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Terex

NYSE:TEX
Snowflake Description

Reasonable growth potential with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TEX
NYSE
$2B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Terex Corporation manufactures and sells aerial work platforms, cranes, and materials processing machinery worldwide. The last earnings update was 57 days ago. More info.


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TEX Share Price and Events
7 Day Returns
0.3%
NYSE:TEX
1%
US Machinery
-0.1%
US Market
1 Year Returns
-8%
NYSE:TEX
2.4%
US Machinery
7.6%
US Market
TEX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Terex (TEX) 0.3% 6.2% 19.1% -8% 42% -21.5%
US Machinery 1% 8.8% 14.4% 2.4% 51.7% 33.6%
US Market -0.1% 3.7% 10.2% 7.6% 38.1% 46.4%
1 Year Return vs Industry and Market
  • TEX underperformed the Machinery industry which returned 2.4% over the past year.
  • TEX underperformed the Market in United States of America which returned 7.6% over the past year.
Price Volatility
TEX
Industry
5yr Volatility vs Market

Value

 Is Terex undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Terex to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Terex.

NYSE:TEX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 19 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:TEX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.067 (1 + (1- 21%) (50.84%))
1.332
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.33
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.332 * 5.96%)
10.67%

Discounted Cash Flow Calculation for NYSE:TEX using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Terex is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:TEX DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.67%)
2019 210.15 Analyst x6 189.89
2020 267.74 Analyst x5 218.61
2021 254.93 Analyst x4 188.08
2022 248.26 Est @ -2.62% 165.51
2023 245.74 Est @ -1.01% 148.04
2024 246.02 Est @ 0.11% 133.91
2025 248.22 Est @ 0.9% 122.09
2026 251.81 Est @ 1.45% 111.92
2027 256.42 Est @ 1.83% 102.98
2028 261.81 Est @ 2.1% 95.01
Present value of next 10 years cash flows $1,476.04
NYSE:TEX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $261.81 × (1 + 2.73%) ÷ (10.67% – 2.73%)
$3,388.21
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $3,388.21 ÷ (1 + 10.67%)10
$1,229.56
NYSE:TEX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,476.04 + $1,229.56
$2,705.59
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,705.59 / 71.15
$38.03
NYSE:TEX Discount to Share Price
Calculation Result
Value per share (USD) From above. $38.03
Current discount Discount to share price of $33.71
= -1 x ($33.71 - $38.03) / $38.03
11.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Terex is available for.
Intrinsic value
11%
Share price is $33.71 vs Future cash flow value of $38.03
Current Discount Checks
For Terex to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Terex's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Terex's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Terex's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Terex's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:TEX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $1.48
NYSE:TEX Share Price ** NYSE (2019-04-23) in USD $33.71
United States of America Machinery Industry PE Ratio Median Figure of 103 Publicly-Listed Machinery Companies 21.57x
United States of America Market PE Ratio Median Figure of 3,080 Publicly-Listed Companies 18.03x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Terex.

NYSE:TEX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:TEX Share Price ÷ EPS (both in USD)

= 33.71 ÷ 1.48

22.84x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Terex is overvalued based on earnings compared to the US Machinery industry average.
  • Terex is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Terex's expected growth come at a high price?
Raw Data
NYSE:TEX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.84x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
24.8%per year
United States of America Machinery Industry PEG Ratio Median Figure of 83 Publicly-Listed Machinery Companies 1.6x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.55x

*Line of best fit is calculated by linear regression .

NYSE:TEX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.84x ÷ 24.8%

0.92x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Terex is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Terex's assets?
Raw Data
NYSE:TEX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $12.36
NYSE:TEX Share Price * NYSE (2019-04-23) in USD $33.71
United States of America Machinery Industry PB Ratio Median Figure of 129 Publicly-Listed Machinery Companies 2.49x
United States of America Market PB Ratio Median Figure of 5,185 Publicly-Listed Companies 1.92x
NYSE:TEX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:TEX Share Price ÷ Book Value per Share (both in USD)

