TERNIUM SA-SPONSORED ADR (TX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TX - US8808901081 - ADR
38.44 USD
+0.76 (+2.02%)
38.44 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TX. 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
TX had positive earnings in the past year.
TX had a positive operating cash flow in the past year.
Of the past 5 years TX 4 years were profitable.
TX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TX has a better Return On Assets (2.49%) than 63.64% of its industry peers.
With a decent Return On Equity value of 4.88%, TX is doing good in the industry, outperforming 64.94% of the companies in the same industry.
With a Return On Invested Capital value of 2.39%, TX perfoms like the industry average, outperforming 53.90% of the companies in the same industry.
TX had an Average Return On Invested Capital over the past 3 years of 11.36%. This is in line with the industry average of 13.20%.
The last Return On Invested Capital (2.39%) 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 | 4.88% | ||
| 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
The Profit Margin of TX (3.72%) is better than 66.23% of its industry peers.
TX has a Operating Margin (3.75%) which is in line with its industry peers.
TX's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 14.00%, TX is in line with its industry, outperforming 46.75% of the companies in the same industry.
In the last couple of years the Gross Margin of TX has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TX is creating some value.
Compared to 1 year ago, TX has about the same amount of shares outstanding.
Compared to 5 years ago, TX has about the same amount of shares outstanding.
The debt/assets ratio for TX is higher compared to a year ago.
2.2 Solvency
TX has an Altman-Z score of 2.30. 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.
TX has a Altman-Z score of 2.30. This is in the lower half of the industry: TX underperforms 62.99% 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 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.3 |
ROIC/WACC0.27
WACC8.99%
2.3 Liquidity
TX has a Current Ratio of 2.46. This indicates that TX is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of TX (2.46) is comparable to the rest of the industry.
A Quick Ratio of 1.42 indicates that TX should not have too much problems paying its short term obligations.
TX has a Quick ratio (1.42) which is in line with its industry peers.
| 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%.
TX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.96% yearly.
The Revenue for TX has decreased by -16.00% in the past year. This is quite bad
The Revenue has been growing by 11.61% on average over the past years. This is quite good.
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 18.43% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.65% on average over the next years.
EPS Next Y1.08%
EPS Next 2Y14.62%
EPS Next 3Y18.43%
EPS Next 5YN/A
Revenue Next Year-5.08%
Revenue Next 2Y0.77%
Revenue Next 3Y2.14%
Revenue Next 5Y2.65%
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
With a Price/Earnings ratio of 12.94, TX is valued correctly.
TX's Price/Earnings ratio is rather cheap when compared to the industry. TX is cheaper than 93.51% of the companies in the same industry.
TX is valuated cheaply when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.81, which indicates a very decent valuation of TX.
Based on the Price/Forward Earnings ratio, TX is valued cheaply inside the industry as 87.01% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.22, TX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.94 | ||
| Fwd PE | 8.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TX is valued cheaper than 98.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TX does not grow enough to justify the current Price/Earnings ratio.
TX's earnings are expected to grow with 18.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)11.95
PEG (5Y)4.38
EPS Next 2Y14.62%
EPS Next 3Y18.43%
5. Dividend
5.1 Amount
TX has a Yearly Dividend Yield of 9.85%, which is a nice return.
Compared to an average industry Dividend Yield of 2.60, TX pays a better dividend. On top of this TX pays more dividend than 98.05% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, TX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.85% |
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.
TX has decreased its dividend in the last 3 years.
Dividend Growth(5Y)20.9%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
TX pays out 90.78% of its income as dividend. This is not a sustainable payout ratio.
TX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP90.78%
EPS Next 2Y14.62%
EPS Next 3Y18.43%
38.44
+0.76 (+2.02%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners16%
Inst Owner Change3.05%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap7.55B
Revenue(TTM)15.71B
Net Income(TTM)583.88M
Analysts75
Price Target36.93 (-3.93%)
Short Float %5.34%
Short Ratio5.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.85% |
Yearly Dividend0.31
Dividend Growth(5Y)20.9%
DP90.78%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)-4.69%
EPS beat(12)6
Avg EPS beat(12)5.92%
EPS beat(16)8
Avg EPS beat(16)2.35%
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)0.93%
PT rev (3m)5.93%
EPS NQ rev (1m)-9.13%
EPS NQ rev (3m)-15.71%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-6.23%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)-4.3%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-2.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.94 | ||
| Fwd PE | 8.81 | ||
| P/S | 0.48 | ||
| P/FCF | N/A | ||
| P/OCF | 3.34 | ||
| P/B | 0.63 | ||
| P/tB | 0.69 | ||
| EV/EBITDA | 4.03 |
EPS(TTM)2.97
EY7.73%
EPS(NY)4.36
Fwd EY11.35%
FCF(TTM)-1.74
FCFYN/A
OCF(TTM)11.5
OCFY29.92%
SpS80.03
BVpS61
TBVpS55.82
PEG (NY)11.95
PEG (5Y)4.38
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 | 2.3 |
F-Score5
WACC8.99%
ROIC/WACC0.27
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 Y1.08%
EPS Next 2Y14.62%
EPS Next 3Y18.43%
EPS Next 5YN/A
Revenue 1Y (TTM)-16%
Revenue growth 3Y3.13%
Revenue growth 5Y11.61%
Sales Q2Q%-11.72%
Revenue Next Year-5.08%
Revenue Next 2Y0.77%
Revenue Next 3Y2.14%
Revenue Next 5Y2.65%
EBIT growth 1Y-67.33%
EBIT growth 3Y-38.51%
EBIT growth 5Y7.3%
EBIT Next Year30.95%
EBIT Next 3Y22.34%
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 for TX stock?
ChartMill assigns a valuation rating of 5 / 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 are the PE and PB ratios of TERNIUM SA-SPONSORED ADR (TX) stock?
The Price/Earnings (PE) ratio for TERNIUM SA-SPONSORED ADR (TX) is 12.94 and the Price/Book (PB) ratio is 0.63.
Can you provide the financial health for TX stock?
The financial health rating of TERNIUM SA-SPONSORED ADR (TX) is 4 / 10.