TERNIUM SA-SPONSORED ADR (TX)
US8808901081 - ADR
Overall TX gets a fundamental rating of 5 out of 10. We evaluated TX against 156 industry peers in the Metals & Mining industry. TX has an excellent profitability rating, but there are some minor concerns on its financial health. TX is valued quite cheap, but it does not seem to be growing. These ratings would make TX suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year TX was profitable.
TX had a positive operating cash flow in the past year.
Each year in the past 5 years TX has 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 of 0.33%. This is comparable to the rest of the industry: TX outperforms 55.13% of its industry peers.
The Return On Equity of TX (0.66%) is comparable to the rest of the industry.
TX's Return On Invested Capital of 6.93% is fine compared to the rest of the industry. TX outperforms 73.72% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TX is significantly above the industry average of 8.89%.
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
The Profit Margin of TX (0.42%) is comparable to the rest of the industry.
TX's Profit Margin has declined in the last couple of years.
TX has a better Operating Margin (9.64%) than 64.74% of its industry peers.
In the last couple of years the Operating Margin of TX has grown nicely.
TX has a Gross Margin (17.81%) which is in line with its industry peers.
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.
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.
Compared to 1 year ago, TX has a worse debt to assets ratio.
2.2 Solvency
TX has an Altman-Z score of 2.55. 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 (2.55) which is comparable to the rest of the industry.
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 better Debt to FCF ratio (7.02) than 64.10% 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/WACC0.75
WACC9.21%
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 60.90% of the companies in the same industry.
A Quick Ratio of 1.67 indicates that TX should not have too much problems paying its short term obligations.
The Quick ratio of TX (1.67) is comparable to the rest of the industry.
| 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.
The Earnings Per Share has been growing slightly by 1.82% on average over the past years.
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
The Earnings Per Share is expected to decrease by -7.18% on average over the next years.
Based on estimates for the next years, TX will show a small growth in Revenue. The Revenue will grow by 5.11% on average per year.
EPS Next Y-37.03%
EPS Next 2Y-7.3%
EPS Next 3Y-7.18%
EPS Next 5YN/A
Revenue Next Year6.52%
Revenue Next 2Y4.03%
Revenue Next 3Y3.33%
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.
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 7.24 indicates a rather cheap valuation of TX.
Based on the Price/Earnings ratio, TX is valued cheaper than 96.15% of the companies in the same industry.
TX is valuated cheaply when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
TX is valuated cheaply with a Price/Forward Earnings ratio of 3.92.
TX's Price/Forward Earnings ratio is rather cheap when compared to the industry. TX is cheaper than 99.36% 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 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.24 | ||
| Fwd PE | 3.92 |
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.
79.49% of the companies in the same industry are more expensive than TX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.6 | ||
| EV/EBITDA | 0.79 |
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 -7.18% in the coming years.
PEG (NY)N/A
PEG (5Y)3.98
EPS Next 2Y-7.3%
EPS Next 3Y-7.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.77%, TX is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.98, TX pays a better dividend. On top of this TX pays more dividend than 98.08% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.24, TX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.77% |
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-7.3%
EPS Next 3Y-7.18%
TERNIUM SA-SPONSORED ADR
NYSE:TX (12/20/2024, 8:04:00 PM)
After market: 29.1 +0.13 (+0.45%)28.97
-0.09 (-0.31%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners11.73%
Inst Owner Change1.38%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.69B
Analysts78.95
Price Target47.07 (62.48%)
Short Float %0.39%
Short Ratio4.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.77% |
Dividend Growth(5Y)N/A
DP816.42%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)-1.07%
PT rev (3m)-4.08%
EPS NQ rev (1m)-33.06%
EPS NQ rev (3m)-52.97%
EPS NY rev (1m)-3.12%
EPS NY rev (3m)-12.22%
Revenue NQ rev (1m)-0.93%
Revenue NQ rev (3m)-10.06%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.24 | ||
| Fwd PE | 3.92 | ||
| P/S | 0.3 | ||
| P/FCF | 16.6 | ||
| P/OCF | 2.44 | ||
| P/B | 0.48 | ||
| P/tB | 0.52 | ||
| EV/EBITDA | 0.79 |
EPS(TTM)4
EY13.81%
EPS(NY)7.38
Fwd EY25.48%
FCF(TTM)1.75
FCFY6.03%
OCF(TTM)11.87
OCFY40.97%
SpS95.28
BVpS60.83
TBVpS55.42
PEG (NY)N/A
PEG (5Y)3.98
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
WACC9.21%
ROIC/WACC0.75
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-7.3%
EPS Next 3Y-7.18%
EPS Next 5YN/A
Revenue 1Y (TTM)15.27%
Revenue growth 3Y26.33%
Revenue growth 5Y8.98%
Sales Q2Q%-13.6%
Revenue Next Year6.52%
Revenue Next 2Y4.03%
Revenue Next 3Y3.33%
Revenue Next 5Y5.11%
EBIT growth 1Y-46.47%
EBIT growth 3Y51.77%
EBIT growth 5Y12.48%
EBIT Next Year22.52%
EBIT Next 3Y17.82%
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%