TERNIUM SA-SPONSORED ADR (TX) Stock Fundamental Analysis
NYSE:TX - New York Stock Exchange, Inc. - US8808901081 - ADR - Currency: USD
Taking everything into account, TX scores 4 out of 10 in our fundamental rating. TX was compared to 154 industry peers in the Metals & Mining industry. Both the profitability and the financial health of TX get a neutral evaluation. Nothing too spectacular is happening here. TX has a decent growth rate and is not valued too expensively.
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.
TX had positive earnings in 4 of the past 5 years.
In the past 5 years TX always reported a positive cash flow from operatings.
1.2 Ratios
TX has a Return On Assets of -1.47%. This is comparable to the rest of the industry: TX outperforms 49.35% of its industry peers.
With a Return On Equity value of -2.88%, TX perfoms like the industry average, outperforming 48.05% of the companies in the same industry.
TX has a Return On Invested Capital of 2.84%. This is comparable to the rest of the industry: TX outperforms 55.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TX is above the industry average of 8.83%.
The last Return On Invested Capital (2.84%) for TX is well below the 3 year average (11.36%), which needs to be investigated, but indicates that TX had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.47% | ||
| ROE | -2.88% | ||
| ROIC | 2.84% |
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
The Operating Margin of TX (4.29%) is comparable to the rest of the industry.
TX's Operating Margin has declined in the last couple of years.
TX's Gross Margin of 13.78% is in line compared to the rest of the industry. TX outperforms 46.75% of its industry peers.
TX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.29% | ||
| PM (TTM) | N/A | ||
| GM | 13.78% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TX is creating some value.
The number of shares outstanding for TX remains at a similar level compared to 1 year ago.
TX has about the same amout of shares outstanding than it did 5 years ago.
TX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.33 indicates that TX is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.33, TX is in line with its industry, outperforming 51.30% of the companies in the same industry.
A Debt/Equity ratio of 0.17 indicates that TX is not too dependend on debt financing.
The Debt to Equity ratio of TX (0.17) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.33 |
ROIC/WACC0.3
WACC9.41%
2.3 Liquidity
TX has a Current Ratio of 3.00. This indicates that TX is financially healthy and has no problem in meeting its short term obligations.
TX has a Current ratio of 3.00. This is in the better half of the industry: TX outperforms 65.58% of its industry peers.
TX has a Quick Ratio of 1.75. This is a normal value and indicates that TX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.75, TX is in line with its industry, outperforming 56.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
The earnings per share for TX have decreased strongly by -78.64% in the last year.
Measured over the past 5 years, TX shows a small growth in Earnings Per Share. The EPS has been growing by 2.96% on average per year.
Looking at the last year, TX shows a very negative growth in Revenue. The Revenue has decreased by -10.45% in the last year.
Measured over the past years, TX shows a quite strong growth in Revenue. The Revenue has been growing by 11.61% on average per year.
EPS 1Y (TTM)-78.64%
EPS 3Y-44.56%
EPS 5Y2.96%
EPS Q2Q%-81.52%
Revenue 1Y (TTM)-10.45%
Revenue growth 3Y3.13%
Revenue growth 5Y11.61%
Sales Q2Q%-17.69%
3.2 Future
TX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.59% yearly.
TX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.84% yearly.
EPS Next Y23.7%
EPS Next 2Y26.54%
EPS Next 3Y23.59%
EPS Next 5YN/A
Revenue Next Year-3.27%
Revenue Next 2Y1.41%
Revenue Next 3Y2.69%
Revenue Next 5Y3.84%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.20, the valuation of TX can be described as correct.
TX's Price/Earnings ratio is rather cheap when compared to the industry. TX is cheaper than 84.42% of the companies in the same industry.
When comparing the Price/Earnings ratio of TX to the average of the S&P500 Index (25.91), we can say TX is valued slightly cheaper.
The Price/Forward Earnings ratio is 5.20, which indicates a rather cheap valuation of TX.
Based on the Price/Forward Earnings ratio, TX is valued cheaper than 95.45% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.85, TX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.2 | ||
| Fwd PE | 5.2 |
4.2 Price Multiples
TX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TX is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 1.66 |
4.3 Compensation for Growth
TX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as TX's earnings are expected to grow with 23.59% in the coming years.
PEG (NY)0.64
PEG (5Y)5.14
EPS Next 2Y26.54%
EPS Next 3Y23.59%
5. Dividend
5.1 Amount
TX has a Yearly Dividend Yield of 9.62%, which is a nice return.
