TERNIUM SA-SPONSORED ADR (TX) Stock Fundamental Analysis
NYSE:TX - New York Stock Exchange, Inc. - US8808901081 - ADR - Currency: USD
TX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 152 industry peers in the Metals & Mining industry. TX has only an average score on both its financial health and profitability. TX scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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 -0.23% is in line compared to the rest of the industry. TX outperforms 53.29% of its industry peers.
TX has a Return On Equity of -0.45%. This is comparable to the rest of the industry: TX outperforms 53.29% of its industry peers.
TX has a better Return On Invested Capital (5.17%) than 64.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.23% | ||
| ROE | -0.45% | ||
| ROIC | 5.17% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
TX has a Operating Margin of 7.16%. This is in the better half of the industry: TX outperforms 60.53% of its industry peers.
In the last couple of years the Operating Margin of TX has declined.
TX has a Gross Margin (16.37%) which 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 | 7.16% | ||
| PM (TTM) | N/A | ||
| GM | 16.37% |
OM growth 3Y-39.79%
OM growth 5Y-3.29%
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) below the Cost of Capital (WACC), TX is destroying value.
TX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
The Debt to FCF ratio of TX is 61.00, which is on the high side as it means it would take TX, 61.00 years of fcf income to pay off all of its debts.
TX has a Debt to FCF ratio (61.00) which is in line with its industry peers.
A Debt/Equity ratio of 0.14 indicates that TX is not too dependend on debt financing.
TX has a Debt to Equity ratio (0.14) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 61 | ||
| Altman-Z | N/A |
ROIC/WACC0.58
WACC8.9%
2.3 Liquidity
A Current Ratio of 2.88 indicates that TX has no problem at all paying its short term obligations.
The Current ratio of TX (2.88) is better than 66.45% of its industry peers.
A Quick Ratio of 1.65 indicates that TX should not have too much problems paying its short term obligations.
TX has a Quick ratio (1.65) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.88 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
TX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -61.35%.
The Earnings Per Share has been growing slightly by 2.96% on average over the past years.
TX shows a small growth in Revenue. In the last year, the Revenue has grown by 0.22%.
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)-61.35%
EPS 3Y-44.56%
EPS 5Y2.96%
EPS Q2Q%-32.23%
Revenue 1Y (TTM)0.22%
Revenue growth 3Y3.13%
Revenue growth 5Y11.61%
Sales Q2Q%-21.4%
3.2 Future
Based on estimates for the next years, TX will show a very strong growth in Earnings Per Share. The EPS will grow by 23.17% on average per year.
The Revenue is expected to grow by 3.84% on average over the next years.
EPS Next Y30.61%
EPS Next 2Y29.81%
EPS Next 3Y23.17%
EPS Next 5YN/A
Revenue Next Year-1.7%
Revenue Next 2Y2.56%
Revenue Next 3Y3.69%
Revenue Next 5Y3.84%
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
TX is valuated reasonably with a Price/Earnings ratio of 8.14.
Based on the Price/Earnings ratio, TX is valued cheaper than 98.03% of the companies in the same industry.
When comparing the Price/Earnings ratio of TX to the average of the S&P500 Index (28.29), we can say TX is valued rather cheaply.
The Price/Forward Earnings ratio is 6.23, which indicates a rather cheap valuation of TX.
97.37% of the companies in the same industry are more expensive than TX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.32. TX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.14 | ||
| Fwd PE | 6.23 |
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 100.00% of the companies listed in the same industry.
TX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 132.56 | ||
| EV/EBITDA | 0.9 |
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 23.17% in the coming years.
