TERNIUM SA-SPONSORED ADR (TX)
US8808901081 - ADR
TX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 155 industry peers in the Metals & Mining industry. TX has an excellent profitability rating, but there are some minor concerns on its financial health. TX has a bad growth rate and is valued cheaply. This makes TX very considerable for value investing!
1. Profitability
1.1 Basic Checks
TX had positive earnings in the past year.
TX had a positive operating cash flow in the past year.
TX had positive earnings in each of the past 5 years.
Each year in the past 5 years TX had a positive operating cash flow.
1.2 Ratios
TX's Return On Assets of 2.80% is fine compared to the rest of the industry. TX outperforms 67.74% of its industry peers.
TX has a better Return On Equity (5.44%) than 65.81% of its industry peers.
The Return On Invested Capital of TX (14.68%) is better than 87.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TX is significantly above the industry average of 9.16%.
The last Return On Invested Capital (14.68%) for TX is well below the 3 year average (19.08%), which needs to be investigated, but indicates that TX had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.8% | ||
| ROE | 5.44% | ||
| ROIC | 14.68% |
ROA(3y)11.76%
ROA(5y)9.14%
ROE(3y)18.89%
ROE(5y)15.18%
ROIC(3y)19.08%
ROIC(5y)14.13%
1.3 Margins
The Profit Margin of TX (3.84%) is better than 67.74% of its industry peers.
In the last couple of years the Profit Margin of TX has declined.
The Operating Margin of TX (22.18%) is better than 81.29% of its industry peers.
In the last couple of years the Operating Margin of TX has grown nicely.
TX has a better Gross Margin (29.91%) than 74.84% of its industry peers.
TX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.18% | ||
| PM (TTM) | 3.84% | ||
| GM | 29.91% |
OM growth 3Y20.14%
OM growth 5Y3.21%
PM growth 3Y-24.48%
PM growth 5Y-21.83%
GM growth 3Y16.9%
GM growth 5Y2.89%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TX is creating value.
Compared to 1 year ago, TX has about the same amount of shares outstanding.
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 2.96 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 2.96, TX is in line with its industry, outperforming 59.35% of the companies in the same industry.
TX has a debt to FCF ratio of 2.29. This is a good value and a sign of high solvency as TX would need 2.29 years to pay back of all of its debts.
The Debt to FCF ratio of TX (2.29) is better than 76.77% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that TX is not too dependend on debt financing.
TX has a Debt to Equity ratio of 0.11. This is comparable to the rest of the industry: TX outperforms 54.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 2.29 | ||
| Altman-Z | 2.96 |
ROIC/WACC1.94
WACC7.57%
2.3 Liquidity
TX has a Current Ratio of 3.16. This indicates that TX is financially healthy and has no problem in meeting its short term obligations.
TX has a better Current ratio (3.16) than 62.58% of its industry peers.
A Quick Ratio of 1.86 indicates that TX should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.86, TX is in line with its industry, outperforming 58.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.16 | ||
| Quick Ratio | 1.86 |
3. Growth
3.1 Past
The earnings per share for TX have decreased by -4.56% in the last year.
TX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.82% yearly.
TX shows a small growth in Revenue. In the last year, the Revenue has grown by 7.28%.
The Revenue has been growing by 8.98% on average over the past years. This is quite good.
EPS 1Y (TTM)-4.56%
EPS 3Y41.84%
EPS 5Y1.82%
EPS growth Q2Q955%
Revenue 1Y (TTM)7.28%
Revenue growth 3Y26.33%
Revenue growth 5Y8.98%
Revenue growth Q2Q39.03%
3.2 Future
Based on estimates for the next years, TX will show a decrease in Earnings Per Share. The EPS will decrease by -6.96% on average per year.
Based on estimates for the next years, TX will show a decrease in Revenue. The Revenue will decrease by -2.10% on average per year.
EPS Next Y-11.61%
EPS Next 2Y-6.52%
EPS Next 3Y-6.96%
EPS Next 5YN/A
Revenue Next Year13.01%
Revenue Next 2Y9.01%
Revenue Next 3Y5.89%
Revenue Next 5Y-2.1%
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 decreasing.
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
TX is valuated cheaply with a Price/Earnings ratio of 4.89.
Based on the Price/Earnings ratio, TX is valued cheaply inside the industry as 97.42% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.20. TX is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 5.54, the valuation of TX can be described as very cheap.
TX's Price/Forward Earnings ratio is rather cheap when compared to the industry. TX is cheaper than 97.42% of the companies in the same industry.
TX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.89 | ||
| Fwd PE | 5.54 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than TX, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TX indicates a rather cheap valuation: TX is cheaper than 90.32% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.93 | ||
| EV/EBITDA | 1.09 |
4.3 Compensation for Growth
The excellent profitability rating of TX may justify a higher PE ratio.
A cheap valuation may be justified as TX's earnings are expected to decrease with -6.96% in the coming years.
PEG (NY)N/A
PEG (5Y)2.69
EPS Next 2Y-6.52%
EPS Next 3Y-6.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.16%, TX is a good candidate for dividend investing.
TX's Dividend Yield is rather good when compared to the industry average which is at 2.87. TX pays more dividend than 93.55% of the companies 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 | 5.16% |
5.2 History
TX has paid a dividend for at least 10 years, which is a reliable track record.
TX has decreased its dividend recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
TX pays out 84.21% of its income as dividend. This is not a sustainable payout ratio.
DP84.21%
EPS Next 2Y-6.52%
EPS Next 3Y-6.96%
TERNIUM SA-SPONSORED ADR
NYSE:TX (4/24/2024, 2:11:47 PM)
42.04
-0.58 (-1.36%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.25B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.16% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.89 | ||
| Fwd PE | 5.54 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.8% | ||
| ROE | 5.44% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.18% | ||
| PM (TTM) | 3.84% | ||
| GM | 29.91% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.16 | ||
| Quick Ratio | 1.86 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-4.56%
EPS 3Y41.84%
EPS 5Y
EPS growth Q2Q
EPS Next Y-11.61%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.28%
Revenue growth 3Y26.33%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y