Terex Corp. (TEX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

BWX Technologies, Inc.

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BorgWarner, Inc.

Cummins, Inc.

Westinghouse Air Brake Technologies Corp.

Terex Corp.

Deere & Co.

PACCAR, Inc.

CNH Industrial NV

Why is Terex Corp. ?

High Management Efficiency with a high ROCE of 19.94%

Company has a low Debt to Equity ratio (avg) at times

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(HY) At USD 90.57 MM has Grown at -63.78%
ROCE(HY) Lowest at 9.45%
RAW MATERIAL COST(Y) Grown by 18.35% (YoY)

With ROCE of 10.60%, it has a fair valuation with a 1.45 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 3.65%, its profits have fallen by -52.3%

Underperformed the market in the last 1 year

The stock has generated a return of 3.65% in the last 1 year, much lower than market (S&P 500) returns of 14.11%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Terex Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Terex Corp.

61.24%

-0.15

47.98%

S&P 500

30.29%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.00%

EBIT Growth (5y)

45.78%

EBIT to Interest (avg)

6.49

Debt to EBITDA (avg)

1.84

Net Debt to Equity (avg)

1.24

Sales to Capital Employed (avg)

1.65

Tax Ratio

16.63%

Dividend Payout Ratio

20.40%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

19.94%

ROE (avg)

20.40%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

3.81

EV to EBIT

20.61

EV to EBITDA

15.47

EV to Capital Employed

2.50

EV to Sales

1.81

PEG Ratio

Dividend Yield

57.47%

ROCE (Latest)

12.12%

ROE (Latest)

-10.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 388.89

OPERATING PROFIT MARGIN(Q)

Highest at 13.28 %

DIVIDEND PAYOUT RATIO(Y)

Highest at 17.89%

RAW MATERIAL COST(Y)

Fallen by -18.48% (YoY

CASH AND EQV(HY)

Highest at USD 1,281 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.87 times

-21What is not working for the Company

INTEREST(HY)

At USD 92 MM has Grown at 55.93%

PRE-TAX PROFIT(Q)

Lowest at USD -495 MM

NET PROFIT(Q)

Lowest at USD -375.72 MM

Here's what is working for Terex Corp.

Interest Coverage Ratio

Highest at 388.89 and Grown

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit Margin

Highest at 13.28 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at USD 1,281 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 3.87 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio

Highest at 17.89%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -18.48% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Terex Corp.

Pre-Tax Profit

At USD -495 MM has Fallen at -1,061.17%

over average net sales of the previous four periods of USD 51.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -375.72 MM has Fallen at -1,062.22%

over average net sales of the previous four periods of USD 39.05 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

At USD 92 MM has Grown at 55.93%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Pre-Tax Profit

Lowest at USD -495 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD -375.72 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)