= 33.71 ÷ 12.36

2.73x

* Primary Listing of Terex.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Terex is overvalued based on assets compared to the US Machinery industry average.
X
Value checks
We assess Terex's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Terex has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
24.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Terex expected to grow at an attractive rate?
  • Terex's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Terex's earnings growth is expected to exceed the United States of America market average.
  • Terex's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:TEX Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:TEX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 24.8%
NYSE:TEX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts -4.5%
United States of America Machinery Industry Earnings Growth Rate Market Cap Weighted Average 11%
United States of America Machinery Industry Revenue Growth Rate Market Cap Weighted Average 3.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.5%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:TEX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:TEX Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 4,494 364 294 9
2020-12-31 4,603 380 269 19
2019-12-31 4,699 298 273 19
NYSE:TEX Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 5,125 94 111
2018-09-30 4,956 190 110
2018-06-30 4,838 312 128
2018-03-31 4,617 273 168
2017-12-31 4,363 153 60
2017-09-30 4,275 221 -222
2017-06-30 4,220 260 -246
2017-03-31 4,336 333 -231
2016-12-31 4,443 377 -193
2016-09-30 4,636 370 145
2016-06-30 4,835 291 142
2016-03-31 4,980 203 108

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Terex's earnings are expected to grow significantly at over 20% yearly.
  • Terex's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:TEX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from Terex Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:TEX Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 4.49 5.00 3.75 4.00
2020-12-31 3.96 4.58 3.20 10.00
2019-12-31 3.84 3.97 3.52 11.00
NYSE:TEX Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 1.48
2018-09-30 1.42
2018-06-30 1.58
2018-03-31 1.94
2017-12-31 0.65
2017-09-30 -2.25
2017-06-30 -2.37
2017-03-31 -2.16
2016-12-31 -1.79
2016-09-30 1.33
2016-06-30 1.30
2016-03-31 1.00

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Terex is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Terex's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Terex has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Terex performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Terex's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Terex's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Terex's 1-year earnings growth exceeds its 5-year average (85.5% vs -31.2%)
  • Terex's earnings growth has exceeded the US Machinery industry average in the past year (85.5% vs 27.9%).
Earnings and Revenue History
Terex's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Terex Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:TEX Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 5,125.00 111.30 640.40 92.70
2018-09-30 4,955.50 110.20 579.80 81.00
2018-06-30 4,838.20 128.40 570.80 81.00
2018-03-31 4,617.40 167.90 557.90 81.00
2017-12-31 4,363.40 60.00 551.80 81.00
2017-09-30 4,274.50 -222.20 540.70 86.20
2017-06-30 4,219.70 -245.50 532.50 86.20
2017-03-31 4,335.70 -231.30 533.30 86.20
2016-12-31 4,443.10 -193.00 541.00 86.20
2016-09-30 4,636.00 144.70 532.50 89.70
2016-06-30 4,835.00 141.70 549.30 89.70
2016-03-31 4,980.20 108.00 553.50 89.70
2015-12-31 5,021.70 128.40 556.70 89.70
2015-09-30 5,643.50 184.50 611.00 135.50
2015-06-30 6,197.90 212.90 691.20 135.50
2015-03-31 6,810.10 224.80 788.00 135.50
2014-12-31 5,484.00 253.50 548.90 102.30
2014-09-30 7,331.30 263.90 917.00 85.30
2014-06-30 7,278.50 289.70 919.30 85.30
2014-03-31 7,084.90 222.30 926.10 85.30
2013-12-31 7,084.00 209.00 875.10 131.50
2013-09-30 6,601.50 66.90 943.70 71.70
2013-06-30 6,666.50 12.60 947.60 71.70
2013-03-31 6,816.50 75.80 943.50 71.70
2012-12-31 6,982.20 77.00 942.90 71.70
2012-09-30 7,609.50 130.10 953.60 73.70
2012-06-30 7,591.10 136.80 934.20 73.70

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Terex has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Terex used its assets less efficiently than the US Machinery industry average last year based on Return on Assets.
  • Terex has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Terex's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Terex has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Terex's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Terex's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Terex is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Terex's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Terex's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Terex Company Filings, last reported 3 months ago.

