TERNIUM SA-SPONSORED ADR (TX) Stock Fundamental Analysis
NYSE:TX - New York Stock Exchange, Inc. - US8808901081 - ADR - Currency: USD
We assign a fundamental rating of 5 out of 10 to TX. TX was compared to 150 industry peers in the Metals & Mining industry. TX has only an average score on both its financial health and profitability. TX has a bad growth rate and is valued cheaply. These ratings would make TX suitable for value investing!
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.
Of the past 5 years TX 4 years had a positive operating cash flow.
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 of 0.66%. This is comparable to the rest of the industry: TX outperforms 54.55% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.93%, TX is in the better half of the industry, outperforming 74.13% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TX is significantly above the industry average of 8.84%.
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
Looking at the Profit Margin, with a value of 0.42%, TX is in line with its industry, outperforming 56.64% of the companies in the same industry.
In the last couple of years the Profit Margin of TX has declined.
With a decent Operating Margin value of 9.64%, TX is doing good in the industry, outperforming 63.64% of the companies in the same industry.
In the last couple of years the Operating Margin of TX has grown nicely.
The Gross Margin of TX (17.81%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of TX has grown nicely.
| 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
TX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
There is no outstanding debt for TX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
TX has an Altman-Z score of 2.56. 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's Altman-Z score of 2.56 is in line compared to the rest of the industry. TX outperforms 51.05% 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 65.03% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that TX is not too dependend on debt financing.
TX has a Debt to Equity ratio of 0.15. This is comparable to the rest of the industry: TX outperforms 53.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 7.02 | ||
| Altman-Z | 2.56 |
ROIC/WACC0.77
WACC8.98%
2.3 Liquidity
A Current Ratio of 2.92 indicates that TX has no problem at all paying its short term obligations.
TX has a better Current ratio (2.92) than 62.94% of its industry peers.
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 56.64% 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 -82.89% in the last year.
The earnings per share for TX have been decreasing by -12.52% on average. This is quite bad
EPS 1Y (TTM)-82.89%
EPS 3Y-57.74%
EPS 5Y-12.52%
EPS Q2Q%-119.91%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-21.4%
3.2 Future
The Earnings Per Share is expected to grow by 107.49% on average over the next years. This is a very strong growth
Based on estimates for the next years, TX will show a small growth in Revenue. The Revenue will grow by 5.27% on average per year.
EPS Next Y261.2%
EPS Next 2Y107.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.82%
Revenue Next 2Y3.29%
Revenue Next 3Y5.27%
Revenue Next 5YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.99, the valuation of TX can be described as rather expensive.
Based on the Price/Earnings ratio, TX is valued a bit cheaper than the industry average as 72.03% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.63, TX is valued a bit cheaper.
TX is valuated cheaply with a Price/Forward Earnings ratio of 5.54.
96.50% 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 22.68. TX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.99 | ||
| Fwd PE | 5.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TX is valued cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TX is valued cheaply inside the industry as 82.52% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.84 | ||
| EV/EBITDA | 0.84 |
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.
TX has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TX's earnings are expected to grow with 107.49% in the coming years.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y107.49%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.30%, TX is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.16, TX pays a better dividend. On top of this TX pays more dividend than 97.90% 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 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.3% |
5.2 History
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)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 2Y107.49%
EPS Next 3YN/A
29.39
-0.4 (-1.34%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners15.36%
Inst Owner Change-1.2%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.77B
Analysts78.95
Price Target42.95 (46.14%)
Short Float %4.46%
Short Ratio3.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.3% |
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)-64.01%
Min EPS beat(2)-109.48%
Max EPS beat(2)-18.53%
EPS beat(4)2
Avg EPS beat(4)-5.28%
Min EPS beat(4)-109.48%
Max EPS beat(4)91.06%
EPS beat(8)4
Avg EPS beat(8)10.93%
EPS beat(12)6
Avg EPS beat(12)4.5%
EPS beat(16)10
Avg EPS beat(16)14.75%
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)-3.21%
PT rev (3m)-7.47%
EPS NQ rev (1m)-5.87%
EPS NQ rev (3m)-37%
EPS NY rev (1m)-118.74%
EPS NY rev (3m)-118.16%
Revenue NQ rev (1m)-3.65%
Revenue NQ rev (3m)-4.55%
Revenue NY rev (1m)-0.91%
Revenue NY rev (3m)-1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.99 | ||
| Fwd PE | 5.54 | ||
| P/S | 0.31 | ||
| P/FCF | 16.84 | ||
| P/OCF | 2.48 | ||
| P/B | 0.48 | ||
| P/tB | 0.53 | ||
| EV/EBITDA | 0.84 |
EPS(TTM)1.47
EY5%
EPS(NY)5.31
Fwd EY18.07%
FCF(TTM)1.75
FCFY5.94%
OCF(TTM)11.87
OCFY40.39%
SpS95.28
BVpS60.83
TBVpS55.42
PEG (NY)0.08
PEG (5Y)N/A
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 | 2.56 |
F-Score4
WACC8.98%
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)-82.89%
EPS 3Y-57.74%
EPS 5Y-12.52%
EPS Q2Q%-119.91%
EPS Next Y261.2%
EPS Next 2Y107.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-21.4%
Revenue Next Year1.82%
Revenue Next 2Y3.29%
Revenue Next 3Y5.27%
Revenue Next 5YN/A
EBIT growth 1Y-46.47%
EBIT growth 3Y51.77%
EBIT growth 5Y12.48%
EBIT Next Year8.98%
EBIT Next 3Y14.99%
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%