NYSE:TEX

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


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

Stable Share Price: TEX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

11.7%

TEX

2.2%

US Machinery

1.8%

US Market


1 Year Return

-20.8%

TEX

12.3%

US Machinery

14.2%

US Market

Return vs Industry: TEX underperformed the US Machinery industry which returned 10.6% over the past year.

Return vs Market: TEX underperformed the US Market which returned 14.5% over the past year.


Shareholder returns

TEXIndustryMarket
7 Day11.7%2.2%1.8%
30 Day7.8%3.3%0.04%
90 Day8.7%16.2%9.8%
1 Year-20.1%-20.8%14.5%12.3%16.7%14.2%
3 Year-47.8%-49.5%25.0%16.8%41.6%32.2%
5 Year33.5%26.3%106.8%82.4%90.9%69.5%

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?

35.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TEX ($20.94) is trading above our estimate of fair value ($6.95)

Significantly Below Fair Value: TEX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TEX is poor value based on its PE Ratio (34.4x) compared to the US Machinery industry average (25x).

PE vs Market: TEX is poor value based on its PE Ratio (34.4x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: TEX is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: TEX is good value based on its PB Ratio (1.8x) compared to the US Machinery industry average (2.2x).


Next Steps

Future Growth

How is Terex forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

77.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TEX's forecast earnings growth (77.3% per year) is above the savings rate (2.2%).

Earnings vs Market: TEX's earnings (77.3% per year) are forecast to grow faster than the US market (23.3% per year).

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

Revenue vs Market: TEX's revenue (8.3% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: TEX's revenue (8.3% 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 (16.2%).


Next Steps

Past Performance

How has Terex performed over the past 5 years?

12.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TEX has high quality earnings.

Growing Profit Margin: TEX's current net profit margins (1.3%) are lower than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: TEX's earnings have grown by 12.6% 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 (-81.1%) over the past year, making it difficult to compare to the Machinery industry average (-13.1%).


Return on Equity

High ROE: TEX's Return on Equity (5.4%) is considered low.


Next Steps

Financial Health

How is Terex's financial position?


Financial Position Analysis

Short Term Liabilities: TEX's short term assets ($1.7B) exceed its short term liabilities ($675.6M).

Long Term Liabilities: TEX's short term assets ($1.7B) exceed its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: TEX's debt to equity ratio (130.4%) is considered high.

Reducing Debt: TEX's debt to equity ratio has increased from 97.9% to 130.4% over the past 5 years.

Debt Coverage: TEX's debt is well covered by operating cash flow (22.4%).

Interest Coverage: TEX's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet


Next Steps

Dividend

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

1.09%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TEX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TEX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TEX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TEX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: TEX is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TEX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

John Garrison (59 yo)

4.83yrs

Tenure

US$8,332,602

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 ($USD8.33M) is above average for companies of similar size in the US market ($USD4.57M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Garrison
President of Terex Aerial Work Platforms4.83yrsUS$8.33m1.33%
$ 20.0m
John Sheehan
Senior VP & CFO3.58yrsUS$3.24m0.40%
$ 6.0m
Amy George
Senior VP of Human Resources & Chief Human Resources Officer0.75yrUS$1.00m0.19%
$ 2.8m
Kieran Hegarty
President of Terex Materials Processing10.5yrsUS$1.97m0.31%
$ 4.7m
Mark Clair
Chief Accounting Officer11.25yrsno data0.095%
$ 1.4m
Andrew Campbell
Chief Information Officer & VP3.83yrsno datano data
Randy Wilson
Director of Investor Relationsno datano datano data
Stacey Babson-Smith
Chief Ethics & Compliance Officer and VP12.67yrsno datano data
Scott Posner
Senior VP0.75yrno data0.084%
$ 1.3m
Ramon Oliu
Chief Risk Officer of Finance6.83yrsno datano data
Paul Caldarazzo
Senior Vice President of Strategic Sourcing & Execute To Win3.5yrsno datano data
Boris Schoepplein
President of Terex Parts & Services2.25yrsno datano data

3.8yrs

Average Tenure

58yo

Average Age

Experienced Management: TEX's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Garrison
President of Terex Aerial Work Platforms4.83yrsUS$8.33m1.33%
$ 20.0m
Donald DeFosset
Independent Director21.67yrsUS$255.00k0.23%
$ 3.5m
Thomas Hansen
Independent Director12.33yrsUS$267.50k0.076%
$ 1.1m
G. Chris Andersen
Director Emeritus3.75yrsUS$242.50kno data
David Sachs
Independent Lead Director7.33yrsUS$276.00k0.71%
$ 10.7m
Paula H. Cholmondeley
Independent Director16.25yrsUS$242.50k0.075%
$ 1.1m
Andra Rush
Independent Director3.08yrsUS$242.50k0.044%
$ 655.4k
Raimund Klinkner
Independent Director7.83yrsUS$245.00k0.031%
$ 469.8k
Sandie O'Connor
Independent Director0.50yrno data0.021%
$ 320.0k

7.3yrs

Average Tenure

61yo

Average Age

Experienced Board: TEX's board of directors are considered experienced (7.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: TEX insiders have bought more shares than they have sold 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 company bio, 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$1.502b
  • Shares outstanding: 69.30m
  • 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, materials processing machinery, and cranes worldwide. The company operates in two segments, Aerial Work Platforms (AWP) and Material Processi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/18 05:39
End of Day Share Price2020/09/17 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.