TEX is now undervalued and could go up 108%
Terex, headquartered in Norwalk, Connecticut, manufactures aerial work platforms and materials processing machinery, employing 10,200 people. Its segments include Materials Processing and Aerial Work Platforms, featuring products like cranes and utility equipment.
Based on our analysis, Terex Corporation is currently rated as undervalued by Cashu, earning a score of 4 out of 5 stars. This assessment is supported by several key financial ratios that highlight its strong performance relative to its sector.
The Price-to-Earnings (PE) Ratio for Terex stands at 6.61, significantly lower than the sector average of 20.52. A lower PE ratio may indicate that the stock is undervalued compared to its earnings potential. Additionally, Terex's Price-to-Book (PB) Ratio of 1.69, compared to the sector's 2.48, suggests that investors are paying less for each dollar of net assets, further supporting the undervaluation claim.
Terex demonstrates strong profitability with a Net Profit Margin of 6.53, far exceeding the sector average of 0.92. This indicates that Terex retains a larger portion of revenue as profit, showcasing operational efficiency. Furthermore, the Return on Equity (ROE) Ratio of 18.29, compared to the sector's 2.33, indicates that the company is generating substantial profit relative to shareholder equity, reflecting effective management and growth potential.
The company also offers a Dividend Yield of 2.05, which is higher than the sector average of 1.16, providing investors with a reliable income stream. Lastly, Terex's Return on Assets Ratio of 5.85, in contrast to the sector's 0.47, reflects its effective use of assets to generate earnings.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
