TEREX CORP (TEX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TEX - US8807791038 - Common Stock
45.84 USD
+0.74 (+1.64%)
45.84 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TEX. TEX was compared to 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.
TEX had a positive operating cash flow in the past year.
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 of 2.53%. This is comparable to the rest of the industry: TEX outperforms 44.62% of its industry peers.
TEX has a Return On Equity of 7.73%. This is comparable to the rest of the industry: TEX outperforms 52.31% of its industry peers.
TEX has a Return On Invested Capital (6.84%) 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 10.34%.
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
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.
With a Operating Margin value of 7.32%, TEX perfoms like the industry average, outperforming 47.69% of the companies in the same industry.
TEX's Operating Margin has improved in the last couple of years.
The Gross Margin of TEX (18.71%) is worse than 75.38% 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 well above the Cost of Capital (WACC), which means it is creating value.
TEX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TEX has been reduced compared to 5 years ago.
Compared to 1 year ago, TEX has a worse debt to assets ratio.
2.2 Solvency
TEX has an Altman-Z score of 2.26. 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.
With a Altman-Z score value of 2.26, TEX perfoms like the industry average, outperforming 40.77% of the companies in the same 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.
Looking at the Debt to FCF ratio, with a value of 9.29, TEX is in line with its industry, outperforming 40.77% 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.
Looking at the Debt to Equity ratio, with a value of 1.28, TEX is doing worse than 82.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 9.29 | ||
| Altman-Z | 2.26 |
ROIC/WACC0.79
WACC8.67%
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 comparable to the rest of the industry.
A Quick Ratio of 1.20 indicates that TEX should not have too much problems paying 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%.
The Earnings Per Share has been growing by 9.10% on average over the past years. This is quite good.
TEX shows a small growth in Revenue. In the last year, the Revenue has grown by 4.60%.
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
TEX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.79% yearly.
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-2.39%
EPS Next 2Y5.97%
EPS Next 3Y10.05%
EPS Next 5Y10.79%
Revenue Next Year6.13%
Revenue Next 2Y5.14%
Revenue Next 3Y5.26%
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.
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 12.09 indicates a correct valuation of TEX.
Based on the Price/Earnings ratio, TEX is valued cheaply inside the industry as 92.31% of the companies are valued more expensively.
TEX is valuated cheaply when we compare the Price/Earnings ratio to 25.65, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.10, the valuation of TEX can be described as very reasonable.
Based on the Price/Forward Earnings ratio, TEX is valued cheaper than 96.92% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.45. TEX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.09 | ||
| Fwd PE | 8.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TEX is valued cheaply inside the industry as 82.31% of the companies are valued more expensively.
TEX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TEX is cheaper than 90.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.78 | ||
| EV/EBITDA | 9.2 |
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)1.33
EPS Next 2Y5.97%
EPS Next 3Y10.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.63%, TEX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.97, TEX pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.41, TEX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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 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 2Y5.97%
EPS Next 3Y10.05%
45.84
+0.74 (+1.64%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners103.82%
Inst Owner Change1.9%
Ins Owners1.43%
Ins Owner Change-0.21%
Market Cap3.01B
Revenue(TTM)5.34B
Net Income(TTM)156.00M
Analysts70
Price Target58.14 (26.83%)
Short Float %6.46%
Short Ratio4.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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)2.6%
PT rev (3m)3.22%
EPS NQ rev (1m)-14.79%
EPS NQ rev (3m)-15.87%
EPS NY rev (1m)0.56%
EPS NY rev (3m)0.32%
Revenue NQ rev (1m)-1.57%
Revenue NQ rev (3m)-1.79%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.09 | ||
| Fwd PE | 8.1 | ||
| P/S | 0.56 | ||
| P/FCF | 10.78 | ||
| P/OCF | 7.3 | ||
| P/B | 1.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.2 |
EPS(TTM)3.79
EY8.27%
EPS(NY)5.66
Fwd EY12.35%
FCF(TTM)4.25
FCFY9.28%
OCF(TTM)6.28
OCFY13.7%
SpS81.46
BVpS30.75
TBVpS-1.83
PEG (NY)N/A
PEG (5Y)1.33
Graham Number51.2
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 | 2.26 |
F-Score4
WACC8.67%
ROIC/WACC0.79
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-2.39%
EPS Next 2Y5.97%
EPS Next 3Y10.05%
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 2Y5.14%
Revenue Next 3Y5.26%
Revenue Next 5Y5.66%
EBIT growth 1Y-33.63%
EBIT growth 3Y16.31%
EBIT growth 5Y9.35%
EBIT Next Year12.27%
EBIT Next 3Y10.29%
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 8 / 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 12.09 and the Price/Book (PB) ratio is 1.49.
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%.