Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Terex Corporation (TEX)

Company Dividend Discount ModelIndustry: Agricultural - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$106.88 - $465.13$257.33
Multi-Stage$54.26 - $59.36$56.76
Blended Fair Value$157.05
Current Price$51.30
Upside206.13%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS7.94%7.75%0.690.650.530.500.130.470.450.440.450.39
YoY Growth--6.48%21.35%6.27%298.81%-73.25%4.67%1.69%-1.67%16.28%18.35%
Dividend Yield--1.83%1.03%1.10%1.41%0.27%3.28%1.37%1.18%1.43%1.55%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)156.00
(-) Cash Dividends Paid (M)46.00
(=) Cash Retained (M)110.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)31.2019.5011.70
Cash Retained (M)110.00110.00110.00
(-) Cash Required (M)-31.20-19.50-11.70
(=) Excess Retained (M)78.8090.5098.30
(/) Shares Outstanding (M)66.7066.7066.70
(=) Excess Retained per Share1.181.361.47
LTM Dividend per Share0.690.690.69
(+) Excess Retained per Share1.181.361.47
(=) Adjusted Dividend1.872.052.16
WACC / Discount Rate7.35%7.35%7.35%
Growth Rate5.50%6.50%7.50%
Fair Value$106.88$257.33$465.13
Upside / Downside108.34%401.62%806.70%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)156.00166.14176.94188.44200.69213.73220.15
Payout Ratio29.49%41.59%53.69%65.79%77.90%90.00%92.50%
Projected Dividends (M)46.0069.1095.00123.98156.33192.36203.63

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.35%7.35%7.35%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)63.7664.3764.97
Year 2 PV (M)80.9082.4484.00
Year 3 PV (M)97.43100.23103.08
Year 4 PV (M)113.37117.73122.21
Year 5 PV (M)128.73134.95141.40
PV of Terminal Value (M)3,134.953,286.373,443.59
Equity Value (M)3,619.153,786.093,959.26
Shares Outstanding (M)66.7066.7066.70
Fair Value$54.26$56.76$59.36
Upside / Downside5.77%10.65%15.71%

High-Yield Dividend Screener

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