NYSE:TEX Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 861.00 1,219.40 368.00
2018-09-30 974.70 1,133.40 326.00
2018-06-30 948.10 1,094.20 373.60
2018-03-31 1,078.90 1,083.00 447.90
2017-12-31 1,222.50 984.80 626.50
2017-09-30 1,380.30 984.90 592.70
2017-06-30 1,540.20 992.00 555.50
2017-03-31 1,695.70 1,242.80 813.90
2016-12-31 1,521.20 1,575.80 428.50
2016-09-30 1,913.60 1,663.50 248.80
2016-06-30 1,889.50 1,686.30 200.80
2016-03-31 1,889.20 1,831.80 323.60
2015-12-31 1,912.00 1,796.90 371.20
2015-09-30 1,925.70 1,898.70 301.10
2015-06-30 1,949.60 1,907.50 332.70
2015-03-31 1,781.30 1,872.90 351.30
2014-12-31 2,039.10 1,788.80 478.20
2014-09-30 2,248.60 1,851.90 344.50
2014-06-30 2,362.50 1,922.50 364.30
2014-03-31 2,214.50 2,055.90 390.50
2013-12-31 2,268.70 1,976.70 408.10
2013-09-30 2,177.80 1,905.90 370.60
2013-06-30 2,208.60 1,870.40 548.20
2013-03-31 2,231.10 2,082.50 729.70
2012-12-31 2,278.20 2,098.70 678.00
2012-09-30 2,311.00 2,063.80 542.60
2012-06-30 2,241.10 2,402.80 841.50
  • Terex's level of debt (141.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (87.2% vs 141.6% today).
  • Debt is not well covered by operating cash flow (7.7%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.6x coverage).
X
Financial health checks
We assess Terex's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Terex has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.31%
Current annual income from Terex dividends. Estimated to be 1.36% next year.
If you bought $2,000 of Terex shares you are expected to receive $26 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Terex's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
  • Terex's dividend is below the markets top 25% of dividend payers in United States of America (3.64%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:TEX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
United States of America Machinery Industry Average Dividend Yield Market Cap Weighted Average of 77 Stocks 1.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:TEX Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.50 6.00
2020-12-31 0.46 9.00
2019-12-31 0.43 9.00
NYSE:TEX Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-04 0.440 1.330
2018-10-12 0.400 1.326
2018-07-12 0.400 0.999
2018-05-11 0.400 0.967
2018-02-09 0.400 1.022
2017-10-11 0.320 0.689
2017-07-13 0.320 0.793
2017-05-12 0.320 0.915
2017-02-21 0.320 1.006
2016-10-13 0.280 0.959
2016-07-15 0.280 1.174
2016-05-13 0.280 1.296
2016-02-16 0.280 1.199
2015-10-19 0.240 1.248
2015-07-17 0.240 1.149
2015-05-15 0.240 0.975
2015-02-17 0.240 0.894
2014-10-09 0.200 0.750
2014-07-10 0.200 0.567
2014-05-27 0.200 0.500
2014-02-26 0.200 0.477
2013-12-05 0.200 0.491

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Terex has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Terex only paid a dividend in the past 5 years.
Current Payout to shareholders
What portion of Terex's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (7.9x coverage).
X
Income/ dividend checks
We assess Terex's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Terex afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Terex has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Garrison
COMPENSATION $11,206,482
AGE 57
TENURE AS CEO 3.4 years
CEO Bio

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 Director at Flowserve Corporation since October 2, 2018. He has more than 25 years of industrial manufacturing experience. Mr. Garrison served as the Chief Executive Officer and President of Bell Helicopter segment at Textron Inc since August 2009 until October 2015. Mr. Garrison served as President of Industrial Segment at Textron Inc., since November 2007. Mr. Garrison served as President of E-Z GO, Inc., a subsidiary of Textron Inc., since 2002. He joined Textron in February 2002. Mr. Garrison served as Chairman of Azurix Corp., and served as its Chief Executive Officer since August 25, 2000 and its President and Chief Operating Officer since March 2000. He served as an Executive Director of Azurix since November 1999. Mr. Garrison served as President of Europe/South America at Azurix Corp., from December 1999 to March 2000 and its Managing Director from April 1999 to November 1999. Prior to Azurix in May 1999, Mr. Garrison served as Vice President and General Manager of the North American Agricultural systems Group of Case Corporation from August 1995 to April 1999. Before joining Case Corp., Mr. Garrison served as Principal of Enron Development Corp., from July 1992 to July 1995 and was responsible for gas and power infrastructure development for the United States, Colombia and Mexico. Before joining industry, Mr. Garrison served 10 years on active duty in the U.S. Army as an Airborne Ranger, commanding an 8 inch Artillery Battery in the Republic of Korea and taught in the Department of Social Sciences at the United States Military Academy. He has been a Director of Terex Corporation since November 2, 2015. Mr. Garrison served as Trustee of Manufacturers Alliance/MAPI, Inc. He serves on the Board of the Club Managers Club Foundation. Mr. Garrison earned Bachelor's of Science degree in Engineering in 1982 from the United States Military Academy, West Point, NY and an MBA from Harvard University in 1990, where he graduated with distinction. He has also completed Textron's Global Leadership program at the University of Pennsylvania's Wharton School.

