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Ternium

NYSE:TX
Snowflake Description

Very undervalued with flawless balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TX
NYSE
$3B
Market Cap
  1. Home
  2. US
  3. Materials
Company description

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. The last earnings update was 18 days ago. More info.


Add to Portfolio Compare Print
  • Ternium has significant price volatility in the past 3 months.
TX Share Price and Events
7 Day Returns
-17%
NYSE:TX
-3.8%
US Metals and Mining
-1%
US Market
1 Year Returns
-40.4%
NYSE:TX
-15.5%
US Metals and Mining
-0.4%
US Market
TX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ternium (TX) -17% -25.9% -34.4% -40.4% -22.4% -35%
US Metals and Mining -3.8% -9.8% 0.5% -15.5% -7.8% -24%
US Market -1% -3.3% 0.8% -0.4% 30.4% 37.1%
1 Year Return vs Industry and Market
  • TX underperformed the Metals and Mining industry which returned -15.5% over the past year.
  • TX underperformed the Market in United States of America which returned -0.4% over the past year.
Price Volatility
TX
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Ternium to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Ternium.

NYSE:TX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 13 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:TX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 0.98
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.979 (1 + (1- 26.01%) (87.65%))
1.411
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.41
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.411 * 5.96%)
11.14%

Discounted Cash Flow Calculation for NYSE:TX using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Ternium is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:TX DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 11.14%)
2020 461.75 Analyst x4 415.47
2021 810.00 Analyst x4 655.76
2022 1,164.00 Analyst x1 847.89
2023 1,248.00 Analyst x1 817.95
2024 1,319.11 Est @ 5.7% 777.90
2025 1,382.53 Est @ 4.81% 733.57
2026 1,440.37 Est @ 4.18% 687.66
2027 1,494.36 Est @ 3.75% 641.92
2028 1,545.80 Est @ 3.44% 597.46
2029 1,595.71 Est @ 3.23% 554.93
Present value of next 10 years cash flows $6,730.51
NYSE:TX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $1,595.71 × (1 + 2.73%) ÷ (11.14% – 2.73%)
$19,491.33
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $19,491.33 ÷ (1 + 11.14%)10
$6,778.38
NYSE:TX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $6,730.51 + $6,778.38
$13,508.90
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $13,508.90 / 196.31
$68.81
NYSE:TX Discount to Share Price
Calculation Result
Value per share (USD) From above. $68.81
Current discount Discount to share price of $16.84
= -1 x ($16.84 - $68.81) / $68.81
75.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Ternium is available for.
Intrinsic value
>50%
Share price is $16.84 vs Future cash flow value of $68.81
Current Discount Checks
For Ternium to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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 RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Ternium's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ternium's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:TX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $6.48
NYSE:TX Share Price ** NYSE (2019-08-16) in USD $16.84
United States of America Metals and Mining Industry PE Ratio Median Figure of 46 Publicly-Listed Metals and Mining Companies 11.42x
United States of America Market PE Ratio Median Figure of 3,096 Publicly-Listed Companies 17.26x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Ternium.

NYSE:TX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:TX Share Price ÷ EPS (both in USD)

= 16.84 ÷ 6.48

2.6x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Ternium's expected growth come at a high price?
Raw Data
NYSE:TX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 2.6x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
4.6%per year
United States of America Metals and Mining Industry PEG Ratio Median Figure of 23 Publicly-Listed Metals and Mining Companies 0.38x
United States of America Market PEG Ratio Median Figure of 2,126 Publicly-Listed Companies 1.4x

*Line of best fit is calculated by linear regression .

NYSE:TX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 2.6x ÷ 4.6%

0.56x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ternium is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Ternium's assets?
Raw Data
NYSE:TX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $33.77
NYSE:TX Share Price * NYSE (2019-08-16) in USD $16.84
United States of America Metals and Mining Industry PB Ratio Median Figure of 110 Publicly-Listed Metals and Mining Companies 1.34x
United States of America Market PB Ratio Median Figure of 5,273 Publicly-Listed Companies 1.7x
NYSE:TX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:TX Share Price ÷ Book Value per Share (both in USD)

