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Corporation
INDUSTRIAL | Manufacturing / Industrial Machinery & Equipment Distribution
terex.com

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Founded Year

1986

Stage

IPO | IPO

Market Cap

2.86B

Stock Price

43.10

About Terex

Terex Corporation is a diversified global manufacturer of a broad range of equipment that is focused on delivering reliable, customer-driven solutions for many applications, including the construction, infrastructure, quarrying, mining, shipping, transportation, refining, energy, utility and manufacturing industries. Terex reports in five business segments: Aerial Work Platforms; Construction; Cranes; Material Handling & Port Solutions; and Materials Processing. Terex offers financial products and services to assist in the acquisition of equipment through Terex Financial Services.

Terex Headquarter Location

200 Nyala Farm Road

Westport, Connecticut, 06880,

United States

203-222-7170

Latest Terex News

Deere Is Likely To Outperform This Stock Amid A Rebound In Construction Demand

Nov 8, 2021

HAMPSHIRE, IL - AUGUST 19: A John Deere logo is painted on the side of a piece of farm equipment ... [+] offered for sale at the Buck Bros. dealership August 19, 2009 in Hampshire, Illinois. Deere & Co., the world�s largest maker of farm equipment, today posted a decline of approximately 27 percent in third-quarter profit. (Photo by Scott Olson/Getty Images) Getty Images We think that Deere stock (NYSE: DE) is currently is a better pick compared to Terex stock (NYSE: TEX), a global manufacturer of lifting and material processing products, despite Deere being the more expensive of the two. DE trades at about 2.5x trailing revenues, compared to just 0.9x for Terex. Although both the companies have benefited from the rise in construction activities post-pandemic, Deere’s financial performance has been better over the recent years. However, there is more to the comparison. Let’s step back to look at the fuller picture of the relative valuation of the two companies by looking at historical revenue growth as well as operating margin growth. Our dashboard Deere vs Terex : Industry Peers; Which Stock Is A Better Bet? has more details on this. Parts of the analysis are summarized below. 1. Deere Revenue Growth Has Been Stronger Now, Deere’s revenue growth over the last twelve month period was slightly better than Terex (19% vs. 16%), given a sharp rebound in equipment demand for the construction industry, along with continued growth in agricultural equipment demand. Even if we were to look at a longer duration, Deere’s last three fiscal year CAGR of 6% is much better than that of -7% CAGR for Terex, primarily due to the impact of Covid-19 on demand for aerial work platforms (elevating work platforms). Note that the revenue base for Deere is much larger with $42 billion sales in the last twelve months compared to just $4 billion for Terex. Looking forward, Deere is expected to see strong revenue growth with economies opening up, and aging of agricultural equipment in the U.S. In fact, we forecast Deere’s revenue to grow a strong 25% to around $40 billion in 2021. Our Deere Revenues dashboard provides more insight on the company’s revenues. For Terex, a rebound in demand for aerial work platforms and materials processing equipment, will drive the revenue growth. Terex’s revenues are also expected to grow 25% to $3.8 billion in 2021, as per the consensus estimates. 2. Deere Has Better Profitability Similar to the pattern seen in revenue growth, Deere’s last three years average operating margin of 14.2% is much better than just 6.3% for Terex. Deere’s operating margins have surged over the recent quarters, and it stood at 19.2% over the last twelve month period, compared to 14.2% in 2019, before the pandemic. The current operating margin of 7.1% for Terex is lower compared to Deere, and it compares with the 7.7% figure in 2019. Overall, Deere’s margins are much better than Terex and that has been the case even if we were to look at historical years. Looking forward, the margins for both companies are likely to be adversely impacted in the near term due to inflationary pressure, and supply chain headwinds, but rise in the long run. Cash to Assets Ratio The Net of It All Now that over half of the U.S. population is fully vaccinated against Covid-19, with overall economic activity picking up, the demand for construction equipment is likely to rise going forward, boding well for both the companies. Deere in particular, will also benefit from agricultural equipment demand over the next few years, given that the age of farming equipment in the U.S. is now above average, and the company expects to see a strong demand as farmers look at replacing the existing equipment. Now, both the companies have seen a strong rebound in demand since the pandemic. While Terex’s current valuation is surely more attractive than that of Deere, with TEX stock trading at about 0.9x trailing revenues, versus 2.5x for Deere, the latter has demonstrated better revenue growth and better profitability over the last few years. Even if we look at another valuation metric - price to operating income ratio (P/EBIT) - both the companies are similarly priced around 13x. That said, if we were to look at financial risk, Terex is better placed among the two with lower debt as percentage of equity and higher cash as percentage of assets. Overall, barring the financial risk, Deere trumps Terex in most of the metrics that matter for investors and we think this gap in valuation between the two companies is largely justified. In fact, looking forward, it is likely that the gap in valuation of these two companies will remain in the foreseeable future and Deere may continue to outperform with its better growth prospects, albeit at a higher risk. While DE stock may see higher levels, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Terex vs. Louisiana . What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since 2016.

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Terex Patents

Terex has filed 223 patents.

The 3 most popular patent topics include:

  • Mining equipment
  • Dinghies
  • Engine technology
patents chart

Application Date

Grant Date

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Related Topics

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8/10/2017

11/16/2021

Sailing rigs and rigging, Dinghies, Cranes (machines), Posttranslational modification, Construction equipment manufacturers

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11/16/2021

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Related Topics

Sailing rigs and rigging, Dinghies, Cranes (machines), Posttranslational modification, Construction equipment manufacturers

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Terex Web Traffic

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