NYSE:TEX

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Second-rate dividend payer and slightly overvalued.


Similar Companies

Share Price & News

How has Terex's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

8.5%

TEX

3.3%

US Machinery

1.0%

US Market


1 Year Return

-17.0%

TEX

10.0%

US Machinery

8.0%

US Market

Return vs Industry: TEX underperformed the US Machinery industry which returned 10% over the past year.

Return vs Market: TEX underperformed the US Market which returned 8% over the past year.


Shareholder returns

TEXIndustryMarket
7 Day8.5%3.3%1.0%
30 Day-0.4%2.3%-0.07%
90 Day-14.5%-2.0%-1.0%
1 Year-15.8%-17.0%12.4%10.0%10.4%8.0%
3 Year17.5%13.7%51.4%41.6%46.2%36.7%
5 Year-1.7%-7.0%58.9%39.6%64.3%46.2%

Price Volatility Vs. Market

How volatile is Terex's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

20.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TEX ($27.27) is trading below our estimate of fair value ($34.48)

Significantly Below Fair Value: TEX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TEX is poor value based on its PE Ratio (20.2x) compared to the Machinery industry average (20.3x).

PE vs Market: TEX is poor value based on its PE Ratio (20.2x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: TEX is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: TEX is good value based on its PB Ratio (2.2x) compared to the US Machinery industry average (2.3x).


Next Steps

Future Growth

How is Terex forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

7.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TEX's forecast earnings growth (7.9% per year) is above the savings rate (2.7%).

Earnings vs Market: TEX's earnings (7.9% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: TEX's earnings are forecast to grow, but not significantly.

Revenue vs Market: TEX's revenue is expected to decline over the next 3 years (-5.1% per year).

High Growth Revenue: TEX's revenue is forecast to decline over the next 3 years (-5.1% 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 (16.7%).


Next Steps

Past Performance

How has Terex performed over the past 5 years?

-22.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TEX's earnings have declined by -22.2% per year over the past 5 years.

Accelerating Growth: TEX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TEX had negative earnings growth (-45.3%) over the past year, making it difficult to compare to the Machinery industry average (16.7%).


Return on Equity

High ROE: TEX's Return on Equity (11.3%) is considered low.


Return on Assets

ROA vs Industry: TEX's Return on Assets is below or equal to the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: TEX has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Terex's financial position?


Financial Position Analysis

Short Term Liabilities: TEX's short term assets ($2.4B) exceeds its short term liabilities ($1.1B)

Long Term Liabilities: TEX's short term assets (2.4B) exceeds its long term liabilities (1.6B)


Debt to Equity History and Analysis

Debt Level: TEX's debt to equity ratio (156.6%) is considered high

Reducing Debt: TEX's debt to equity ratio has increased from 81.4% to 156.6% over the past 5 years.

Debt Coverage: TEX's debt is not well covered by operating cash flow (0.8%).

Interest Coverage: TEX's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet

Inventory Level: TEX has a high level of physical assets or inventory.

Debt Coverage by Assets: TEX's debt is covered by short term assets (assets are 1.810190x debt).


Next Steps

Dividend

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

1.61%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years1.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TEX's dividend (1.61%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: TEX's dividend (1.61%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: Whilst dividend payments have been stable, TEX has been paying a dividend for less than 10 years.

Growing Dividend: TEX's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.1%), TEX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TEX's dividends in 3 years are forecast to be well covered by earnings (17.1% payout ratio).


Next Steps

Management

What is the CEO of Terex's salary, the management and board of directors tenure and is there insider trading?

6.3yrs

Average management tenure


CEO

John Garrison (58yo)

3.9yrs

Tenure

US$9,629,700

Compensation

Mr. John L. Garrison, Jr. has been Chief Executive Officer and President of Terex Corporation since November 2, 2015, and has been its Chairman of the Board since August 15, 2018. Mr. Garrison has been Dir ...


CEO Compensation Analysis

Compensation vs. Market: John's total compensation ($USD9.63M) is about average for companies of similar size in the US market ($USD4.07M).

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


Management Age and Tenure

6.3yrs

Average Tenure

59yo

Average Age

Experienced Management: TEX's management team is seasoned and experienced (6.3 years average tenure).


Board Age and Tenure

6.9yrs

Average Tenure

60yo

Average Age

Experienced Board: TEX's board of directors are considered experienced (6.9 years average tenure).


