TEREX CORP (TEX) Stock Fundamental Analysis
NYSE:TEX - New York Stock Exchange, Inc. - US8807791038 - Common Stock - Currency: USD
TEX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. TEX has a medium profitability rating, but doesn't score so well on its financial health evaluation. TEX has a correct valuation and a medium 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.
TEX had positive earnings in 4 of the past 5 years.
In the past 5 years TEX always reported a positive cash flow from operatings.
1.2 Ratios
TEX has a Return On Assets (4.24%) which is comparable to the rest of the industry.
TEX has a Return On Equity of 13.43%. This is in the better half of the industry: TEX outperforms 65.63% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.98%, TEX is in line with its industry, outperforming 56.25% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TEX is significantly above the industry average of 10.72%.
The last Return On Invested Capital (7.98%) 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 | 4.24% | ||
| ROE | 13.43% | ||
| ROIC | 7.98% |
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's Profit Margin of 4.89% is in line compared to the rest of the industry. TEX outperforms 46.88% of its industry peers.
TEX's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 8.63%, TEX perfoms like the industry average, outperforming 48.44% of the companies in the same industry.
In the last couple of years the Operating Margin of TEX has grown nicely.
TEX has a Gross Margin of 19.76%. This is in the lower half of the industry: TEX underperforms 73.44% of its industry peers.
TEX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.63% | ||
| PM (TTM) | 4.89% | ||
| GM | 19.76% |
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) just above the Cost of Capital (WACC), TEX is creating some value.
Compared to 1 year ago, TEX has less shares outstanding
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 2.29 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 2.29, TEX is doing worse than 65.63% of the companies in the same industry.
TEX has a debt to FCF ratio of 12.87. This is a negative value and a sign of low solvency as TEX would need 12.87 years to pay back of all of its debts.
TEX has a worse Debt to FCF ratio (12.87) than 65.63% of its industry peers.
A Debt/Equity ratio of 1.40 is on the high side and indicates that TEX has dependencies on debt financing.
TEX has a Debt to Equity ratio of 1.40. This is amonst the worse of the industry: TEX underperforms 82.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 12.87 | ||
| Altman-Z | 2.29 |
ROIC/WACC0.86
WACC9.3%
2.3 Liquidity
TEX has a Current Ratio of 2.11. This indicates that TEX is financially healthy and has no problem in meeting its short term obligations.
TEX's Current ratio of 2.11 is in line compared to the rest of the industry. TEX outperforms 53.91% of its industry peers.
A Quick Ratio of 1.07 indicates that TEX should not have too much problems paying its short term obligations.
TEX's Quick ratio of 1.07 is on the low side compared to the rest of the industry. TEX is outperformed by 60.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The earnings per share for TEX have decreased strongly by -43.44% 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 decrease in Revenue. The Revenue has decreased by -2.78% 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)-43.44%
EPS 3Y18.35%
EPS 5Y9.1%
EPS Q2Q%-48.13%
Revenue 1Y (TTM)-2.78%
Revenue growth 3Y9.67%
Revenue growth 5Y3.33%
Sales Q2Q%-4.91%
3.2 Future
TEX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.44% yearly.
TEX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.56% yearly.
EPS Next Y-6.94%
EPS Next 2Y5.57%
EPS Next 3Y9.19%
EPS Next 5Y7.44%
Revenue Next Year3.93%
Revenue Next 2Y4.17%
Revenue Next 3Y4.48%
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.
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 10.63 indicates a reasonable valuation of TEX.
Based on the Price/Earnings ratio, TEX is valued cheaper than 90.63% of the companies in the same industry.
When comparing the Price/Earnings ratio of TEX to the average of the S&P500 Index (26.32), we can say TEX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.08, the valuation of TEX can be described as reasonable.
Based on the Price/Forward Earnings ratio, TEX is valued cheaper than 95.31% of the companies in the same industry.
TEX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.63 | ||
| Fwd PE | 8.08 |
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 74.22% of the companies listed in the same industry.
