TERNIUM SA-SPONSORED ADR (TX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TX - US8808901081 - ADR
38.19 USD
+0.01 (+0.03%)
38.19 USD
0 (0%)
TX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 156 industry peers in the Metals & Mining industry. TX has only an average score on both its financial health and profitability. TX has a correct valuation and a medium 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.
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
TX has a Return On Assets of 2.49%. This is in the better half of the industry: TX outperforms 64.10% of its industry peers.
TX has a better Return On Equity (4.88%) than 65.38% of its industry peers.
The Return On Invested Capital of TX (2.39%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for TX is in line with the industry average of 13.25%.
The 3 year average ROIC (11.36%) for TX is well above the current ROIC(2.39%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 4.88% | ||
| ROIC | 2.39% |
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's Profit Margin of 3.72% is fine compared to the rest of the industry. TX outperforms 65.38% of its industry peers.
Looking at the Operating Margin, with a value of 3.75%, TX is in line with its industry, outperforming 54.49% of the companies in the same industry.
TX's Operating Margin has declined in the last couple of years.
TX has a Gross Margin of 14.00%. This is comparable to the rest of the industry: TX outperforms 45.51% of its industry peers.
TX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.75% | ||
| PM (TTM) | 3.72% | ||
| GM | 14% |
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.
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.
The debt/assets ratio for TX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.31 indicates that TX is not a great score, but indicates only limited risk for bankruptcy at the moment.
TX's Altman-Z score of 2.31 is on the low side compared to the rest of the industry. TX is outperformed by 62.82% of its industry peers.
TX has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
TX has a Debt to Equity ratio of 0.14. This is comparable to the rest of the industry: TX outperforms 57.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.31 |
ROIC/WACC0.26
WACC9.19%
2.3 Liquidity
A Current Ratio of 2.46 indicates that TX has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.46, TX is in line with its industry, outperforming 51.92% of the companies in the same industry.
TX has a Quick Ratio of 1.42. This is a normal value and indicates that TX is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of TX (1.42) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
TX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.75%.
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.
TX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.00%.
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)-25.75%
EPS 3Y-44.56%
EPS 5Y2.96%
EPS Q2Q%-37.5%
Revenue 1Y (TTM)-16%
Revenue growth 3Y3.13%
Revenue growth 5Y11.61%
Sales Q2Q%-11.72%
3.2 Future
The Earnings Per Share is expected to grow by 21.36% on average over the next years. This is a very strong growth
TX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.65% yearly.
EPS Next Y-9.08%
EPS Next 2Y20.35%
EPS Next 3Y21.36%
EPS Next 5YN/A
Revenue Next Year-5.84%
Revenue Next 2Y0.51%
Revenue Next 3Y2.06%
Revenue Next 5Y2.65%
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.
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
With a Price/Earnings ratio of 12.86, TX is valued correctly.
Based on the Price/Earnings ratio, TX is valued cheaper than 96.15% of the companies in the same industry.
When comparing the Price/Earnings ratio of TX to the average of the S&P500 Index (26.51), we can say TX is valued rather cheaply.
The Price/Forward Earnings ratio is 7.94, which indicates a rather cheap valuation of TX.
Based on the Price/Forward Earnings ratio, TX is valued cheaply inside the industry as 91.03% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.13. TX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.86 | ||
| Fwd PE | 7.94 |
4.2 Price Multiples
TX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TX is cheaper than 98.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.1 |
4.3 Compensation for Growth
TX's earnings are expected to grow with 21.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)4.35
EPS Next 2Y20.35%
EPS Next 3Y21.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.25%, TX is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.98, TX pays a better dividend. On top of this TX pays more dividend than 96.79% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, TX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.25% |
5.2 History
The dividend of TX is nicely growing with an annual growth rate of 20.90%!
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
90.78% of the earnings are spent on dividend by TX. This is not a sustainable payout ratio.
