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TerexTEX +2.50%92 5-Year Yield-on-Cost % is 4.42 as of Aug. 03, 2026, which is 5% below its 10-year median of 4.67. GuruFocus rates TEX with a GF Score™ of 92/100 and a GF Value™ of $54.64 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 139 Farm & Heavy Construction Machinery companies, Terex ranks better than 63.31% on this metric.
Terex's yield on cost for the quarter that ended in Jun. 2026 was 4.42.
The historical rank and industry rank for Terex's 5-Year Yield-on-Cost % or its related term are showing as below:
TEX'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.91 Med: 4.67 Max: 14.58
Current: 4.42
During the past 13 years, Terex's highest Yield on Cost was 14.58. The lowest was 0.91. And the median was 4.67.
TEX's 5-Year Yield-on-Cost % is ranked better than 63.31% of 139
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 2.81
vs TEX: 4.42
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Terex 5-Year Yield-on-Cost % Related Terms
TEX vs FSS, AGCO, OSK: 5-Year Yield-on-Cost % Comparison
For the Farm & Heavy Construction Machinery subindustry, Terex's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Terex 5-Year Yield-on-Cost % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Terex's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Terex's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Terex is calculated as
Terex (TEX) has a 5-Year Yield-on-Cost % of 4.42 as of Aug. 03, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Terex and its competitors. This is near median its historical median of 4.67. Over the past decade, Terex's 5-Year Yield-on-Cost % has ranged from 0.91 to 14.58. According to the industry distribution chart, Terex ranks #51 out of 139 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 36.7%.
Is Terex's 5-Year Yield-on-Cost % too high?
Terex's current 5-Year Yield-on-Cost % of 4.42 is near median its 10-year median of 4.67. Over the past 10 years, this metric has ranged from a low of 0.91 to a high of 14.58. The Farm & Heavy Construction Machinery industry median 5-Year Yield-on-Cost % is 2.81. Terex's value of 4.42 is 57.3% above this industry median. Based on the distribution chart, Terex ranks #51 out of 139 companies in the Farm & Heavy Construction Machinery industry, which is above the industry midpoint. Overall, Terex has a GF Score™ of 92/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Terex's 5-Year Yield-on-Cost % compare to FSS and AGCO?
According to the Farm & Heavy Construction Machinery industry distribution chart, Terex ranks #51 out of 139 companies for 5-Year Yield-on-Cost %. This puts Terex in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 2.81. Terex's value of 4.42 is 57.3% above this benchmark. Historically, Terex's own 5-Year Yield-on-Cost % has ranged from 0.91 to 14.58 over the past decade. While the company's 10-year median is 4.67 vs. the industry median of 2.81, Terex has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a Farm & Heavy Construction Machinery company?
The median 5-Year Yield-on-Cost % among Farm & Heavy Construction Machinery companies is 2.81, based on 139 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Terex's current 5-Year Yield-on-Cost % of 4.42 is 57.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Terex and its competitors. For the Farm & Heavy Construction Machinery industry, the median 5-Year Yield-on-Cost % is 2.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Terex's current 5-Year Yield-on-Cost % is 4.42, which is near median its own 10-year median of 4.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Terex stock overvalued right now?
Based on GuruFocus' analysis, Terex (TEX) is currently considered Modestly Overvalued. The stock's GF Value™ is $54.64, compared to a current price of $64.41 — trading 17.9% above its estimated fair value. The current 5-Year Yield-on-Cost % is 4.42, which is near median its 10-year median of 4.67 and 57.3% above the Farm & Heavy Construction Machinery industry median of 2.81. Terex's overall GF Score™ is 92/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Terex (TEX), the current 5-Year Yield-on-Cost % is 4.42 as of Aug. 03, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Terex (TEX) Overvalued in 2026?
Based on GuruFocus' analysis, Terex stock appears to be overvalued.
The current stock price of $64.41 is trading 17.9% above its estimated GF Value™ of $54.64.
GuruFocus considers Terex to be Modestly Overvalued.
Key valuation signals for TEX:
5-Year Yield-on-Cost %: 4.42 (near median its 10-year median of 4.67)
GF Value™: $54.64 vs. price of $64.41 (17.9% above fair value)
Industry Position: 57.3% above the Farm & Heavy Construction Machinery median (#51 of 139)
No single metric tells the full story. See the TEX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Terex is a global manufacturer of aerial work platforms, materials processing equipment, and specialty equipment for the waste, recycling, and utility industries. Its current composition is a result of numerous acquisitions over several decades to focus on a smaller group of light construction and other vocational equipment, having divested a handful of underperforming businesses, particularly in cranes and other lifting equipment. These remaining segments see heavy demand in nonresidential construction (aerial work platforms—40% sales), aggregates/mining (materials processing—30% sales), environmental, waste/recycling and utilities (environmental solutions group—30% sales).
92GF Score
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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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