Terex (NYSE:TEX) - Share price, News & Analysis

TEX fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	3/6
Past Performance	6/6
Financial Health	4/6
Dividends	2/6

TEX Stock Overview

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

Rewards

Trading at 57.8% below our estimate of its fair value

Earnings are forecast to grow 17.76% per year

Earnings grew by 213.5% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 1.64% is not well covered by earnings

Significant insider selling over the past 3 months

Terex Competitors

Caterpillar

NYSE:CAT

US$105.5b

Cummins

NYSE:CMI

US$27.8b

Astec Industries

NasdaqGS:ASTE

US$1.0b

Manitowoc Company

NYSE:MTW

US$411.5m

Price History & Performance

Summary of all time highs, changes and price drops for Terex
Historical stock prices
Current Share Price	US$31.69
52 Week High	US$54.25
52 Week Low	US$30.67
Beta	1.52
1 Month Change	-11.73%
3 Month Change	-23.97%
1 Year Change	-37.40%
3 Year Change	12.66%
5 Year Change	-3.71%
Change since IPO	226.70%

Recent News & Updates

May 21

Returns At Terex (NYSE:TEX) Are On The Way Up

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Firstly, we'll want...

Apr 19

At US$34.86, Is Terex Corporation (NYSE:TEX) Worth Looking At Closely?

Terex Corporation ( NYSE:TEX ), is not the largest company out there, but it received a lot of attention from a...

Shareholder Returns

	TEX	US Machinery	US Market
7D	-3.4%	-4.1%	-2.7%
1Y	-37.4%	-19.3%	-12.9%

Return vs Industry: TEX underperformed the US Machinery industry which returned -19.3% over the past year.

Return vs Market: TEX underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is TEX's price volatile compared to industry and market?
TEX volatility
TEX Average Weekly Movement	6.4%
Machinery Industry Average Movement	5.7%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

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

Founded	Employees	CEO	Website
1986	8,600	John Garrison	https://www.terex.com

Terex Corporation manufactures and sells aerial work platforms and materials processing machinery worldwide. It 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 under the Terex and Genie brands.

Terex Fundamentals Summary

How do Terex's earnings and revenue compare to its market cap?
TEX fundamental statistics
Market Cap	US$2.20b
Earnings (TTM)	US$230.10m
Revenue (TTM)	US$4.03b

9.5x

P/E Ratio

0.5x

P/S Ratio

Is TEX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TEX income statement (TTM)
Revenue	US$4.03b
Cost of Revenue	US$3.26b
Gross Profit	US$767.80m
Other Expenses	US$537.70m
Earnings	US$230.10m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.32
Gross Margin	19.08%
Net Profit Margin	5.72%
Debt/Equity Ratio	66.4%

How did TEX perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

15%

Payout Ratio

Valuation

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

Valuation Score

6/6

Valuation Score 6/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: TEX ($31.69) is trading below our estimate of fair value ($75.02)

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 (9.5x) compared to the US Machinery industry average (21.3x).

PE vs Market: TEX is good value based on its PE Ratio (9.5x) compared to the US market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: TEX is good value based on its PEG Ratio (0.5x)

Price to Book Ratio

PB vs Industry: TEX is good value based on its PB Ratio (2x) compared to the US Machinery industry average (2.1x).

Future Growth

How is Terex forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

17.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: TEX's forecast earnings growth (17.8% per year) is above the savings rate (1.9%).

Earnings vs Market: TEX's earnings (17.8% per year) are forecast to grow faster than the US market (12.5% per year).

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

Revenue vs Market: TEX's revenue (6.6% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: TEX's revenue (6.6% 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 high in 3 years time (22.8%)

Past Performance

How has Terex performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

28.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TEX has high quality earnings.

Growing Profit Margin: TEX's current net profit margins (5.7%) are higher than last year (2.4%).

Past Earnings Growth Analysis

Earnings Trend: TEX has become profitable over the past 5 years, growing earnings by 28.3% per year.

Accelerating Growth: TEX's earnings growth over the past year (213.5%) exceeds its 5-year average (28.3% per year).

Earnings vs Industry: TEX earnings growth over the past year (213.5%) exceeded the Machinery industry 24%.

Return on Equity

High ROE: TEX's Return on Equity (20.7%) is considered high.

Financial Health

How is Terex's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: TEX's short term assets ($1.8B) exceed its short term liabilities ($919.5M).

Long Term Liabilities: TEX's short term assets ($1.8B) exceed its long term liabilities ($906.3M).

Debt to Equity History and Analysis

Debt Level: TEX's net debt to equity ratio (46.8%) is considered high.

Reducing Debt: TEX's debt to equity ratio has reduced from 73.2% to 66.4% over the past 5 years.

Debt Coverage: TEX's debt is not well covered by operating cash flow (14%).

Interest Coverage: TEX's interest payments on its debt are well covered by EBIT (7.9x coverage).

Balance Sheet

Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.64%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: TEX's dividend (1.64%) is higher than the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: TEX's dividend (1.64%) is low compared to the top 25% of dividend payers in the US market (4.11%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (14.9%), TEX's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (115.9%), TEX's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

6.0yrs

Average management tenure

CEO

John Garrison (60 yo)

6.5yrs

Tenure

US$9,540,015

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 Dire...

CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD9.54M) is above average for companies of similar size in the US market ($USD5.44M).

Compensation vs Earnings: John's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: TEX's management team is seasoned and experienced (6 years average tenure).

Board Members

Experienced Board: TEX's board of directors are considered experienced (6.5 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31