Terex (TEX) AI Stock Analysis

• Market Cap: $2.33B
• Dividend Yield: 1.93%
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): 7.1
• Beta (1Y): 1.49
• Revenue Growth: -0.47%
• EPS Growth: -34.74%
• Country: US
• Employees: 11,400
• Sector: Industrials
• Sector Strength: 78
• Industry: Agricultural - Machinery
• EPS (TTM): 4.95
• Shares Outstanding: 66,278,700
• 10 Day Avg. Volume: 720,527
• 30 Day Avg. Volume: 1,141,515
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.33
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 5.09
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $40.61
• Price Target Upside: 11.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

Terex's overall stock score reflects its strong financial performance and promising earnings outlook, tempered by mixed technical indicators and challenges in legacy segments and European markets. The company's undervaluation and dividend yield provide potential for long-term gains, but the current technical weakness and market challenges require attention.

Positive Factors

Acquisition Performance

The newly acquired ESG unit showed a strong initial performance with an adjusted operating margin of 21.8%.

Business Growth

The Genie business secured additional 2025 commitments from a large customer, suggesting potential for future growth.

Sales and Revenue

TEX raised its FY2024 revenue outlook range to include $200M from ESG, showing an increased potential for growth.

Negative Factors

Backlog and Orders

Backlog continues to erode with consolidated book-to-bill at the softest in 15 years.

Earnings Guidance

Guidance for 2025 EPS is below consensus, indicating some caution for the company's future performance.

Market Conditions

Aerial EBITDA fell 64% year over year on a 13% sales decline, impacted by aggressive production cuts and an unfavorable mix.

Terex Business Overview & Revenue Model

Company Description

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. Its products include portable material lifts, portable aerial work platforms, trailer-mounted articulating booms, self-propelled articulating and telescopic booms, scissor lifts, utility equipment, and telehandlers, as well as related components and replacement parts for construction and maintenance of industrial, commercial, institutional, and residential buildings and facilities, utility and telecommunication lines, construction and foundation drilling applications, and other commercial operations, as well as in tree trimming and various infrastructure projects. The MP segment's materials processing and specialty equipment includes crushers, washing systems, screens, trommels, apron feeders, material handlers, pick and carry cranes, rough terrain cranes, tower cranes, wood processing, biomass and recycling equipment, concrete mixer trucks and concrete pavers, conveyors, and related components and replacement parts under the Terex, Powerscreen, Fuchs, EvoQuip, Canica, Cedarapids, CBI, Simplicity, Franna, Terex Ecotec, Finlay, Terex Washing Systems, Terex MPS, Terex Jaques, Terex Advance, ProStack, Terex Bid-Well, MDS, and Terex Recycling Systems brands and business lines. Its products are used in construction, infrastructure, and recycling projects; quarrying and mining, and material handling applications; maintenance applications to lift equipment or material; and landscaping and biomass production industries. The company offers financing solutions to assist customers in the rental, leasing, and acquisition of its products. Terex Corporation was incorporated in 1986 and is based in Norwalk, Connecticut.

How the Company Makes Money

Terex Corporation generates revenue primarily through the sale and leasing of its equipment and related services. The company's key revenue streams include the sales of new and used equipment, aftermarket parts and services, and equipment rentals. Terex's equipment sales are often facilitated through its global network of dealers and distributors, which allows the company to reach a diverse customer base. Additionally, Terex provides maintenance and support services that contribute to recurring revenue. Strategic partnerships and joint ventures, such as those related to manufacturing and distribution, also play a role in supporting the company's earnings by expanding its market reach and enhancing its product offerings.

Terex Financial Statement Overview

Summary

Terex shows solid financial performance with strong revenue growth and improving capital structure. The company has effectively managed its debt levels, enhancing its financial stability. However, the recent dip in net profit margin suggests a need for better cost control or operational efficiency.

Income Statement

Terex has demonstrated robust growth in recent years with consistent revenue increases, peaking at $5.15 billion in 2023 from $3.88 billion in 2021. The company maintains a healthy gross profit margin of approximately 22.8% for 2023. However, the net profit margin dropped from 10.1% in 2022 to 6.5% in 2023, indicating potential challenges in managing expenses or other operational aspects.

Balance Sheet

Terex's balance sheet shows a strong equity position with stockholders' equity rising to $1.67 billion in 2023. The debt-to-equity ratio improved significantly, dropping from 0.68 in 2020 to 0.37 in 2023, showcasing enhanced financial stability. However, the total assets and liabilities have increased, which might imply higher financial leverage.

