One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Ternium S.A.
TX · NYQ · Basic Materials · Steel
Current price
$56.84
52-week range
$33.01 - $58.73
Market cap
—
Balance sheet
Stretched
3.38x Stretched
Net debt $319.26M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Returns 4.4% on equity, ahead of 60% of its peers.
- Reward Free cash flow was positive in 3/10 years.
- Risk Stock trades 42.5% above its 5-year average P/E.
- Risk Operating margin compressed from 17.0% to 12.2% over 3 years.
What this company does
Ternium S.A.
Ternium is a large steel manufacturer that sells everything from basic steel slabs to specialized parts for cars, primarily in Latin America. Because Ternium also mines its own iron ore (a key ingredient for steel), it has better control over its supply chain (the network of people and companies involved in creating and delivering a product). This control over raw materials can help the company manage costs and be a more reliable producer.
How the company got here
Ternium was officially created in 2005 by combining three existing steel companies in Mexico, Argentina, and Venezuela. A year later, it began trading on the New York Stock Exchange, making its shares available to a global pool of investors. Over the years, Ternium grew by acquiring other steel businesses in the Americas, expanding its footprint in countries like the United States, Colombia, and Brazil. A key turning point was the 2017 purchase of a major steel plant in Brazil, which significantly increased its production capabilities. More recently, the company has been increasing its ownership in Usiminas, a large Brazilian steelmaker, to strengthen its position in that key market.
What it actually does
Ternium makes and sells a wide variety of steel products that are essential ingredients for modern life. Think of the steel used to make cars, refrigerators, and washing machines, or the steel beams and panels needed for buildings and bridges. The company serves big industries like construction, automotive, home appliances, and energy. Essentially, Ternium takes raw materials like iron ore and transforms them into the finished steel that other companies use to build things we see and use every day.
Steel
This is Ternium's main business, making up the vast majority of its sales. This segment produces everything from basic steel slabs to more specialized products like coated sheets for car bodies or tin plates for food cans. Its customers are other large businesses in sectors like construction and auto manufacturing who buy this steel to create their own products. Geographically, Mexico is its largest market, contributing the biggest portion of the company's revenue (the total money earned from sales).
Mining
This is a much smaller part of Ternium's overall business. The mining segment is responsible for digging iron ore, a key raw ingredient for making steel, out of the ground. It then sells this iron ore, mostly to its own steel mills in what are called inter-company sales. This practice, known as vertical integration (when a company controls multiple stages of its production process), helps ensure a steady supply of raw materials for its primary steel-making operations.
What management is betting on now
Management is heavily investing in making its steel production cleaner by using new technologies to reduce carbon emissions. A major focus is a multi-billion dollar expansion of its facility in Pesquería, Mexico, to produce more steel for the growing automotive industry and to take advantage of 'nearshoring' (the trend of companies moving their manufacturing closer to home). The company is also working to produce more high-value-added steel, which are more advanced and specialized products that can be sold for higher prices. Finally, Ternium is investing in renewable energy, like building a wind farm in Argentina, to power its own operations more sustainably.
Price history
How the share price has moved
—
Loading price history…
Is it cheap or expensive?
Fair value — vs current price $56.84
We couldn't calculate a fair value right now.
Is it drowning in debt?
Stretched
Net debt $319.3M. Interest coverage 3.4x.
Net debt
$319.26M
Interest coverage
3.38x
Ternium S.A.'s profit covers its interest bill about 3.4 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
TX
BASELINE
Ternium S.A.
Total debt $3.05B Interest coverage 3.38x This is the baseline the peer rows are being compared against.
Total debt $2.97B Interest coverage 4.13x +22% vs TX Carries about 1.2x more debt cushion than TX.
Total debt $7.72B Interest coverage -2.45x -100% vs TX This peer has almost no interest-payment cushion compared with TX.
Total debt $3.62B Interest coverage 11.43x +239% vs TX Carries about 3.4x more debt cushion than TX.
Total debt $23.45B Interest coverage 1.71x -49% vs TX Carries about 2.0x less debt cushion than TX.
What you should know
The case for and against TX
3 Rewards
3 Risks
Rewards
-
Returns 4.4% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 3/10 years.
-
Trades at 15.8x P/E vs peer median 17.5x (10.0% cheaper).
Risks
-
Stock trades 42.5% above its 5-year average P/E.
-
Operating margin compressed from 17.0% to 12.2% over 3 years.
-
Insider ownership is only 0.0% (peer median: 0.3%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
15.79x
Forward P/E
7.43x
P/B
0.91x
P/S
—
EV/EBITDA
8.46x
PEG ratio
0.13x
Profitability
How much profit each dollar creates
Gross margin
17.7%
Operating margin
12.2%
Net margin
4.4%
ROE
4.4%
ROA
3.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.18x
Current ratio
2.58x
Quick ratio
1.42x
Total debt
$3.05B
Total cash
$2.73B
Growth
How the business has been compounding
Revenue TTM
$16.00B
Revenue 5Y CAGR
-1.7%
EPS TTM
3.60
EPS 5Y CAGR
-37.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.31B
Free CF TTM
$-187.23M
FCF margin
-1.2%
Dividend
Shareholder payout
Yield
3.8%
Payout ratio
61.1%
Last ex-div date
2026-05-14