTM)3.61
FCFY7.29%
OCF(TTM)5.71
OCFY11.54%
SpS78.8
BVpS29.95
TBVpS-3.12
PEG (NY)N/A
PEG (5Y)1.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.91% | ||
| ROE | 9.11% | ||
| ROCE | 7.68% | ||
| ROIC | 6.57% | ||
| ROICexc | 7.12% | ||
| ROICexgc | 13.8% | ||
| OM | 7.22% | ||
| PM (TTM) | 3.46% | ||
| GM | 18.63% | ||
| FCFM | 4.58% |
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%
ROICexcg growth 3Y1.95%
ROICexcg 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 Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 10.96 | ||
| Debt/EBITDA | 5.13 | ||
| Cap/Depr | 105.19% | ||
| Cap/Sales | 2.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.29% | ||
| Profit Quality | 132.18% | ||
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 2.24 |
F-Score4
WACC9.6%
ROIC/WACC0.68
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)-51.15%
EPS 3Y18.35%
EPS 5Y9.1%
EPS Q2Q%-31.02%
EPS Next Y-2.7%
EPS Next 2Y6.46%
EPS Next 3Y10.14%
EPS Next 5Y7.44%
Revenue 1Y (TTM)-0.35%
Revenue growth 3Y9.67%
Revenue growth 5Y3.33%
Sales Q2Q%7.62%
Revenue Next Year6.62%
Revenue Next 2Y5.48%
Revenue Next 3Y5.2%
Revenue Next 5Y4.56%
EBIT growth 1Y-40.82%
EBIT growth 3Y16.31%
EBIT growth 5Y9.35%
EBIT Next Year13.22%
EBIT Next 3Y9.37%
EBIT Next 5Y2.33%
FCF growth 1Y-12.37%
FCF growth 3Y-6.83%
FCF growth 5Y23.99%
OCF growth 1Y0.73%
OCF growth 3Y3.57%
OCF growth 5Y13.46%