TERNIUM SA-SPONSORED ADR (TX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TX - US8808901081 - ADR
38.19 USD
-0.25 (-0.65%)
38.19 USD
0 (0%)
Taking everything into account, TX scores 5 out of 10 in our fundamental rating. TX was compared to 156 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.
In the past year TX had a positive cash flow from operations.
TX had positive earnings in 4 of the past 5 years.
Each year in the past 5 years TX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TX (2.49%) is better than 63.46% of its industry peers.
TX has a Return On Equity of 4.88%. This is in the better half of the industry: TX outperforms 64.74% of its industry peers.
TX has a Return On Invested Capital (2.39%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for TX is in line with the industry average of 13.25%.
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 65.38% of its industry peers.
With a Operating Margin value of 3.75%, TX perfoms like the industry average, outperforming 54.49% of the companies in the same industry.
TX's Operating Margin has declined in the last couple of years.
TX's Gross Margin of 14.00% is in line compared to the rest of the industry. TX outperforms 45.51% of its industry peers.
TX's Gross Margin has been stable in the last couple of years.
| 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
TX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
TX has about the same amout of shares outstanding than it did 1 year ago.
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 2.31. 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.
The Altman-Z score of TX (2.31) is worse than 64.10% of 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 of 0.14. This is comparable to the rest of the industry: TX outperforms 55.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.31 |
ROIC/WACC0.26
WACC9.18%
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.
TX has a Current ratio of 2.46. This is comparable to the rest of the industry: TX outperforms 50.64% of its industry peers.
TX has a Quick Ratio of 1.42. This is a normal value and indicates that TX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.42, TX is in line with its industry, outperforming 44.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The earnings per share for TX have decreased strongly by -25.75% in the last year.
The Earnings Per Share has been growing slightly by 2.96% on average over the past years.
Looking at the last year, TX shows a very negative growth in Revenue. The Revenue has decreased by -16.00% in the last year.
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 21.36% on average over the next years. This is a very strong growth
TX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.65% yearly.
EPS Next Y-9.08%
EPS Next 2Y20.35%
EPS Next 3Y21.36%
EPS Next 5YN/A
Revenue Next Year-5.84%
Revenue Next 2Y0.51%
Revenue Next 3Y2.06%
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.
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
A Price/Earnings ratio of 12.86 indicates a correct valuation of TX.
TX's Price/Earnings ratio is rather cheap when compared to the industry. TX is cheaper than 96.15% of the companies in the same industry.
TX is valuated cheaply when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.94, the valuation of TX can be described as very cheap.
90.38% of the companies in the same industry are more expensive than TX, based on the Price/Forward Earnings ratio.
TX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.86 | ||
| Fwd PE | 7.94 |
4.2 Price Multiples
TX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TX is cheaper than 98.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.1 |
4.3 Compensation for Growth
A more expensive valuation may be justified as TX's earnings are expected to grow with 21.36% in the coming years.
PEG (NY)N/A
PEG (5Y)4.35
EPS Next 2Y20.35%
EPS Next 3Y21.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.25%, TX is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.98, TX pays a better dividend. On top of this TX pays more dividend than 96.79% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, TX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.25% |
5.2 History
On average, the dividend of TX grows each year by 20.90%, which is quite nice.
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)20.9%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
90.78% of the earnings are spent on dividend by TX. This is not a sustainable payout ratio.
TX's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP90.78%
EPS Next 2Y20.35%
EPS Next 3Y21.36%
38.19
-0.25 (-0.65%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners16.68%
Inst Owner Change4%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap7.50B
Revenue(TTM)15.71B
Net Income(TTM)583.88M
Analysts76
Price Target38.93 (1.94%)
Short Float %4.29%
Short Ratio4.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.25% |
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)-4.79%
EPS beat(12)6
Avg EPS beat(12)5.85%
EPS beat(16)8
Avg EPS beat(16)2.3%
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)5.41%
PT rev (3m)10.77%
EPS NQ rev (1m)-8.59%
EPS NQ rev (3m)-15.04%
EPS NY rev (1m)-10.05%
EPS NY rev (3m)-13.42%
Revenue NQ rev (1m)-2.59%
Revenue NQ rev (3m)-5.61%
Revenue NY rev (1m)-0.8%
Revenue NY rev (3m)-2.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.86 | ||
| Fwd PE | 7.94 | ||
| P/S | 0.48 | ||
| P/FCF | N/A | ||
| P/OCF | 3.32 | ||
| P/B | 0.63 | ||
| P/tB | 0.68 | ||
| EV/EBITDA | 4.1 |
EPS(TTM)2.97
EY7.78%
EPS(NY)4.81
Fwd EY12.59%
FCF(TTM)-1.74
FCFYN/A
OCF(TTM)11.5
OCFY30.11%
SpS80.03
BVpS61
TBVpS55.82
PEG (NY)N/A
PEG (5Y)4.35
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 | 2.31 |
F-Score5
WACC9.18%
ROIC/WACC0.26
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 Y-9.08%
EPS Next 2Y20.35%
EPS Next 3Y21.36%
EPS Next 5YN/A
Revenue 1Y (TTM)-16%
Revenue growth 3Y3.13%
Revenue growth 5Y11.61%
Sales Q2Q%-11.72%
Revenue Next Year-5.84%
Revenue Next 2Y0.51%
Revenue Next 3Y2.06%
Revenue Next 5Y2.65%
EBIT growth 1Y-67.33%
EBIT growth 3Y-38.51%
EBIT growth 5Y7.3%
EBIT Next Year19.15%
EBIT Next 3Y21.8%
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 6 / 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 12.86 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.