(TX) Ternium - Overview
Sector: Basic Materials | Industry: Steel | Exchange: NYSE (USA) | Market Cap: 9.225m USD | Total Return: 75.4% in 12m
Avg Turnover: 14.0M
EPS Trend: -69.1%
Qual. Beats: 0
Rev. Trend: -31.3%
Qual. Beats: 0
Warnings
Extended 1w
Tailwinds
Confidence
Ternium S.A. is a Luxembourg-based steel producer operating primarily in Mexico, Brazil, and the Southern Region of Latin America. The company manages an integrated value chain through two distinct segments: Steel and Mining. The Steel segment manufactures a variety of finished and semi-finished products, including slabs, hot and cold rolled coils, and specialized stamped parts for the automotive sector. The Mining segment focuses on the extraction and pelletizing of iron ore to support internal production and external sales.
The steel industry is characterized by high capital intensity and cyclical demand, often serving as a proxy for industrial production and infrastructure spending. As an integrated producer, Ternium reduces its exposure to raw material price volatility by sourcing iron ore from its own mining operations. Further analysis of these operational cycles is available on ValueRay for those conducting deeper due diligence.
Founded in 1961 and operating as a subsidiary of Techint Holdings S.à r.l., the company also provides ancillary services such as scrap processing, engineering, and energy sales. Its geographic concentration in Mexico positions it as a key supplier to the North American manufacturing corridor.
- Mexico automotive production recovery drives demand for high-value galvanized steel products
- Volatility in global iron ore prices impacts integrated mining segment margins
- Nearshoring trends in North America accelerate industrial steel consumption in Mexico
- Integration of Usiminas operations determines long-term profitability in the Brazilian market
- Energy costs and carbon tax regulations affect production overhead in Latin America
| Net Income: 570.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.00 > 0.02 and ΔFCF/TA 1.00 > 1.0 |
| NWC/Revenue: 39.51% < 20% (prev 43.88%; Δ -4.37% < -1%) |
| CFO/TA 0.10 > 3% & CFO 2.32b > Net Income 570.2m |
| Net Debt (64.2m) to EBITDA (1.62b): 0.04 < 3 |
| Current Ratio: 2.63 > 1.5 & < 3 |
| Outstanding Shares: last quarter (196.3m) vs 12m ago 0.0% < -2% |
| Gross Margin: 15.69% > 18% (prev 0.14%; Δ 1.56k% > 0.5%) |
| Asset Turnover: 64.97% > 50% (prev 70.85%; Δ -5.89% > 0%) |
| Interest Coverage Ratio: 3.98 > 6 (EBITDA TTM 1.62b / Interest Expense TTM 209.8m) |
| A: 0.25 (Total Current Assets 9.93b - Total Current Liabilities 3.77b) / Total Assets 24.2b |
| B: 0.55 (Retained Earnings 13.4b / Total Assets 24.2b) |
| C: 0.03 (EBIT TTM 835.5m / Avg Total Assets 24.0b) |
| D: 1.90 (Book Value of Equity 14.7b / Total Liabilities 7.74b) |
| Altman-Z'' = 5.69 = AAA |
| DSRI: 1.04 (Receivables 2.59b/2.69b, Revenue 15.6b/16.8b) |
| GMI: 0.88 (GM 15.69% / 13.78%) |
| AQI: 0.91 (AQ_t 0.15 / AQ_t-1 0.16) |
| SGI: 0.93 (Revenue 15.6b / 16.8b) |
| TATA: -0.07 (NI 570.2m - CFO 2.32b) / TA 24.2b) |
| Beneish M = -3.28 (Cap -4..+1) = AA |
As of May 26, 2026, the stock is trading at USD 46.99 with a total of 837,100 shares traded.
Over the past week, the price has changed by +9.84%,
over one month by +12.52%,
over three months by +11.14% and
over the past year by +75.39%.
Ternium has received a consensus analysts rating of 3.62. Therefore, it is recommended to hold TX.