TX's Dividend Yield is rather good when compared to the industry average which is at 3.00. TX pays more dividend than 98.05% of the companies in the same industry.
TX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.62% |
5.2 History
On average, the dividend of TX grows each year by 20.90%, which is quite nice.
TX has paid a dividend for at least 10 years, which is 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
The earnings of TX are negative and hence is the payout ratio. TX will probably not be able to sustain this dividend level.
The dividend of TX is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP-174.81%
EPS Next 2Y26.54%
EPS Next 3Y23.59%
27.66
-0.09 (-0.32%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners15.91%
Inst Owner Change4.69%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.43B
Analysts77
Price Target37.49 (35.54%)
Short Float %5.71%
Short Ratio4.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.62% |
Yearly Dividend0.31
Dividend Growth(5Y)20.9%
DP-174.81%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)20.27%
Min EPS beat(2)-47.84%
Max EPS beat(2)88.38%
EPS beat(4)1
Avg EPS beat(4)-21.87%
Min EPS beat(4)-109.48%
Max EPS beat(4)88.38%
EPS beat(8)4
Avg EPS beat(8)8.05%
EPS beat(12)6
Avg EPS beat(12)6.58%
EPS beat(16)9
Avg EPS beat(16)9.61%
Revenue beat(2)0
Avg Revenue beat(2)-6.24%
Min Revenue beat(2)-10.36%
Max Revenue beat(2)-2.12%
Revenue beat(4)0
Avg Revenue beat(4)-4.71%
Min Revenue beat(4)-10.36%
Max Revenue beat(4)-2.12%
Revenue beat(8)1
Avg Revenue beat(8)-0.02%
Revenue beat(12)2
Avg Revenue beat(12)-1.21%
Revenue beat(16)3
Avg Revenue beat(16)-1.52%
PT rev (1m)-6.13%
PT rev (3m)-14.86%
EPS NQ rev (1m)-14.27%
EPS NQ rev (3m)-11.44%
EPS NY rev (1m)-5.29%
EPS NY rev (3m)-23.73%
Revenue NQ rev (1m)-2.06%
Revenue NQ rev (3m)-7.42%
Revenue NY rev (1m)-1.59%
Revenue NY rev (3m)-9.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.2 | ||
| Fwd PE | 5.2 | ||
| P/S | 0.32 | ||
| P/FCF | N/A | ||
| P/OCF | 3.32 | ||
| P/B | 0.45 | ||
| P/tB | 0.49 | ||
| EV/EBITDA | 1.66 |
EPS(TTM)1.82
EY6.58%
EPS(NY)5.32
Fwd EY19.22%
FCF(TTM)-1.51
FCFYN/A
OCF(TTM)8.34
OCFY30.16%
SpS85.6
BVpS61.68
TBVpS56.49
PEG (NY)0.64
PEG (5Y)5.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.47% | ||
| ROE | -2.88% | ||
| ROCE | 3.6% | ||
| ROIC | 2.84% | ||
| ROICexc | 3.5% | ||
| ROICexgc | 3.73% | ||
| OM | 4.29% | ||
| PM (TTM) | N/A | ||
| GM | 13.78% | ||
| 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-Score2
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.36 | ||
| Cap/Depr | 255.99% | ||
| Cap/Sales | 11.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 110.97% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3 | ||
| Quick Ratio | 1.75 | ||
| Altman-Z | 2.33 |
F-Score2
WACC9.41%
ROIC/WACC0.3
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)-78.64%
EPS 3Y-44.56%
EPS 5Y2.96%
EPS Q2Q%-81.52%
EPS Next Y23.7%
EPS Next 2Y26.54%
EPS Next 3Y23.59%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.45%
Revenue growth 3Y3.13%
Revenue growth 5Y11.61%
Sales Q2Q%-17.69%
Revenue Next Year-3.27%
Revenue Next 2Y1.41%
Revenue Next 3Y2.69%
Revenue Next 5Y3.84%
EBIT growth 1Y-82.94%
EBIT growth 3Y-38.51%
EBIT growth 5Y7.3%
EBIT Next Year55.18%
EBIT Next 3Y27.21%
EBIT Next 5Y18.89%
FCF growth 1Y-114.67%
FCF growth 3Y-73.36%
FCF growth 5Y-41.52%
OCF growth 1Y-38.73%
OCF growth 3Y-10.71%
OCF growth 5Y2.96%