= 16.84 ÷ 33.77

0.5x

* Primary Listing of Ternium.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ternium is good value based on assets compared to the US Metals and Mining industry average.
X
Value checks
We assess Ternium's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Ternium has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ternium expected to grow at an attractive rate?
  • Ternium's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Ternium's earnings growth is positive but not above the United States of America market average.
  • Ternium's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:TX Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:TX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 4.6%
NYSE:TX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 2.4%
United States of America Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 23.3%
United States of America Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 5.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:TX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:TX Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 12,269 1,037 1
2022-12-31 11,345 856 2
2021-12-31 11,214 1,392 787 11
2020-12-31 10,836 1,419 697 13
2019-12-31 10,671 1,474 668 11
NYSE:TX Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 11,234 1,763 1,273
2019-03-31 11,443 2,030 1,386
2018-12-31 11,455 1,739 1,507
2018-09-30 11,490 1,207 1,301
2018-06-30 11,122 1,003 1,008
2018-03-31 10,422 486 964
2017-12-31 9,700 384 886
2017-09-30 8,782 630 824
2017-06-30 8,103 605 858
2017-03-31 7,644 948 763
2016-12-31 7,224 1,100 596
2016-09-30 7,184 1,135 351

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ternium's earnings are expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).
  • Ternium's revenue is expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:TX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from Ternium Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:TX Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 4.25 5.18 3.35 6.00
2020-12-31 3.56 4.88 2.41 8.00
2019-12-31 3.35 3.88 2.69 7.00
NYSE:TX Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 6.48
2019-03-31 7.06
2018-12-31 7.67
2018-09-30 6.63
2018-06-30 5.13
2018-03-31 4.91
2017-12-31 4.51
2017-09-30 4.20
2017-06-30 4.37
2017-03-31 3.88
2016-12-31 3.03
2016-09-30 1.79

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Ternium is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Ternium's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Ternium has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Ternium performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Ternium's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 26.3%).
Earnings and Revenue History
Ternium's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Ternium Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:TX Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 11,234.06 1,273.00 671.84
2019-03-31 11,443.11 1,385.53 600.00
2018-12-31 11,454.81 1,506.65 669.19
2018-09-30 11,490.00 1,301.30 720.13
2018-06-30 11,121.98 1,007.71 655.48
2018-03-31 10,422.20 963.76 658.58
2017-12-31 9,700.30 886.22 629.81
2017-09-30 8,782.37 824.40 614.19
2017-06-30 8,103.40 858.31 621.20
2017-03-31 7,643.58 762.59 592.84
2016-12-31 7,223.98 595.64 542.67
2016-09-30 7,184.34 351.05 629.70
2016-06-30 7,273.65 147.02 623.66
2016-03-31 7,406.88 34.06 616.58
2015-12-31 7,877.45 8.13 640.23
2015-09-30 8,222.08 187.33 606.24
2015-06-30 8,495.07 -368.38 622.30
2015-03-31 8,702.74 -280.29 642.54
2014-12-31 8,726.06 -198.75 683.10
2014-09-30 8,687.50 -126.18 633.42
2014-06-30 8,612.98 502.56 633.16
2014-03-31 8,543.68 476.16 628.83
2013-12-31 8,530.01 455.43 641.01
2013-09-30 8,484.95 116.05 633.32
2013-06-30 8,539.08 130.66 630.51
2013-03-31 8,561.85 129.14 621.52
2012-12-31 8,608.05 142.04 634.96
2012-09-30 8,737.66 460.54 702.28

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Ternium has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Ternium used its assets more efficiently than the US Metals and Mining industry average last year based on Return on Assets.
  • Ternium has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Ternium's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Ternium has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Ternium's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Ternium's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Ternium's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Ternium Company Filings, last reported 1 month ago.

