Terex Corp Stock Upgraded (TEX)
NEW YORK (
)
-- Terex
(NYSE:
) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and increase in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally poor debt management and poor profit margins.
Highlights from the ratings report include:
- TEX's very impressive revenue growth greatly exceeded the industry average of 30.0%. Since the same quarter one year prior, revenues leaped by 67.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- TEREX CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, TEREX CORP continued to lose money by earning -$1.99 versus -$3.97 in the prior year. This year, the market expects an improvement in earnings ($0.45 versus -$1.99).
- TEX's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 35.10%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
- The debt-to-equity ratio of 1.16 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, TEX maintains a poor quick ratio of 0.93, which illustrates the inability to avoid short-term cash problems.
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Terex Corporation manufactures and markets machinery products, equipment, and related replacement parts and components for construction, quarrying, mining, shipping, transportation, refining, energy, and utility industries. The company has a P/E ratio of 280.9, above the S&P 500 P/E ratio of 17.7. Terex has a market cap of $2.12 billion and is part of the
sector and
industry. Shares are up 75.6% year to date as of the close of trading on Tuesday.
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-- Written by a member of TheStreet RatingsStaff
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