Terex (TEX) AI Stock Analysis

• Market Cap: $2.50B
• Dividend Yield: 1.77%
• Average Volume (3M): 956.16K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 1.84
• Revenue Growth: -0.47%
• EPS Growth: -34.74%
• Country: US
• Employees: 11,400
• Sector: Industrials
• Sector Strength: 66
• Industry: Industrial Machinery
• EPS (TTM): 4.95
• Shares Outstanding: 66,400,000
• 10 Day Avg. Volume: 1,046,803
• 30 Day Avg. Volume: 956,165
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.50
• Price to Cash Flow (P/CF): 3.60
• P/FCF Ratio: 2.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $50.00
• Price Target Upside: 27.98% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

Terex's strong financial performance, particularly in revenue growth and debt management, is a major strength. Recent earnings call insights and strategic corporate events further support a positive outlook. However, technical indicators suggest some caution in the near term, and the dip in net profit margin needs addressing for sustained performance.

Positive Factors

Future Growth

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

New Acquisitions

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

Negative Factors

Financial Performance

Terex reported a soft finish to 2024 on legacy units with significant declines in margins and free cash flow slightly missing expectations.

Market Challenges

Backlog erosion and significant order softness in both segments continue to pose challenges for 2025 with consolidated book-to-bill now standing at just 0.37x.

Terex Business Overview & Revenue Model

Company Description

Terex Corp. engages in the manufacturing of aerial work platforms, cranes, and materials processing machinery. The company designs, builds and support products used in construction, maintenance, manufacturing, energy, minerals and materials management applications. It operates through the following segments: Aerial Work Platforms; and Materials Processing. The Aerial Work Platforms segment designs, manufactures, services, and markets aerial work platform equipment, telehandlers and light towers. The Materials Processing segment designs, manufactures and markets materials processing and specialty equipment, including crushers, washing systems, screens, apron feeders, material handlers, wood processing, biomass and recycling equipment, concrete mixer trucks and concrete pavers, and their related components and replacement parts. The company was founded in 1933 and is headquartered in Westport, CT.

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 demonstrates solid financial performance with strong revenue growth and an improved capital structure. Despite a declining net profit margin, the company effectively manages debt levels, enhancing financial stability. Cash flow generation remains strong, though recent dips in free cash flow highlight areas for operational improvement.

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: Negative
• Last Price: 39.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEX, the sentiment is Negative. The current price of 39.07 is below the 20-day moving average (MA) of 43.60, below the 50-day MA of 45.33, and below the 200-day MA of 52.26, indicating a bearish trend. The MACD of -2.11 indicates Positive momentum. The RSI at 33.05 is Neutral, neither overbought nor oversold. The STOCH value of 14.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TEX.

Terex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEX	78 Outperform	$2.50B	7.60	18.29%	1.77%	-0.47%	-34.74%
OSK	77 Outperform	$6.15B	9.21	16.14%	1.94%	11.36%	13.78%
DE	74 Outperform	$124.41B	20.32	27.66%	1.31%	-20.93%	-34.33%
PCAR	74 Outperform	$53.26B	12.84	23.77%	1.21%	-4.29%	-9.76%
CMI	72 Outperform	$47.75B	12.24	38.42%	2.06%	0.14%	444.36%
CAT	66 Neutral	$156.16B	14.82	55.36%	1.69%	-3.36%	9.59%
Sector *	62 Neutral	$8.11B	13.34	1.17%	3.02%	4.16%	-15.14%

Terex Corporate Events

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.