NYSE:TX Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 7,767.86 2,555.35 806.17
2019-03-31 7,669.67 1,992.52 526.12
2018-12-31 7,484.58 2,036.96 295.07
2018-09-30 6,878.72 2,547.27 460.05
2018-06-30 6,029.75 2,785.32 327.75
2018-03-31 6,215.49 3,010.22 336.54
2017-12-31 5,852.77 3,221.91 470.82
2017-09-30 5,734.35 3,210.31 540.97
2017-06-30 5,545.35 1,538.05 331.49
2017-03-31 5,517.58 1,357.77 437.45
2016-12-31 5,166.59 1,218.89 328.32
2016-09-30 5,072.71 1,399.22 339.32
2016-06-30 4,825.61 1,527.30 382.04
2016-03-31 4,784.84 1,429.04 418.34
2015-12-31 4,803.00 1,522.19 388.68
2015-09-30 5,229.62 1,691.67 351.26
2015-06-30 5,361.72 1,933.40 432.06
2015-03-31 5,562.72 1,957.21 436.21
2014-12-31 5,634.70 2,166.16 363.30
2014-09-30 5,663.29 2,121.86 448.03
2014-06-30 6,387.69 2,288.87 338.09
2014-03-31 6,361.68 1,999.01 354.17
2013-12-31 6,338.04 2,002.82 476.72
2013-09-30 6,391.51 2,095.86 484.47
2013-06-30 6,347.69 2,231.59 493.81
2013-03-31 6,571.69 2,140.48 591.52
2012-12-31 6,434.91 2,424.63 721.06
2012-09-30 6,828.38 2,298.99 489.76
  • 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).
X
Financial health checks
We assess Ternium's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Ternium has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
7.13%
Current annual income from Ternium dividends. Estimated to be 7.44% next year.
If you bought $2,000 of Ternium shares you are expected to receive $143 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Ternium's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).
  • Ternium's dividend is above the markets top 25% of dividend payers in United States of America (3.84%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:TX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
United States of America Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 31 Stocks 2.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2010 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:TX Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 1.35 7.00
2020-12-31 1.20 8.00
2019-12-31 1.20 5.00
NYSE:TX Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-18 1.200 5.057
2019-02-20 1.200 4.144
2018-02-20 1.100 3.420
2017-05-03 1.000 3.387
2016-05-04 0.900 4.060
2015-05-29 0.900 6.104
2015-02-19 0.900 4.743
2014-05-07 0.750 3.351
2013-05-02 0.650 2.472
2012-08-01 0.750 3.591
2012-02-22 0.750 3.555
2011-02-22 0.750 2.977
2010-02-24 0.500 1.384
2009-11-05 0.000 0.000
2009-02-25 0.000 0.000
2009-02-24 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Ternium has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Ternium only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Ternium's earnings are paid to the shareholders as a dividend.
  • 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 (3.1x coverage).
X
Income/ dividend checks
We assess Ternium's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Ternium afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ternium has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Máximo Vedoya
AGE 48
TENURE AS CEO 1.4 years
CEO Bio

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. With 26 years of experience in the steel industry, he has led Ternium’s operations in Mexico since January 2012. Prior to serving in that capacity, he held several executive positions at other Ternium subsidiaries, including Chief Executive Officer of Ternium Colombia, Commercial Director and Export Manager of Sidor (Venezuela), Director of Ternium Mexico’s international and steel purchase operations, and Commercial Planning Manager of Siderar (Argentina).

CEO Compensation
  • Insufficient data for Máximo to compare compensation growth.
  • Insufficient data for Máximo to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Ternium management team in years:

4
Average Tenure
53.5
Average Age
  • The tenure for the Ternium management team is about average.
Management Team

Máximo Vedoya

TITLE
Chief Executive Officer
AGE
48
TENURE
1.4 yrs

Pablo Brizzio

TITLE
Chief Financial Officer
AGE
48
TENURE
9.6 yrs

Roberto Demidchuk

TITLE
Chief Information Officer
AGE
57

Sebastián Martí

TITLE
Investor Relations Director
TENURE
14.1 yrs

Rodrigo Piña

TITLE
Human Resources Director
AGE
46
TENURE
6.6 yrs

Martin Berardi

TITLE
Ternium Argentina President
AGE
61
TENURE
1.4 yrs

Héctor Zunzunegui

TITLE
International Area President
AGE
54
TENURE
6.8 yrs

Arturo Sporleder

TITLE
Secretary

César Alejandro Jiménez

TITLE
Ternium Mexico President
AGE
53
TENURE
1.4 yrs

Marcelo Chara

TITLE
Ternium Brasil President
AGE
58
TENURE
1.4 yrs
Board of Directors Tenure

Average tenure and age of the Ternium board of directors in years:

13.6
Average Tenure
68
Average Age
  • The average tenure for the Ternium board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Paolo Rocca

TITLE
Chairman
AGE
66
TENURE
14.6 yrs

Daniel Novegil

TITLE
Vice Chairman of the Board
AGE
66
TENURE
1.4 yrs

Ubaldo Aguirre

TITLE
Independent Director
AGE
70
TENURE
13.6 yrs

Carlos Condorelli

TITLE
Director
AGE
67
TENURE
14.6 yrs

Roberto Bonatti

TITLE
Director
AGE
69
TENURE
14.6 yrs

Adrián Vargas

TITLE
Independent Director
AGE
75
TENURE
13.6 yrs

Gianfelice Rocca

TITLE
Director
AGE
71
TENURE
13.6 yrs

Vincent Gilles Decalf

TITLE
Independent Director
AGE
57
TENURE
3.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Ternium's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Ternium has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Introducing Ternium (NYSE:TX), The Stock That Dropped 39% In The Last Year

Even though the Ternium share price is down over the year, its EPS actually improved. … As well as measuring the share price return, investors should also consider the total shareholder return (TSR). … As it happens, Ternium's TSR for the last year was -36%, which exceeds the share price return mentioned earlier.

