TERNIUM SA-SPONSORED ADR (TX) Stock Fundamental Analysis
USA - NYSE:TX - US8808901081 - ADR
34.73 USD
+0.21 (+0.61%)
34.73 USD
0 (0%)
Overall TX gets a fundamental rating of 5 out of 10. We evaluated TX against 156 industry peers in the Metals & Mining industry. TX has an average financial health and profitability rating. TX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TX was profitable.
In the past year TX had a positive cash flow from operations.
Of the past 5 years TX 4 years were profitable.
Each year in the past 5 years TX had a positive operating cash flow.
1.2 Ratios
TX's Return On Assets of 2.49% is fine compared to the rest of the industry. TX outperforms 66.03% of its industry peers.
Looking at the Return On Equity, with a value of 4.96%, TX is in the better half of the industry, outperforming 67.95% of the companies in the same industry.
TX has a Return On Invested Capital (2.16%) which is in line with its industry peers.
TX had an Average Return On Invested Capital over the past 3 years of 11.36%. This is in line with the industry average of 12.87%.
The 3 year average ROIC (11.36%) for TX is well above the current ROIC(2.16%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 4.96% | ||
| ROIC | 2.16% |
ROA(3y)4.22%
ROA(5y)8.22%
ROE(3y)6.64%
ROE(5y)13.38%
ROIC(3y)11.36%
ROIC(5y)14.36%
1.3 Margins
Looking at the Profit Margin, with a value of 3.66%, TX is in the better half of the industry, outperforming 67.31% of the companies in the same industry.
The Operating Margin of TX (3.38%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TX has declined.
TX's Gross Margin of 13.36% is in line compared to the rest of the industry. TX outperforms 49.36% of its industry peers.
TX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.38% | ||
| PM (TTM) | 3.66% | ||
| GM | 13.36% |
OM growth 3Y-40.37%
OM growth 5Y-3.86%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-24.81%
GM growth 5Y-0.84%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TX is still creating some value.
TX has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, TX has about the same amount of shares outstanding.
Compared to 1 year ago, TX has a worse debt to assets ratio.
2.2 Solvency
TX has an Altman-Z score of 2.27. This is not the best score and indicates that TX is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.27, TX is doing worse than 60.90% of the companies in the same industry.
A Debt/Equity ratio of 0.16 indicates that TX is not too dependend on debt financing.
The Debt to Equity ratio of TX (0.16) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.27 |
ROIC/WACC0.25
WACC8.82%
2.3 Liquidity
TX has a Current Ratio of 2.68. This indicates that TX is financially healthy and has no problem in meeting its short term obligations.
TX's Current ratio of 2.68 is in line compared to the rest of the industry. TX outperforms 56.41% of its industry peers.
A Quick Ratio of 1.58 indicates that TX should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.58, TX is in line with its industry, outperforming 51.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
TX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.95%.
The Earnings Per Share has been growing slightly by 2.96% on average over the past years.
TX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.34%.
The Revenue has been growing by 11.61% on average over the past years. This is quite good.
EPS 1Y (TTM)-41.95%
EPS 3Y-44.56%
EPS 5Y2.96%
EPS Q2Q%1100%
Revenue 1Y (TTM)-16.34%
Revenue growth 3Y3.13%
Revenue growth 5Y11.61%
Sales Q2Q%-12.56%
3.2 Future
TX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.88% yearly.
Based on estimates for the next years, TX will show a small growth in Revenue. The Revenue will grow by 2.27% on average per year.
EPS Next Y5.01%
EPS Next 2Y15.63%
EPS Next 3Y15.88%
EPS Next 5YN/A
Revenue Next Year-3.67%
Revenue Next 2Y1.03%
Revenue Next 3Y2.06%
Revenue Next 5Y2.27%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.46, which indicates a very decent valuation of TX.
Based on the Price/Earnings ratio, TX is valued cheaply inside the industry as 95.51% of the companies are valued more expensively.
TX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.76.
TX is valuated cheaply with a Price/Forward Earnings ratio of 7.82.
TX's Price/Forward Earnings ratio is rather cheap when compared to the industry. TX is cheaper than 93.59% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.18. TX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.46 | ||
| Fwd PE | 7.82 |
4.2 Price Multiples
TX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TX is cheaper than 98.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TX does not grow enough to justify the current Price/Earnings ratio.
TX's earnings are expected to grow with 15.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.29
PEG (5Y)3.88
EPS Next 2Y15.63%
EPS Next 3Y15.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.06%, TX is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.48, TX pays a better dividend. On top of this TX pays more dividend than 97.44% of the companies listed in the same industry.
TX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.06% |
5.2 History
The dividend of TX is nicely growing with an annual growth rate of 20.90%!
TX has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of TX decreased in the last 3 years.