PEG (NY)0.27
PEG (5Y)2.75
EPS Next 2Y29.81%
EPS Next 3Y23.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.33%, TX is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.99, TX pays a better dividend. On top of this TX pays more dividend than 98.68% 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 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.33% |
5.2 History
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)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
TX has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-1137.79%
EPS Next 2Y29.81%
EPS Next 3Y23.17%
NYSE:TX (4/21/2025, 1:47:56 PM)
27.01
-0.36 (-1.32%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners15.91%
Inst Owner Change0.25%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.30B
Analysts78
Price Target39.93 (47.83%)
Short Float %4.71%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.33% |
Yearly Dividend0.29
Dividend Growth(5Y)N/A
DP-1137.79%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)34.92%
Min EPS beat(2)-18.53%
Max EPS beat(2)88.38%
EPS beat(4)2
Avg EPS beat(4)-5.95%
Min EPS beat(4)-109.48%
Max EPS beat(4)88.38%
EPS beat(8)5
Avg EPS beat(8)26.15%
EPS beat(12)7
Avg EPS beat(12)11.96%
EPS beat(16)10
Avg EPS beat(16)13.93%
Revenue beat(2)0
Avg Revenue beat(2)-6.27%
Min Revenue beat(2)-10.36%
Max Revenue beat(2)-2.18%
Revenue beat(4)0
Avg Revenue beat(4)-4.86%
Min Revenue beat(4)-10.36%
Max Revenue beat(4)-2.18%
Revenue beat(8)1
Avg Revenue beat(8)-0.23%
Revenue beat(12)2
Avg Revenue beat(12)-1.2%
Revenue beat(16)4
Avg Revenue beat(16)-1.24%
PT rev (1m)-1.99%
PT rev (3m)-12.22%
EPS NQ rev (1m)-13.65%
EPS NQ rev (3m)-54.66%
EPS NY rev (1m)-18.33%
EPS NY rev (3m)-38.23%
Revenue NQ rev (1m)-2.95%
Revenue NQ rev (3m)-13.1%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-9.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.14 | ||
| Fwd PE | 6.23 | ||
| P/S | 0.3 | ||
| P/FCF | 132.56 | ||
| P/OCF | 2.78 | ||
| P/B | 0.44 | ||
| P/tB | 0.48 | ||
| EV/EBITDA | 0.9 |
EPS(TTM)3.32
EY12.29%
EPS(NY)4.34
Fwd EY16.05%
FCF(TTM)0.2
FCFY0.75%
OCF(TTM)9.7
OCFY35.93%
SpS89.9
BVpS60.97
TBVpS55.76
PEG (NY)0.27
PEG (5Y)2.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.23% | ||
| ROE | -0.45% | ||
| ROCE | 6.55% | ||
| ROIC | 5.17% | ||
| ROICexc | 6.46% | ||
| ROICexgc | 6.92% | ||
| OM | 7.16% | ||
| PM (TTM) | N/A | ||
| GM | 16.37% | ||
| FCFM | 0.23% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-39.79%
OM growth 5Y-3.29%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-24.81%
GM growth 5Y-0.84%
F-Score3
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 61 | ||
| Debt/EBITDA | 0.86 | ||
| Cap/Depr | 251.01% | ||
| Cap/Sales | 10.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.97% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.88 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | N/A |
F-Score3
WACC8.9%
ROIC/WACC0.58
Cap/Depr(3y)189.09%
Cap/Depr(5y)148.9%
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)-61.35%
EPS 3Y-44.56%
EPS 5Y2.96%
EPS Q2Q%-32.23%
EPS Next Y30.61%
EPS Next 2Y29.81%
EPS Next 3Y23.17%
EPS Next 5YN/A
Revenue 1Y (TTM)0.22%
Revenue growth 3Y3.13%
Revenue growth 5Y11.61%
Sales Q2Q%-21.4%
Revenue Next Year-1.7%
Revenue Next 2Y2.56%
Revenue Next 3Y3.69%
Revenue Next 5Y3.84%
EBIT growth 1Y-67.66%
EBIT growth 3Y-37.9%
EBIT growth 5Y7.93%
EBIT Next Year55.18%
EBIT Next 3Y27.21%
EBIT Next 5Y18.89%
FCF growth 1Y-96.16%
FCF growth 3Y-73.52%
FCF growth 5Y-41.73%
OCF growth 1Y-23.83%
OCF growth 3Y-10.72%
OCF growth 5Y2.95%