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Market Cap

US$7.8b

Last Updated

2021/04/16 22:57 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

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.


Market Performance


7 Day Return

2.8%

TX

5.5%

US Metals and Mining

1.3%

US Market


1 Year Return

210.4%

TX

97.8%

US Metals and Mining

53.9%

US Market

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.


Shareholder returns

TXIndustryMarket
7 Day2.8%5.5%1.3%
30 Day8.1%3.5%3.3%
90 Day30.2%15.3%8.9%
1 Year239.0%210.4%102.3%97.8%56.6%53.9%
3 Year23.3%4.7%41.4%31.8%64.4%53.6%
5 Year154.2%97.1%128.6%107.6%120.4%95.7%

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

Valuation

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

44.9%

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).


Future Growth

How is Ternium forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-0.3%

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%).


Past Performance

How has Ternium performed over the past 5 years?

11.0%

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.


Financial Health

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.


Balance Sheet


Dividend

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

5.30%

Current Dividend Yield


Upcoming Dividend Payment

TodayApr 17 2021Ex Dividend DateMay 04 2021Dividend Pay DateMay 11 20217 days from Ex DividendBuy in the next 17 days to receive the upcoming dividend

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).


Next Steps

Management

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

5.7yrs

Average management tenure


CEO

Maximo Vedoya (49 yo)

3.08yrs

Tenure

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...


Leadership Team

Experienced Management: TX's management team is seasoned and experienced (5.7 years average tenure).


Board Members

Experienced Board: TX's board of directors are seasoned and experienced ( 15.3 years average tenure).


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


Key Information

  • 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


Location

  • Ternium S.A.
  • 26 Boulevard Royal
  • 4th Floor
  • Luxembourg City
  • 2449
  • Luxembourg

Listings


Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/16 22:57
End of Day Share Price2021/04/16 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.