Terex Cash And Equivalents vs. Price To Earning
| TXG Stock | EUR 48.16 1.44 3.08% |
For Terex profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Terex to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Terex utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Terex's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Terex over time as well as its relative position and ranking within its peers.
Terex |
Terex Price To Earning vs. Cash And Equivalents Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Terex's current stock value. Our valuation model uses many indicators to compare Terex value to that of its competitors to determine the firm's financial worth. Terex is currently regarded as top stock in cash and equivalents category among its peers. It also is currently regarded as top stock in price to earning category among its peers . The ratio of Cash And Equivalents to Price To Earning for Terex is about 2,963,710 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Terex's earnings, one of the primary drivers of an investment's value.Terex Price To Earning vs. Cash And Equivalents
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
Terex |
| = | 367.5 M |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Terex |
| = | 124.00 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Terex Price To Earning Comparison
Terex is currently under evaluation in price to earning category among its peers.
Terex Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Terex, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Terex will eventually generate negative long term returns. The profitability progress is the general direction of Terex's change in net profit over the period of time. It can combine multiple indicators of Terex, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Terex Corporation manufactures and sells aerial work platforms, cranes, and materials processing machinery worldwide. Terex Corporation was founded in 1925 and is based in Westport, Connecticut. TEREX CORP operates under Farm Construction Equipment classification in Germany and is traded on Frankfurt Stock Exchange. It employs 11700 people.
Terex Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Terex. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Terex position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Terex's important profitability drivers and their relationship over time.
Use Terex in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Terex position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Terex will appreciate offsetting losses from the drop in the long position's value.Terex Pair Trading
Terex Pair Trading Analysis
The ability to find closely correlated positions to Terex could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Terex when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Terex - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Terex to buy it.
The correlation of Terex is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Terex moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Terex moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Terex can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Terex position
In addition to having Terex in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Tech Funds Thematic Idea Now
Tech Funds
Funds or Etfs that invest in companies involved in research, development, testing, or distribution of technologically based goods and services. The Tech Funds theme has 44 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Tech Funds Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Terex Stock
When determining whether Terex offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Terex's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Terex Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Terex Stock:Check out World Market Map. For more detail on how to invest in Terex Stock please use our How to Invest in Terex guide.You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
To fully project Terex's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Terex at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Terex's income statement, its balance sheet, and the statement of cash flows.