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TEX

TerexNYSE:TEX Stock Report

Market Cap

US$2.8b

7D

-9.2%

1Y

33.1%

Updated

02 Dec, 2021

Data

Company Financials +
TEX fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance5/6
Financial Health6/6
Dividends2/6

TEX Stock Overview

Terex Corporation manufactures and sells aerial work platforms and materials processing machinery worldwide.

Terex Competitors

Caterpillar

NYSE:CAT

US$103.6b

Cummins

NYSE:CMI

US$29.9b

Oshkosh

NYSE:OSK

US$7.1b

Federal Signal

NYSE:FSS

US$2.6b

Price History & Performance

Summary of all time highs, changes and price drops for Terex
Historical stock prices
Current Share PriceUS$43.35
52 Week HighUS$55.60
52 Week LowUS$31.39
Beta1.7
1 Month Change-7.07%
3 Month Change-11.57%
1 Year Change33.06%
3 Year Change46.35%
5 Year Change34.04%
Change since IPO346.91%

Recent News & Updates

Oct 25
Terex (NYSE:TEX) Seems To Use Debt Quite Sensibly

Terex (NYSE:TEX) Seems To Use Debt Quite Sensibly

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

TEXUS MachineryUS Market
7D-9.2%-4.9%-3.5%
1Y33.1%17.6%19.4%

Return vs Industry: TEX exceeded the US Machinery industry which returned 14% over the past year.

Return vs Market: TEX exceeded the US Market which returned 17.8% over the past year.

Price Volatility

Is TEX's price volatile compared to industry and market?
TEX volatility
TEX Average Weekly Movement6.0%
Machinery Industry Average Movement4.8%
Market Average Movement6.1%
10% most volatile stocks in US Market14.9%
10% least volatile stocks in US Market2.4%

Stable Share Price: TEX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: TEX's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19868,200John Garrisonhttps://www.terex.com

Terex Corporation manufactures and sells aerial work platforms and materials processing machinery worldwide. The company operates in two segments, Aerial Work Platforms (AWP) and Materials Processing (MP). The AWP segment designs, manufactures, services, and markets aerial work platform equipment, utility equipment, and telehandlers principally under the Terex and Genie brand names.

Terex Fundamentals Summary

How do Terex's earnings and revenue compare to its market cap?
TEX fundamental statistics
Market CapUS$2.84b
Earnings (TTM)US$174.40m
Revenue (TTM)US$3.68b

17.2x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TEX income statement (TTM)
RevenueUS$3.68b
Cost of RevenueUS$2.95b
Gross ProfitUS$735.10m
ExpensesUS$560.70m
EarningsUS$174.40m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.52
Gross Margin19.96%
Net Profit Margin4.73%
Debt/Equity Ratio85.1%

How did TEX perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

14%

Payout Ratio

Valuation

Is Terex undervalued compared to its fair value and its price relative to the market?

39.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TEX ($43.35) is trading below our estimate of fair value ($71.34)

Significantly Below Fair Value: TEX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TEX is good value based on its PE Ratio (17.2x) compared to the US Machinery industry average (28.4x).

PE vs Market: TEX is poor value based on its PE Ratio (17.2x) compared to the US market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: TEX is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: TEX is overvalued based on its PB Ratio (2.9x) compared to the US Machinery industry average (2.7x).


Future Growth

How is Terex forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

27.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TEX's forecast earnings growth (27.2% per year) is above the savings rate (2%).

Earnings vs Market: TEX's earnings (27.2% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TEX's revenue (10.3% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: TEX's revenue (10.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TEX's Return on Equity is forecast to be low in 3 years time (19.6%).


Past Performance

How has Terex performed over the past 5 years?

27.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TEX has high quality earnings.

Growing Profit Margin: TEX's current net profit margins (4.7%) are higher than last year (0.4%).


Past Earnings Growth Analysis

Earnings Trend: TEX's earnings have grown significantly by 27.3% per year over the past 5 years.

Accelerating Growth: TEX's earnings growth over the past year (1284.1%) exceeds its 5-year average (27.3% per year).

Earnings vs Industry: TEX earnings growth over the past year (1284.1%) exceeded the Machinery industry 32%.


Return on Equity

High ROE: TEX's Return on Equity (16.6%) is considered low.


Financial Health

How is Terex's financial position?


Financial Position Analysis

Short Term Liabilities: TEX's short term assets ($2.0B) exceed its short term liabilities ($939.8M).

Long Term Liabilities: TEX's short term assets ($2.0B) exceed its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: TEX's net debt to equity ratio (32.5%) is considered satisfactory.

Reducing Debt: TEX's debt to equity ratio has reduced from 87.1% to 85.1% over the past 5 years.

Debt Coverage: TEX's debt is well covered by operating cash flow (51.5%).

Interest Coverage: TEX's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet


Dividend

What is Terex current dividend yield, its reliability and sustainability?

1.11%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TEX's dividend (1.11%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: TEX's dividend (1.11%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

Stable Dividend: TEX has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: TEX's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.4%), TEX's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TEX's dividends in 3 years are forecast to be thoroughly covered by earnings (10.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

John Garrison (60 yo)

6.08yrs

Tenure

US$7,439,350

Compensation

Mr. John L. Garrison, Jr. serves as President of Terex Aerial Work Platforms at Terex Corporation since June 8, 2020. He has been Chief Executive Officer and President of Terex Corporation since November 2...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD7.44M) is above average for companies of similar size in the US market ($USD5.28M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: TEX's management team is considered experienced (5 years average tenure).


Board Members

Experienced Board: TEX's board of directors are considered experienced (5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TEX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Terex Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Terex Corporation
  • Ticker: TEX
  • Exchange: NYSE
  • Founded: 1986
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: US$2.837b
  • Shares outstanding: 69.20m
  • Website: https://www.terex.com

Number of Employees


Location

  • Terex Corporation
  • 45 Glover Avenue
  • 4th Floor
  • Norwalk
  • Connecticut
  • 6850
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/02 23:32
End of Day Share Price2021/12/02 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.