NYSE:TX

Stock Analysis Report

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.

Snowflake

Fundamentals

Flawless balance sheet 6 star dividend payer.


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


Market Performance


7 Day Return

8.4%

NYSE:TX

3.9%

US Metals and Mining

1.1%

US Market


1 Year Return

-30.0%

NYSE:TX

-8.4%

US Metals and Mining

2.1%

US Market

TX underperformed the Metals and Mining industry which returned -7.2% over the past year.

TX underperformed the Market in United States of America which returned 2% over the past year.


Share holder returns

TXIndustryMarket
7 Day8.4%3.9%1.1%
30 Day20.4%8.2%3.7%
90 Day-10.4%2.2%2.3%
1 Year-26.6%-30.0%-5.7%-8.4%4.4%2.1%
3 Year19.1%5.9%15.3%9.3%47.0%37.4%
5 Year-1.8%-20.5%-5.2%-12.6%61.6%43.8%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Ternium's share price is below the future cash flow value, and at a moderate discount (> 20%).

Ternium's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Ternium is good value based on earnings compared to the US Metals and Mining industry average.

Ternium is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Ternium earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Ternium is good value based on assets compared to the US Metals and Mining industry average.


Next Steps

Future Growth

How is Ternium expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

-0.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Ternium's revenue is expected to grow by 1.4% yearly, however this is not considered high growth (20% yearly).

Ternium's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Ternium's revenue growth is positive but not above the United States of America market average.

Ternium's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Ternium's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Ternium is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Ternium performed over the past 5 years?

53.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Ternium has delivered over 20% year on year earnings growth in the past 5 years.

Ternium's 1-year earnings growth is less than its 5-year average (26.3% vs 53%)

Ternium's earnings growth has not exceeded the US Metals and Mining industry average in the past year (26.3% vs 27.3%).


Return on Equity

Ternium has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Ternium used its assets more efficiently than the US Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

Ternium has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Ternium's financial position?


Financial Position Analysis

Ternium is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Ternium's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Ternium's level of debt (32.9%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (35.8% vs 32.9% today).

Debt is well covered by operating cash flow (69%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 18.5x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.9x debt.


Next Steps

Dividend

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

6.20%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Ternium's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Ternium's dividend is above the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (5.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).


Next Steps

Management

What is the CEO of Ternium's salary, the management and board of directors tenure and is there insider trading?

4.1yrs

Average management tenure


CEO

Máximo Vedoya (48yo)

1.5yrs

Tenure

0

Mr. Máximo 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 ...


Management Age and Tenure

4.1yrs

Average Tenure

53.5yo

Average Age

The tenure for the Ternium management team is about average.


Board Age and Tenure

13.7yrs

Average Tenure

68yo

Average Age

The average tenure for the Ternium board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Pablo Daniel Brizzio (48yo)

    Chief Financial Officer

    • Tenure: 9.7yrs
  • Martin Berardi (61yo)

    Ternium Argentina President

    • Tenure: 1.5yrs
  • Roberto Demidchuk (57yo)

    Chief Information Officer

    • Tenure: 0yrs
  • Máximo Vedoya (48yo)

    Chief Executive Officer

    • Tenure: 1.5yrs
  • Marcelo Chara (58yo)

    Ternium Brasil President

    • Tenure: 1.5yrs
  • Héctor Zunzunegui (54yo)

    International Area President

    • Tenure: 6.9yrs
  • Rodrigo Piña (46yo)

    Human Resources Director

    • Tenure: 6.7yrs
  • Arturo Sporleder

    Secretary

    • Tenure: 0yrs
  • Sebastián Martí

    Investor Relations Director

    • Tenure: 14.2yrs
  • César Alejandro Jiménez (53yo)

    Ternium Mexico President

    • Tenure: 1.5yrs

Board Members

  • Paolo Rocca (66yo)

    Chairman

    • Tenure: 14.7yrs
  • Roberto Bonatti (69yo)

    Director

    • Tenure: 14.7yrs
  • Carlos Alberto Condorelli (67yo)

    Director

    • Tenure: 14.7yrs
  • Adrián Lajous Vargas (75yo)

    Independent Director

    • Tenure: 13.7yrs
  • Gianfelice Mario Rocca (71yo)

    Director

    • Tenure: 13.7yrs
  • Daniel Novegil (66yo)

    Vice Chairman of the Board

    • Tenure: 1.5yrs
  • Ubaldo José Aguirre (70yo)

    Independent Director

    • Tenure: 13.7yrs
  • Vincent Gilles Decalf (57yo)

    Independent Director

    • Tenure: 4yrs

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$3.981b
  • Shares outstanding: 196.31m
  • Website: https://www.ternium.com

Number of Employees


Location

  • Ternium S.A.
  • 29, Avenue de la Porte-Neuve
  • 3rd Floor
  • Luxembourg City
  • 2227
  • Luxembourg

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TXNYSE (New York Stock Exchange)YesADR EACH REPR 10 ORD NPVUSUSDFeb 2006
T5ZDB (Deutsche Boerse AG)YesADR EACH REPR 10 ORD NPVDEEURFeb 2006
TX *BMV (Bolsa Mexicana de Valores)YesADR EACH REPR 10 ORD NPVMXMXNFeb 2006

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 Analysis2019/09/16 23:51
End of Day Share Price2019/09/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.