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

0%

TX

1.5%

US Metals and Mining

0.6%

US Market


1 Year Return

-39.2%

TX

-10.2%

US Metals and Mining

6.2%

US Market

Return vs Industry: TX underperformed the US Metals and Mining industry which returned -10.2% over the past year.

Return vs Market: TX underperformed the US Market which returned 6.2% over the past year.


Share holder returns

TXIndustryMarket
7 Day0%1.5%0.6%
30 Day-6.0%-4.1%-1.8%
90 Day-18.1%-4.9%-2.0%
1 Year-36.2%-39.2%-7.4%-10.2%8.6%6.2%
3 Year4.9%-6.7%16.3%10.1%45.7%36.3%
5 Year16.3%-5.8%-0.3%-7.8%68.5%50.0%

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

Undervalued: TX ($18.69) is trading below our estimate of fair value ($59.34)

Significantly Undervalued: TX is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: TX is good value based on its PE Ratio (2.9x) compared to the Metals and Mining industry average (12.9x).

PE vs Market: TX is good value based on its PE Ratio (2.9x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: TX's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price Based on Value of Assets

PB vs Industry: TX is good value based on its PB Ratio (0.6x) compared to the US Metals and Mining industry average (1.4x).


Next Steps

Future Growth

How is Ternium expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

-1.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: TX's earnings are forecast to decline over the next 3 years (-1.5% per year).

Earnings vs Market: TX's earnings are forecast to decline over the next 3 years (-1.5% per year).

High Growth Earnings: TX's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TX's revenue (1.3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: TX's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: TX's Return on Equity is forecast to be low in 3 years time (9.9%).


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

Earnings Trend: TX's earnings have grown significantly by 53% per year over the past 5 years.

Accelerating Growth: TX's earnings growth over the past year (26.3%) is below its 5-year average (53% per year).

Earnings vs Industry: TX earnings growth over the past year (26.3%) underperformed the Metals and Mining industry 26.6%.


Return on Equity

High ROE: TX's Return on Equity (18.4%) is considered low.


Return on Assets

ROA vs Industry: TX has a higher Return on Assets than the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: TX has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Ternium's financial position?


Financial Position Analysis

Short Term Liabilities: TX's short term assets ($4.9B) exceeds its short term liabilities ($2.1B)

Long Term Liabilities: TX's short term assets ($4.9B) exceeds its long term liabilities ($3.7B)


Debt to Equity History and Analysis

Debt Level: TX's debt to equity ratio (32.9%) is considered satisfactory

Reducing Debt: TX's debt to equity ratio has reduced from 35.8% to 32.9% over the past 5 years.

Debt Coverage: TX's debt is well covered by operating cash flow (69%).

Interest Coverage: TX's interest payments on its debt are well covered by EBIT (18.5x coverage).


Balance Sheet

Inventory Level: TX has a high level of physical assets or inventory.

Debt Coverage by Assets: TX's debt is covered by short term assets (assets are 1.931760x debt).


Next Steps

Dividend

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

6.78%

Expected Dividend Yield


Dividend Yield vs Market

company6.4%marketbottom25%1.5%markettop25%3.8%industryaverage2.4%forecastin3Years6.8%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: TX's dividend (6.42%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: TX's dividend (6.42%) is in the top 25% of dividend payers in the US market (3.77%)

Stable Dividend: TX's dividends per share have been stable 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 low payout ratio (18.5%), TX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TX's dividends in 3 years are forecast to be well covered by earnings (34.3% payout ratio).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Máximo Vedoya (48yo)

1.6yrs

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

4.2yrs

Average Tenure

53.5yo

Average Age

Experienced Management: TX's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

13.8yrs

Average Tenure

68yo

Average Age

Experienced Board: TX's board of directors are seasoned and experienced ( 13.8 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Pablo Daniel Brizzio (48yo)

    Chief Financial Officer

    • Tenure: 9.8yrs
  • Martin Berardi (61yo)

    Ternium Argentina President

    • Tenure: 1.6yrs
  • Roberto Demidchuk (57yo)

    Chief Information Officer

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

    Chief Executive Officer

    • Tenure: 1.6yrs
  • Marcelo Chara (58yo)

    Ternium Brasil President

    • Tenure: 1.6yrs
  • Héctor Zunzunegui (54yo)

    International Area President

    • Tenure: 7yrs
  • Rodrigo Piña (46yo)

    Human Resources Director

    • Tenure: 6.8yrs
  • Arturo Sporleder

    Secretary

    • Tenure: 0yrs
  • Sebastián Martí

    Investor Relations Director

    • Tenure: 14.3yrs
  • César Alejandro Jiménez (53yo)

    Ternium Mexico President

    • Tenure: 1.6yrs

Board Members

  • Paolo Rocca (66yo)

    Chairman

    • Tenure: 14.8yrs
  • Roberto Bonatti (69yo)

    Director

    • Tenure: 14.8yrs
  • Carlos Alberto Condorelli (67yo)

    Director

    • Tenure: 14.8yrs
  • Adrián Lajous Vargas (75yo)

    Independent Director

    • Tenure: 13.8yrs
  • Gianfelice Mario Rocca (71yo)

    Director

    • Tenure: 13.8yrs
  • Daniel Novegil (66yo)

    Vice Chairman of the Board

    • Tenure: 1.6yrs
  • Ubaldo José Aguirre (70yo)

    Independent Director

    • Tenure: 13.8yrs
  • Vincent Gilles Decalf (57yo)

    Independent Director

    • Tenure: 4.1yrs

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$3.669b
  • 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)YesSPONSORED ADSUSUSDFeb 2006
T5ZDB (Deutsche Boerse AG)YesSPONSORED ADSDEEURFeb 2006
TX *BMV (Bolsa Mexicana de Valores)YesSPONSORED ADSMXMXNFeb 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 Analysis2019/10/13 00:34
End of Day Share Price2019/10/11 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.

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