Home Sectors Industrials Buy or Sell: Terex Corporation (NYSE: TEX)

Buy or Sell: Terex Corporation (NYSE: TEX)


Terex Corporation is in the industrials sector and is in the farm and construction machinery industry. The company CEO is John L. Garrison. Terex Corp is a global manufacturer of a wide variety of construction and materials processing equipment such as cranes, aerial work platforms, and rock crushers.

Previous Intraday Trading Performance:

The TEX stock showed a previous change of 4.37% with an open at 27.20 and a close of 27.97. It reached an intraday high of 28.04 and a low of 27.09.

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The stock has a market cap of $2.0b with 71.2m shares outstanding, of which the float is 64.9m shares. Trading volume reached 1,245,692 shares compared to its average volume of 1,016,277 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Terex Corporation shares returned 0.54% and in the past 30 trading days it returned -17.03%. Over three months, it changed -16.61%. In one year it has changed -28.78% and within that year its 52-week high was 45.47 and its 52-week low was 25.47. TEX stock is 9.82% above its 52 Week Low.

Our calculations show a 200 day moving average of 32.85 and a 50 day moving average of 31.30. Currently TEX stock is trading -14.85% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

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The last annual fiscal EPS for the company was reported at 1.48 that ended on 31st of December 2018, which according to the previous close, that is a PE of 18.90. Based on 10 analyst estimates, the consensus EPS for the next quarter is 0.62. The TTM EPS is 2.72, which comes to a TTM PE of 10.28.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 (Reported on 04/30/2019): -0.94
4thQtr of 2018 (Reported on 02/24/2019): -0.45
3rdQtr of 2018 (Reported on 11/01/2018): 0.51
2ndQtr of 2018 (Reported on 07/31/2018): 0.75
1stQtr of 2018 (Reported on 05/01/2018): 0.62

The dividend per share is currently 0.44, which is a dividend yield of 1.57%. Also, the payout ratio is 16.18%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 41.00, which means it is possibly undervalued and has a margin of safety of 31.78%.

Indicators to Watch:

Short-interest was 5,583,872, which was 7.84% of shares outstanding. The short-interest ratio or days-to-cover ratio was 5.91. This stock has a moderate level of short interest, but may still be a buying opportunity depending on other indicators.

The current calculated beta is 1.72.

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is -0.36%, return on assets is -0.09%, profit margin is -0.09%, price-to-sales is 0.38 and price-to-book is 2.44.

Company Scores:

All scores are out of six:
 2  :Valuation Score
 1  :Past Performance Score
 3  :Financial Strength Score
 4  :Future Growth Score
 3  :Dividend Score
 2  :Overall Score

Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.