Terex Corp (TEX)

pencils2 (99.85) Submitted: 12/09/06 6:43 PM : Start Price: $59.75 TEX Score: -23.86

The thing I like with Terex is that even though they've had a few tough recent years, they're strengthening the balance sheet and producing strong cash flow. They are non-reliant on the bank, debt is below $800 million and they have a good cash position.

The company has a diversified product line and isn't reliant on any one customer. The areas they are in -- logging, road construction/repair, mining, etc. -- are sectors and industries that aren't going to disappear, and Terex really has a good product line to continue to gain market share, or at least hold the market share they have now.

The company's smartly not paying a dividend right now to further strengthen the business, and they've got an experienced board of directors.

The latest quarter saw margins (both operating and profit margins) improve, as well as ROA and ROE. The company's products are currently in more than 100 countries, both through product distribution and acquisitions.

This is a smart company with strengthening financials, in industries that are secure over the long-term. The stock is at a very reasonable value, in fact, I'd say it's a bit undervalued right now, and I think we'll see the stock beat the S&P over the next five years.

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