TERNIUM SA-SPONSORED ADR (TX) Stock Fundamental Analysis
NYSE:TX - New York Stock Exchange, Inc. - US8808901081 - ADR
TX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 154 industry peers in the Metals & Mining industry. While TX has a great profitability rating, 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.
In the past 5 years TX has always been profitable.
TX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TX has a Return On Assets (0.33%) which is comparable to the rest of the industry.
TX has a Return On Equity (0.66%) which is comparable to the rest of the industry.
The Return On Invested Capital of TX (6.93%) is better than 74.15% of its industry peers.
TX had an Average Return On Invested Capital over the past 3 years of 19.08%. This is significantly above the industry average of 8.76%.
The 3 year average ROIC (19.08%) for TX is well above the current ROIC(6.93%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.33% | ||
| ROE | 0.66% | ||
| ROIC | 6.93% |
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
TX has a Profit Margin of 0.42%. This is comparable to the rest of the industry: TX outperforms 57.82% of its industry peers.
TX's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 9.64%, TX is in the better half of the industry, outperforming 64.63% of the companies in the same industry.
In the last couple of years the Operating Margin of TX has grown nicely.
Looking at the Gross Margin, with a value of 17.81%, TX is in line with its industry, outperforming 54.42% of the companies in the same industry.
TX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.64% | ||
| PM (TTM) | 0.42% | ||
| GM | 17.81% |
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.
The debt/assets ratio for TX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.55 indicates that TX is not a great score, but indicates only limited risk for bankruptcy at the moment.
TX's Altman-Z score of 2.55 is in line compared to the rest of the industry. TX outperforms 50.34% of its industry peers.
The Debt to FCF ratio of TX is 7.02, which is on the high side as it means it would take TX, 7.02 years of fcf income to pay off all of its debts.
TX has a Debt to FCF ratio of 7.02. This is in the better half of the industry: TX outperforms 62.59% of its industry peers.
TX has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
TX has a Debt to Equity ratio (0.15) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 7.02 | ||
| Altman-Z | 2.55 |
ROIC/WACC0.77
WACC8.97%
2.3 Liquidity
A Current Ratio of 2.92 indicates that TX has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.92, TX is doing good in the industry, outperforming 61.22% of the companies in the same industry.
TX has a Quick Ratio of 1.67. This is a normal value and indicates that TX is financially healthy and should not expect problems in meeting its short term obligations.
TX's Quick ratio of 1.67 is in line compared to the rest of the industry. TX outperforms 56.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.92 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
The earnings per share for TX have decreased strongly by -40.12% 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.
Looking at the last year, TX shows a quite strong growth in Revenue. The Revenue has grown by 15.27% in the last year.
The Revenue has been growing by 8.98% on average over the past years. This is quite good.
EPS 1Y (TTM)-40.12%
EPS 3Y41.84%
EPS 5Y1.82%
EPS Q2Q%-88.41%
Revenue 1Y (TTM)15.27%
Revenue growth 3Y26.33%
Revenue growth 5Y8.98%
Sales Q2Q%-13.6%
3.2 Future
TX is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.23% yearly.
TX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.11% yearly.
EPS Next Y-37.03%
EPS Next 2Y-9.6%
EPS Next 3Y-6.23%
EPS Next 5YN/A
Revenue Next Year5.71%
Revenue Next 2Y4.22%
Revenue Next 3Y4.12%
Revenue Next 5Y5.11%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
TX is valuated cheaply with a Price/Earnings ratio of 7.13.
Based on the Price/Earnings ratio, TX is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
TX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
With a Price/Forward Earnings ratio of 4.06, the valuation of TX can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TX indicates a rather cheap valuation: TX is cheaper than 100.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of TX to the average of the S&P500 Index (24.44), we can say TX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.13 | ||
| Fwd PE | 4.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TX is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
TX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TX is cheaper than 81.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.34 | ||
| EV/EBITDA | 0.77 |
4.3 Compensation for Growth
The decent 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 -6.23% in the coming years.
PEG (NY)N/A
PEG (5Y)3.92
EPS Next 2Y-9.6%
EPS Next 3Y-6.23%
5. Dividend
5.1 Amount
TX has a Yearly Dividend Yield of 10.69%, which is a nice return.
Compared to an average industry Dividend Yield of 3.22, TX pays a better dividend. On top of this TX pays more dividend than 98.64% 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 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.69% |
5.2 History
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)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
816.42% of the earnings are spent on dividend by TX. This is not a sustainable payout ratio.