CEO Compensation
  • John's compensation has been consistent with company performance over the past year.
  • John's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Terex management team in years:

4.8
Average Tenure
57.5
Average Age
  • The tenure for the Terex management team is about average.
Management Team

John Garrison

TITLE
Chairman
COMPENSATION
$11M
AGE
57
TENURE
3.4 yrs

John Sheehan

TITLE
Senior VP & CFO
COMPENSATION
$5M
AGE
56
TENURE
2.2 yrs

Eric Cohen

TITLE
Senior VP
COMPENSATION
$3M
AGE
60
TENURE
21.3 yrs

Steve Filipov

TITLE
President of Terex Cranes
COMPENSATION
$4M
AGE
50
TENURE
2.5 yrs

Matt Fearon

TITLE
President of Terex Aerial Work Platforms
COMPENSATION
$3M
AGE
57
TENURE
6.3 yrs

Mark Clair

TITLE
Chief Accounting Officer
AGE
58
TENURE
9.8 yrs

Andrew Campbell

TITLE
Chief Information Officer & VP
TENURE
2.4 yrs

Brian Henry

TITLE
Senior Vice President of Business Development & Investor Relations
COMPENSATION
$3M
AGE
59
TENURE
2.6 yrs

Stacey Babson-Smith

TITLE
Chief Ethics & Compliance Officer and VP
TENURE
11.3 yrs

Kevin Barr

TITLE
Senior Vice President of Human Resource
AGE
58
TENURE
18.6 yrs
Board of Directors Tenure

Average tenure and age of the Terex board of directors in years:

