TEX Stock Analysis — Terex Corporation
Sector: Industrials
AI Verdict
Terex trades at 12.1x next year's earnings with a 164.2% EPS growth forecast—this is cheap for the growth on offer if its niche machinery moat holds, but any stumble will erase the valuation gap quickly.
Competitive Moat
Terex manufactures aerial work platforms and materials processing equipment, with a defensible position in niche construction and industrial machinery segments. Its moat comes from specialized engineering, established dealer relationships, and a broad installed base that creates recurring parts and service revenue.
Summary
Terex is notable for a forecasted 164.2% jump in earnings, which is rare in the industrials sector.
Where It Stands
Terex delivered 17.0% revenue growth last year and trades at 12.1x forward earnings, well below the industrials median of 20x, with a trailing P/E of 32.0x reflecting a sharp expected earnings ramp.
Key Metrics
- Trailing P/E: 32.0x
- Forward P/E: 12.1x
- PEG Ratio: 0.20
- Earnings Growth: +1.6%
- Revenue Growth: +0.2%
- Dividend Yield: 0.01%
- 52-Week High: $71.50
- 52-Week Low: $38.52
Analyst Consensus
11 Buy · 6 Hold · 1 Sell (18 analysts)
Bull Case
Forward EPS growth of 164.2% justifies the low 12.1x forward P/E, making the stock cheap for the explosive earnings growth analysts expect.
Bear Case
If the P/E reverts from 32.0x trailing to the sector median of 20x without the forecasted EPS surge materializing, the stock could see a 37% valuation drop.
Catalyst to Watch
Watch for quarterly earnings beats or misses, as any deviation from the 164.2% EPS growth consensus will immediately reset valuation expectations.