DP816.42%
EPS Next 2Y-9.6%
EPS Next 3Y-6.23%
TERNIUM SA-SPONSORED ADR
NYSE:TX (1/22/2025, 4:15:00 PM)
After market: 28.53 0 (0%)28.53
-0.24 (-0.83%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners15.36%
Inst Owner Change-0.44%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.60B
Analysts78.95
Price Target45.49 (59.45%)
Short Float %4.66%
Short Ratio4.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.69% |
Yearly Dividend0.29
Dividend Growth(5Y)N/A
DP816.42%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-84%
Min EPS beat(2)-108.56%
Max EPS beat(2)-59.44%
EPS beat(4)2
Avg EPS beat(4)-15.27%
Min EPS beat(4)-108.56%
Max EPS beat(4)91.06%
EPS beat(8)4
Avg EPS beat(8)5.93%
EPS beat(12)6
Avg EPS beat(12)1.17%
EPS beat(16)10
Avg EPS beat(16)12.25%
Revenue beat(2)0
Avg Revenue beat(2)-3.18%
Min Revenue beat(2)-4.18%
Max Revenue beat(2)-2.18%
Revenue beat(4)0
Avg Revenue beat(4)-2.93%
Min Revenue beat(4)-4.18%
Max Revenue beat(4)-2.18%
Revenue beat(8)1
Avg Revenue beat(8)-0.06%
Revenue beat(12)2
Avg Revenue beat(12)-1.12%
Revenue beat(16)5
Avg Revenue beat(16)-0.47%
PT rev (1m)-3.36%
PT rev (3m)-6.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-52.97%
EPS NY rev (1m)0%
EPS NY rev (3m)-12.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.06%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.13 | ||
| Fwd PE | 4.06 | ||
| P/S | 0.3 | ||
| P/FCF | 16.34 | ||
| P/OCF | 2.4 | ||
| P/B | 0.47 | ||
| P/tB | 0.51 | ||
| EV/EBITDA | 0.77 |
EPS(TTM)4
EY14.02%
EPS(NY)7.02
Fwd EY24.61%
FCF(TTM)1.75
FCFY6.12%
OCF(TTM)11.87
OCFY41.6%
SpS95.28
BVpS60.83
TBVpS55.42
PEG (NY)N/A
PEG (5Y)3.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.33% | ||
| ROE | 0.66% | ||
| ROCE | 9.05% | ||
| ROIC | 6.93% | ||
| ROICexc | 8.6% | ||
| ROICexgc | 9.2% | ||
| OM | 9.64% | ||
| PM (TTM) | 0.42% | ||
| GM | 17.81% | ||
| FCFM | 1.83% |
ROA(3y)11.76%
ROA(5y)9.14%
ROE(3y)18.89%
ROE(5y)15.18%
ROIC(3y)19.08%
ROIC(5y)14.13%
ROICexc(3y)23.6%
ROICexc(5y)17.14%
ROICexgc(3y)25.51%
ROICexgc(5y)18.59%
ROCE(3y)24.92%
ROCE(5y)18.46%
ROICexcg growth 3Y23.93%
ROICexcg growth 5Y1.09%
ROICexc growth 3Y25.54%
ROICexc growth 5Y1.94%
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%
F-Score4
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 7.02 | ||
| Debt/EBITDA | 0.69 | ||
| Cap/Depr | 266.62% | ||
| Cap/Sales | 10.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.45% | ||
| Profit Quality | 431.86% | ||
| Current Ratio | 2.92 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z | 2.55 |
F-Score4
WACC8.97%
ROIC/WACC0.77
Cap/Depr(3y)134.91%
Cap/Depr(5y)130.53%
Cap/Sales(3y)5.03%
Cap/Sales(5y)6.36%
Profit Quality(3y)111.04%
Profit Quality(5y)118.59%
High Growth Momentum
Growth
EPS 1Y (TTM)-40.12%
EPS 3Y41.84%
EPS 5Y1.82%
EPS Q2Q%-88.41%
EPS Next Y-37.03%
EPS Next 2Y-9.6%
EPS Next 3Y-6.23%
EPS Next 5YN/A
Revenue 1Y (TTM)15.27%
Revenue growth 3Y26.33%
Revenue growth 5Y8.98%
Sales Q2Q%-13.6%
Revenue Next Year5.71%
Revenue Next 2Y4.22%
Revenue Next 3Y4.12%
Revenue Next 5Y5.11%
EBIT growth 1Y-46.47%
EBIT growth 3Y51.77%
EBIT growth 5Y12.48%
EBIT Next Year13.24%
EBIT Next 3Y17.65%
EBIT Next 5Y13.11%
FCF growth 1Y-85.18%
FCF growth 3Y-4.68%
FCF growth 5Y-3.12%
OCF growth 1Y-18.41%
OCF growth 3Y12.4%
OCF growth 5Y7.54%