Terex Corporation is a lifting and material handling solutions company reporting in five business segments: Aerial Work Platforms, Construction, Cranes, Material Handling & Port Solutions and Materials Processing. Terex manufactures a broad range of equipment for use in various industries, including the construction, infrastructure, manufacturing, shipping, transportation, refining, energy, utility, quarrying and mining industries. The company was founded in 1925 and is based in Westport, Connecticut.
TEX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Terex Corp. To summarize, we found that Terex Corp ranked in the 15th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 83%. The most interesting components of our discounted cash flow analysis for Terex Corp ended up being:
Its compound free cash flow growth rate, as measured over the past 5.45 years, is -0.16% -- higher than merely 10.44% of stocks in our DCF forecasting set.
Terex Corp's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
The weighted average cost of capital for the company is 10. This value is greater than 69.85% stocks in the Industrials sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Terex Corp? See ABB, CWST, SXI, CPRT, and EFX.
In this article, I am going to update my bullish Terex (TEX) call I made in May with the title Home Run Potential - Terex Corp. Since then, the company has advanced nicely as cyclical industries are bottoming. In addition to that, the company is getting support from rising commodity...
Terex Corporation (NYSE: TEX) today announced a second quarter 2020 loss from continuing operations of $(3.2) million, or $(0.05) per share, on net sales of $690.5 million. In the second quarter of 2019, the reported income from continuing operations was $81.6 million, or $1.14 per share, on net sales of $1.3 billion. This compares to income from continuing operations, as adjusted, of $86.9 million or $1.21 per share in the second quarter of 2019. The Glossary at the end of this press release contains further details regarding these non-GAAP measures.