TEXTerex Corporation
Is the business good?
The checks split: earnings fully cash-backed (1.6×), but margins compressing.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
A balanced mix of margins, efficiency, and leverage. ROE 6% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is TEX?
Terex Corporation earns 4.2% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 4.8 points below what the capital costs: growth destroys value
- Operating margin
- 5.7%
Operating margin · Farm & Heavy Construction Machinery median 5.8% · 12 months to Q2 2026
- Cash conversion
- 1.56×
Cash conversion · 1.19× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +73%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 2.2% |
| FY2021 | 8.4% |
| FY2022 | 9.5% |
| FY2023 | 12% |
| FY2024 | 10% |
| FY2025 | 8.8% |
Details›
- Gross margin12 months to Q2 2026
- 18%
- Operating margin12 months to Q2 2026
- 5.7%
- Net margin12 months to Q2 2026
- 2.2%
- Free cash flow margin
- 5.3%
- Revenue, trailing twelve months
- $6.68B
- Free cash flow, trailing twelve months
- $351M
- Net income, trailing twelve months
- $149M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 4.2%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Farm & Heavy Construction Machinery
Ranks #2 of 14 by RyuScore