Ternium SA
NYSE:TX
Intrinsic Value
Ternium SA engages in the manufacturing and trade of steel products. [ Read More ]
The intrinsic value of one TX stock under the Base Case scenario is 54.32 USD. Compared to the current market price of 41.62 USD, Ternium SA is Undervalued by 23%.
Valuation Backtest
Ternium SA
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Fundamental Analysis
Ternium Q4 Performance and Dividend Payout
2023-Q4 Earnings Call
In Q4 2023, Ternium's adjusted EBITDA fell 7% quarter-over-quarter to $651 million, marked by weaker steel prices but offset by cost reductions. Profitability was impacted by integrating Usiminas operations and the ramp-up of the Ipatinga facility. Despite lower margins, net income and per ADS earnings rose due to noncash gains and foreign exchange benefits. Shipments remained robust in Mexico, contributing to an annual increase of 22%. A dividend of $3.30 per ADS has been proposed, with $2.20 still to be distributed. Ternium anticipates higher CapEx of $1.8 billion for 2024, maintaining a solid cash flow and free cash flow.
Balance Sheet Decomposition
Ternium SA
Current Assets | 12B |
Cash & Short-Term Investments | 3.8B |
Receivables | 3.2B |
Other Current Assets | 5B |
Non-Current Assets | 12.2B |
Long-Term Investments | 728m |
PP&E | 7.6B |
Intangibles | 996m |
Other Non-Current Assets | 2.8B |
Current Liabilities | 3.8B |
Accounts Payable | 2.2B |
Other Current Liabilities | 1.6B |
Non-Current Liabilities | 8B |
Long-Term Debt | 1.4B |
Other Non-Current Liabilities | 6.6B |
Earnings Waterfall
Ternium SA
Revenue
|
17.6B
USD
|
Cost of Revenue
|
-14.1B
USD
|
Gross Profit
|
3.6B
USD
|
Operating Expenses
|
-1.4B
USD
|
Operating Income
|
2.2B
USD
|
Other Expenses
|
-1.5B
USD
|
Net Income
|
676m
USD
|
Free Cash Flow Analysis
Ternium SA
What is Free Cash Flow?
TX Profitability Score
Profitability Due Diligence
Ternium SA's profitability score is 58/100. The higher the profitability score, the more profitable the company is.
Score
Ternium SA's profitability score is 58/100. The higher the profitability score, the more profitable the company is.
TX Solvency Score
Solvency Due Diligence
Ternium SA's solvency score is 64/100. The higher the solvency score, the more solvent the company is.
Score
Ternium SA's solvency score is 64/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
TX Price Targets Summary
Ternium SA
According to Wall Street analysts, the average 1-year price target for TX is 50.08 USD with a low forecast of 45.45 USD and a high forecast of 55.65 USD.
Shareholder Return
TX Price
Ternium SA
Average Annual Return | 16.01% |
Standard Deviation of Annual Returns | 43.22% |
Max Drawdown | -64% |
Market Capitalization | 8.2B USD |
Shares Outstanding | 196 307 678 |
Percentage of Shares Shorted | 0.21% |
Company Profile
Country
Industry
Market Cap
Dividend Yield
Description
Ternium SA engages in the manufacturing and trade of steel products. The firm produces finished and semi-finished steel products and iron ore, which are sold either directly to steel manufacturers, steel processors or end users. The firm operates through two segments: Steel and Mining. The Steel segment includes the sales of steel products and the Mining segment includes the sales of iron ore products, which are primarily inter-company. The Steel segment comprises three operating segments: Mexico, the Southern Region and Other Markets. In the steel segment, steel products include slabs, billets and round bars (steel in its basic, semi-finished state), hot-rolled coils and sheets, bars and stirrups, wire rods, cold-rolled coils and sheets, tin plate, hot dipped galvanized and electrogalvanized sheets and pre-painted sheets, steel pipes and tubular products, beams, roll-formed products, and other products. In the mining segment, iron ore is sold as concentrates (fines) and pellets.
Contact
IPO
Employees
Officers
The intrinsic value of one TX stock under the Base Case scenario is 54.32 USD.
Compared to the current market price of 41.62 USD, Ternium SA is Undervalued by 23%.