Ternium S.A., through its subsidiaries, manufactures and processes various steel products in Mexico, Argentina, Paraguay, Chile, Bolivia, Uruguay, Brazil, the United States, Colombia, Guatemala, Costa Rica, Honduras, El Salvador, and Nicaragua. More Details
Flawless balance sheet, undervalued and pays a dividend.
Share Price & News
How has Ternium's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: TX's weekly volatility (7%) has been stable over the past year.
7 Day Return
US Metals and Mining
1 Year Return
US Metals and Mining
Return vs Industry: TX exceeded the US Metals and Mining industry which returned 99.9% over the past year.
Return vs Market: TX exceeded the US Market which returned 57.5% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Ternium's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StAre Robust Financials Driving The Recent Rally In Ternium S.A.'s (NYSE:TX) Stock?
3 weeks ago | Simply Wall StIs Ternium S.A. (NYSE:TX) A Good Fit For Your Dividend Portfolio?
1 month ago | Simply Wall StTernium (NYSE:TX) Seems To Use Debt Rather Sparingly
Is Ternium undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TX ($38.48) is trading below our estimate of fair value ($71.68)
Significantly Below Fair Value: TX is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: TX is good value based on its PE Ratio (9.7x) compared to the US Metals and Mining industry average (17.3x).
PE vs Market: TX is good value based on its PE Ratio (9.7x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: TX's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: TX is good value based on its PB Ratio (1x) compared to the US Metals and Mining industry average (2.4x).
How is Ternium forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TX's earnings are forecast to decline over the next 3 years (-0.3% per year).
Earnings vs Market: TX's earnings are forecast to decline over the next 3 years (-0.3% per year).
High Growth Earnings: TX's earnings are forecast to decline over the next 3 years.
Revenue vs Market: TX's revenue (5.7% per year) is forecast to grow slower than the US market (9.4% per year).
High Growth Revenue: TX's revenue (5.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TX's Return on Equity is forecast to be low in 3 years time (11.3%).
How has Ternium performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TX has high quality earnings.
Growing Profit Margin: TX's current net profit margins (8.9%) are higher than last year (5.5%).
Past Earnings Growth Analysis
Earnings Trend: TX's earnings have grown by 11% per year over the past 5 years.
Accelerating Growth: TX's earnings growth over the past year (38.6%) exceeds its 5-year average (11% per year).
Earnings vs Industry: TX earnings growth over the past year (38.6%) exceeded the Metals and Mining industry -5%.
Return on Equity
High ROE: TX's Return on Equity (10.3%) is considered low.
How is Ternium's financial position?
Financial Position Analysis
Short Term Liabilities: TX's short term assets ($4.6B) exceed its short term liabilities ($1.9B).
Long Term Liabilities: TX's short term assets ($4.6B) exceed its long term liabilities ($2.6B).
Debt to Equity History and Analysis
Debt Level: TX's debt to equity ratio (20.4%) is considered satisfactory.
Reducing Debt: TX's debt to equity ratio has reduced from 31.7% to 20.4% over the past 5 years.
Debt Coverage: TX's debt is well covered by operating cash flow (102.2%).
Interest Coverage: TX earns more interest than it pays, so coverage of interest payments is not a concern.
What is Ternium current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: TX's dividend (5.46%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: TX's dividend (5.46%) is in the top 25% of dividend payers in the US market (3.48%)
Stability and Growth of Payments
Stable Dividend: TX's dividend payments have been volatile in the past 10 years.
Growing Dividend: TX's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (53%), TX's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TX's dividends in 3 years are forecast to be well covered by earnings (45.3% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Maximo Vedoya (49 yo)
Mr. Maximo Vedoya serves as Chief Executive Officer of Ternium S.A. since March 1, 2018. Mr. Vedoya is an Industrial Engineer and holds a Master in Science of Management degree from Stanford University. Wi...
Experienced Management: TX's management team is seasoned and experienced (5.7 years average tenure).
Experienced Board: TX's board of directors are seasoned and experienced ( 15.3 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Ternium S.A.'s company bio, employee growth, exchange listings and data sources
- Name: Ternium S.A.
- Ticker: TX
- Exchange: NYSE
- Founded: 1961
- Industry: Steel
- Sector: Materials
- Market Cap: US$7.782b
- Shares outstanding: 196.31m
- Website: https://www.ternium.com
Number of Employees
- Ternium S.A.
- 26 Boulevard Royal
- 4th Floor
- Luxembourg City
Ternium S.A., through its subsidiaries, manufactures and processes various steel products in Mexico, Argentina, Paraguay, Chile, Bolivia, Uruguay, Brazil, the United States, Colombia, Guatemala, Costa Rica...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/16 22:57|
|End of Day Share Price||2021/04/16 00:00|
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.