Terex Corporation (TEX): fair value, margin of safety and Wheel Score

Is TEX undervalued?

Terex Corporation (TEX) closed at 52.21 on 16 Oct 2026, 17% above the GLS average fair value of 44.49. Only 4 of the 9 models that produced a number value the shares above the current price. The margin of safety is negative, so the stock fails the "below fair value" rule of the Sunday Scan; a premium of this size is common for companies whose growth the models are conservative about.

There is a wide gap between DDM (10.01) and Payback Time (83.19). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.

The nightly engine files TEX under Blend.

Nine valuation models for TEX

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

Terex Corporation scores 5 of 9 on the Piotroski F-score: a middling result that falls one point short of the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 3.6/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.

Returns on capital are thin or negative - ROIC 4.5%, ROE 10.5%, ROA 3.6% - with debt at 1.34 times equity and a free-cash-flow yield of 5.7%.

The dividend yield is 1.30% with a payout ratio of 42% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Utility Products 49%, Aerial Work Platforms Products 32%, Materials Processing Equipment 11% (quarter Q4 FY2025).

Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 59: Fair

A Wheel Score of 59 puts Terex Corporation in the Fair band - below the 70 the Sunday Scan requires. Value 5/25, Health 11/20, Moat 5/15, Premium 20/20 and Stability 17/20; the weakest part is Value (5/25).

Implied volatility is 53% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 15,588 contracts across all expiries - enough for the wheel at normal size.

Volume runs at 1.2M shares a day on a market cap of $6.0B, with a beta of 1.47 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 17 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

Terex Corporation reports earnings on 28 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk. The shares go ex-dividend on 9 Nov 2026 (0.1700 per share), so a covered call sold before then carries a small early-assignment risk around that date.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

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