TERNIUM SA-SPONSORED ADR (TX) Stock Fundamental Analysis
NYSE:TX - US8808901081 - ADR
33.93 USD
-0.65 (-1.88%)
Overall TX gets a fundamental rating of 5 out of 10. We evaluated TX against 155 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year TX was profitable.
TX had a positive operating cash flow in the past year.
TX had positive earnings in 4 of the past 5 years.
TX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.49%, TX is in the better half of the industry, outperforming 65.81% of the companies in the same industry.
TX's Return On Equity of 4.96% is fine compared to the rest of the industry. TX outperforms 67.74% of its industry peers.
TX's Return On Invested Capital of 2.16% is in line compared to the rest of the industry. TX outperforms 54.84% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TX is in line with the industry average of 13.00%.
The last Return On Invested Capital (2.16%) 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 | 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
TX has a Profit Margin of 3.66%. This is in the better half of the industry: TX outperforms 67.74% of its industry peers.
TX has a Operating Margin (3.38%) which is in line with its industry peers.
TX's Operating Margin has declined in the last couple of years.
The Gross Margin of TX (13.36%) is comparable to the rest of the industry.
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
TX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
TX has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for TX remains at a similar level compared to 5 years ago.
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 in line with its industry, outperforming 46.45% of the companies in the same industry.
A Debt/Equity ratio of 0.16 indicates that TX is not too dependend on debt financing.
TX's Debt to Equity ratio of 0.16 is in line compared to the rest of the industry. TX outperforms 52.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.27 |
ROIC/WACC0.24
WACC9.09%
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 has a Current ratio (2.68) which is in line with its industry peers.
TX has a Quick Ratio of 1.58. 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 1.58, TX is in line with its industry, outperforming 52.26% 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.
Looking at the last year, TX shows a very negative growth in Revenue. The Revenue has decreased by -16.34% in the last year.
TX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.61% yearly.
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 17.70% 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 Y7.8%
EPS Next 2Y16.28%
EPS Next 3Y17.7%
EPS Next 5YN/A
Revenue Next Year-2.18%
Revenue Next 2Y1.27%
Revenue Next 3Y2.11%
Revenue Next 5Y2.27%
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
The Price/Earnings ratio is 11.20, which indicates a very decent valuation of TX.
94.19% of the companies in the same industry are more expensive than TX, based on the Price/Earnings ratio.
TX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.02.
TX is valuated cheaply with a Price/Forward Earnings ratio of 7.56.
Based on the Price/Forward Earnings ratio, TX is valued cheaper than 92.26% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.66. TX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.2 | ||
| Fwd PE | 7.56 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TX indicates a rather cheap valuation: TX is cheaper than 98.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.37 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as TX's earnings are expected to grow with 17.70% in the coming years.
PEG (NY)1.44
PEG (5Y)3.79
EPS Next 2Y16.28%
EPS Next 3Y17.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.99%, TX is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.74, TX pays a better dividend. On top of this TX pays more dividend than 96.13% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, TX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.99% |
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.
The dividend of TX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP89.09%
EPS Next 2Y16.28%
EPS Next 3Y17.7%
NYSE:TX (9/9/2025, 2:17:57 PM)
33.93
-0.65 (-1.88%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners15.88%
Inst Owner Change2.62%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap6.66B
Analysts75
Price Target35.24 (3.86%)
Short Float %6.29%
Short Ratio5.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.99% |
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)-0.16%
PT rev (3m)-6%
EPS NQ rev (1m)-1.27%
EPS NQ rev (3m)-11.14%
EPS NY rev (1m)-10.5%
EPS NY rev (3m)-12.86%
Revenue NQ rev (1m)-1.92%
Revenue NQ rev (3m)-4.37%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.2 | ||
| Fwd PE | 7.56 | ||
| P/S | 0.41 | ||
| P/FCF | N/A | ||
| P/OCF | 3.29 | ||
| P/B | 0.55 | ||
| P/tB | 0.61 | ||
| EV/EBITDA | 3.37 |
EPS(TTM)3.03
EY8.93%
EPS(NY)4.49
Fwd EY13.23%
FCF(TTM)-1.58
FCFYN/A
OCF(TTM)10.31
OCFY30.4%
SpS82.71
BVpS61.15
TBVpS55.93
PEG (NY)1.44
PEG (5Y)3.79
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
WACC9.09%
ROIC/WACC0.24
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 Y7.8%
EPS Next 2Y16.28%
EPS Next 3Y17.7%
EPS Next 5YN/A
Revenue 1Y (TTM)-16.34%
Revenue growth 3Y3.13%
Revenue growth 5Y11.61%
Sales Q2Q%-12.56%
Revenue Next Year-2.18%
Revenue Next 2Y1.27%
Revenue Next 3Y2.11%
Revenue Next 5Y2.27%
EBIT growth 1Y-85.78%
EBIT growth 3Y-38.51%
EBIT growth 5Y7.3%
EBIT Next Year34.87%
EBIT Next 3Y22.4%
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%