Terex Corp (TEX) stock analysis

P/E above its 5-year median

Terex's P/E of 29.1 is above its own 5-year median of 11.1.

P/E above the industry

Terex's P/E of 29.1 is above the Construction, Mining, and Materials Handling median of 29.1.

EV/EBITDA above its 5-year median

Terex's EV/EBITDA of 12.0 is above its 5-year median of 9.1.

P/B below the industry

Terex's price-to-book of 1.31 is below the Construction, Mining, and Materials Handling median of 1.38.

Trading above fair value

The share price of $57.61 is above our fair value estimate of $41.43.

Margin of safety under 20%

The price is 39.0% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 7.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -8.3% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 40.1% over the last twelve months; the Construction, Mining, and Materials Handling median is 10.4%.

Guidance raised

Terex raised its 2026 Sales outlook on Jul 30, 2026.

Gross margin slipping

Gross margin was 17.1% over the last twelve months, against 19.7% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital under 10%

Return on invested capital was 6.4%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Terex's return on equity of 5.7% is above the Construction, Mining, and Materials Handling median of 4.5%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 2.6% over the last twelve months, against a 5-year average of 6.6%.

Net margin above the industry

Terex's net margin of 2.6% is above the Construction, Mining, and Materials Handling median of 2.6%.

High debt

Debt is 52.0% of shareholders' equity, above the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 21.1% of total debt.

Interest not well covered

Operating income covers interest expense 2.2 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.76 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.06; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Terex paid dividends worth 0.9% of the share price over the last twelve months.

Yield below Treasuries

The 0.9% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Terex yields 0.9%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 34.8% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.