BASE:TXAR

Stock Analysis Report

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Executive Summary

Ternium Argentina S.A. manufactures and processes various steel products in Argentina. More Details


Snowflake Analysis

Flawless balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Ternium Argentina's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TXAR is more volatile than 75% of AR stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: TXAR's weekly volatility (6%) has been stable over the past year, but is still higher than 75% of AR stocks.


Market Performance


7 Day Return

-0.4%

TXAR

-2.0%

AR Metals and Mining

-2.6%

AR Market


1 Year Return

154.8%

TXAR

95.4%

AR Metals and Mining

25.5%

AR Market

Return vs Industry: TXAR exceeded the AR Metals and Mining industry which returned 97.3% over the past year.

Return vs Market: TXAR exceeded the AR Market which returned 25.8% over the past year.


Shareholder returns

TXARIndustryMarket
7 Day-0.4%-2.0%-2.6%
30 Day2.2%7.8%-3.3%
90 Day-2.3%24.3%-13.7%
1 Year154.8%154.8%103.8%95.4%26.3%25.5%
3 Year303.4%276.2%80.0%61.7%33.4%25.0%
5 Year652.1%544.0%290.0%236.5%199.7%162.0%

Long-Term Price Volatility Vs. Market

How volatile is Ternium Argentina's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Ternium Argentina undervalued compared to its fair value and its price relative to the market?

31.26x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TXAR (ARS52.1) is trading above our estimate of fair value (ARS33.6)

Significantly Below Fair Value: TXAR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TXAR is poor value based on its PE Ratio (31.3x) compared to the XS Metals and Mining industry average (13.8x).

PE vs Market: TXAR is poor value based on its PE Ratio (31.3x) compared to the AR market (9.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TXAR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TXAR is good value based on its PB Ratio (1.2x) compared to the XS Metals and Mining industry average (1.3x).


Next Steps

Future Growth

How is Ternium Argentina forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

27.5%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if TXAR's forecast earnings growth is above the savings rate (7.9%).

Earnings vs Market: Insufficient data to determine if TXAR's earnings are forecast to grow faster than the AR market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TXAR's revenue (27.5% per year) is forecast to grow faster than the AR market (21.2% per year).

High Growth Revenue: TXAR's revenue (27.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TXAR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Ternium Argentina performed over the past 5 years?

30.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TXAR has high quality earnings.

Growing Profit Margin: TXAR's current net profit margins (6.8%) are lower than last year (18.7%).


Past Earnings Growth Analysis

Earnings Trend: TXAR's earnings have grown significantly by 30.6% per year over the past 5 years.

Accelerating Growth: TXAR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TXAR had negative earnings growth (-64.9%) over the past year, making it difficult to compare to the Metals and Mining industry average (11%).


Return on Equity

High ROE: TXAR's Return on Equity (3.7%) is considered low.


Next Steps

Financial Health

How is Ternium Argentina's financial position?


Financial Position Analysis

Short Term Liabilities: TXAR's short term assets (ARS59.4B) exceed its short term liabilities (ARS16.1B).

Long Term Liabilities: TXAR's short term assets (ARS59.4B) exceed its long term liabilities (ARS8.1B).


Debt to Equity History and Analysis

Debt Level: TXAR's debt to equity ratio (0%) is considered satisfactory.

Reducing Debt: TXAR's debt to equity ratio has reduced from 13.3% to 0% over the past 5 years.

Debt Coverage: TXAR's debt is well covered by operating cash flow (1447138.3%).

Interest Coverage: TXAR earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Ternium Argentina current dividend yield, its reliability and sustainability?

1.29%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TXAR's dividend (1.29%) is higher than the bottom 25% of dividend payers in the AR market (1.18%).

High Dividend: TXAR's dividend (1.29%) is low compared to the top 25% of dividend payers in the AR market (2.91%).


Stability and Growth of Payments

Stable Dividend: TXAR has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: TXAR's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.4%), TXAR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?


CEO

Martin Berardi (62 yo)

no data

Tenure

Mr. Martín A. Berardi serves as President at Ternium Argentina S.A. He served as an Executive Vice President of Siderar at Ternium S.A. until March 2018. Mr. Berardi has been Vice President of “Centro Indu...


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ternium Argentina S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ternium Argentina S.A.
  • Ticker: TXAR
  • Exchange: BASE
  • Founded: NaN
  • Industry: Steel
  • Sector: Materials
  • Market Cap: AR$233.082b
  • Shares outstanding: 4.52b
  • Website: https://ar.ternium.com

Number of Employees


Location

  • Ternium Argentina S.A.
  • Av. Savio s/n (2900)
  • San NicolAs
  • Buenos Aires
  • Capital Federal
  • Argentina

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TXARBASE (Buenos Aires Stock Exchange)YesCommon Stock Class AARARSAug 1996
SDDF.FOTCPK (Pink Sheets LLC)YesCommon Stock Class AUSUSDAug 1996

Biography

Ternium Argentina S.A. manufactures and processes various steel products in Argentina. It offers hot and cold rolled strips, pipes and profiles, and electro-galvanized steel sheets. It serves the construct...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/26 22:02
End of Day Share Price2021/02/26 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.