Insider Trading

Insider Buying: TEX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$13,07515 Oct 19
John Sheehan
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares545
Max PriceUS$23.99
BuyUS$3,44415 Oct 19
Brian Henry
EntityIndividual
Role
Head of Investor Relations
Senior Vice President of Business Development & Investor Relations
Shares137
Max PriceUS$25.14
BuyUS$35215 Oct 19
Kevin Barr
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resource
Shares14
Max PriceUS$25.14
BuyUS$23611 Sep 19
Kevin Barr
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resource
Shares9
Max PriceUS$26.17
BuyUS$2,30311 Sep 19
Brian Henry
EntityIndividual
Role
Head of Investor Relations
Senior Vice President of Business Development & Investor Relations
Shares88
Max PriceUS$26.17
BuyUS$19,59411 Sep 19
John Sheehan
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares751
Max PriceUS$26.09
BuyUS$2,30219 Aug 19
Brian Henry
EntityIndividual
Role
Head of Investor Relations
Senior Vice President of Business Development & Investor Relations
Shares97
Max PriceUS$23.73
BuyUS$13,06419 Aug 19
John Sheehan
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares545
Max PriceUS$23.97
BuyUS$23719 Aug 19
Kevin Barr
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resource
Shares10
Max PriceUS$23.73
BuyUS$13,08012 Jul 19
John Sheehan
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares441
Max PriceUS$29.66
BuyUS$23512 Jul 19
Kevin Barr
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resource
Shares8
Max PriceUS$29.32
BuyUS$2,28712 Jul 19
Brian Henry
EntityIndividual
Role
Head of Investor Relations
Senior Vice President of Business Development & Investor Relations
Shares78
Max PriceUS$29.32
BuyUS$2,30012 Jun 19
Brian Henry
EntityIndividual
Role
Head of Investor Relations
Senior Vice President of Business Development & Investor Relations
Shares82
Max PriceUS$28.05
BuyUS$13,06712 Jun 19
John Sheehan
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares465
Max PriceUS$28.10
BuyUS$22412 Jun 19
Kevin Barr
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resource
Shares8
Max PriceUS$28.05
BuyUS$74,90611 Jun 19
Paula H. Cholmondeley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,653
Max PriceUS$28.24
SellUS$74,92111 Jun 19
Paula H. Cholmondeley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,653
Max PriceUS$28.24
SellUS$40,875,00007 Jun 19
Marcato Capital Management, LLC
EntityCompany
Shares1,500,000
Max PriceUS$27.25
SellUS$2,827,00007 Jun 19
Marcato Capital Management, LLC
EntityCompany
Shares100,000
Max PriceUS$28.27
BuyUS$24313 May 19
Kevin Barr
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resource
Shares8
Max PriceUS$30.33
BuyUS$12,98113 May 19
John Sheehan
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares439
Max PriceUS$29.57
BuyUS$2,30513 May 19
Brian Henry
EntityIndividual
Role
Head of Investor Relations
Senior Vice President of Business Development & Investor Relations
Shares76
Max PriceUS$30.33
BuyUS$19,12808 Apr 19
John Sheehan
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares572
Max PriceUS$33.44
BuyUS$3,44308 Apr 19
Brian Henry
EntityIndividual
Role
Head of Investor Relations
Senior Vice President of Business Development & Investor Relations
Shares103
Max PriceUS$33.43
BuyUS$33408 Apr 19
Kevin Barr
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resource
Shares10
Max PriceUS$33.43
BuyUS$23611 Mar 19
Kevin Barr
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resource
Shares7
Max PriceUS$33.71
BuyUS$12,75411 Mar 19
John Sheehan
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares375
Max PriceUS$34.01
BuyUS$2,29211 Mar 19
Brian Henry
EntityIndividual
Role
Head of Investor Relations
Senior Vice President of Business Development & Investor Relations
Shares68
Max PriceUS$33.71
SellUS$358,11127 Feb 19
Stoyan Filipov
EntityIndividual
Shares10,048
Max PriceUS$35.64
BuyUS$2,30912 Feb 19
Brian Henry
EntityIndividual
Role
Head of Investor Relations
Senior Vice President of Business Development & Investor Relations
Shares75
Max PriceUS$30.78
BuyUS$12,73612 Feb 19
John Sheehan
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares409
Max PriceUS$31.14
BuyUS$21512 Feb 19
Kevin Barr
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resource
Shares7
Max PriceUS$30.78
BuyUS$23110 Jan 19
Kevin Barr
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resource
Shares8
Max PriceUS$28.93
BuyUS$12,75310 Jan 19
John Sheehan
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares439
Max PriceUS$29.05
BuyUS$2,31410 Jan 19
Brian Henry
EntityIndividual
Role
Head of Investor Relations
Senior Vice President of Business Development & Investor Relations
Shares80
Max PriceUS$28.93
BuyUS$12,74712 Dec 18
John Sheehan
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares434
Max PriceUS$29.37
BuyUS$2,30912 Dec 18
Brian Henry
EntityIndividual
Role
Head of Investor Relations
Senior Vice President of Business Development & Investor Relations
Shares79
Max PriceUS$29.23
BuyUS$23412 Dec 18
Kevin Barr
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resource
Shares8
Max PriceUS$29.23
BuyUS$12,74313 Nov 18
John Sheehan
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares396
Max PriceUS$32.18
SellUS$106,43613 Nov 18
Brian Henry
EntityIndividual
Role
Head of Investor Relations
Senior Vice President of Business Development & Investor Relations
Shares3,500
Max PriceUS$30.42
BuyUS$24313 Nov 18
Kevin Barr
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resource
Shares8
Max PriceUS$30.38
BuyUS$2,30913 Nov 18
Brian Henry
EntityIndividual
Role
Head of Investor Relations
Senior Vice President of Business Development & Investor Relations
Shares76
Max PriceUS$30.38

