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
$48.64
52-week range
$35.12 - $60.21
Market cap
—
Balance sheet
Stretched
3.38x Stretched
Net debt $203.00M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Returns 8.2% on equity, ahead of 60% of its peers.
- Reward Free cash flow was positive in 3/10 years.
- Risk Operating margin compressed from 17.0% to 12.4% over 3 years.
- Risk Insider ownership is only 0.0% (peer median: 0.4%).
What this company does
Ternium S.A.
Ternium S.A. makes and sells a lot of different steel products, like metal sheets and parts for cars, mainly in Mexico and South America. The money it makes mostly comes from selling these steel products, which is important because it shows how well the company is doing at selling what it makes. They also have a small part of their business that mines iron ore, the main ingredient for making steel.
How the company got here
Ternium S.A. has a history stretching back to 1961, evolving into a major steel producer. It's part of the larger Techint Group, a global industrial conglomerate. Over the years, Ternium has grown through strategic acquisitions and expansions, particularly in Latin America, solidifying its position in the steel market. This growth has allowed it to become a significant player in supplying steel products across various industries.
What it actually does
Ternium is essentially a big manufacturer and seller of steel. Think of all the steel used in cars, buildings, appliances, and industrial machinery – Ternium makes a lot of that. They take raw materials and process them into various forms of steel, like sheets, plates, and bars, which are then sold to other businesses that use them to create finished products. They also have a smaller business that mines iron ore, a key ingredient for making steel.
Steel
This is Ternium's main business, where they produce a wide variety of steel products. These include things like slabs, which are large blocks of steel used as a starting point for other steel products, and plates, which are thick, flat pieces of steel used in construction and heavy machinery. They also make hot and cold-rolled products, which are steel sheets processed to have specific thicknesses and finishes, and coated products, which have protective layers to prevent rust. These steel products are crucial for industries like automotive, construction, and manufacturing, forming the backbone of many everyday items and infrastructure projects. This segment represents the vast majority of Ternium's revenue.
Mining
The Mining segment is a smaller part of Ternium's overall operations, focused on extracting iron ore. Iron ore is the primary raw material needed to produce steel. Ternium mines this ore and processes it into a usable form, often in the shape of pellets (small balls of iron ore). This segment primarily supplies Ternium's own steel operations, ensuring a more stable and cost-effective supply of a critical input, though they may also sell some of their mined product externally. It's a supporting business that helps control costs and supply for the larger steel segment.
What management is betting on now
Ternium's management is focused on strengthening its position in key markets, particularly in Mexico and the Southern Region of South America. They are investing in modernizing their facilities to improve efficiency and produce higher-value steel products, such as those needed for the automotive industry. A key priority is also managing costs effectively, especially given the cyclical nature of the steel industry, which can see prices fluctuate. By focusing on operational excellence and strategic market presence, they aim to navigate market changes and maintain profitability.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value — vs current price $48.64
We couldn't calculate a fair value right now.
Is it drowning in debt?
Stretched
Net debt $203.0M. Interest coverage 3.4x.
Net debt
$203.00M
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 $3.32B Interest coverage 3.38x This is the baseline the peer rows are being compared against.
Total debt $2.82B Interest coverage 4.14x +23% vs TX Carries about 1.2x more debt cushion than TX.
Total debt $7.66B Interest coverage -2.45x -100% vs TX This peer has almost no interest-payment cushion compared with TX.
Total debt $3.61B Interest coverage 6.07x +80% vs TX Carries about 1.8x more debt cushion than TX.
Total debt $23.47B 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
2 Risks
Rewards
-
Returns 8.2% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 3/10 years.
-
Trades at 9.7x P/E vs peer median 15.5x (37.1% cheaper).
Risks
-
Operating margin compressed from 17.0% to 12.4% over 3 years.
-
Insider ownership is only 0.0% (peer median: 0.4%).
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)
9.73x
Forward P/E
6.36x
P/B
0.76x
P/S
—
EV/EBITDA
6.35x
PEG ratio
0.13x
Profitability
How much profit each dollar creates
Gross margin
19.5%
Operating margin
12.4%
Net margin
5.7%
ROE
8.2%
ROA
4.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.19x
Current ratio
2.56x
Quick ratio
1.45x
Total debt
$3.32B
Total cash
$3.12B
Growth
How the business has been compounding
Revenue TTM
$16.69B
Revenue 5Y CAGR
-1.7%
EPS TTM
5.00
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
-1.1%
Dividend
Shareholder payout
Yield
3.5%
Payout ratio
44.0%
Last ex-div date
2026-05-14