Terex’s sales increased 4% year on year to nearly $1.3 billion, thanks to solid demand in the aerial segment. Management raised 2024 sales and margin guidance for the segment. We're now more optimistic on Terex's long-term prospects. This led us to increase our fair value estimate by 7% to $59 per share, up from $55 previously.
Increased infrastructure spending in the US and emerging markets could result in more downstream equipment purchases (materials processing), driving higher sales growth for Terex.
Terex may fall behind in innovating its aerial lift product line, leading to market share gains for rival JLG.
|
Metric
|
TEX
|
CAT
|
DE
|
|---|---|---|---|
Price/Earnings (Normalized) | 8.42 | 15.94 | 11.45 |
Price/Book Value | 2.37 | 9.57 | 4.96 |
Price/Sales | 0.79 | 2.56 | 1.90 |
Price/Cash Flow | 6.96 | 13.19 | 9.62 |
|
Metric
|
TEX
|
CAT
|
DE
|
|---|---|---|---|
Quick Ratio | 0.82 | 0.74 | 1.81 |
Current Ratio | 2.01 | 1.35 | 2.05 |
Interest Coverage | 10.04 | 25.57 | 5.59 |
|
Metric
|
TEX
|
CAT
|
DE
|
|---|---|---|---|
Return on Assets (Normalized) | 16.45% | 12.80% | 9.82% |
Return on Equity (Normalized) | 39.25% | 59.03% | 44.28% |
Return on Invested Capital (Normalized) | 28.05% | 19.53% | 14.47% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
CAT
| Caterpillar Inc | Bbxlwdct | Dhxss | $171.5 Bil | |
DE
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PCAR
| PACCAR Inc | Mbcbvjqrl | Gzphg | $58.7 Bil | |
VOLVF
| Volvo AB Class B | — | Pdzzb | $52.9 Bil | |
VOLAF
| Volvo AB Class A | — | Pfyr | $52.1 Bil | |
VLVLY
| Volvo AB ADR | — | Tvnv | $52.1 Bil | |
CNHI
| CNH Industrial NV | Fqrtdxl | Zkzwy | $14.2 Bil | |
AGCO
| AGCO Corp | Ccwyhnk | Flzsh | $8.8 Bil | |
OSK
| Oshkosh Corp | Lcpcfdn | Nrpxwd | $7.7 Bil |
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