Ownership Breakdown


Management Team

  • Eric Cohen (61yo)

    Senior VP

    • Tenure: 21.8yrs
    • Compensation: US$3.38m
  • Brian Henry (60yo)

    Senior Vice President of Business Development & Investor Relations

    • Tenure: 3.1yrs
    • Compensation: US$2.90m
  • John Garrison (58yo)

    Chairman

    • Tenure: 3.9yrs
    • Compensation: US$9.63m
  • Kevin Barr (59yo)

    Senior Vice President of Human Resource

    • Tenure: 19.1yrs
  • John Sheehan (57yo)

    Senior VP & CFO

    • Tenure: 2.7yrs
    • Compensation: US$3.46m
  • Matt Fearon (58yo)

    President of Terex Aerial Work Platforms

    • Tenure: 6.8yrs
    • Compensation: US$2.21m
  • Mark Clair (59yo)

    Chief Accounting Officer

    • Tenure: 10.3yrs
  • Ramon Oliu

    Chief Risk Officer of Finance

    • Tenure: 5.9yrs
  • Stacey Babson-Smith

    Chief Ethics & Compliance Officer and VP

    • Tenure: 11.8yrs
  • Andrew Campbell

    Chief Information Officer & VP

    • Tenure: 2.9yrs

Board Members

  • Don DeFosset (70yo)

    Independent Director

    • Tenure: 20.8yrs
    • Compensation: US$255.00k
  • Tom Hansen (70yo)

    Independent Director

    • Tenure: 11.4yrs
    • Compensation: US$267.50k
  • John Garrison (58yo)

    Chairman

    • Tenure: 3.9yrs
    • Compensation: US$9.63m
  • G. Chris Andersen (80yo)

    Director Emeritus

    • Tenure: 2.8yrs
    • Compensation: US$242.50k
  • David Sachs (60yo)

    Lead Director

    • Tenure: 6.4yrs
    • Compensation: US$361.00k
  • Paula H. Cholmondeley (72yo)

    Independent Director

    • Tenure: 15.3yrs
    • Compensation: US$242.50k
  • Andra Rush (57yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$242.50k
  • Raimund Klinkner (54yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$245.00k
  • Scott Wine (52yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$242.50k

Company Information

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


Key Information

  • Name: Terex Corporation
  • Ticker: TEX
  • Exchange: NYSE
  • Founded: 1925
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: US$1.942b
  • Shares outstanding: 71.20m
  • Website: https://www.terex.com

Number of Employees


Location

  • Terex Corporation
  • 200 Nyala Farm Road
  • Westport
  • Connecticut
  • 6880
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TEXNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1980
TXGDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1980

Biography

Terex Corporation manufactures and sells aerial work platforms, cranes, and materials processing machinery worldwide. The company operates through three segments: Aerial Work Platforms (AWP), Cranes, and M ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:44
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.