Simply Wall St -

These Fundamentals Make Ternium S.A. (NYSE:TX) Truly Worth Looking At

NYSE:TX Income Statement, July 24th 2019 TX's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. … According to my intrinsic value of the stock, which is driven by analyst consensus forecast of TX's earnings, investors now have the opportunity to buy into the stock to reap capital gains. … Dividend Income vs Capital Gains: Does TX return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends?

Simply Wall St -

Is Ternium (NYSE:TX) A Risky Investment?

What we care about is avoiding the permanent loss of capital.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. … Either way, since Ternium does have more debt than cash, it's worth keeping an eye on its balance sheet. … If, after all that, you're more interested in a fast growing company with a rock-solid balance sheet, then check out our list of net cash growth stocks without delay.

Simply Wall St -

Buy Ternium S.A. (NYSE:TX) When Everyone Panics

has fared well over time in a volatile stock market, which is why it’s my top pick to invest in. … Generally, large-cap stocks are well-resourced and well-established meaning that a bear market will cause it to rejig some short-term capital allocations, but stock market volatility is hardly detrimental to its financial health and business operations. … Therefore large-cap stocks are a safe bet to buy more of when the wider market is going down and down.

Simply Wall St -

Why Ternium S.A. (NYSE:TX) Is A Buy When Markets Go Down

The risk of investing in the stock market is a systematic crash. … This is the best time to buy stocks like Ternium S.A. … The intrinsic value infographic in our free research report helps visualize whether TX is currently mispriced by the market.

Simply Wall St -

What Can We Make Of Ternium S.A.’s (NYSE:TX) High Return On Capital?

Last but not least, we'll look at what impact its current liabilities have on its ROCE. … What is Return On Capital Employed (ROCE)? … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Ternium: 0.18 = US$2.0b ÷ (US$13b - US$2.1b) (Based on the trailing twelve months to March 2019.) Therefore, Ternium has an ROCE of 18%.

Simply Wall St -

Are You An Income Investor? Don't Miss Out On Ternium S.A. (NYSE:TX)

Unfortunately, it's common for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments. … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Ternium has grown its earnings per share at 25% per annum over the past five years. … Earnings growth generally bodes well for the future value of company dividend payments.

Simply Wall St -

Read This Before Considering Ternium S.A. (NYSE:TX) For Its Upcoming US$1.20 Dividend

(NYSE:TX) will be paying shareholders an upcoming dividend amount of US$1.20 per share. … Has it consistently paid a stable dividend without missing a payment or drastically cutting payout? … Will the company be able to keep paying dividend based on the future earnings growth

Simply Wall St -

Do You Like Ternium S.A. (NYSE:TX) At This P/E Ratio?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … That corresponds to an earnings yield of approximately 28%. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Investors Who Bought Ternium (NYSE:TX) Shares Three Years Ago Are Now Up 53%

(NYSE:TX) share price is up 53% in the last three years, clearly besting than the market return of around 40% (not including dividends). … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … Ternium was able to grow its EPS at 470% per year over three years, sending the share price higher.

Simply Wall St -

Company Info

Description

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. It operates in two segments, Steel and Mining. The Steel segment offers steel products, including slabs, billets and round bars, hot rolled flat products, merchant bars, reinforcing bars, stirrups and rods, tin plate and galvanized products, tubes, beams, insulated panels, roofing and cladding, roof tiles, steel decks, pre-engineered metal building systems, and pig iron; and sells energy. The Mining segment sells iron ore and pellets. The company also provides medical and social, and financial services. It serves various companies and small businesses operating in the automotive, home appliance, construction, capital goods, container, food, and energy, as well as heat, ventilation, and air conditioning industries. Ternium S.A. was founded in 1961 and is based in Luxembourg City, Luxembourg. Ternium S.A. is a subsidiary of Techint Holdings S.à r.l.

Details
Name: Ternium S.A.
TX
Exchange: NYSE
Founded: 1961
$3,305,821,280
196,307,677
Website: http://www.ternium.com
Address: Ternium S.A.
29, Avenue de la Porte-Neuve,
3rd Floor,
Luxembourg City,
2227,
Luxembourg
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE TX ADR EACH REPR 10 ORD NPV New York Stock Exchange US USD 01. Feb 2006
DB T5Z ADR EACH REPR 10 ORD NPV Deutsche Boerse AG DE EUR 01. Feb 2006
BMV TX * ADR EACH REPR 10 ORD NPV Bolsa Mexicana de Valores MX MXN 01. Feb 2006
Number of employees
Current staff
Staff numbers
20,660
Ternium employees.
Industry
Steel
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/18 23:59
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/08/15
Last earnings filing: 2019/07/31
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.