Bedrijfsoverzicht
Ternium S.A. is a leading manufacturer and distributor of steel products with operational presence in Mexico, the Southern Region, Brazil, and internationally, serving diverse industrial needs. The company operates within the Basic Materials sector, specifically the Steel industry, which positions it as a critical supplier of essential infrastructure and construction materials. As of the latest data, the enterprise holds a market capitalization of $8.20B and generates annual revenue of $15.61B, employing a workforce of 33,253 individuals. These financial dimensions indicate a substantial market footprint and significant operational scale, suggesting that the company commands considerable influence over the regional supply chain for slabs, heavy plates, hot and cold rolled products, and coated products.
Financiële gezondheid
Ternium S.A. reported a revenue of $15.61B over the trailing twelve months, with a corresponding net income of $425.23M and an EBITDA of $1.42B. The substantial disparity between the $15.61B revenue figure and the $425.23M net income highlights a cost structure where operating expenses, including raw material costs and labor for its 33,253 employees, consume a significant portion of top-line earnings. The company reported free cash flow of $-655,170,496, which indicates a period of cash outflow, potentially reflecting heavy capital expenditures required to maintain or expand steel production facilities. This negative cash flow suggests limited immediate financial flexibility for aggressive share buybacks or dividend increases without external financing. The gross margin stands at 15.0%, while the operating margin is 4.7% and the profit margin is 2.7%, reflecting the capital-intensive nature of the steel industry where low margins are typical due to high input costs. On the balance sheet, the company holds $3.13B in cash against $2.61B in debt, resulting in a debt-to-equity ratio of 16.14, which points to a highly leveraged position relative to equity capitalization. Despite the high leverage, the current ratio of 2.49 indicates robust short-term liquidity, meaning the company possesses sufficient current assets to cover its short-term liabilities comfortably. Return on Equity and Return on Assets both sit at 1.9%, metrics that reveal management is currently generating returns that are low relative to the capital deployed, a common challenge in cyclical commodity sectors during downturns.
Waarderingsbeoordeling
The stock trades at a trailing P/E ratio of 19.00 compared to a forward P/E of 8.06, a significant divergence that implies the market expects a substantial recovery or expansion in earnings in the coming period to justify the current price. The price-to-book ratio is 0.69, indicating that the market values the company at a discount to its book value, which often occurs in cyclical industries where future profitability is uncertain. Alternative valuation metrics show a price-to-sales ratio of 0.53 and an EV/EBITDA of 60.37, suggesting the stock is priced based on revenue multiples that may not fully reflect the high leverage present in the balance sheet. The 52-week high is $45.57 and the 52-week low is $26.44; without the current price explicitly listed in the provided facts, the relative position to this range cannot be calculated, but the wide spread demonstrates high volatility inherent in the Basic Materials sector. The beta of 1.19 indicates that the stock price is more volatile than the broader market, moving 19% more than the benchmark index during periods of market fluctuation.
Growth & Income
Revenue growth for the trailing twelve months was -2.6%, while earnings growth was significantly worse at -56.5%, revealing that earnings are shrinking at a much faster rate than revenue, likely due to declining margins or one-off costs impacting the bottom line. The company offers a dividend yield of 6.5% with a payout ratio of 122.7%, a metric that indicates the dividend is currently being paid out of capital rather than earnings, raising questions regarding long-term sustainability given the negative free cash flow and low ROE. Given the high payout ratio exceeding 100% and the negative free cash flow of $-655,170,496, the company appears to be in a phase where retaining earnings for operational stability takes precedence over increasing dividend distributions. The overall growth and income profile presents a high-yield scenario coupled with negative growth metrics, characteristic of a mature or distressed asset within the steel sector that offers income but lacks capital appreciation momentum.