OTCPK:SDDF.F

Stock Analysis Report

Executive Summary

Ternium Argentina S.A. manufactures and processes various steel products in Argentina.

Snowflake

Fundamentals

Flawless balance sheet and undervalued.

Risks

  • Ternium Argentina is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has Ternium Argentina's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.8%

OTCPK:SDDF.F

-1.1%

US Metals and Mining

0.9%

US Market


1 Year Return

n/a

OTCPK:SDDF.F

-15.3%

US Metals and Mining

0.3%

US Market

No trading data on SDDF.F.

No trading data on SDDF.F.


Share holder returns

SDDF.FIndustryMarket
7 Day3.8%-1.1%0.9%
30 Day3.8%-9.6%-1.9%
90 Dayn/a0.8%1.6%
1 Yearn/a-12.9%-15.3%2.6%0.3%
3 Yearn/a-1.8%-6.8%41.0%31.8%
5 Year-27.0%-27.0%-17.0%-23.2%55.2%38.0%

Price Volatility Vs. Market

How volatile is Ternium Argentina's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

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


Price Based on Earnings

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

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


Price Based on Expected Growth

Unable to calculate PEG ratio for Ternium Argentina, we can't assess if its growth is good value.


Price Based on Value of Assets

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


Next Steps

Future Growth

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

12.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Ternium Argentina's revenue is expected to grow significantly at over 20% yearly.

Ternium Argentina's earnings are expected to grow by 12.8% yearly, however this is not considered high growth (20% yearly).

Ternium Argentina's revenue growth is expected to exceed the United States of America market average.

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

Ternium Argentina's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Ternium Argentina will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Ternium Argentina performed over the past 5 years?

42.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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

Ternium Argentina's 1-year earnings growth exceeds its 5-year average (73.6% vs 42.7%)

Ternium Argentina's earnings growth has exceeded the US Metals and Mining industry average in the past year (73.6% vs 26.3%).


Return on Equity

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


Return on Assets

Ternium Argentina 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 Argentina's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Ternium Argentina's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

Ternium Argentina's level of debt (5.8%) 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 (18.9% vs 5.8% today).

Debt is well covered by operating cash flow (92.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.5x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 5.4x debt.


Next Steps

Dividend

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

5.08%

Current Dividend Yield


Dividend Yield and Payments Analysis

Ternium Argentina's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Ternium Argentina's dividend is above the markets top 25% of dividend payers in United States of America (3.84%).

Ternium Argentina has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Ternium Argentina only paid a dividend in the past 9 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (5.2x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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


CEO

Daniel Novegil (66yo)

0.0yrs

Tenure

0

Mr. Daniel Agustín Novegil serves as the Vice Chairman of the Board of Ternium S.A. since March 1, 2018. Mr. Novegil has been a Director of Ternium S.A. since 2005. Mr. Novegil has over 27 years experience ...


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Paolo Rocca (66yo)

    Chief Executive Officer of Techint

    • Tenure: 0.0yrs
  • Daniel Novegil (66yo)

    Chairman & CEO

    • Tenure: 0.0yrs
  • Pablo Brizzio (48yo)

    Chief Financial Officer

    • Tenure: 0.0yrs
  • Sebastián Martí

    Investor Relations Director

    • Tenure: 0.0yrs
  • Marcelo Mina

    Head of Maintenance of Secondary Metallurgy & Cranes

    • Tenure: 0.0yrs

Board Members

  • Daniel Novegil (66yo)

    Chairman & CEO

    • Tenure: 0.0yrs
  • Martin Berardi (61yo)

    Vice Chairman

    • Tenure: 0.0yrs
  • Javier A. Lorente

    Alternate Director

    • Tenure: 0.0yrs

Company Information

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


Key Information

  • Name: Ternium Argentina S.A.
  • Ticker: SDDF.F
  • Exchange: OTCPK
  • Founded:
  • Industry: Steel
  • Sector: Materials
  • Market Cap: AR$56.012b
  • Listing Market Cap: AR$1.021b
  • Shares outstanding: 4.52b
  • Website: https://ar.ternium.com

Number of Employees


Location

  • Ternium Argentina S.A.
  • Av. Savio s/n (2900)
  • San Nicolás
  • Buenos Aires
  • Capital Federal
  • Argentina

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TXARBASE (Buenos Aires Stock Exchange)YesCommon Stock Class AARARSAug 1996
SDDF.FOTCPK (Pink Sheets LLC)YesCommon Stock Class AUSUSDAug 1996

Biography

Ternium Argentina S.A. manufactures and processes various steel products in Argentina. The company offers hot and cold rolled strips, Hojalata, pipes and profiles, and electro-galvanized steel sheets. It s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 00:06
End of Day Share Price2019/08/15 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.