Cash Flow

The company exhibits a positive trend in operating cash flow, reaching $459.3 million in 2023. Despite a decrease in free cash flow from $332.1 million in 2022 to $189 million in 2023, the operating cash flow to net income ratio remains strong, suggesting efficient cash generation relative to net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.13B	5.15B	4.42B	3.89B	3.08B
	Gross Profit
1.07B	1.18B	871.20M	757.40M	539.30M
	EBIT
526.00M	636.50M	420.00M	328.00M	68.40M
	EBITDA
579.00M	700.20M	468.40M	377.60M	120.60M
	Net Income Common Stockholders
335.00M	518.00M	300.00M	220.90M	9.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
388.00M	370.70M	304.10M	266.90M	665.00M
	Total Assets
5.73B	3.62B	3.12B	2.86B	3.03B
	Total Debt
4.00M	623.20M	775.50M	674.10M	1.17B
	Net Debt
-384.00M	252.50M	471.40M	407.20M	508.80M
	Total Liabilities
3.90B	1.94B	1.94B	1.75B	2.11B
	Stockholders Equity
1.83B	1.67B	1.18B	1.11B	921.50M
Cash Flow		Free Cash Flow
189.00M	332.10M	151.60M	233.70M	160.90M
	Operating Cash Flow
326.00M	459.30M	261.20M	293.40M	225.40M
	Investing Cash Flow
-2.13B	-114.40M	-154.10M	-102.20M	-38.50M
	Financing Cash Flow
1.84B	-287.80M	-54.90M	-580.10M	-82.80M

Terex Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 36.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEX, the sentiment is Neutral. The current price of 36.4 is above the 20-day moving average (MA) of 34.82, below the 50-day MA of 38.03, and below the 200-day MA of 48.40, indicating a neutral trend. The MACD of -0.72 indicates Negative momentum. The RSI at 50.53 is Neutral, neither overbought nor oversold. The STOCH value of 69.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TEX.

Terex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEX	74 Outperform	$2.33B	7.10	19.13%	1.93%	-0.47%	-34.74%
OSK	73 Outperform	$5.56B	8.31	17.34%	2.26%	11.36%	13.78%
CAT	72 Outperform	$147.81B	14.02	55.67%	1.79%	-5.58%	-7.37%
CNH	70 Outperform	$15.49B	12.55	16.66%	4.06%	-19.64%	-41.23%
ASTE	66 Neutral	$854.77M	56.83	2.33%	1.44%	1.99%	-39.02%
Sector *	63 Neutral	$4.21B	11.55	5.28%	250.72%	4.13%	-9.42%
AGCO	54 Neutral	$6.33B	46.40	-10.11%	1.37%	-19.08%	-136.41%

Terex Corporate Events

Terex Reports Q1 2025 Financial Results and Outlook

Terex reported its first quarter 2025 financial results with sales of $1.2 billion and an operating margin of 5.6%, with adjusted earnings per share at $0.83. The company’s Environmental Services segment, bolstered by the acquisition of the Environmental Solutions Group, contributed significantly to revenue, accounting for about one-third of total sales. Despite a decline in net sales compared to the previous year, Terex maintained its full-year EPS outlook, emphasizing its strategic focus on U.S. production to mitigate geopolitical risks. The company also highlighted its strong liquidity position and continued capital investments to support future growth.

Spark’s Take on TEX Stock

According to Spark, TipRanks’ AI Analyst, TEX is a Outperform.

Terex’s overall stock score reflects its strong financial performance and promising earnings outlook, tempered by mixed technical indicators and challenges in legacy segments and European markets. The company’s undervaluation and dividend yield provide potential for long-term gains, but the current technical weakness and market challenges require attention.

To see Spark’s full report on TEX stock, click here.

Terex Reports Strong Q4 2024 Financial Results

In its financial results for the fourth quarter and full-year 2024, Terex reported full-year sales of $5.1 billion and adjusted earnings per share of $6.11. The company declared a quarterly cash dividend of $0.17 per share. Despite challenges from industry-wide channel adjustments, Terex’s Environmental Solutions Group (ESG) contributed strongly in the fourth quarter, following its acquisition on October 8, 2024. Looking to 2025, Terex expects net sales between $5.3 and $5.5 billion and earnings per share between $4.70 and $5.10, as it continues to integrate ESG and anticipate growth in its Utilities segment.