The dividend of TX is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP90.78%
EPS Next 2Y20.35%
EPS Next 3Y21.36%
38.19
+0.01 (+0.03%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners16.68%
Inst Owner Change4%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap7.50B
Revenue(TTM)15.71B
Net Income(TTM)583.88M
Analysts76
Price Target38.93 (1.94%)
Short Float %3.81%
Short Ratio3.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.25% |
Yearly Dividend0.31
Dividend Growth(5Y)20.9%
DP90.78%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-28.47%
Min EPS beat(2)-88.07%
Max EPS beat(2)31.12%
EPS beat(4)2
Avg EPS beat(4)-4.1%
Min EPS beat(4)-88.07%
Max EPS beat(4)88.38%
EPS beat(8)4
Avg EPS beat(8)-4.79%
EPS beat(12)6
Avg EPS beat(12)5.85%
EPS beat(16)8
Avg EPS beat(16)2.3%
Revenue beat(2)0
Avg Revenue beat(2)-5.43%
Min Revenue beat(2)-5.73%
Max Revenue beat(2)-5.13%
Revenue beat(4)0
Avg Revenue beat(4)-5.84%
Min Revenue beat(4)-10.36%
Max Revenue beat(4)-2.12%
Revenue beat(8)0
Avg Revenue beat(8)-4.38%
Revenue beat(12)1
Avg Revenue beat(12)-1.98%
Revenue beat(16)2
Avg Revenue beat(16)-2.3%
PT rev (1m)5.41%
PT rev (3m)10.77%
EPS NQ rev (1m)-8.59%
EPS NQ rev (3m)-15.04%
EPS NY rev (1m)-10.05%
EPS NY rev (3m)-13.42%
Revenue NQ rev (1m)-2.59%
Revenue NQ rev (3m)-5.61%
Revenue NY rev (1m)-0.8%
Revenue NY rev (3m)-2.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.86 | ||
| Fwd PE | 7.94 | ||
| P/S | 0.48 | ||
| P/FCF | N/A | ||
| P/OCF | 3.32 | ||
| P/B | 0.63 | ||
| P/tB | 0.68 | ||
| EV/EBITDA | 4.1 |
EPS(TTM)2.97
EY7.78%
EPS(NY)4.81
Fwd EY12.59%
FCF(TTM)-1.74
FCFYN/A
OCF(TTM)11.5
OCFY30.11%
SpS80.03
BVpS61
TBVpS55.82
PEG (NY)N/A
PEG (5Y)4.35
Graham Number63.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 4.88% | ||
| ROCE | 3.02% | ||
| ROIC | 2.39% | ||
| ROICexc | 2.78% | ||
| ROICexgc | 2.96% | ||
| OM | 3.75% | ||
| PM (TTM) | 3.72% | ||
| GM | 14% | ||
| 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%
ROICexgc growth 3Y-44.83%
ROICexgc 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-Score5
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.22 | ||
| Cap/Depr | 339.41% | ||
| Cap/Sales | 16.54% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 166.66% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 2.31 |
F-Score5
WACC9.19%
ROIC/WACC0.26
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)-25.75%
EPS 3Y-44.56%
EPS 5Y2.96%
EPS Q2Q%-37.5%
EPS Next Y-9.08%
EPS Next 2Y20.35%
EPS Next 3Y21.36%
EPS Next 5YN/A
Revenue 1Y (TTM)-16%
Revenue growth 3Y3.13%
Revenue growth 5Y11.61%
Sales Q2Q%-11.72%
Revenue Next Year-5.84%
Revenue Next 2Y0.51%
Revenue Next 3Y2.06%
Revenue Next 5Y2.65%
EBIT growth 1Y-67.33%
EBIT growth 3Y-38.51%
EBIT growth 5Y7.3%
EBIT Next Year19.15%
EBIT Next 3Y21.8%
EBIT Next 5Y13.91%
FCF growth 1Y-120.07%
FCF growth 3Y-73.36%
FCF growth 5Y-41.52%
OCF growth 1Y-14.41%
OCF growth 3Y-10.71%
OCF growth 5Y2.96%
TERNIUM SA-SPONSORED ADR / TX FAQ
Can you provide the ChartMill fundamental rating for TERNIUM SA-SPONSORED ADR?
ChartMill assigns a fundamental rating of 5 / 10 to TX.
What is the valuation status of TERNIUM SA-SPONSORED ADR (TX) stock?
ChartMill assigns a valuation rating of 6 / 10 to TERNIUM SA-SPONSORED ADR (TX). This can be considered as Fairly Valued.
How profitable is TERNIUM SA-SPONSORED ADR (TX) stock?
TERNIUM SA-SPONSORED ADR (TX) has a profitability rating of 5 / 10.
What is the financial health of TERNIUM SA-SPONSORED ADR (TX) stock?
The financial health rating of TERNIUM SA-SPONSORED ADR (TX) is 4 / 10.
Can you provide the dividend sustainability for TX stock?
The dividend rating of TERNIUM SA-SPONSORED ADR (TX) is 6 / 10 and the dividend payout ratio is 90.78%.