TEX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TEX is cheaper than 77.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.82 | ||
| EV/EBITDA | 9.63 |
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)1.17
EPS Next 2Y5.57%
EPS Next 3Y9.19%
5. Dividend
5.1 Amount
TEX has a Yearly Dividend Yield of 1.44%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.90, TEX pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.44, TEX pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
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 18.41% of its income as dividend. This is a sustainable payout ratio.
TEX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP18.41%
EPS Next 2Y5.57%
EPS Next 3Y9.19%
45.39
+0.51 (+1.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners103.66%
Inst Owner Change1.53%
Ins Owners1.43%
Ins Owner Change5%
Market Cap2.98B
Analysts68.24
Price Target50.95 (12.25%)
Short Float %6.45%
Short Ratio4.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
Yearly Dividend0.7
Dividend Growth(5Y)9.24%
DP18.41%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-17.55%
Min EPS beat(2)-104.14%
Max EPS beat(2)69.03%
EPS beat(4)2
Avg EPS beat(4)-8.04%
Min EPS beat(4)-104.14%
Max EPS beat(4)69.03%
EPS beat(8)6
Avg EPS beat(8)7%
EPS beat(12)10
Avg EPS beat(12)13.91%
EPS beat(16)13
Avg EPS beat(16)20.87%
Revenue beat(2)0
Avg Revenue beat(2)-1%
Min Revenue beat(2)-1.84%
Max Revenue beat(2)-0.16%
Revenue beat(4)1
Avg Revenue beat(4)-0.72%
Min Revenue beat(4)-4.12%
Max Revenue beat(4)3.24%
Revenue beat(8)4
Avg Revenue beat(8)1.27%
Revenue beat(12)7
Avg Revenue beat(12)2.5%
Revenue beat(16)10
Avg Revenue beat(16)2.15%
PT rev (1m)16.3%
PT rev (3m)-3.57%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)-4.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.95%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)-1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.63 | ||
| Fwd PE | 8.08 | ||
| P/S | 0.59 | ||
| P/FCF | 14.82 | ||
| P/OCF | 8.79 | ||
| P/B | 1.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.63 |
EPS(TTM)4.27
EY9.41%
EPS(NY)5.62
Fwd EY12.37%
FCF(TTM)3.06
FCFY6.75%
OCF(TTM)5.17
OCFY11.38%
SpS77.19
BVpS28.11
TBVpS-5.03
PEG (NY)N/A
PEG (5Y)1.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.24% | ||
| ROE | 13.43% | ||
| ROCE | 9.33% | ||
| ROIC | 7.98% | ||
| ROICexc | 8.53% | ||
| ROICexgc | 16.9% | ||
| OM | 8.63% | ||
| PM (TTM) | 4.89% | ||
| GM | 19.76% | ||
| FCFM | 3.97% |
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 Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 12.87 | ||
| Debt/EBITDA | 4.75 | ||
| Cap/Depr | 130.07% | ||
| Cap/Sales | 2.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.39% | ||
| Profit Quality | 81.11% | ||
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 2.29 |
F-Score4
WACC9.3%
ROIC/WACC0.86
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)-43.44%
EPS 3Y18.35%
EPS 5Y9.1%
EPS Q2Q%-48.13%
EPS Next Y-6.94%
EPS Next 2Y5.57%
EPS Next 3Y9.19%
EPS Next 5Y7.44%
Revenue 1Y (TTM)-2.78%
Revenue growth 3Y9.67%
Revenue growth 5Y3.33%
Sales Q2Q%-4.91%
Revenue Next Year3.93%
Revenue Next 2Y4.17%
Revenue Next 3Y4.48%
Revenue Next 5Y4.56%
EBIT growth 1Y-32.45%
EBIT growth 3Y16.31%
EBIT growth 5Y9.35%
EBIT Next Year14.5%
EBIT Next 3Y9.87%
EBIT Next 5Y2.33%
FCF growth 1Y-5.33%
FCF growth 3Y-6.83%
FCF growth 5Y23.99%
OCF growth 1Y5.25%
OCF growth 3Y3.57%
OCF growth 5Y13.46%