Terex Corporation [NYSE:TEX]: Analyst Rating and Earnings
Stock market traders frequently keep their eyes on what Wall Street experts as it relates to a potential investment. For Terex Corporation [TEX], the most recent analyst consensus recommendation available since its latest financial results for the quarter ending in December. On average, stock market experts give TEX an Hold rating. The average 12-month price forecast for this stock is $37.78, with the high estimate being $54.00, the low estimate being $26.00 and the median estimate amounting to $35.00. This is compared to its latest closing price of $28.77.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Terex Corporation [TEX] is sitting at 2.76. This is compared to 1 month ago, when its average rating was 2.76.
For the quarter ending in Sep-18 Terex Corporation [TEX] generated $1.23 billion in sales. That’s 4.28% lower than the average estimate of $1.28 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep your eyes peeled for the soon-to-be-published financial results of this company, which are expected to be made public on Tue 12 Feb (In 33 Days).
Fundamental Analysis of Terex Corporation [TEX]
Now let’s turn to look at profitability: with a current Operating Margin for Terex Corporation [TEX] sitting at +3.54 and its Gross Margin at +18.06, this company’s Net Margin is now 2.40%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 5.83, and its Return on Invested Capital has reached 5.40%. Its Return on Equity is 4.43, and its Return on Assets is 1.42. These metrics suggest that this Terex Corporation does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Terex Corporation [TEX] has generated a Total Debt to Total Equity ratio of 80.59. Similarly, its Total Debt to Total Capital is 44.63, while its Total Debt to Total Assets stands at 28.44. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 80.16, and its Long-Term Debt to Total Capital is 44.39. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 11.23 and its Total Debt to EBITDA Value is 4.55. The Enterprise Value to Sales for this firm is now 0.49, and its Total Debt to Enterprise Value stands at 0.20. Terex Corporation [TEX] has a Price to Book Ratio of 3.16, a Price to Cash Flow Ratio of 29.91 and P/E Ratio of 20.21. These metrics suggest that this publicly-traded organization will not likely result in investment gains.
Shifting the focus to workforce efficiency, Terex Corporation [TEX] earns $407,794 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 7.69 and its Total Asset Turnover is 1.03. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.36 and its Current Ratio is 2.30. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: Terex Corporation [TEX] has 71.92M shares outstanding, amounting to a total market cap of $2.09B. Its stock price has been found in the range of 25.47 to 50.17. At its current price, it has moved by -42.02% from its 52-week high, and it has moved 14.21% from its 52-week low.
This stock’s Beta value is currently 1.61, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 53.46. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Terex Corporation [TEX] a Reliable Buy?
Terex Corporation [TEX] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.