- StrongBuy: 2
- Buy: 5
- Hold: 5
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 47.4 | 0.8% |
P/E Trailing = 15.6633
P/E Forward = 9.1743
P/S = 0.5909
P/B = 0.7563
P/EG = 0.1283
Revenue TTM = 15.6b USD
EBIT TTM = 835.5m USD
EBITDA TTM = 1.62b USD
Long Term Debt = 2.20b USD (from longTermDebt, last quarter)
Short Term Debt = 665.0m USD (from shortTermDebt, last quarter)
Debt = 3.21b USD (from shortLongTermDebtTotal, last quarter) + Leases 195.8m
Net Debt = 64.2m USD (calculated: Debt 3.21b - CCE 3.14b)
Enterprise Value = 9.29b USD (9.22b + Debt 3.21b - CCE 3.14b)
Interest Coverage Ratio = 3.98 (Ebit TTM 835.5m / Interest Expense TTM 209.8m)
EV/FCF = -143.5x (Enterprise Value 9.29b / FCF TTM -64.7m)
FCF Yield = -0.70% (FCF TTM -64.7m / Enterprise Value 9.29b)
FCF Margin = -0.42% (FCF TTM -64.7m / Revenue TTM 15.6b)
Net Margin = 3.66% (Net Income TTM 570.2m / Revenue TTM 15.6b)
Gross Margin = 15.69% ((Revenue TTM 15.6b - Cost of Revenue TTM 13.1b) / Revenue TTM)
Gross Margin QoQ = 17.46% (prev 14.41%)
Tobins Q-Ratio = 0.38 (Enterprise Value 9.29b / Total Assets 24.2b)
Interest Expense / Debt = 6.54% (Interest Expense 209.8m / Debt 3.21b)
Taxrate = 21.0% (US default 21%)
NOPAT = 660.0m (EBIT 835.5m * (1 - 21.00%))
Current Ratio = 2.63 (Total Current Assets 9.93b / Total Current Liabilities 3.77b)
Debt / Equity = 0.26 (Debt 3.21b / totalStockholderEquity, last quarter 12.2b)
Debt / EBITDA = 0.04 (Net Debt 64.2m / EBITDA 1.62b)
Debt / FCF = -0.99 (negative FCF - burning cash) (Net Debt 64.2m / FCF TTM -64.7m)
Total Stockholder Equity = 12.0b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.38% (Net Income 570.2m / Total Assets 24.2b)
RoE = 4.74% (Net Income TTM 570.2m / Total Stockholder Equity 12.0b)
RoCE = 5.87% (EBIT 835.5m / Capital Employed (Equity 12.0b + L.T.Debt 2.20b))
RoIC = 3.13% (NOPAT 660.0m / Invested Capital 21.1b)
WACC = 7.63% (E(9.22b)/V(12.4b) * Re(8.48%) + D(3.21b)/V(12.4b) * Rd(6.54%) * (1-Tc(0.21)))
Discount Rate = 8.48% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 0.0 | Cagr: 0.0%
[DCF] Fair Price = unknown (Cash Flow -64.7m)
EPS Correlation: -69.14 | EPS CAGR: -48.23% | SUE: -0.35 | # QB: 0
Revenue Correlation: -31.31 | Revenue CAGR: -2.87% | SUE: -0.16 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.18 | Chg30d=+10.81% | Revisions=+0% | Analysts=2
EPS next Quarter (2026-09-30): EPS=1.15 | Chg30d=+15.30% | Revisions=+20% | Analysts=2
EPS current Year (2026-12-31): EPS=4.50 | Chg30d=+19.06% | Revisions=+0% | GrowthEPS=+27.8% | GrowthRev=+7.7%
EPS next Year (2027-12-31): EPS=5.02 | Chg30d=-3.32% | Revisions=+0% | GrowthEPS=+11.6% | GrowthRev=+5.6%
[Analyst] Revisions Ratio: +20%