9.6
Average Tenure
64
Average Age
  • The tenure for the Terex board of directors is about average.
Board of Directors

John Garrison

TITLE
Chairman
COMPENSATION
$11M
AGE
57
TENURE
0.7 yrs

Oren Shaffer

TITLE
Director
COMPENSATION
$470K
AGE
76
TENURE
12.1 yrs

Don DeFosset

TITLE
Independent Director
COMPENSATION
$255K
AGE
69
TENURE
20.3 yrs

Tom Hansen

TITLE
Independent Director
COMPENSATION
$268K
AGE
69
TENURE
10.9 yrs

David Sachs

TITLE
Lead Director
COMPENSATION
$561K
AGE
59
TENURE
5.9 yrs

Paula H. Cholmondeley

TITLE
Independent Director
COMPENSATION
$243K
AGE
71
TENURE
14.8 yrs

David Wang

TITLE
Independent Director
COMPENSATION
$343K
AGE
73
TENURE
10.9 yrs

Scott Wine

TITLE
Independent Director
COMPENSATION
$243K
AGE
51
TENURE
8.3 yrs

Raimund Klinkner

TITLE
Director
COMPENSATION
$245K
AGE
53
TENURE
6.4 yrs

Matt Hepler

TITLE
Director
COMPENSATION
$295K
AGE
42
TENURE
2.2 yrs
Who owns this company?
Recent Insider Trading
  • Terex insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
08. Apr 19 Buy Kevin Barr Individual 05. Apr 19 05. Apr 19 10 $33.43 $334
08. Apr 19 Buy John Sheehan Individual 05. Apr 19 05. Apr 19 572 $33.44 $19,128
08. Apr 19 Buy Brian Henry Individual 05. Apr 19 05. Apr 19 103 $33.43 $3,443
11. Mar 19 Buy Kevin Barr Individual 07. Mar 19 07. Mar 19 7 $33.71 $236
11. Mar 19 Buy Brian Henry Individual 07. Mar 19 07. Mar 19 68 $33.71 $2,292
11. Mar 19 Buy John Sheehan Individual 07. Mar 19 07. Mar 19 375 $34.01 $12,754
27. Feb 19 Sell Stoyan Filipov Individual 26. Feb 19 26. Feb 19 -10,048 $35.64 $-358,111
12. Feb 19 Buy Brian Henry Individual 08. Feb 19 08. Feb 19 75 $30.78 $2,309
12. Feb 19 Buy Kevin Barr Individual 08. Feb 19 08. Feb 19 7 $30.78 $215
12. Feb 19 Buy John Sheehan Individual 08. Feb 19 08. Feb 19 409 $31.14 $12,736
10. Jan 19 Buy Kevin Barr Individual 09. Jan 19 09. Jan 19 8 $28.93 $231
10. Jan 19 Buy John Sheehan Individual 09. Jan 19 09. Jan 19 439 $29.05 $12,753
10. Jan 19 Buy Brian Henry Individual 09. Jan 19 09. Jan 19 80 $28.93 $2,314
12. Dec 18 Buy Brian Henry Individual 11. Dec 18 11. Dec 18 79 $29.23 $2,309
12. Dec 18 Buy John Sheehan Individual 11. Dec 18 11. Dec 18 434 $29.37 $12,747
12. Dec 18 Buy Kevin Barr Individual 11. Dec 18 11. Dec 18 8 $29.23 $234
13. Nov 18 Buy Kevin Barr Individual 09. Nov 18 09. Nov 18 8 $30.38 $243
13. Nov 18 Buy John Sheehan Individual 08. Nov 18 08. Nov 18 396 $32.18 $12,743
13. Nov 18 Sell Brian Henry Individual 09. Nov 18 09. Nov 18 -3,500 $30.42 $-106,436
13. Nov 18 Buy Brian Henry Individual 09. Nov 18 09. Nov 18 76 $30.38 $2,309
09. Oct 18 Buy Brian Henry Individual 05. Oct 18 05. Oct 18 58 $39.46 $2,289
09. Oct 18 Buy Kevin Barr Individual 05. Oct 18 05. Oct 18 6 $39.46 $237
09. Oct 18 Buy John Sheehan Individual 05. Oct 18 05. Oct 18 322 $39.60 $12,751
17. Sep 18 Sell Kevin Barr Individual 13. Sep 18 13. Sep 18 -11,937 $38.43 $-458,739
17. Sep 18 Sell Eric Cohen Individual 14. Sep 18 14. Sep 18 -10,000 $39.01 $-390,100
11. Sep 18 Buy Kevin Barr Individual 07. Sep 18 07. Sep 18 9 $37.71 $339
11. Sep 18 Buy Brian Henry Individual 07. Sep 18 07. Sep 18 91 $37.71 $3,432
11. Sep 18 Buy John Sheehan Individual 07. Sep 18 07. Sep 18 502 $38.11 $19,131
04. Sep 18 Sell Stoyan Filipov Individual 31. Aug 18 31. Aug 18 -6,929 $38.85 $-269,192
29. Aug 18 Sell Kevin Barr Individual 28. Aug 18 28. Aug 18 -10,000 $39.65 $-396,500
08. Aug 18 Buy John Sheehan Individual 06. Aug 18 06. Aug 18 315 $40.47 $12,748
08. Aug 18 Buy Kevin Barr Individual 07. Aug 18 07. Aug 18 6 $40.76 $245
08. Aug 18 Buy Brian Henry Individual 07. Aug 18 07. Aug 18 56 $40.76 $2,283
10. Jul 18 Buy John Sheehan Individual 06. Jul 18 06. Jul 18 295 $43.15 $12,729
10. Jul 18 Buy Kevin Barr Individual 06. Jul 18 06. Jul 18 5 $42.94 $215
10. Jul 18 Buy Brian Henry Individual 06. Jul 18 06. Jul 18 54 $42.94 $2,319
26. Jun 18 Sell Eric Cohen Individual 22. Jun 18 22. Jun 18 -12,502 $40.40 $-505,081
26. Jun 18 Sell Brian Henry Individual 22. Jun 18 22. Jun 18 -5,000 $40.75 $-203,750
26. Jun 18 Sell Paula H. Cholmondeley Individual 22. Jun 18 22. Jun 18 -16,214 $41.29 $-669,476
13. Jun 18 Buy John Sheehan Individual 11. Jun 18 11. Jun 18 304 $41.97 $12,759
13. Jun 18 Buy Kevin Barr Individual 11. Jun 18 11. Jun 18 6 $41.79 $251
13. Jun 18 Buy Brian Henry Individual 11. Jun 18 11. Jun 18 55 $41.79 $2,298
24. May 18 Sell Brian Henry Individual 22. May 18 22. May 18 -5,000 $42.98 $-214,900
09. May 18 Buy Kevin Barr Individual 08. May 18 08. May 18 6 $40.69 $244
09. May 18 Buy Brian Henry Individual 08. May 18 08. May 18 57 $40.69 $2,319
09. May 18 Buy John Sheehan Individual 07. May 18 07. May 18 311 $40.86 $12,707
07. May 18 Sell Mark Clair Individual 03. May 18 03. May 18 -11,737 $38.33 $-449,879
X
Management checks
We assess Terex's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Terex has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

How Terex Corporation (NYSE:TEX) Can Impact Your Portfolio Volatility

Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider.