Dividend Growth(5Y)20.9%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
TX pays out 89.09% of its income as dividend. This is not a sustainable payout ratio.
TX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP89.09%
EPS Next 2Y15.63%
EPS Next 3Y15.88%
34.73
+0.21 (+0.61%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners16%
Inst Owner Change2.62%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap6.82B
Analysts75
Price Target35.14 (1.18%)
Short Float %6.32%
Short Ratio6.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.06% |
Yearly Dividend0.31
Dividend Growth(5Y)20.9%
DP89.09%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-8.36%
Min EPS beat(2)-47.84%
Max EPS beat(2)31.12%
EPS beat(4)2
Avg EPS beat(4)13.28%
Min EPS beat(4)-47.84%
Max EPS beat(4)88.38%
EPS beat(8)4
Avg EPS beat(8)4.54%
EPS beat(12)6
Avg EPS beat(12)8.32%
EPS beat(16)9
Avg EPS beat(16)8.5%
Revenue beat(2)0
Avg Revenue beat(2)-3.92%
Min Revenue beat(2)-5.73%
Max Revenue beat(2)-2.12%
Revenue beat(4)0
Avg Revenue beat(4)-5.1%
Min Revenue beat(4)-10.36%
Max Revenue beat(4)-2.12%
Revenue beat(8)1
Avg Revenue beat(8)0.35%
Revenue beat(12)2
Avg Revenue beat(12)-1.5%
Revenue beat(16)2
Avg Revenue beat(16)-2.04%
PT rev (1m)0.8%
PT rev (3m)-5.47%
EPS NQ rev (1m)-5.74%
EPS NQ rev (3m)-27.07%
EPS NY rev (1m)-2.59%
EPS NY rev (3m)-13.32%
Revenue NQ rev (1m)0.54%
Revenue NQ rev (3m)-4.83%
Revenue NY rev (1m)-1.53%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.46 | ||
| Fwd PE | 7.82 | ||
| P/S | 0.42 | ||
| P/FCF | N/A | ||
| P/OCF | 3.37 | ||
| P/B | 0.57 | ||
| P/tB | 0.62 | ||
| EV/EBITDA | 3.42 |
EPS(TTM)3.03
EY8.72%
EPS(NY)4.44
Fwd EY12.78%
FCF(TTM)-1.58
FCFYN/A
OCF(TTM)10.31
OCFY29.7%
SpS82.71
BVpS61.15
TBVpS55.93
PEG (NY)2.29
PEG (5Y)3.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 4.96% | ||
| ROCE | 2.74% | ||
| ROIC | 2.16% | ||
| ROICexc | 2.6% | ||
| ROICexgc | 2.77% | ||
| OM | 3.38% | ||
| PM (TTM) | 3.66% | ||
| GM | 13.36% | ||
| FCFM | N/A |
ROA(3y)4.22%
ROA(5y)8.22%
ROE(3y)6.64%
ROE(5y)13.38%
ROIC(3y)11.36%
ROIC(5y)14.36%
ROICexc(3y)14.17%
ROICexc(5y)17.63%
ROICexgc(3y)15.22%
ROICexgc(5y)19.09%
ROCE(3y)14.37%
ROCE(5y)18.18%
ROICexcg growth 3Y-44.83%
ROICexcg growth 5Y-1.31%
ROICexc growth 3Y-44.56%
ROICexc growth 5Y-0.79%
OM growth 3Y-40.37%
OM growth 5Y-3.86%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-24.81%
GM growth 5Y-0.84%
F-Score4
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 310.04% | ||
| Cap/Sales | 14.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 155.52% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 2.27 |
F-Score4
WACC8.82%
ROIC/WACC0.25
Cap/Depr(3y)189.19%
Cap/Depr(5y)148.96%
Cap/Sales(3y)7.47%
Cap/Sales(5y)6.41%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-41.95%
EPS 3Y-44.56%
EPS 5Y2.96%
EPS Q2Q%1100%
EPS Next Y5.01%
EPS Next 2Y15.63%
EPS Next 3Y15.88%
EPS Next 5YN/A
Revenue 1Y (TTM)-16.34%
Revenue growth 3Y3.13%
Revenue growth 5Y11.61%
Sales Q2Q%-12.56%
Revenue Next Year-3.67%
Revenue Next 2Y1.03%
Revenue Next 3Y2.06%
Revenue Next 5Y2.27%
EBIT growth 1Y-85.78%
EBIT growth 3Y-38.51%
EBIT growth 5Y7.3%
EBIT Next Year30.95%
EBIT Next 3Y22.34%
EBIT Next 5Y16.43%
FCF growth 1Y-115.21%
FCF growth 3Y-73.36%
FCF growth 5Y-41.52%
OCF growth 1Y-25.72%
OCF growth 3Y-10.71%
OCF growth 5Y2.96%