TX

Ternium S.A.

Fundamental data last updated:August 9, 2026

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company profile

SECTOR

Basic Materials

industry

Steel

Exchange

NYSE

County of HQ

LU

Next Earnings Date

Pending Announcement

Business Summary

Ternium S.A. manufactures, processes, and sells various steel products in Mexico, Argentina, Paraguay, Chile, Bolivia, Uruguay, Brazil, the United States, Colombia, Guatemala, Costa Rica, Honduras, El Salvador, and Nicaragua. It operates through two segments, Steel and Mining. The Steel segment offers slabs, billets and round bars, hot rolled flat products, merchant bars, reinforcing bars, stirrups and rods, tin plate and galvanized products, tubes, beams, insulated panels, roofing and cladding, roof tiles, steel decks, pre-engineered metal building systems, and pig iron products; and sells energy. The Mining segment sells iron ore and pellets. The company also provides medical and social; scrap; and engineering and other services, as well as operates as a distribution company. It serves various companies and small businesses in the construction, automotive, home appliances, agro, packaging, transport, and energy industries. The company was founded in 1961 and is based in Luxembourg City, Luxembourg. Ternium S.A. is a subsidiary of Techint Holdings S.à r.l.

 


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VALUATION

P/E

16.77

Market Cap ($M USD)

$9.56B

Forward P/E

6.29

PEG

0.04

PRICE TO SALES

0.61

PRICE TO BOOK

0.78

EV / EBITDA

6.77

5-Year Average P/E

Free Cash Flow Yield

-0.68%

DCF Value

$11.24

Graham Number

$6.37

Price to FCF

-147.78

EV to FCF

-169.31

Earnings Yield

5.96%

FCF Yield

-0.68%

DIVIDEND

Yield

4.52%

Annual Payout

$2.20

Payout Ratio

92.94%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$2.90

Next Year EPS Growth Estimate

$7.74

Next Year Revenue Growth Estimate

$20.02B

Return on Equity (ROE)

4.74%

FREE CASH FLOW

Operating Margin

5.55%

Debt-to-Equity

0.22

Piotroski F-Score

5

Altman Z-Score

2.59

Return on Invested Capital (ROIC)

4.23%

Current Ratio

2.63

Quick Ratio

1.53

Net Debt to EBITDA

0.86

Interest Coverage

4.12

Gross Profit margin

15.69%

FCF PER SHARE

$-0.33

REVENUE PER SHARE

$79.36

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Gainseekers Quantitative Analysis

Summary

Ternium S.A. appears to be a classic case of market mispricing. Despite a DCF value significantly lower than its snapshot price, the stock’s Forward P/E of 7.35 suggests a potential undervaluation relative to its earnings growth prospects. The Altman Z-score of 2.55 indicates moderate financial health, while the Earnings Yield of 6.19% reflects a reasonable return for investors. However, the Graham Number is far below the current price, hinting at overvaluation concerns. Overall, the market seems to be pricing in a rosy future, but the fundamentals suggest caution.

AI Exposure / Tech Reliance

Operating in the steel industry, Ternium S.A. is not directly at the forefront of AI or tech innovation. However, its ability to integrate modern manufacturing technologies could enhance operational efficiencies. The company's resilience will depend on its adaptability to incorporate tech-driven processes in production.

The Bull Case

For value or GARP investors, Ternium offers compelling reasons to buy. The company's ROIC of 4.23% and a Piotroski F-Score of 5 indicate decent capital efficiency and financial health. Despite a negative FCF Yield, the operating margin of 5.55% suggests some pricing power. These metrics, combined with a low Debt/Equity ratio, paint a picture of a company that can navigate economic cycles with relative stability.

The Bear Case

The bear case for Ternium is hard to ignore. The Price/Book ratio of 0.76 and Price/Sales ratio of 0.59 might seem attractive, but the negative FCF Yield and Price to FCF ratio of -142.32 highlight severe cash flow issues. Trading just 5.90% below its 52-week high, the stock appears technically overextended. With a payout ratio of 92.94%, dividend sustainability is questionable, raising red flags about future cash allocation.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$48.50

Institutional Ownership %

1-Year Beta

1.19

Insider Buying % (6 Mo)

Distance to 52-Week High

3.84%

Distance to 52-Week Low

44.33%

EARNINGS SURPRISE %

26.74%

50-DAY SMA

$42.74

200-DAY SMA

$39.06

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.