Simply Wall St -

Is Terex Corporation's (NYSE:TEX) Balance Sheet A Threat To Its Future?

Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like Terex Corporation (NYSE:TEX), with a market cap of US$2.3b, are often out of the spotlight. … While they are less talked about as an investment category, mid-cap risk-adjusted returns have generally been better than more commonly focused stocks that fall into the small- or large-cap categories. … Today we will look at TEX’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth.

Simply Wall St -

What Is Terex Corporation's (NYSE:TEX) Share Price Doing?

saw a significant share price rise of over 20% in the past couple of months on the NYSE. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … However, could the stock still be trading at a relatively cheap price.

Simply Wall St -

What Does Terex Corporation's (NYSE:TEX) P/E Ratio Tell You?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … To keep it practical, we'll show how Terex Corporation's (NYSE:TEX) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Have Insiders Been Selling Terex Corporation (NYSE:TEX) Shares?

So before you buy or sell Terex Corporation (NYSE:TEX), you may well want to know whether insiders have been buying or selling. … The Last 12 Months Of Insider Transactions At Terex. … In the last twelve months, the biggest single sale by an insider was when President of Terex Aerial Work Platforms Matthew Fearon sold US$1.2m worth of shares at a price of US$39.48 per share.

Simply Wall St -

Should Terex Be Disappointed With Their 59% Profit?

The bad news is that the share price seems to lack positive momentum recently, since it has dropped 18% in the last year. … While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. … During three years of share price growth, Terex moved from a loss to profitability.

Simply Wall St -

Is Terex Corporation (NYSE:TEX) A Good Dividend Stock?

Historically, Terex Corporation (NYSE:TEX) has paid dividends to shareholders, and these days it yields 1.3%. … Does Terex tick all the boxes of a great dividend stock? … Take the survey and be part of one of the most advanced studies of stock market investors to date

Simply Wall St -

Terex Corporation (NYSE:TEX) Has A ROE Of 11%

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … That means that for every $1 worth of shareholders' equity, it generated $0.11 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Terex Corporation (NYSE:TEX) Worth US$26.61 Based On Intrinsic Value?

by projecting its future cash flows and then discounting them to today's value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Does Terex Corporation's (NYSE:TEX) CEO Pay Compare Well With Peers?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does John Garrison's Compensation Compare With Similar Sized Companies. … According to our data, Terex Corporation has a market capitalization of US$2.1b, and pays its CEO total annual compensation worth US$11m.

Simply Wall St -

Company Info

Description

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 Material Processing (MP). The AWP segment engages in the design, manufacture, service, and market of AWP equipment, telehandlers, and light towers, as well as related components and replacement parts under the Terex and Genie brands to construct and maintain industrial, commercial, and residential buildings and facilities, and for other commercial operations, as well as used in infrastructure projects. The Cranes segment designs, manufactures, services, refurbishes, and markets mobile telescopic and lattice boom crawler cranes, tower cranes, and utility equipment, as well as related components and replacement parts under the Terex and Demag brand names for the construction, repair, and maintenance of commercial buildings, manufacturing facilities, construction and maintenance of utility and telecommunication lines, tree trimming, and certain construction and foundation drilling applications, as well as for infrastructure projects. The MP segment engages in the design, manufacture, and marketing of crushers, washing systems, screens, apron feeders, material handlers, wood processing, biomass and recycling equipment, concrete mixer trucks and pavers, and related components and replacement parts. This segment’s products are used in construction, infrastructure, and recycling projects; various quarrying and mining, and material handling applications; and building roads and bridges, as well as landscaping and biomass production industries. The company also provides financing solutions to assist customers in the rental, leasing, and acquisition of its products. Terex Corporation was founded in 1925 and is based in Westport, Connecticut.

Details
Name: Terex Corporation
TEX
Exchange: NYSE
Founded: 1925
$2,398,371,235
71,147,174
Website: http://www.terex.com
Address: Terex Corporation
200 Nyala Farm Road,
Westport,
Connecticut, 06880,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE TEX Common Stock New York Stock Exchange US USD 02. Jan 1980
DB TXG Common Stock Deutsche Boerse AG DE EUR 02. Jan 1980
Number of employees
Current staff
Staff numbers
11,700
Terex employees.
Industry
Construction Machinery and Heavy Trucks
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/23 23:45
End of day share price update: 2019/04/23 00:00
Last estimates confirmation: 2019/04/23
Last earnings filing: 2019/02/25
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.